WAEMU states collectively raised nearly 7,000 billion CFA francs in the first half of 2025, a record amount driven by increased financing needs, the return of long-term bonds, and an improved macroeconomic environment.

West African Economic and Monetary Union (WAEMU) member states raised 6,993.75 billion CFA francs, or $12.5 billion, on the regional public securities market during the first half of 2025. This volume represents an 84.3 percent increase compared to the same period last year, according to data from UMOA-Titres, the agency in charge of facilitating the issuance of public securities in the region.

This growth is largely driven by a strong rebound in Treasury bond, or OAT, issuances, which surged by 154.9 percent year-on-year. These long-term instruments now account for nearly half of the resources raised. This marks a shift from 2024, when severe liquidity constraints in the regional market forced states to focus on very short-term maturities. Treasury bills, or BAT, which are short-term instruments, also rose by 47.5 percent during the period.

At the same time, the number of auctions increased significantly, reaching 125 operations since the beginning of the year, up nearly 39 percent compared to 2024. Debt repayments also doubled, amounting to 4,990.29 billion CFA francs, reflecting a buildup of maturing obligations.

Despite this intense activity, the total outstanding debt of WAEMU member states rose by only 1.58 percent, reaching 20,536.52 billion CFA francs by the end of June. This suggests that the issuances were primarily used to refinance maturing debt rather than significantly increase net indebtedness.

Among the most active issuers, Côte d’Ivoire remains the largest borrower, raising more than 3,131.5 billion CFA francs, or 44 percent of the regional total. Senegal ranks second with 1,262.5 billion CFA francs, up 267 percent year-on-year. This sharp increase is linked to the suspension of its program with the International Monetary Fund and difficulties accessing international capital markets, amid the discovery of previously undeclared debt. Senegal also posted the highest increase in outstanding debt over the period, rising by 5.7 percent. In contrast, Togo’s debt declined by 2.9 percent, while Benin’s rose by 2.28 percent and Côte d’Ivoire’s by 1.46 percent.

The intensified reliance on the regional market comes as the macroeconomic outlook improves. WAEMU’s real GDP growth is projected at 6.4 percent in 2025, up from 6.3 percent in 2024, supported by a rebound in extractive, manufacturing, and agricultural sectors. Average inflation dropped significantly to 2.2 percent in the first half, allowing the BCEAO to cut its key policy rate by 25 basis points to 3.25 percent in June. This monetary easing aims to stimulate demand in the bond market while reducing financing costs for states.

However, not all issuers are treated equally. Issuance yields vary widely by country. Benin, Togo, and Senegal are seeing declines or stabilization of their rates across all maturities. In contrast, Niger, Mali, and Guinea-Bissau must offer higher risk premiums to attract investors. Niger’s case is particularly telling: its three-month bills reached a rate of 11.99 percent, up from 8.56 percent a year earlier, amid diplomatic isolation and a prolonged political transition. Côte d’Ivoire, for its part, continues to enjoy smooth access to the market, with stable rates across all maturities.

While the BCEAO’s more accommodative monetary policy may continue to ease pressure on rates in the second half, investor selectivity remains high. Investment decisions are increasingly based on structural criteria, including fiscal discipline, institutional stability, and medium-term growth trajectory.

Fiacre E. Kakpo