Non-bank institutional investors, though still a minority, are increasing their presence in the West African Economic and Monetary Union (WAEMU) public securities market. They are capitalizing on renewed interest in medium and long-term bonds and a more favorable investment environment.

Non-bank institutional investors are starting to gain a foothold in the West African Economic and Monetary Union (WAEMU) regional public securities market after being largely marginalized just a few years ago. While banks still dominate, this trend indicates a gradual diversification of investor profiles.

According to data released by WAEMU security deposiroty, UMOA-Titres,  at the end of June 2025, assets held in client accounts, primarily representing insurers, pension funds, and retirement or deposit institutions, increased by 6.07% in the first half of the year. During the same period, assets held in proprietary accounts, mostly by commercial banks, grew by only 0.73%.

This momentum, though still modest, represents a clear acceleration compared to the same period in 2024. At that time, growth was limited to 1.98% for non-bank investors versus 0.56% for banks. In 2023, banks still accounted for over 90% of outstanding holdings, with non-bank investors holding a highly marginalized 9.8% of the total. Specifically, between 2023 and 2025, non-bank investors gained 1.3 percentage points in market share. This shows a slow but steady trend toward diversifying the regional public securities market.

These non-bank players, traditionally more inclined toward long-term investments, are benefiting from a more favorable environment in 2025. Interest in Treasury Bonds, known as OATs, has surged by 154.9% year-on-year, opening new prospects for them. This type of instrument better aligns with their long-term liability management strategies, especially for financing social or pension-related commitments.

Despite this, banks remain the majority holders by far. They still account for 88.9% of total outstanding assets, down from 89.4% a year earlier. The share held by non-bank investors now stands at 11.1%, confirming a slow but structural trend toward diversifying public debt holders.

Broadening the investor base has become a strategic priority in a region where governments aim to extend their debt maturities and stabilize repayment profiles. UMOA-Titres believes that improving secondary market liquidity and increasing the appeal of longer-term OATs could help solidify this lasting transformation.

Fiacre E. Kakpo