• Senegal Treasury urges insurers to increase investment in government securities

• Insurers provide under one-third of bank investment in state debt

• Authorities seek broader investor base amid rising public debt

Senegal’s General Directorate of Public Accounting and the Treasury met insurance companies in Dakar on Tuesday, March 3, through their federation, to strengthen dialogue and encourage greater participation by insurers in financing the economy.

The Treasury sees insurance companies as key partners in mobilizing state funding. By collecting premiums that can be invested over long periods, insurers have financial resources suited to the government’s need to raise longer-term financing.

Authorities therefore want insurers to play a larger role in government securities issuances. For now, their participation remains limited: insurers contribute less than a third of the amounts invested by banks. The Treasury aims to rebalance this structure in order to broaden the investor base and strengthen the role of non-bank financial institutions in funding the economy.

A strategy focused on the regional financial market

The Treasury said 2025 was marked by increased reliance on the domestic market. According to Treasury data, resources mobilized locally reached about 4,194.8 billion CFA francs, covering nearly 73.4% of the country’s total financing needs for the year. Most of these funds were raised through commercial banks and investors active on the regional financial market of the West African Economic and Monetary Union (WAEMU).

The Treasury’s initiative comes amid mounting pressure on public finances. An audit by consulting firm Mazars estimates Senegal’s debt at around 119% of GDP. The International Monetary Fund (IMF), for its part, estimates public debt at roughly 132% of GDP at the end of 2024.

These levels limit access to some external financing sources and increase the importance of domestic markets in the government’s funding strategy.

In response, authorities plan to rely more heavily on the regional market. In 2026, the government intends to mobilize around 4,132 billion CFA francs on the WAEMU financial market. To attract investors, the Treasury plans to improve communication with market participants, standardize government securities and make the issuance calendar more predictable.

Expanding the investor base to stabilize public debt

Increasing insurers’ participation responds to a broader strategic objective. Insurance companies manage funds generated from premiums collected from households and businesses. These resources are typically invested over long periods to meet future insurance obligations.

Such long-term investment horizons align with governments’ need to extend the maturity of their debt and reduce refinancing risks.

For Senegal, expanding the investor base would also strengthen the regional financial market by increasing the presence of insurers in government securities.

The meeting with insurers is part of a broader series of consultations with financial market participants. In February, the Treasury also met banks and asset management and brokerage firms to strengthen communication and encourage greater participation in financing the economy.

According to Amath Ndiaye, an economics professor at Cheikh Anta Diop University in Dakar, Senegal’s economy is currently experiencing a slowdown while facing increasing pressure from public debt. He estimates that interest payments and debt-related commissions now account for more than 25% of government tax revenues, reducing the fiscal space available for public investment and social programs.

The situation has also weakened Senegal’s financial credibility on international markets. Credit rating downgrades, falling Eurobond prices on secondary markets and the country’s classification in category 7 of the OECD risk scale reflect growing investor concerns. As a result, access to external financing is becoming both more difficult and more expensive.

Chamberline Moko