• Senegal banks’ holdings of government securities rise 123% in 2025
• Treasury borrowing drives shift toward longer-term bond issuance
• Credit to private sector still grows despite higher public exposure

Senegalese banks’ exposure to government securities rose sharply in 2025, driven by increased Treasury borrowing. Holdings of public securities climbed to 2,225 billion CFA francs ($3.9 billion), up from 998 billion CFA francs in 2024, a 123% increase in one year, according to a document titled "Sénégal : Développements économiques récents et Perspectives," published Wednesday by the Ministry of Finance.

The increase reflects greater reliance on the public securities market. Issuance remains dominated by Treasury bonds, which account for 65.6% of the total, compared with 34.5% for Treasury bills, pointing to a preference for longer maturities and a more gradual debt repayment profile.

Senegalese banks accounted for 55.5% of total subscriptions, or approximately 1,234 billion CFA francs, while banks from Côte d'Ivoire held 35.9% of issued securities, amounting to 798 billion CFA francs. Banks from Benin, Burkina Faso, Togo and Mali made up the remainder, with 78 billion, 45 billion, 41 billion and 28 billion CFA francs, respectively.

In total, more than 45% of the resources mobilized by Senegal’s Treasury in 2025 came from non-resident investors. This suggests Senegal’s financing relies on a regional investor base within the West African Economic and Monetary Union (WAEMU), extending beyond domestic banks.

Despite the increase in banks’ exposure to public securities, no crowding-out effect was observed in 2025, according to the Ministry of Finance. Credit to the economy grew 8.4%, compared with 5.1% in 2024, indicating that banks continued to finance the private sector while supporting government borrowing.

Chamberline Moko