The regional public debt market in the WAEMU region plays a central role in mobilizing budgetary resources. Member states regularly issue bonds there to finance current expenditures and public investments.

This source of financing remains essential in a context where the average deficit of member states is close to 5% of GDP and where tax revenues cover only a limited part of the needs.

Despite this growth, secondary market liquidity remains low, limiting investors' ability to buy or sell securities quickly and complicating accurate price assessments. This situation results in higher financing costs and increased volatility in returns.

Institutional investors, such as social security funds and regional banks, dominate the market, creating a concentration of supply and limited responsiveness to economic or monetary changes.

Bond maturities are often short, increasing the pressure on public treasury management. Governments must balance regularly refinancing their debt with diversifying financial instruments to better manage risk. The lack of derivatives or hedging mechanisms further complicates portfolio optimization and protection against interest rate fluctuations.

A deeper understanding of the market and increased participation from private investors could strengthen its robustness and attractiveness.

The introduction of long-term securities, the facilitation of bond listing on electronic platforms, and the development of regional bond funds would improve liquidity and reduce the average cost of financing. Such developments would help provide WAEMU member states with greater flexibility in planning and implementing their public policies.