In a striking display of investor confidence, Burkina Faso has shown impressive investor confidence with the oversubscription of its latest Treasury Bill and Bond offering on the West African Economic and Monetary Union (WAEMU) Securities Market by 100%, raising CFAF 43.99 billion (€67 million) against an initial target of CFAF 40 billion.
The feat underscores the country’s growing appeal to regional investors in spite of ongoing security challenges posed by a decade-long jihadist insurgency. The auction, conducted on August 12 by UMOA-Titres in collaboration with the Central Bank of West African States (BCEAO), saw total bids soar to CFAF 80.6 billion, achieving a coverage rate of 201.52%.
Authorities, exercising cautious debt management, absorbed just over half of the offers at a 54.59% absorption rate. The issuance featured a diverse range of securities, including a 364-day Treasury Bill and 3-year, 5-year, and 7-year bonds, catering to a wide spectrum of investor profiles.
The issuance included a diverse range of securities, with the 364-day Treasury Bill raising CFAF 7.71 billion at a marginal rate of 7.08% and a weighted average yield (WAY) of 8.14%. The 3-year Bond secured CFAF 17.6 billion, with a marginal price of CFAF 9,205 and a WAY of 8.38%. The 5-year Bond attracted CFAF 6.89 billion at a marginal price of CFAF 9,120 and a WAY of 6.64%, while the 7-year Bond garnered CFAF 11.78 billion at a marginal price of CFAF 9,000 and a WAY of 7.81%.
This distribution catered to a wide range of investor needs, from short-term to long-term commitments. Economists view this as a testament to the country’s resilient financial framework, even as it grapples with a fiscal deficit that improved from 6.5% of GDP in 2023 to 5.6% in 2024, according to the World Bank.
Since the 2015 jihadist insurgency, Burkina Faso has faced significant security threats, compounded by its withdrawal from ECOWAS alongside Mali and Niger in January 2025 and strengthened their alliance under the Alliance of Sahel States (AES). The oversubscription still defies Western narratives that often portray the Sahel as an economic risk zone.
Data from the Bourse Régionale des Valeurs Mobilières (BRVM) reveals Burkina Faso has raised over 2 trillion FCFA ($3.4 billion) annually since 2020, with the latest 129.68 billion FCFA issuance exceeding targets, highlighting a robust regional bond market.
This success comes as the country navigates higher interest rates, exceeding 9% for 12-month Treasury bills, and prepares to tax interest on new WAEMU bond issues starting August 1, 2025, a move aimed at curbing unregulated tax exemptions and boosting state revenue.
Analysts suggest the oversubscription reflects a shift toward domestic investment, challenging the notion that foreign capital drives the markets. A 2023 UNCTAD report noted uneven foreign direct investment (FDI) flows across the continent.
This is true, but it does not undermine the value of domestic investment, which has been growing in many African economies due to increasing local wealth, a rising middle class, and government policies encouraging local participation in financial markets. For example, in countries like Nigeria, domestic investors have played significant roles in capital markets, particularly in stock exchanges and bond markets. However, FDI and portfolio investments still play critical roles in many African markets, particularly in resource-rich or strategically important countries.
The funds raised will help finance Burkina Faso’s fiscal deficit, projected to be met through regional borrowing, amid risks from security deterioration, climate shocks, and debt refinancing challenges. The World Bank’s active portfolio in the country, valued at $3.71 billion as of March 1, shows ongoing international support, though domestic resilience appears to be the current driver.
