The public debt of the Union countries is between 60 percent and 63 percent of GDP, below the 70 percent
threshold, reassured the Governor of the Central Bank of West African States (BCEAO), Jean-Claude Kassi Brou.
The Governor of the Central Bank of West African States (BCEAO), Jean-Claude Kassi Brou, on Wednesday ruled out any immediate risk of a debt crisis in the West African Economic and Monetary Union (UEMOA),
while calling for caution in the face of rising debt ratios.
“Debt has increased, but we are not in a difficult situation. It averages between 60 percent and 63 percent of GDP in the Union, below the community threshold of 70 percent,” he declared following the regular meeting of the Monetary Policy Committee (MPC) held in Dakar.
According to him, “we must be vigilant,” because rising debt increases the burden of debt servicing and reduces states’ budgetary margins to finance social sectors and infrastructure.
Citing the case of Senegal, whose debt was reassessed at 118 percent of GDP following audits, Mr. Brou praised the authorities’ transparency and encouraged the continuation of corrective measures, particularly in the context of ongoing discussions with the International Monetary Fund.
“Quickly finalising a new program with the International Monetary Fund (IMF) is crucial to support reforms and restore confidence,” he insisted.
Despite these pressures, the Governor noted that the Union’s states are managing to mobilise significant resources on the regional financial market.
In the first seven months of 2025, more than 9 trillion CFA francs were raised through auctions, a sign, he said, of
a “deep and liquid” market.”
However, he acknowledged notable differences in yields, with some countries borrowing at around 6 percent while others must offer rates above 9 percent, reflecting “differentiated risk premiums depending on the creditworthiness of the states.”
Regarding monetary policy, the MPC maintained its guiding instruments unchanged. The refinancing rate remains at 3.25 percent, the marginal lending window at 5.25 percent, and the bank reserve requirement ratio at 3 percent.
The decision is based on an analysis of the economic situation that is generally considered “positive.” According to Mr. Brou, economic growth is expected to reach 6.3 percent in 2025, supported by domestic consumption and investment, as well as inflation projected at 1.2 percent compared to 3.5 percent in 2024, thanks to a good agricultural season and lower imported product prices. Furthermore, the Union’s external balance also improved, driven by increased exports of hydrocarbons, gold, and cocoa, while bank financing of the economy is deemed “adequate.”
However, the BCEAO warns of risks related to regional security, climate change, and international geopolitical tensions, which could reverse these favorable trends.
“The Committee will remain vigilant and, if necessary, take appropriate measures to preserve the monetary and financial stability of the Union,” Mr. Brou concluded.
ARD/Sf/fss/as/APA