Senegal’s Treasury has called on insurance companies to increase their participation in government securities, as authorities seek to broaden the investor base and reduce pressure on public finances amid rising debt levels.
The General Directorate of Public Accounting and the Treasury met insurers in Dakar on March 3 through their professional federation to strengthen dialogue and encourage greater involvement in financing the economy.
Officials view insurance firms as strategic partners in mobilising long-term funding, given their capacity to invest premiums collected from households and businesses over extended periods.
Currently, however, insurers account for less than one-third of the amounts invested by commercial banks in Senegalese government securities, according to Treasury data. Authorities want to rebalance this structure by increasing the share held by non-bank financial institutions.
Growing reliance on domestic markets
The appeal comes as Senegal increases its reliance on regional capital markets to meet its financing needs. In 2025, the Treasury mobilised around 4,194.8 billion CFA francs on the domestic and regional market, covering nearly 73.4 percent of the country’s total funding requirements for the year.
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Most of these resources were raised through commercial banks and investors active on the regional financial market of the West African Economic and Monetary Union (WAEMU).
In 2026, the government plans to mobilise approximately 4,132 billion CFA francs on the WAEMU market. To attract a broader range of investors, the Treasury said it intends to standardise government securities, improve communication with market participants and make its issuance calendar more predictable.
Expanding insurers’ participation is seen as a way to stabilise demand for longer-maturity bonds and reduce refinancing risks. Insurance companies, by nature of their business model, manage long-term liabilities and therefore have investment horizons that align with sovereign debt instruments of extended duration.
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Mounting debt pressures
The initiative comes against a backdrop of mounting public debt and tighter access to external financing. An audit conducted by consulting firm Mazars estimates Senegal’s public debt at around 119 percent of gross domestic product.
The International Monetary Fund, for its part, estimates the country’s public debt at roughly 132 percent of GDP at the end of 2024.
Such levels have constrained access to some external funding sources and heightened the importance of domestic and regional markets in the government’s financing strategy.
Amath Ndiaye, an economics professor at Cheikh Anta Diop University in Dakar, said Senegal’s economy is currently experiencing a slowdown while facing increasing pressure from debt servicing. He estimates that interest payments and related commissions now account for more than 25 percent of government tax revenues, limiting fiscal space for public investment and social programmes.
Investor confidence at stake
Senegal’s financial credibility on international markets has also weakened in recent months, with credit rating downgrades and falling Eurobond prices reflecting investor concerns. The country’s placement in category 7 of the OECD risk scale has further signalled elevated risk perceptions.
In response, the Treasury has stepped up consultations with financial sector stakeholders. In February, officials also met banks as well as asset management and brokerage firms to encourage stronger participation in sovereign issuances.
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By expanding the role of insurers in government securities, authorities hope to diversify funding sources, strengthen the regional financial market and create a more resilient debt structure.
The strategy underscores Senegal’s effort to rely more heavily on domestic capital pools as global borrowing conditions become more challenging and external financing grows costlier.
