It is one of the few successful operations organized by Mali since the beginning of this year, which has been tough for WAEMU countries raising funds on the regional capital market. This performance confirms the positive trend observed since the beginning of April 2023. 

Mali raised CFAF30 billion ($50.2 million) by auctioning public securities on the West African Economic and Monetary Union (WAEMU) market last Wednesday.  This successful performance comes at the right time for Bamako, which is facing reduced external budget support and tighter financing conditions -as a result of tightened global monetary policies, which raised financing costs. 

During its April 19 operation, seven investors from six countries bought its securities but, 91% (27 billion) of the securities were bought by Malian investors. Despite a context of monetary tightening marked by the increase in the central bank's key rates, the weighted average yield of this issue remained high compared to the other countries of the Union. It reached 7.12% for the 182-day bills, 7.51% for the 364-day bills, and 7.85% for the 3-year bonds. 

This year, Mali wants to raise CFAF1.109 trillion from an already stressed regional market. The country has already raised CFAF157 billion in the market by issuing 18 different securities. It has also paid CFAF120 billion, including interest and principals. In Q2-2023, Bamako expects nearly CFAF300 billion from the market.

Despite the security crisis it is facing, the IMF expects its economy to grow by more than 5% in 2023 and 2024 thanks to solid agricultural and gold production.  The Bretton Woods institution believes that by holding presidential elections in 2024, the country will be able to attract external budget support and foreign investments.  

Fiacre E. Kakpo