(Ecofin Agency) - Niger has swiftly mobilized more than CFA645 billion ($1 billion) since April 2024 as international donors resume cooperation with the country, which heavily relies on external resources for nearly 34% of its budget.

Since actively reintegrating into the auction-based public securities market, Niger has raised a total of CFA645 billion, according to data compiled by Ecofin Agency from Umoa-titres, the organization overseeing public securities within the West African Economic and Monetary Union (WAEMU).

This capital influx includes CFA414.7 billion from Treasury bills -short-term instruments, and CFA230.3 billion from medium to long-term bonds. However, this mobilization level contrasts with the Niger government's 2024 budget projections, which aimed for approximately CFA253 billion in Treasury bonds issuance. Following the coup against Mohamed Bazoum in the second half of 2023, Niamey, excluded from financial markets, used its initial regional market raisings in April to settle accumulated debt arrears from the ECOWAS-imposed sanctions period.

As of June 20, the Sahelian state had made principal repayments totaling CFA184 billion, with an additional CFA62 billion in interest payments, bringing the total disbursed to investors to CFA256 billion. These payments correspond to normal maturities or periodic coupon payments and are not related to debt arrears.

Furthermore, the yields offered by these securities remain high, often exceeding 9%, reaching 10.31% for one-year maturities in the latest issuance last week. According to financial analysts, these high rates may reflect heightened market risk perception or urgent government financing needs.

Market observers note that while these high yields attract profit-seeking investors, they also signal the economic challenges facing the country.

For reference, this year's state budget is expected to exceed CFA2,653 billion ($4.4 billion).