In an unprecedented show of financial solidarity within West Africa’s Economic and Monetary Union (UEMOA), Côte d’Ivoire has extended a loan of nearly 77 billion CFA francs (approximately $126 million) to Senegal. The deal, finalized this week, is intended to help Dakar plug a widening budget deficit and stabilize its public finances. The loan—granted through the UEMOA financial market—is a rare instance of direct intergovernmental lending within the sub-region. Côte d’Ivoire, the largest economy in UEMOA and a major player in regional monetary policy, described the move as a strategic effort to preserve macroeconomic stability across the union.
Senegal, which has seen rising fiscal pressures due to a combination of infrastructure investments, subsidy costs, and slower-than-expected economic recovery, is struggling to meet budgetary targets. The loan is expected to offer temporary relief as the country navigates these challenges, particularly ahead of major elections and an ongoing transition in political leadership. Economists say the transaction signals both growing concern over Senegal’s public debt and a willingness among regional powers to take a more proactive role in mutual economic support.
“This kind of interstate financial assistance is extremely rare in the UEMOA zone,” said Ivorian economist Kouadio Akissi. “It highlights the seriousness of Senegal’s fiscal position but also reflects a new level of strategic cooperation.” However, the bailout has also raised questions about the long-term sustainability of Senegal’s borrowing practices and its reliance on both domestic and foreign credit to fund public spending. According to the IMF, Senegal’s public debt exceeded 74% of GDP in 2023—well above the 70% ceiling set by UEMOA convergence criteria.
While Côte d’Ivoire has not disclosed the loan’s repayment terms or interest rates, the move is being closely watched across West Africa as a potential precedent for future intraregional bailouts amid growing economic uncertainty.
