Like other regions around the world, WAEMU entered a phase of economic recovery more than a year after the outbreak of the COVID-19 pandemic, which placed severe strain on the Union’s economies. The effects of this health crisis remain highly visible across countries in the region. Several macroeconomic indicators clearly illustrate this. For the full year 2020, the latest estimates place the Union’s economic growth rate at 0.9%, compared with 5.7% in 2019. Budget execution in the Union’s Member States during 2020 also shows a widening of the deficit compared with the previous year. As a result, the budget deficit as a share of GDP more than doubled, rising from 2.4% in 2019 to 5.7% in 2020. The slowdown in growth and the widening fiscal deficit of Member States clearly reflect the adverse impact of the pandemic on WAEMU economies.

In order to reverse this trend, many Union Member States developed recovery strategies aimed at restarting economic activity. Naturally, implementing these plans requires substantial financial resources. Beyond budgetary measures, public authorities are also relying on other instruments to raise the funds needed to support the recovery. It is in this context that UMOA-Titres and the BCEAO decided to support Member States in securing financing to strengthen their economic recovery by launching Recovery Bonds (OdR) on the market. Through these securities, WAEMU Member States will be able to mobilise CFAF 3,768 billion.

Read the full analysis by Adrien DIOUF, Director of UMOA-Titres, in the editorial of this issue.