Banks Dominate CEMAC Debt Market as Treasury Securities hit 9.5T XAF

AFRICAN STOCKS AND FINANCEMarch 6, 2026 at 8:19 PM UTC

TLDR

Central African Economic and Monetary Community (CEMAC) Treasury securities market dominated by banks, with primary dealers holding 63% of outstanding debt.
Institutional investors hold 19.1% of the market, including insurance companies, pension funds, and investment funds; retail investors have a minor share.
Concentration of public debt among banks poses risks for both governments and financial systems, necessitating diversification of investor base for market sustainability.

Government borrowing in the Central African Economic and Monetary Community remains concentrated among banks, according to the latest Treasury Securities Monthly Statistics.

Outstanding Treasury securities in the region reached 9,451.5 billion CFA francs as of Jan. 31, 2026.

Primary dealers hold the largest share. These banks hold 5,973.6 billion CFA francs in government securities, about 63% of the total stock.

Other banks without primary dealer status hold 1,297.3 billion CFA francs, or about 13.7% of the market.

Institutional investors rank third with holdings of 1,808.8 billion CFA francs, about 19.1% of outstanding debt. These investors include insurance companies, pension funds and investment funds.

The Bank of Central African States holds 84.2 billion CFA francs in government securities, about 0.9% of the total. These holdings result from liquidity operations in the financial system.

Retail investors remain limited. About 2,219 individual investors hold 287.6 billion CFA francs in Treasury securities, slightly more than 3% of the total market.

The data shows that public debt financing in the region remains concentrated among a small group of banks.

Authorities say the concentration creates structural limits for the market. Banks face regulatory ceilings on exposure to sovereign debt set by the regional banking regulator.

When these limits are reached, banks cannot easily increase purchases of new government securities.

Financial authorities are encouraging banks to sell part of their portfolios to institutional investors or individuals to increase market liquidity and support future government borrowing.

Key Takeaways

The CEMAC regional bond market remains bank-driven. Governments rely on commercial banks to absorb a large share of Treasury issuance. This structure creates risks for both governments and the financial system. When banks hold large volumes of sovereign debt, the balance sheets of banks and states become closely linked. If government finances weaken, banks may face pressure on asset quality and capital. The concentration of public debt also limits private sector lending. Banks that allocate large portions of balance sheets to government securities may reduce credit to businesses. Regional authorities have warned about the risk of crowding out private investment. Expanding the investor base is a top priority for the regional financial system. Pension funds, insurance companies and retail investors could play a larger role in government debt markets. Developing a deeper secondary market is also seen as necessary to improve liquidity and price discovery. Without diversification of investors, governments may face constraints in raising new funds as banking exposure limits are reached.

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