Rapport de cadrage sur les Obligations vertes de l'Union économique et monétaire ouest-africaine (UEMOA)

The report identifies a significant gap between the climate goals of WAEMU member states and their financial capacity to implement them. While there is interest in green bonds, the market is hindered by underdeveloped regional financial infrastructure, a lack of technical expertise in green eligibility and reporting, and a dominance of sovereign debt that crowds out corporate issuers. The document recommends strengthening regulatory frameworks, providing technical assistance for project pipeline development, and utilizing risk-mitigation tools like guarantees to attract a more diverse investor base beyond commercial banks.

• The WAEMU region faces a 'triple challenge' of climate change consequences, infrastructure needs due to population growth, and recovery from the COVID-19 pandemic and the war in Ukraine, all occurring amidst significant long-term financing deficits and sovereign debt constraints.
• Development of a green bond market is obstructed by three primary themes: the underdevelopment of the regional financial market compared to international standards, a lack of government and industry-led climate initiatives, and low familiarity among stakeholders with international green bond standards.
• Concessional financing from international donors often competes with green bonds, as the former is typically used for early-stage industry development while green bonds are better suited for refinancing mature projects.
• The regional sovereign bond market is fragmented and lacks liquidity, with commercial banks holding approximately 85% of outstanding securities and preferring a 'buy and hold' strategy over secondary market trading.
• Corporate green bond issuance is hindered by a lack of transparency, high perceived credit risk, and 'crowding out' by sovereign bonds, which are more attractive to banks due to their lower risk and eligibility for central bank refinancing.
• Energy is identified as the primary candidate sector for green bond financing due to its economic importance, alignment with Nationally Determined Contributions (NDCs), and the maturity of its actors.
• Specific country assessments show that Côte d'Ivoire, Senegal, and Benin are the most viable candidates for sovereign green bonds, with Benin already having issued a 500 million euro SDG-linked bond in 2019.
• Political instability and security threats, particularly in the Sahel region (Mali, Burkina Faso, Niger), negatively impact credit ratings and deter foreign direct investment, further complicating the development of green finance.
• To foster market growth, the report recommends that governments identify national budget priorities for climate adaptation and mitigation and provide financial incentives such as tax relief on green bond dividends.

APA

FSD Africa (2022). Rapport de cadrage sur les Obligations vertes de l'Union économique et monétaire ouest-africaine (UEMOA). https://fsdafrica.org/wp-content/uploads/2025/05/WAEMU-Green-Bond-Scoping-Report-Final-updated-French.pdf

Chicago

FSD Africa. Rapport de cadrage sur les Obligations vertes de l'Union économique et monétaire ouest-africaine (UEMOA). 2022. https://fsdafrica.org/wp-content/uploads/2025/05/WAEMU-Green-Bond-Scoping-Report-Final-updated-French.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=Rapport de cadrage sur les Obligations vertes de l'Union économique et monétaire ouest-africaine (UEMOA) |date=7 September 2022 |url=https://fsdafrica.org/wp-content/uploads/2025/05/WAEMU-Green-Bond-Scoping-Report-Final-updated-French.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2022rapport, author = {{FSD Africa}}, title = {{Rapport de cadrage sur les Obligations vertes de l'Union économique et monétaire ouest-africaine (UEMOA)}}, institution = {FSD Africa}, year = {2022}, month = sep, url = {https://fsdafrica.org/wp-content/uploads/2025/05/WAEMU-Green-Bond-Scoping-Report-Final-updated-French.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }