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Hidden debt, rising risk: a look at Nigeria and Senegal’s swap gamble

Fishing market in Dakar, Senegal. Photo by Marie Vicat @ Pixabay
Fishing market in Dakar, Senegal. Photo by Marie Vicat @ Pixabay
  • Senegal’s bond yields signal market exclusion
  • Total return swaps reshape African sovereign financing risks

 

DAKAR, SENEGAL – When global bond markets shut, some African governments are turning to complex derivatives – part lifeline, part risk amplifier.

At first glance, the numbers tell a stark story. As of December 31, 2025, Senegal’s eurobond maturing in 2028 was trading at a yield of 46.80%, according to its Ministry of Economy. The 2031 bond stood at 25.26%. By contrast, Côte d’Ivoire’s comparable eurobond was yielding around 7.13%.

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