Senegal seeks debt restructuring and new IMF programme

Senegal's government, led by new Prime Minister Ahmadou Al Aminou Lo, announced that the country is ready to restructure its public debt if needed. Industry and Trade Minister Serigne Guèye Diop described debt restructuring as a tool to free up fiscal space for investment in industry, agriculture and infrastructure, and he highlighted the International Monetary Fund (IMF) as a key partner for restoring investor confidence.

An IMF mission led by Mercedes Vera Martin visited Dakar from 15‑19 June. The team praised Senegal’s recent reforms that improved public‑finance management, budget governance and debt‑management functions, but warned that the misreporting case – which led to the suspension of a $1.8 billion programme in 2024 – remains open. Macro data show real GDP growth of 6.7 % in 2025, driven by hydrocarbons, and a reduction of the overall budget deficit from 13.4 % to 6.4 % of GDP. Nevertheless, the Fund flagged persistent vulnerabilities, including a high public‑debt ratio (about 119 % of GDP) and external risks such as rising oil prices linked to the Middle‑East conflict.

The IMF and Senegal continue discussions on a new support programme that would focus on consolidating public finances, strengthening debt management and promoting inclusive growth.