Senegal sees rising borrowing costs and debt scrutiny after IMF break

Senegal's decision to suspend dialogue with the International Monetary Fund has led to measurable fiscal repercussions. Without the IMF programme’s credibility seal, the government’s sovereign bonds have demanded higher yields, raising the cost of external financing by several basis points and prompting a shift toward regional UEMOA markets and private lenders at steeper rates.

A Forvis Mazars assessment of Senegal’s “hidden” public debt for 2018‑2024 placed the debt‑to‑GDP ratio at 132 % by December 2024, a figure now used by the finance ministry and incorporated into IMF reports. The report, however, remains partially unpublished, spurring calls from IMF communications chief Julie Kozack for a new audit by an independent firm to validate the data. Analysts view the proposed audit as a credibility‑building step rather than a rejection of the earlier work. The combined effect of higher borrowing costs, tighter debt maturities and lingering doubts about fiscal transparency is eroding investor confidence and could hinder long‑term investment in sectors such as energy and infrastructure.