Senegal's External Debt Mix and Creditor Tensions Rise

A detailed mapping of Senegal’s external debt shows three main creditor blocs: multilateral institutions such as the World Bank, African Development Bank and IMF; private market investors accessing Eurobonds issued since 2011; and bilateral lenders, the largest being China through its Export‑Import Bank and Development Bank. The diversified borrowing strategy, pursued since the mid‑2010s, has increased service costs and exposed Dakar to market rate fluctuations.

Since President Bassirou Diomaye Faye took office in April 2024, an audit has revealed gaps between official figures and actual liabilities, prompting market unease. While the government, led by Finance Minister Cheikh Diba, rejects any formal debt restructuring and stresses an alternative treatment plan, creditors such as Morgan Stanley Investment Management and BlueBay Asset Management are exploring the formation of an ad‑hoc committee to protect investor interests should a restructuring scenario emerge. Discussions occur as negotiations with the IMF remain stalled pending data clarification and potential renegotiations with China are considered.