Senegal's new prime minister tackles IMF hidden debt as president seeks German investment

Technocrat Ahmadou Al Aminou Mohamed Lô was appointed Senegal's prime minister at the end of May 2024. He inherits a fiscal crisis after the International Monetary Fund identified a hidden debt of about $11 million, raising the country's total external debt to roughly 132 % of GDP and debt service to 50 % of state revenue. An IMF delegation arrived in Dakar in early June to restart talks that had been suspended for four months, aiming to restructure the debt burden and secure new financing.

Meanwhile, President Bassirou Diomaye Faye made his first official visit to Germany from 21‑23 June. He met Chancellor Friedrich Merz and President Frank‑Walter Steinmeier and attended a bilateral economic forum in Berlin intended to attract German investment and deepen cooperation in energy, renewable projects, and industry. The trip was described as a strong signal of the growing partnership between the two nations and a chance for Senegal to tap German capital and expertise as it seeks to diversify its economy.