Senegal has sharply raised its projected debt service payments by about 3.2 trillion CFA francs ($5.8 billion) over the next three years, according to a revised budget document released last week.
The revision comes as the government struggles to manage billions of dollars in previously undisclosed debt inherited from the former administration—a revelation that prompted the International Monetary Fund (IMF) to suspend its $1.8 billion lending programme last year.
According to the updated projections, total payments on principal and interest for 2026 are now expected to reach 5.49 trillion CFA francs, an increase of more than 11% compared to figures published in June. For 2027, projected debt servicing has jumped nearly 30% to 4.41 trillion CFA francs, while for 2028, the total has surged by nearly 50% to 4.97 trillion CFA francs.
The revised document was released ahead of an IMF mission to Senegal, scheduled from October 22 to November 4, as confirmed by an IMF spokesperson.
It remains unclear why the Senegalese government revised its debt servicing estimates upward. The Ministry of Finance has not yet commented on the update. The new projections were made public during the IMF and World Bank Annual Meetings in Washington, where Senegal began negotiations for a new IMF-supported programme. The government is also seeking an IMF board waiver related to the previously unreported debt.
Investors are closely monitoring both the negotiations and the IMF’s upcoming debt sustainability analysis, which will assess whether Senegal’s debt levels are manageable or require restructuring.
According to the IMF, Senegal’s total debt-to-GDP ratio, which includes central government obligations, debts of state-owned enterprises, and domestic arrears, stood at 132% at the end of 2024.
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Source:Africa Publicity
