Senegal’s Prime Minister Ousmane Sonko has publicly rejected proposals from the International Monetary Fund (IMF) for a restructuring of Senegal’s soaring public debt, calling such a move “a disgrace” and insisting the country will find alternative ways to stabilise its finances without accepting conditions that could damage national credibility.
Speaking at a rally in Dakar on Saturday, Sonko said the IMF is pushing Senegal toward a restructuring process as part of negotiations for a new lending arrangement. The Fund recently concluded a mission to Senegal without sealing a fresh financial programme. Senegal’s previous $1.8 billion deal was suspended last year after the incoming leadership uncovered billions in previously undisclosed state liabilities and contingent debts, which have now expanded to more than $11 billion.
President Bassirou Diomaye Faye and his government have repeatedly blamed former President Macky Sall’s administration for concealing debt obligations, a stance Sonko reinforced. “What they are proposing implies Senegal misused or stole money. We will not accept that. Senegal is a dignified country,” he told party supporters.
The IMF’s most recent estimate puts Senegal’s overall public sector debt — including liabilities from state-run enterprises — at roughly 132% of GDP by end-2024, a level that economists say leaves the country highly vulnerable to external shocks and rising global interest rates. Senegal’s finance ministry has yet to comment publicly on the latest IMF mission.
IMF Mission Chief Edward Gemayel told reporters in Dakar that formal discussions will continue in the coming weeks and that an ongoing debt sustainability assessment will determine whether restructuring is required. If Senegal ultimately wants IMF financing restored, the country will need to meet the Fund’s criteria for returning to a sustainable debt trajectory.
Separately, Sonko has pledged to finance 90% of Senegal’s new economic recovery strategy through domestic resources, with the stated aim of reducing dependence on new external borrowing. Analysts say the government’s political stance toward the IMF may be popular domestically, but Senegal will still face significant hard currency repayment needs in 2025 and 2026 unless it can boost tax mobilisation, raise export earnings or secure concessional financing from partners other than the Fund.
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Source:Africa Publicity
