DAKAR, Aug 18 – The International Monetary Fund will send a full staff team to Senegal from August 19 to September 1 to continue discussions on economic policies and reforms that could be supported by a new lending arrangement, signalling renewed progress in negotiations between the Fund and the West African country.
The two-week mission is expected to move discussions into a more technical phase as Senegal and the IMF work towards a potential new programme, according to a source familiar with the negotiations.
The IMF had indicated earlier this month that it was prepared to resume discussions once Senegalese authorities were ready. On August 3, an IMF spokesperson said, “IMF staff stand ready to visit as soon as the authorities indicate they are prepared for the next phase of discussions.”
The upcoming mission is part of efforts to resolve a debt reporting crisis that emerged in 2024 and resulted in the suspension of Senegal’s previous IMF-supported programme. The issue came to light after Senegal’s newly elected government disclosed that the country’s public debt was substantially higher than figures reported by the previous administration.
The discrepancy has since become a central issue in negotiations between Dakar and the IMF, with authorities working to improve the accuracy and transparency of public financial data while addressing the implications of the higher debt burden.
Senegal’s engagement with its creditors has also continued alongside the IMF discussions. Last week, the country’s minister-delegate for budget travelled to China, Senegal’s largest bilateral creditor, according to two sources cited by Reuters.
China’s role is particularly significant given the scale of Senegal’s bilateral obligations and the government’s broader efforts to manage its debt position while restoring access to international financial support.
The IMF’s renewed engagement comes as Senegal seeks to establish a new framework for economic reforms and financing. A potential lending programme would depend on agreement over the country’s fiscal position, debt sustainability and policy commitments.
The August mission is therefore expected to provide an important test of whether Senegal and the IMF can move beyond the reporting dispute and establish the conditions for a new programme. The outcome could have broader implications for the government’s efforts to rebuild fiscal credibility and manage its debt obligations while maintaining economic stability.
