NAIROBI, May 13 – Senegal and the International Monetary Fund have agreed to continue discussions aimed at resolving the country’s debt challenges and advancing talks on a new financial support program.
Meetings between President Bassirou Diomaye Faye and IMF Managing Director Kristalina Georgieva took place on the sidelines of the Africa Forward Summit in Nairobi, according to a statement from Senegal’s presidency released Tuesday.
The talks focused on debt sustainability and possible solutions to the country’s growing fiscal pressures, with further discussions expected during upcoming IMF missions. The presidency said Faye would personally oversee the process.
Senegal lost access to international debt markets in 2024 after the new administration disclosed billions of dollars in previously unreported liabilities, leading the IMF to suspend the country’s $1.8 billion support program.
Negotiations for a new arrangement have continued, though the treatment of the undisclosed debt remains one of the main obstacles to reaching an agreement.
The IMF is currently awaiting the publication of a revised macroeconomic framework before updating its debt sustainability assessment, a key requirement in determining Senegal’s capacity to service its obligations and qualify for additional support.
Last month, Senegal released updated economic projections that authorities hope will strengthen the case for a new IMF-backed program.
The debt burden, projected by the IMF to reach 132.3% of gross domestic product in 2026, has intensified pressure on the government to reduce spending and tighten fiscal policy.
The situation has been further complicated by higher global energy prices linked to the Iran conflict, which has increased import costs and added strain to public finances.
The debt crisis has also exposed divisions within Senegal’s leadership.
While investors view President Faye as more receptive to the possibility of debt restructuring, Prime Minister Ousmane Sonko has publicly opposed such a move, arguing it could damage the country’s credibility with international lenders and investors.
Some market participants, however, believe Senegal’s revised fiscal targets may prove difficult to achieve without some form of debt restructuring or additional financial relief.
Sonko was notably absent from a debt conference held Tuesday in Dakar, where he had been expected to deliver the keynote address.
