DAKAR, July 8 – Senegal has launched a formal process to appoint a financial adviser to help manage its public debt as the government continues efforts to stabilise the country’s finances.
The move comes as investors closely watch how Senegal plans to address its debt burden after the government disclosed previously unreported liabilities in 2024. The debt later exceeded $13 billion, equivalent to more than a quarter of the country’s economy.
The selection process also follows a cabinet reshuffle in which President Bassirou Diomaye Faye removed Prime Minister Ousmane Sonko, who had been one of the strongest critics of debt restructuring. Sonko now serves as head of parliament.
In November, Senegal announced that Paris-based Global Sovereign Advisory (GSA) had been appointed as its financial adviser. However, sources said another firm could be brought in to work alongside GSA if selected through the current process.
Shut out of much of the international debt market, Senegal has increasingly relied on borrowing within the region and financing arrangements such as total return swaps to meet its funding needs and avoid default.
At the same time, the country is seeking a new lending programme with the International Monetary Fund after the IMF suspended its previous $1.8 billion programme following the disclosure of the previously unreported debt.
Last week, IMF Africa Director Zeine Zeidane said discussions between the Fund and Senegal were expected to continue over the next 10 days. Speaking after meeting President Faye in Dakar, he expressed hope that both sides would be able to move quickly towards negotiating a new agreement.
Senegal’s finance ministry did not immediately comment on the adviser selection process. Global Sovereign Advisory also did not respond to requests for comment.
