DAKAR, Sept 2 – Senegal debt crisis has deepened since 2024, when the government uncovered billions of dollars in previously unreported borrowing under former President Macky Sall, triggering a dispute with the International Monetary Fund and putting the country under pressure to restore its finances.
The crisis began after Bassirou Diomaye Faye, a former tax inspector and opposition candidate, won Senegal’s presidential election in March 2024. In September, Prime Minister Ousmane Sonko accused Sall’s administration of providing false figures to international partners.
Moody’s downgraded Senegal’s long-term rating to B1 from Ba3 in October 2024, while the IMF suspended its $1.8 billion credit facility as it reviewed the country’s revised fiscal data. Faye’s Pastef party later won parliamentary elections, strengthening the government’s mandate to pursue reforms.
In February 2025, Senegal’s Court of Auditors found that the previous government had understated debt and budget deficits. It estimated public debt at 99.7% of GDP at the end of 2023, compared with the previously reported 74.41%, pointing to about $7 billion in hidden borrowing.
The IMF said talks on a new programme could not move forward until the misreporting was addressed. Senegal subsequently pledged to improve tax collection and reduce its dependence on external financing. By June, estimates from banks put the debt-to-GDP ratio at about 119%.
S&P Global Ratings later downgraded Senegal to B- in July 2025 and estimated the hidden debt at around $13 billion. Sonko announced an economic recovery plan in August, saying 90% would be funded domestically and that the country would avoid new external debt.
Tensions with the IMF continued into late 2025 and 2026. Senegal made $480 million in payments to international bondholders in March 2026, while the government rejected calls for debt restructuring. Economic growth was also expected to slow to 2.5% in 2026, from 6.7% in 2025, while the IMF forecast 2.2%.
Political changes added to the uncertainty. In May 2026, Faye dismissed Sonko and dissolved the government, appointing economist Ahmadou Al Aminou Lo as prime minister. Sonko was later elected parliament speaker.
In September 2026, the IMF and Senegal reached a staff-level agreement for a three-year, $2.2 billion loan package that requires Senegal to seek relief from creditors. The agreement still needs approval from the IMF Executive Board. Senegal’s finance ministry also said it had agreed to an “enhanced common framework” aimed at restoring debt sustainability.
