DAKAR, May 15 – Senegal may be nearing a fresh agreement with the International Monetary Fund after months of strained negotiations over previously undisclosed debt, offering a possible lifeline to restore investor confidence in one of West Africa’s most pressured sovereign credit stories.
Abdullah Almusaibeeh, president of the Arab Bank for Economic Development in Africa, said discussions were advancing and suggested Dakar could soon secure positive developments with the IMF after its earlier program unraveled.
“In the near future, we will have good news about Senegal,” Almusaibeeh said, signaling growing optimism that the country may be close to unlocking a fresh IMF-backed arrangement.
The West African nation has been seeking to rebuild investor confidence after revelations of billions of dollars in hidden liabilities derailed its previous IMF deal and complicated efforts to refinance debt obligations with the disclosure heightening concerns over fiscal transparency and intensified pressure on President Bassirou Diomaye Faye’s government as it seeks to stabilize public finances.
President Faye this week agreed with IMF Managing Director Kristalina Georgieva to continue discussions, with Faye taking a direct role in efforts to resolve disputes around debt treatment, which remains a key obstacle to any new program.
Investor concern has deepened as Senegal’s $1.05 billion Eurobond due in 2031 fell to a record low of 56.1 cents on the dollar last month, reflecting mounting fears over repayment risks even as authorities continue to reject restructuring.
External shocks have added to fiscal strain, with disruptions linked to conflict around the Strait of Hormuz increasing fuel and fertilizer import costs for vulnerable economies including Senegal.
Analysts at Teneo have identified Senegal as one of Africa’s clearest near-term sovereign risk cases, citing the combination of domestic debt vulnerabilities and global macroeconomic pressures.
Badea said it plans to expand financial support for African economies hit by the crisis, though it has not confirmed whether Senegal will receive additional funding. For Dakar, a successful IMF deal could prove critical to stabilizing markets and restoring access to external financing.
