DAKAR, July 25 – Senegal is expected to appoint global investment bank Lazard as its financial adviser on sovereign debt matters, a move that investors view as a significant development in the country’s efforts to address mounting debt pressures and restore access to international financing.
The appointment, first reported by Bloomberg and later confirmed by Reuters, comes as Senegal continues discussions aimed at securing a new programme with the International Monetary Fund (IMF). Neither Lazard nor Senegal’s Ministry of Finance has publicly commented on the appointment.
Although the government has not announced any change to its debt strategy, market participants have interpreted the selection of Lazard as an indication that authorities are preparing for a range of debt management options.
Lazard has played advisory roles in several of Africa’s most significant sovereign debt restructurings, including Zambia, Ghana, Chad and Mozambique. According to Ecofin Agency, while Senegal has not disclosed Lazard’s formal mandate, the firm’s appointment has renewed speculation that the country could eventually pursue a debt restructuring.
The bank will work alongside Global Sovereign Advisory, the Paris-based advisory firm appointed by Senegal in November 2025, suggesting the government is strengthening its advisory team rather than replacing existing advisers.
Investor expectations have also shifted.
Analysts at Citi said they believe Senegal is unlikely to secure a new IMF programme without some form of debt renegotiation. According to the bank’s base-case scenario, restructuring could require a significant nominal haircut, rather than a simple extension of debt maturities.
Financial markets appear to be pricing in a similar outcome.
Senegal’s international dollar and euro-denominated bonds continue to trade at distressed levels, with prices ranging between 52 and 58 cents on the dollar or euro, despite the country’s successful Eurobond payment in March.
The pressure reflects the scale of future debt obligations rather than the country’s recent payment performance.
Senegal’s 2026 budget allocates approximately CFA 5.49 trillion (around $9.6 billion) for debt servicing, covering both principal repayments and interest obligations.
Separately, the Institute of International Finance (IIF) estimates that Senegal faces approximately $4 billion in external debt repayments between 2026 and 2032, highlighting the financing challenge that remains regardless of whether a new IMF programme is agreed.
The IMF has consistently emphasised the importance of fiscal reforms and debt transparency.
In its most recent mission statement issued in November 2025, the Fund estimated Senegal’s total public sector debt at 132% of GDP at the end of 2024, including domestic expenditure arrears still subject to ongoing audits.
The IMF acknowledged what it described as the authorities’ strong commitment to transparency and reform, while stressing that “significant efforts will be needed to address elevated debt pressures” and that debt management reforms remain essential to resolving the country’s fiscal challenges.
Political messaging around debt restructuring has also evolved.
Prime Minister Ousmane Sonko previously argued that the IMF wanted Senegal to restructure its debt and publicly rejected that option, describing such a move as “a disgrace.”
More recently, however, President Bassirou Diomaye Faye has adopted a more measured tone.
Following discussions with IMF Managing Director Kristalina Georgieva during the Africa Forward Summit in Nairobi, Senegal’s presidency said the talks focused on debt sustainability and potential pathways towards a solution, while noting that further discussions would continue during future IMF missions.
The discussions also addressed broader economic risks, including higher global energy costs linked to tensions in the Middle East, which could place additional pressure on Senegal’s external balances.
According to IMF projections, Senegal’s current account deficit is expected to widen to 6.2% of GDP in 2026, increasing the importance of securing sustainable financing while maintaining macroeconomic stability.
The country’s ability to restore IMF support, implement debt management reforms and meet its sizeable repayment obligations will remain central to investor confidence in the months ahead.
