The President of Senegal, Bassirou Diomaye Faye, is taking direct charge of negotiations with the International Monetary Fund (IMF) to address a pressing debt crisis. This move comes as his Prime Minister, Ousmane Sonko, hosted a Dakar conference exploring alternatives to solutions proposed by Bretton Woods institutions.
The announcement was made through a communiqué from the presidential office in Nairobi, emphasizing that President Faye is personally overseeing the talks. This decision follows the discovery of undisclosed liabilities by the previous administration in early 2024, which has significantly impacted Senegal’s economic stability.
Direct engagement with the IMF
In a strategic move to assert authority, President Faye met with the IMF’s Managing Director, Kristalina Georgieva, on the sidelines of the Africa Forward Summit in Nairobi. The two leaders discussed potential solutions to Senegal’s escalating debt woes and agreed to continue negotiations. The presidential communiqué underscored that this issue is a top priority for the President, who is devoting considerable effort to resolving it. Their discussions also covered strategies for mitigating economic shocks stemming from conflicts in the Middle East, particularly the rising energy costs and their ripple effects on the national economy.
Government’s stance on debt restructuring
Last year, Prime Minister Sonko had publicly opposed IMF demands for debt restructuring, calling the proposal “shameful.” The government has since maintained a firm position against such measures, despite the mounting financial pressures.
Senegal’s debt burden has surged past 130% of its GDP, prompting urgent appeals for financial assistance. The IMF suspended a $1.8 billion program in 2024 after discrepancies were found in initial reports submitted by its experts. Dakar is now seeking a new loan program to alleviate its financial strain and stabilize its economy.
The IMF has also revised its economic growth forecasts for Senegal downward, citing a higher-than-expected current account deficit as a growing concern for the country’s economic outlook.