An International Monetary Fund (IMF) mission has concluded a visit to Senegal, citing significant under-reporting of fiscal deficits and public debt between 2019 and 2023. The findings are based on an audit report by the Court of Auditors, released on February 12, 2025, which reviewed budget execution over the period.
The IMF staff team, led by Edward Gemayel, visited Senegal from March 18 to 26, 2025, to discuss the audit findings with the authorities. The mission assessed the extent of the fiscal data revisions, examined the institutional and procedural factors contributing to the under-reporting, and discussed measures to improve transparency and public financial management.
The IMF suspended its existing $1.8 billion credit facility to the Western African nation pending a review of state finances, which confirmed last month that the debt and budget deficit were much wider than former President Macky Sall’s administration reported.
Gemayel issued a statement at the conclusion of the mission, welcoming the Senegalese authorities’ commitment to fiscal transparency and accountability. The audit revealed that the average fiscal deficit was revised upwards by 5.6 percentage points of GDP, while central government debt was revised from 74.4% to 99.7% of GDP at the end of 2023. These revisions primarily reflect previously undisclosed liabilities, including hidden loans amounting to 25.3 percentage points of GDP.
“These findings point to serious lapses in budget controls and public financial reporting, underscoring the need for urgent reforms,” said Gemayel. Discussions focused on identifying corrective measures to enhance fiscal transparency, reinforce budget oversight, and prevent recurrence.
The IMF noted that Senegal’s economic activity remained resilient in 2024, with preliminary estimates pointing to real GDP growth of around 6.0%, supported by a strong performance in the hydrocarbon sector. Inflation remained low, averaging 0.8%, contributing to a stable price environment. However, the fiscal deficit reached 11.7% of GDP and central government debt is preliminary estimated at 105.7% of GDP at the end of 2024.
The IMF also highlighted that financing conditions have tightened significantly, reflecting constrained regional markets, delays in donor support, and increased reliance on costly short-term external borrowing, emphasising the importance of a credible fiscal consolidation path.
Looking ahead, the IMF stressed that bold and credible reforms are essential to ensure a timely return to the West African Economic and Monetary Union (WAEMU) fiscal deficit target and to place public debt on a firmly downward trajectory. Priority measures include streamlining tax exemptions and phasing out costly, untargeted energy subsidies. These reforms will help rebuild fiscal buffers, which are needed to cope with future shocks, support development priorities, and reduce macroeconomic vulnerabilities.
The authorities have expressed their intention to request a new IMF-supported program. “The IMF stands ready to support Senegal in designing a reform-oriented arrangement that builds on the audit findings and aligns with the government’s development strategy,” said Gemayel. Discussions on a potential new program will start once corrective actions to address the misreporting have been initiated and soon after the IMF Executive Board’s consideration of the misreporting case.
During the visit, the IMF staff team met with President Bassirou Diomaye Faye, Minister of Justice Ousmane Diagne, Minister of Economy, Planning, and Cooperation Abdourahmane Sarr, Minister of Finance and Budget Cheikh Diba, and other senior government officials. The team also engaged in productive discussions with representatives from labour unions, civil society, and development partners.
The IMF staff team thanked the Senegalese authorities for their warm hospitality, excellent cooperation, and the candid and constructive discussions held during the mission.
