An International Monetary Fund (IMF) staff team is on a visit to Dakar from August 19 to September 1 to continue discussions with Senegalese authorities on economic policies and reforms that could be supported by a potential IMF lending arrangement.
The mission is led by Mercedes Vera Martin, the IMF’s mission chief for Senegal, as the Fund and the Senegalese government work toward a shared understanding of the measures that could underpin potential financial support.
The IMF said it remains committed to supporting Senegal in maintaining macroeconomic stability and promoting sustainable and inclusive economic growth.
During the visit, IMF staff will also meet with other stakeholders as part of the discussions.
The latest mission comes as Senegal continues efforts to address significant fiscal and debt challenges following the discovery of previously undisclosed public debt under the former administration. The revelations led to the suspension of the country’s previous $1.8 billion IMF-supported program and prompted calls for stronger fiscal transparency, debt management and budget oversight.
Senegal’s public debt figures were substantially revised following audits, with debt at the end of 2023 initially revised to nearly 99.7% of GDP, compared with the previously reported 73%. The fiscal deficit was also found to have been significantly higher than previously reported.
The IMF has since emphasized the need for comprehensive audits, stronger debt-management systems and safeguards to ensure the reliability of economic and fiscal data before a new lending arrangement can be finalized.
The talks also come amid continued pressure on Senegal’s public finances and financing needs. The IMF has projected economic growth of around 2.2% in 2026, reflecting the impact of fiscal consolidation and challenging external financing conditions.
The government also faces difficult decisions over its debt strategy. While the IMF has stressed that any decision on debt restructuring remains a sovereign decision for Senegal, authorities have explored alternative financing options, including loans backed by guarantees from multilateral development banks.
The latest IMF mission could therefore prove critical in determining whether Senegal and the Fund can reach agreement on a new program aimed at restoring fiscal stability, strengthening debt sustainability and rebuilding investor confidence
