Senegal’s $1.8 billion IMF aid program, secured in 2023, is now frozen and requires restructuring after an audit revealed higher debt and budget deficits than reported. Finance Minister Cheikh Diba announced at the annual IMF meetings in Washington that discussions with the Fund are underway, aiming for a revised agreement by early 2025.
The audit, commissioned by President Bassirou Diomaye Faye, found Senegal’s debt-to-GDP ratio at over 80% rather than the reported 73%, and a budget deficit exceeding 10% of GDP—nearly double the initial figure. This prompted a Moody’s downgrade, and Senegalese Eurobonds saw a sharp sell-off.
Despite the discrepancies, Diba confirmed that funds already disbursed won’t require repayment, as the audit was voluntarily disclosed. Additionally, the government is reviewing contracts in the natural resources sector, set to be critical for Senegal’s economy with the GTA LNG project by BP and Kosmos Energy and the Sangomar oil field by Woodside Energy now in operation. These developments could push Senegal’s growth to over 10% by 2025.
