Senegal is optimistic about securing a new agreement with the International Monetary Fund (IMF) by June 2025, following a recent financial review that revealed discrepancies in the country’s state finances.
Finance Minister Cheikh Diba expressed hope on Thursday February 13 that a fresh programme could be finalized by June 2025, with funds disbursed soon thereafter. This comes after the IMF suspended its $1.8 billion credit facility with Senegal, pending an investigation into the nation’s financial situation.
The audit, which was conducted after former President Macky Sall’s administration, uncovered that the country’s debt and budget deficit were far more significant than previously reported.
In response to the audit findings, Senegal’s Justice Minister Ousmane Diagne confirmed that the government would launch an investigation into potential misconduct, including embezzlement, money laundering, and forgery, during the 2019-2024 period. The investigations could implicate former ministers and high-ranking officials in public institutions, though Diagne refrained from naming any individuals at this stage. The financial discrepancies raised by the Court of Auditors have prompted further scrutiny, with the government pledging to hold those responsible accountable for any mismanagement or fraudulent activities.
Despite the gravity of the findings, former President Sall’s political party, the Alliance for the Republic (APR), has rejected the review by the Court of Auditors, stating that the court had previously validated the settlement laws for the questioned budgets. The IMF has yet to comment on the latest developments but indicated it would engage with Senegalese authorities to address the financial concerns raised by the audit. The country now faces the dual challenge of securing IMF support while investigating and addressing the alleged financial mismanagement.