Senegalese President Bassirou Diomaye Faye has stepped up efforts to secure final approval for a $2.2 billion International Monetary Fund (IMF) programme as his Government seeks to stabilise the country’s strained public finances.
President Faye met IMF Managing Director Kristalina Georgieva in Washington on Tuesday, two weeks after the two sides reached a technical agreement on the proposed financing programme. Following the meeting, the Senegalese presidency reiterated its commitment to moving quickly towards a new IMF programme. The proposed three-year, $2.2 billion facility is expected to provide Dakar with additional financial flexibility as the government works to address mounting fiscal pressures.
However, the programme still requires approval from the IMF Executive Board before any funds can be disbursed. A date has not yet been announced for the board to consider Senegal’s programme.
President Faye reaffirmed his government’s commitment to reforms aimed at improving the country’s fiscal position, including measures to strengthen control over public expenditure.
Senegal is also expected to negotiate with international creditors as part of efforts to make its public debt sustainable. The country’s debt is estimated at about 132% of Gross Domestic Product (GDP).
The negotiations are expected to involve the G20 Common Framework, established in 2020 to help eligible countries facing debt difficulties restructure their obligations under agreed conditions.
President Faye’s visit to the United States has also included engagements with the World Bank as Dakar seeks to reassure international financial institutions and mobilise additional funding. He met World Bank officials on Monday, with the institution pledging to maintain its financial support for Senegal.
The visit also saw American cybersecurity company Cybastion announce a $300 million investment in Senegal, with part of the funding expected to support efforts to combat cybercrime.
President Faye is scheduled to travel to the United Arab Emirates from Tuesday evening until Thursday, where discussions are expected to focus on expanding Senegal’s sources of financing and investment.