An International Monetary Fund (IMF) delegation arrived in Dakar on Wednesday, 22 October, to continue negotiations on a new financial support programme for Senegal.
Led by Edward Gemayel, the IMF mission chief for the country, the team will hold talks until 4 November with officials from Senegal’s Ministry of Finance.
The discussions follow meetings held in Washington last week and come amid concerns over Senegal’s rising public debt, now reassessed at 132% of GDP, making it the most indebted country in Africa. This figure includes debts incurred by both the central government and state-owned enterprises.
The mission’s key objective is to assess Senegal’s financing needs, repayment capacity, and the reforms required to restore debt sustainability. The IMF has proposed measures such as reducing tax exemptions, while the Senegalese government is considering raising taxes on gambling and phasing out energy subsidies. These talks occur against a backdrop of mounting financial pressure, as rating agency “Moody’s” recently downgraded Senegal’s credit rating from “B3 to Caa1”, citing heightened risks surrounding debt and liquidity management. The outcome of the negotiations will be crucial for rebuilding investor confidence and ensuring the country’s fiscal stability.