The Head of State, President Bassirou Diomaye Faye, has taken direct control of negotiations with the International Monetary Fund (IMF) to address Senegal’s escalating debt crisis, which stems from previously undisclosed liabilities uncovered in 2024. While his Prime Minister, Ousmane Sonko, hosted a Dakar forum on alternative economic solutions—featuring academics and self-styled ‘disruptive economists’—the President’s office clarified from Nairobi that he is personally steering the high-stakes discussions with the IMF.
In a strategic move to assert authority, President Faye met with IMF Managing Director Kristalina Georgieva on the sidelines of the Africa Forward Summit in Nairobi. The two leaders explored potential pathways to resolve Senegal’s debt burden and agreed to continue talks. According to a statement from the Presidency, the President is deeply committed to resolving the issue, dedicating significant effort to securing favorable terms. The discussions also addressed economic shocks linked to conflicts in the Middle East, particularly the surge in energy costs and its adverse impact on the national economy.
Last year, Prime Minister Sonko had publicly criticized the IMF’s push for debt restructuring, dismissing the proposal as ‘disgraceful.’ However, Senegal now faces urgent financial pressures after the IMF suspended a $1.8 billion program in 2024 due to inaccuracies in initial debt reports. With public debt exceeding 130% of GDP, Dakar is urgently seeking a new loan arrangement to stabilize its fiscal position.
The IMF has also downgraded its economic growth forecast for Senegal this year and warned of a wider-than-anticipated current account deficit, underscoring the urgency of these negotiations.
