Senegal has renewed its interest in securing a new programme with the International Monetary Fund (IMF) as it seeks to rebuild confidence in its public finances following past data misreporting and ongoing concerns about debt sustainability.
An IMF staff team led by Mission Chief Mercedes Vera Martin visited Senegal from June 15 to 19, 2026, to review recent economic developments and discuss policy priorities with government officials. While the visit will not lead to an immediate IMF Executive Board discussion, the Fund said engagement with Senegal would continue as authorities pursue reforms that could form the basis of a new IMF-supported arrangement.
At the end of the mission, Ms Vera Martin described the discussions as open and constructive, noting that Senegalian authorities had demonstrated a commitment to addressing weaknesses exposed by previous fiscal and debt reporting inaccuracies.
The IMF welcomed reforms aimed at strengthening public financial management, fiscal governance and transparency. It also praised efforts to consolidate debt management functions under a unified framework, describing the move as a critical step in correcting the issues that contributed to the earlier misreporting.
Despite the progress, the Fund stressed that additional measures would be necessary to fully resolve the matter and restore confidence in the country’s fiscal reporting systems.
The discussions come as Senegal navigates a challenging economic landscape marked by rising debt risks, financing pressures and uncertainty in the global economy.
Although the country has faced these challenges, economic growth remained strong in 2025. According to the IMF, real GDP expanded by 6.7 percent, driven largely by increased activity in the hydrocarbon sector following the start of oil production.
Senegal also recorded an improvement in its external position, with the current account deficit narrowing significantly due to higher oil exports and lower imports.
The country’s fiscal position strengthened as well. The overall budget deficit declined from 13.4 percent of GDP in 2024 to 6.4 percent in 2025, largely due to spending rationalisation measures introduced by the government.
However, the IMF cautioned that fiscal and debt vulnerabilities remain elevated despite these gains.
While oil production has boosted growth and improved external balances, concerns remain about the long-term sustainability of public finances and the credibility of fiscal reporting. For investors and development partners, transparency in debt management and accurate fiscal data remain essential to maintaining confidence.
The IMF noted that strong economic growth alone does not eliminate risks if debt levels remain uncertain or financing needs become difficult to meet.
The Fund also warned that Senegal faces significant near-term risks, particularly from developments in global energy markets.
Rising oil prices following the outbreak of war in the Middle East are expected to increase pressure on public finances, largely because of the cost of maintaining untargeted fuel subsidies.
Such subsidies can shield households and businesses from sharp price increases, but they often place a heavy burden on government budgets and may benefit wealthier consumers as much as vulnerable populations.
For Senegal, higher subsidy costs could complicate efforts to reduce the fiscal deficit and increase financing requirements.
The IMF further highlighted risks from tighter global financial conditions and broader economic uncertainty, which could make borrowing more expensive and increase pressure on a country already dealing with elevated debt vulnerabilities.
During the mission, discussions focused on the economic impact of the Middle East conflict, financing needs for the remainder of the year, and reforms designed to strengthen growth, improve governance and expand social protection.
Senegalian authorities reiterated their desire for a new IMF-supported programme, viewing it as a means of supporting fiscal consolidation, rebuilding policy credibility and attracting broader international support.
Such a programme could provide financial assurances while helping the country implement reforms in debt management, governance and sustainable economic development.
“The authorities reiterated their interest in a new IMF-supported program. IMF staff will continue to engage with the authorities on their policies and reform priorities that could be supported by an IMF arrangement,” Ms Vera Martin said.
Key reform areas under discussion include reducing fiscal imbalances, addressing debt vulnerabilities, improving debt management systems, strengthening governance and promoting inclusive growth.
The IMF also highlighted the importance of protecting vulnerable households as fiscal reforms are implemented. While spending cuts and subsidy reforms can improve public finances, they can also create social hardship if not accompanied by effective support measures.
Strengthening social safety nets could allow the government to gradually replace broad-based subsidies with more targeted assistance for low-income households.
The IMF delegation met several senior officials during the visit, including Prime Minister Ahmadou Al Aminou Lo, Minister of Economy, Finance and Planning Cheikh Diba, Budget Minister-Delegate Bassirou Sarr, Economy, Planning and Cooperation Minister-Delegate Allé Nar Diop, and BCEAO National Director François Sène.
The Fund reaffirmed its commitment to supporting Senegal during what it described as a challenging period.
While the country has benefited from stronger growth driven by hydrocarbons, a narrower fiscal deficit and ongoing reforms, significant challenges remain. Debt vulnerabilities, the legacy of past misreporting, rising subsidy costs and an uncertain global environment continue to pose risks to economic stability.
A new IMF-backed programme could help strengthen confidence in Senegal’s economic management. Ultimately, however, the success of the country’s recovery efforts will depend on its ability to maintain fiscal discipline, improve transparency and ensure that economic growth delivers benefits beyond the oil sector.
