IMF Praises Senegal’s Transparency, Signals Readiness for New Support Program

The International Monetary Fund (IMF) has praised Senegal’s efforts to restore transparency in public debt management, signaling its readiness to launch a new financial support program nearly a year after suspending the country’s previous credit line.

In a statement on Friday, IMF Managing Director Kristalina Georgieva said Senegalese authorities have made “significant progress” in correcting past financial data and addressing the misreporting that led to budget deficit miscalculations in recent years.

“The Fund welcomes the government’s commitment to transparency and the steps taken to identify all public debt obligations, as well as its close cooperation with IMF staff,” Georgieva said, according to Agence France-Presse.

The IMF suspended a $1.8 billion credit facility for Senegal last year after discovering misleading fiscal data during the administration of former President Macky Sall.

An IMF team that visited the country in March confirmed that inaccurate figures had been reported for the budget deficit and public debt between 2019 and 2023, raising concerns about the credibility of official statistics.

The scandal shook investor confidence and drove up borrowing costs, forcing the government to prioritize regaining the trust of international lenders through structural reforms and stricter fiscal transparency.

Georgieva welcomed Senegal’s formal request to begin a new IMF-backed program, noting that “conditions are now in place to move swiftly on all fronts.”

Official negotiations are set to begin in mid-October during the IMF and World Bank Annual Meetings, a move that reflects the gradual restoration of confidence in Senegal’s economic management.

The new arrangement is expected to focus on improving public debt management, strengthening expenditure oversight, and boosting revenue efficiency, measures aimed at reducing debt levels and enhancing financial stability.

Senegal remains one of West Africa’s most dynamic economies, bolstered in recent years by large-scale energy and infrastructure projects, but burdened by growing external debt.

Analysts say the renewed partnership with the IMF marks a turning point in Dakar’s fiscal recovery and could reinforce investor confidence in its ability to attract foreign financing and sustain long-term economic growth.