- Senegal's economy remains resilient in 2025, buoyed by the start of oil and gas production and a recovery in agriculture. Continued progress on strengthening debt management, fiscal institutions, and governance will be key to sustaining strong growth and investor confidence.
- The authorities have demonstrated strong commitment to transparency and reform, taking concrete steps to address the underlying causes of past hidden debt and strengthen public financial integrity, while recognizing that significant efforts will be needed to address elevated debt pressures.
- Discussions were productive and focused on actions needed to address the fiscal and debt vulnerabilities revealed by the hidden debt episode, laying a solid foundation for continued engagement in the coming weeks toward a potential new IMF-supported program.
Dakar, Senegal: A team from the International Monetary Fund (IMF), led by Mr. Edward Gemayel, IMF Mission Chief for Senegal, visited Dakar from October 22 to November 6, 2025, to advance discussions initiated during the 2025 Annual Meetings on a new IMF-supported program and to review progress on corrective measures related to the hidden debt. [1] The mission also assessed recent macroeconomic developments and the authorities' medium-term reform strategy.
At the conclusion of the mission, Mr. Gemayel issued the following statement:
"The IMF staff team held constructive discussions with the Senegalese authorities, making significant strides toward laying the foundation for a new IMF-supported program. These talks focused on policies aimed at strengthening fiscal sustainability, enhancing debt management, and reinforcing governance—key pillars for Senegal's continued economic success. This mission has provided a solid basis for moving forward, and we look forward to continuing our dialogue in the coming weeks to finalize agreement on the remaining policies and reforms that will underpin the new program.
"The authorities deserve recognition for their continued commitment to transparency, fiscal discipline, and sound macroeconomic management. Despite global uncertainty and tighter financing conditions, Senegal's economy remains robust in 2025, supported by the first full year of oil and gas production and a rebound in agriculture. Real GDP growth is projected at about 7.9 percent this year, with non-hydrocarbon growth around 3.4 percent, while inflation is expected to average about 1.4 percent.
"Fiscal performance through end-September has been broadly in line with the revised 2025 budget, with revenues on target and non-priority spending contained. The overall deficit is projected to narrow sharply from 13.4 percent of GDP in 2024 to 7.8 percent in 2025, reflecting the authorities' strong commitment to consolidation.
"The draft 2026 Budget Law reinforces this commitment, targeting a further reduction of the deficit to 5.4 percent of GDP. This target relies on ambitious revenue mobilization—through new taxes on gambling, mobile transfers and other measures notably related to land taxation, as well as gradual phasing-out tax exemptions—combined with continued spending discipline. While the ambition is laudable, the very high tax yield assumed from the announced measures poses a significant risk, underscoring the need for more conservative projections. A balanced approach would help preserve high-impact investment and well-targeted priority spending, which are essential to maintain credibility and safeguard growth.
"Senegal continues to face significant debt pressures. Total public sector debt is estimated at 132 percent of GDP at end-2024, including 4 percent in domestic expenditure arrears pending the results of the ongoing audit by the Inspectorate General of Finance. The authorities are pursuing active debt-management operations, both on domestic and external debt, to reduce debt-related vulnerabilities. In addition, both parties exchanged views on several options to address the fiscal and debt-management challenges highlighted by the findings of the public finance audit.
"Good progress has been achieved on the corrective actions related to the misreporting, notably improved debt publications, but further decisive steps are needed. Strengthening debt-management capacity and centralizing debt functions within a single ministry remain key priorities to enhance control, transparency, and accountability. Completion of the debt-management reform and full implementation of the remaining corrective measures will be essential to resolving the hidden debt case. To complement these actions, the mission and the Senegalese authorities also agreed on the need for sustained robust reforms to support pro-growth fiscal consolidation, and advance governance and anti-corruption measures to maintain confidence and foster durable growth.
"The IMF staff team thanks the Senegalese authorities for their warm hospitality, excellent cooperation, and the candor and quality of discussions during the visit."
During the visit, the IMF team met with His Excellency Mr. Bassirou Diomaye Diakhar Faye, President of the Republic; Mr. Ousmane Sonko, Prime Minister; Mr. Ahmadou Al Aminou Lo, Minister of State to the President of the Republic in charge of Monitoring the National Transformation Agenda; Ms. Yacine Fall, Keeper of the Seals, Minister of Justice; Mr. Abdourahmane Sarr, Minister of Economy, Planning and Cooperation; Mr. Cheikh Diba, Minister of Finance and Budget; Mr. Jean-Claude Kassi Brou, Governor of the BCEAO; Mr. François Sène, National Director of the BCEAO; as well as several other senior officials. The team also held fruitful discussions with development partners and other stakeholders.
[1] https://www.imf.org/en/News/Articles/2025/08/26/pr25282-senegal-imf-staff-concludes-visit
