By Emmanuel Nduka Obisue
Senegal’s Prime Minister, Ousmane Sonko, has said his government will not pursue debt restructuring, even as the country grapples with mounting repayment pressures and a suspended International Monetary Fund (IMF) financing programme.
Speaking on Thursday at a joint press conference with Mauritania’s Prime Minister, Sonko insisted that Senegal could navigate its current fiscal challenges without renegotiating its debt obligations. He maintained that the country’s debt remains sustainable and that alternative solutions exist to stabilise public finances.
The IMF recently revealed that Senegal’s public debt climbed to 132 per cent of gross domestic product (GDP) by the end of 2024, a level that has heightened investor concerns and strained the country’s access to external financing.
In response to the debt assessment, the Fund paused a $1.8 billion lending programme, leaving Dakar under increased pressure to meet its funding needs.
Despite these challenges, Sonko expressed confidence in his administration’s economic strategy, arguing that restructuring would undermine Senegal’s financial credibility. He stressed that his government was committed to restoring transparency and discipline in public finance management.
Sonko’s administration has accused the previous government under former President Macky Sall of concealing the true scale and structure of the country’s debt, alleging that undisclosed liabilities worsened Senegal’s fiscal position.
Senegal’s debt portfolio is held by a broad mix of creditors, including commercial lenders, and the government has increasingly turned to regional bond markets in recent months to raise funds amid tightening global financial conditions.
The government’s stance signals a desire to reassure markets and creditors, even as analysts warn that sustained fiscal pressure could limit Senegal’s economic flexibility in the short term.
