Senegal is the center of international attention following the revelation of a hidden debt of 7 billion USD, according to a report by the International Monetary Fund (IMF). This announcement has raised concerns about the country’s financial transparency and the management of its public resources under President Macky Sall.
Negotiations on a New Financial Program Suspended
On Monday, the International Monetary Fund (IMF) stated that discussions on a new program with Senegal cannot move forward. This will remain the case until the current administration addresses the misreporting of key economic data under the previous administration. In response to these anomalies, the institution suspended its 1.8 billion USD loan program, pending a detailed analysis of the state’s finances.
A study conducted last month revealed that the country’s public debt and budget deficit were considerably higher than the figures disclosed by the administration of Macky Sall, Senegal’s former president.
Finance Minister Cheikh Diba said Senegal hoped to conclude a new agreement with the IMF by June. However, in an interview with Reuters in Dakar on Monday, IMF mission chief Edward Gemayel took a cautious stance:
« Anything is possible », he said, while avoiding confirming this timeline. « We cannot discuss a new program until we have resolved the issue of the false declaration ».
The IMF’s Revelation
The IMF report, published in March 2025, revealed a hidden debt of USD 7 billion, which had not been reported in the government’s official accounts. This debt is believed to stem primarily from loans taken out by state-owned enterprises and infrastructure projects, often without the required approval or transparency.
The IMF emphasizes that this situation could have serious consequences for the country’s economic stability, notably by increasing the risk of default and limiting the government’s ability to invest in essential public services.
The Implications of the Hidden Debt
The discovery of this hidden debt raises several crucial questions. First, it calls into question the credibility of the Senegalese government and its ability to manage public finances transparently. Foreign investors and donors could become more cautious in their financial commitments, which could hamper Senegal’s economic growth.
Furthermore, this situation could have repercussions for social programs and infrastructure investments. The government could be forced to reduce public spending to address this debt, which could affect key sectors such as education, health, and infrastructure.
Political Reactions
The revelation of the hidden debt sent shockwaves through the Senegalese political landscape. The opposition quickly seized this opportunity to criticize President Macky Sall’s economic management. Political leaders called for a thorough investigation into how this debt was incurred and the responsibilities of the various actors involved.
Macky Sall, for his part, defended his administration by stating that measures were already underway to improve financial transparency and strengthen public financial management. He also emphasized that Senegal continued to attract foreign investment despite these challenges.
Senegal must take urgent action
Faced with this situation, Senegal must take urgent steps to restore investor and citizen confidence. This could include implementing structural reforms to improve transparency and accountability in public financial management. The government could also consider seeking assistance from the IMF and other international financial institutions to develop an economic recovery plan.
Furthermore, Senegal must strengthen its control and audit mechanisms to prevent similar situations from recurring in the future. Establishing a solid legal framework for public debt management could also help prevent abuses and ensure the efficient use of public resources.
Restoring Confidence and Ensuring Transparent Management
The revelation of a hidden 7 billion USD debt in Senegal is a wake-up call for the entire country. As Senegal aspires to become a model of development in West Africa, it is crucial that the authorities take immediate steps to restore confidence and ensure transparent management of public finances.
Last month, Senegal’s Court of Auditors published a highly anticipated audit confirming that the previous government had falsified key economic data, particularly on public debt and the budget deficit. According to this report, by the end of 2023, Senegal’s total debt represented 99.67% of gross domestic product (GDP), whereas the Macky Sall administration had previously announced a rate of 74.41%.
The road to economic stability and prosperity requires responsible governance and greater transparency in debt management. The next steps will be critical for Senegal’s economic future.
