• Senegal says it will need CFA1.195 trillion ($2.06 billion) to finance its 2025 budget.

• Government plans to cut this need to CFA155 billion by 2029 if a new IMF deal is reached.

• PM Sonko calls for a national tax effort and raises the possibility of leaving the CFA franc.

Senegal's Prime Minister Ousmane Sonko told lawmakers on April 14 that the country will need CFA1.195 trillion ($2.06 billion) to cover its financing needs in 2025. Speaking before the National Assembly, he said that amount could fall to just CFA155 billion by 2029, if a new agreement is reached with the International Monetary Fund (IMF).

His comments come at a sensitive moment for Senegal’s economy. In March, the IMF suspended its support program following the release of a national audit that revealed billions in hidden liabilities left behind by the previous administration. According to the audit by the Court of Accounts, public debt was underestimated. It is now believed to stand at 99.7% of GDP, well above the 74.4% figure previously cited and far beyond the convergence limit set by the West African Economic and Monetary Union (WAEMU).

In response, Sonko said his government is committed to restoring fiscal order. He outlined a two-year recovery plan focused on cutting public spending, expanding the tax base, and finding new sources of funding. “Senegalese citizens must get used to paying taxes,” he said, calling for a national effort to put the economy back on track.

One of the options on the table is the use of sukuk, a type of Islamic bond that does not carry interest and is structured according to Sharia principles. Senegal has issued sukuk in the past—in 2014, 2016, and 2022. Reviving this approach could help attract more investors from the Middle East, where this kind of financial product is in high demand.

Another key moment in Sonko’s address was his challenge to Senegal’s continued use of the CFA franc. He called for greater economic independence and said the country may eventually drop the currency. “The CFA franc does not fit our vision. Either we change it with our WAEMU partners, or we will act on our own,” he said, though he did not give a timeline.

Despite the turbulence, Senegal’s financial credibility remains intact for now. On April 10, the Treasury successfully raised CFA150 billion on the WAEMU regional market. The bond issue was heavily oversubscribed, bringing in a total of CFA405 billion. This strong demand suggests that investors still have confidence in Senegal, even as it faces major fiscal challenges. The country is expected to return to the market on April 18 to raise another CFA90 billion.