• Sonko rejects IMF-backed debt restructuring, calls it national humiliation
• IMF suspended $1.8B program amid $11B hidden debt, 132% debt-to-GDP ratio
• Senegal pushes fiscal sovereignty, faces investor scrutiny ahead of key auctions

Senegalese Prime Minister Ousmane Sonko on Saturday rejected any proposal to restructure the country’s public debt. He said the measure, supported by the International Monetary Fund (IMF), would be a “disgrace” for the nation.

Speaking at a rally of the ruling party, Pastef, in Dakar, Sonko denounced what he described as the “hidden debt” left by the previous administration. He affirmed that his government would meet all financial commitments without seeking debt forgiveness or rescheduling.

“What our partners are telling us is to restructure this abysmal debt that we discovered. But we have been clear: this is out of the question. It would be a disgrace for our people,” Sonko told supporters, invoking Senegal’s national pride.

The Prime Minister’s comments came two days after the IMF concluded a mission to Dakar that ended without a new loan agreement. The Fund had suspended a $1.8 billion program in 2024 following the discovery of substantial off-balance-sheet liabilities, now estimated to exceed $11 billion. According to IMF data, Senegal’s total public debt, including obligations of state-owned companies, reached 132% of GDP at the end of 2024, alongside about 4% in domestic arrears.

Fiscal Outlook Faces Scrutiny

The IMF also questioned the credibility of the fiscal forecasts outlined in the government’s Economic and Social Recovery Plan (PRES), launched earlier this year. Senegal’s tax revenue grew by an average of 10% annually between 2019 and 2025, but the government is now forecasting a 31% increase in 2026, roughly three times the historical pace.

For the 2025-2028 period, authorities expect average annual tax revenue growth of 15%, fueled by new taxes on gambling, tobacco, alcoholic beverages, money transfers, and cash payments.

However, these ambitions face a persistent obstacle: actual revenues consistently fall short of forecasts, according to Senegal-based analyst Jean-Noël Roffiaen. Over the past three fiscal years, actual revenues were on average 8% below the amounts forecast in the initial Finance Bills. In 2024, the gap reached nearly 500 billion XOF, and the shortfall for 2025 is projected between 300 and 400 billion XOF, Roffiaen estimated.

Push for Financial Sovereignty

Sonko, who unveiled a recovery plan in August aimed at financing 90% of public investment through domestic resources, is promoting a shift toward financial sovereignty.

“Senegal is a proud nation. We will not be treated like a failed state. We will meet our obligations with our own means,” he said.

This drive for financial independence will soon be tested. Senegal’s eurobonds came under renewed pressure in the secondary market late last week. Investors are now focused on two critical events: the regional bond auction scheduled for November 14 and Standard & Poor’s review of Senegal’s sovereign credit rating on November 16, both of which could shape investor perceptions of the country’s risk profile.

With limited access to external financing, Senegal has increasingly turned to the UEMOA regional market this year to meet its budgetary needs, relying mainly on Treasury bond issuances through local auctions.

Meanwhile, IMF mission chief Edward Gemayel said discussions would continue in the coming weeks, noting that a debt sustainability analysis would determine whether restructuring is necessary for Senegal to qualify for new financing.

Fiacre E. Kakpo