• The IMF will send a new mission chief to Dakar for an introductory visit without formal negotiations on a new program.

• Senegal’s public debt reached 132% of GDP after the discovery of previously undisclosed borrowings.

• The IMF suspended a $1.8 billion support program pending full clarification of the country’s debt position.

The International Monetary Fund will send its newly appointed mission chief for Senegal, Mercedes Vera Martin, to Dakar early next week for a short visit described as “introductory,” as high public debt continues to block any formal agreement.

The IMF said the visit would not include any substantive negotiation cycle. A Fund spokesperson said the mission would focus on initial exchanges rather than detailed program discussions.

The visit comes amid a tense economic and financial environment in Senegal. At the end of 2024, the IMF revealed that Senegal’s public debt had reached 132% of gross domestic product after the new authorities uncovered several billion dollars in loans contracted by the previous administration but not reported.

Observers estimated the hidden debt at several billion dollars. Analysts described the discovery as unprecedented in sub-Saharan Africa and linked it to serious weaknesses in fiscal transparency and public finance management.

The findings prompted a comprehensive audit and a revision of official debt figures. International data now estimate Senegal’s total public debt at more than $43 billion.

The situation led the IMF to suspend a $1.8 billion financial assistance program pending full clarification of the scale and structure of Senegal’s debt.

Since the suspension, the Senegalese state has relied mainly on the West African Economic and Monetary Union (WAEMU) regional market to meet its financing needs. The government has increased Treasury bill and bond issuances.

This strategy has allowed Senegal to avoid heavy recourse to international markets for now. However, the approach has increased pressure on regional banking liquidity and has gradually raised borrowing costs.

Mercedes Vera Martin will travel with her predecessor, Edward Gemayel. The two officials will meet senior officials at the Ministry of Finance to “exchange views on recent macroeconomic developments and strengthen the foundations for future dialogue.”

A source close to the discussions said the meetings would aim to restore a framework of trust and share a roadmap. The source said the talks would not address detailed conditionality for a future IMF program.

Mercedes Vera Martin brings significant experience to the role. She led Zambia’s debt restructuring between 2023 and 2025, one of the most complex operations conducted under the G20 Common Framework.

This background has fueled speculation in Senegal. However, Senegalese authorities have repeatedly ruled out any debt restructuring.

Prime Minister Ousmane Sonko publicly rejected the idea of debt restructuring, which he said would undermine the country’s economic sovereignty. He said the government preferred a conventional IMF agreement that would avoid radical measures likely to hurt growth.

The government has maintained its position. Dakar said it wants to conclude a new IMF program “quickly” to restore macroeconomic credibility and secure medium-term financing.

However, uncertainty continues to surround the timetable. Before any formal resumption of talks, the IMF requires consolidated, audited, and comprehensive data on public debt. The Fund has described this condition as essential to closing the chapter on undisclosed liabilities.

This article was initially published in French by Fiacre E. Kakpo

Adapted in English by Ange Jason Quenum