• Dakar launches third 2025 regional bond, seeking CFA300 bln ($542 mln).
• Total borrowings on WAEMU market now exceed CFA2,700 bln this year.
• Move comes as debt revised to 118.8% of GDP and rating cut to B-.

Senegal plans to raise CFA300 billion ($542 million) on the West African regional financial market (WAEMU), sources close to the deal said on September 17. The syndicated bond issue is intended to cover part of the state’s record financing needs.

This is the country’s third public call for funds in 2025. Senegal previously raised CFA416 billion in March and CFA364 billion in July. With the new borrowing, its total for the year through bonds surpasses CFA1,000 billion.

In addition, conventional auctions organized by UMOA-Titres brought in CFA1,740 billion during the first nine months of the year. Altogether, Senegal has already mobilized more than CFA2,700 billion on the regional market.

The new CFA300 billion issuance is structured in four tranches: CFA60 billion over 3 years (6.40% coupon), CFA100 billion over 5 years (6.60%, 1-year grace), CFA80 billion over 7 years (6.75%, 2-year grace), and CFA60 billion over 10 years (6.95%, 2-year grace).

Mounting financial strain

The heavy borrowing comes as Senegal’s public finances face severe strain. In February, the Court of Accounts revealed major accounting irregularities. An audit by Forvis Mazars confirmed undeclared liabilities of CFA8,300 billion, equivalent to 41% of GDP. As a result, public debt, initially estimated at 74% of GDP in 2023, was revised to 111% for that year and 118.8% at the end of 2024.

In July, S&P Global Ratings downgraded Senegal’s sovereign rating from B to B- with a negative outlook, citing growing fiscal fragility and record financing needs.

Dakar’s debt strategy is partly tied to the economic boost from oil and gas production. According to the IMF, growth reached 12.1% in Q1 2025, driven by the Sangomar and GTA fields. Excluding hydrocarbons, growth was only 3.1%, slowed by difficulties in construction and chemicals. Inflation stood at 0.7% in July.

Recovery plan and IMF talks

To address concerns, Prime Minister Ousmane Sonko unveiled an Economic and Social Recovery Plan (PRES) in August, targeting CFA5,667 billion by 2028, 90% from domestic resources, and aiming to cut the budget deficit to 3% of GDP by 2027. Measures include curbing state spending, higher taxes on digital and mobile money, and renegotiation of some mining and energy contracts.

An IMF mission visited Dakar in late August and praised the government’s commitment to transparency, while urging stronger centralization of debt management and completion of arrears audits. Talks are underway on a possible new IMF-supported program, which could reassure markets and ease access to future financing.