Senegalese President Bassirou Diomaye Faye is personally overseeing negotiations with the International Monetary Fund as the West African nation seeks to resolve a debt crisis triggered by the discovery of previously undisclosed liabilities in 2024.
According to statements published Tuesday by the presidency on social media, Faye held discussions with IMF Managing Director Kristalina Georgieva on the sidelines of the Africa Forward Summit in Nairobi, where both sides explored possible solutions to Senegal’s worsening debt situation.
The talks come as Senegal attempts to restore confidence among international lenders and investors after revelations that the country had failed to fully report parts of its public debt obligations. The disclosure prompted the IMF to suspend a US$1.8 billion support programme in 2024 pending clarification of the country’s fiscal position and debt data.
Senegal is now seeking a new IMF-supported financing programme to help stabilise the economy and manage a public debt burden that has risen above 130 percent of gross domestic product, according to government officials and international financial institutions.
In a statement released after the meeting, the Senegalese presidency stressed the importance President Faye is placing on the negotiations.
“This is an issue the President is personally committed to and to which he is dedicating all his energy,” the statement said, underscoring the administration’s determination to secure an agreement with the Fund and restore macroeconomic stability.
The debt issue has become one of the most pressing economic challenges facing the administration since Faye assumed office. Analysts say a successful agreement with the IMF could help unlock additional international financing, reassure investors and improve Senegal’s fiscal outlook.
However, the negotiations have also exposed tensions within the government over how the debt crisis should be managed.
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Prime Minister Ousmane Sonko stated last year that the IMF had proposed debt restructuring measures, but said the government would resist such a move. Sonko described debt restructuring as “a disgrace,” reflecting concerns within the administration that such measures could damage Senegal’s financial reputation and increase borrowing costs.
Debt restructuring typically involves renegotiating repayment terms with creditors, extending maturities or reducing debt obligations to make repayments more manageable. While such arrangements can provide fiscal relief, governments often seek to avoid them because of the potential impact on investor confidence and sovereign credit ratings.
Beyond debt negotiations, Faye and Georgieva also discussed broader economic pressures facing Senegal, including the impact of geopolitical tensions in the Middle East on global energy markets.
According to the presidency, the leaders examined how rising energy costs linked to ongoing conflicts in the region are affecting Senegal’s economy, particularly through higher fuel import bills and inflationary pressures.
Like many African economies that rely heavily on imported petroleum products, Senegal has faced increased vulnerability to global commodity price swings in recent years. Higher energy prices have contributed to inflation, increased transport and electricity costs, and placed additional strain on public finances.
The IMF has already revised down Senegal’s economic growth forecast for 2026 and warned that the country’s current account deficit is likely to be larger than previously anticipated.
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Despite those challenges, Senegal remains one of West Africa’s most strategically important economies, with expectations that new oil and gas production could support future growth and government revenues.
Economists say the outcome of the IMF negotiations will be closely watched across the region, as Senegal seeks to balance fiscal reforms, debt sustainability and economic growth while maintaining political and social stability.
