Senegal is expected to make its large Eurobond repayments due in March on time, despite mounting concerns over the country’s sharply deteriorated debt position, sources familiar with the matter said on Tuesday.
The West African nation owes more than $480 million to Eurobond holders next month, a significant test of its short-term liquidity as investors closely watch its ability to meet external obligations. Two sources said the government has raised sufficient financing through tax revenues and borrowing on the regional market to cover the payments.
“One of the sources said Senegal has mobilised enough resources domestically and within the West African regional market to honour the March obligations,” adding that authorities are keen to avoid any disruption that could further undermine investor confidence.
The looming payment comes as Senegal grapples with a far heavier debt burden than previously disclosed. The International Monetary Fund said Senegal’s public debt surged to around 132 percent of gross domestic product at the end of 2024, after the country’s current leadership uncovered billions of dollars in previously unreported borrowing by the former administration.
The revelations prompted the IMF to reassess its engagement with Senegal, suspending parts of its programme while it evaluates the scale of the misreporting and discusses corrective measures with the authorities. The disclosure also rattled financial markets, pushing up Senegal’s borrowing costs and raising fears of possible debt restructuring in the future.
Eurobonds have been a major source of funding for Senegal over the past decade, helping finance infrastructure projects and support economic growth. However, higher global interest rates and tighter financing conditions have made servicing this debt increasingly expensive, adding pressure to public finances.
Senegal has turned more frequently to the regional West African debt market, issuing treasury bills and bonds through the regional central bank, as access to international markets has become more constrained. Authorities have also pledged to boost revenue collection and rein in spending to stabilise the fiscal position.
Analysts say meeting the March Eurobond payments on time would send a strong signal to investors about Senegal’s willingness and capacity to honour its obligations, even as it works to restore credibility with international partners.
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“This payment is crucial for confidence,” one analyst said. “Any delay or default would significantly worsen Senegal’s standing with markets at a very sensitive moment.”
The government has said it is committed to improving transparency, strengthening debt management and rebuilding trust with lenders as it seeks renewed support from the IMF and other development partners.
Senegal’s public finances have come under intense scrutiny following revelations of previously undisclosed borrowing that sharply worsened the country’s debt position. After taking office in 2024, the current authorities said audits uncovered billions of dollars in liabilities that had not been fully reported under the previous administration, significantly altering the fiscal outlook.
According to the International Monetary Fund, Senegal’s public debt climbed to about 132 percent of gross domestic product by the end of 2024, placing the country among the most highly indebted sovereigns in sub-Saharan Africa. The IMF subsequently suspended parts of its programme with Senegal while it assessed the scale of the misreporting and engaged authorities on corrective measures.
Eurobonds have been a key source of external financing for Senegal over the past decade, helping fund infrastructure projects and budget needs as the economy expanded on the back of investment and expectations around oil and gas production. However, rising global interest rates and tighter financial conditions have increased the cost of servicing this debt, putting pressure on public finances.
Senegal faces more than US$480 million in Eurobond repayments in March, one of the largest near-term external debt obligations on its calendar. The payments are being closely watched by investors as a test of the government’s liquidity position and its commitment to honouring external obligations amid fiscal strain.
To meet its financing needs, Senegal has relied more heavily on domestic tax revenues and borrowing from the regional West African market, where countries issue debt through the regional central bank and treasury bill auctions. Authorities have also pledged to strengthen fiscal discipline, improve transparency and restore confidence with international partners.
Investor sentiment toward Senegal has weakened since the debt revelations, with concerns that the higher debt load could eventually force restructuring talks if financing conditions deteriorate further. Making Eurobond payments on time is therefore seen as critical to maintaining market access and rebuilding credibility as the government seeks renewed engagement with the IMF and other lenders.
The situation comes as Senegal prepares for a new phase of economic management under its current leadership, which has promised reforms to improve governance, manage debt more prudently and ensure that future borrowing is fully disclosed.
