Senegal’s ability to secure financial support from the International Monetary Fund (IMF) and international capital markets remains restricted as the country awaits the outcome of a final audit investigating a $7 billion fiscal discrepancy under the previous administration.
The IMF confirmed on Thursday that it is not prepared to engage in discussions regarding a new funding program until the audit process concludes. The Washington-based lender had suspended Senegal’s $1.8 billion support arrangement in October 2023 after preliminary findings revealed significant misreporting of public debt and budget deficit figures during the administration of former President Macky Sall.
“We are awaiting the final audit outcome,” IMF spokesperson Julie Kozack said during a press briefing. “With respect to the new program, we don’t have currently a fixed timeline.”
The delay has left the West African nation without access to multilateral disbursements and critical financing from global investors. The country’s 2025 finance bill projects an external funding gap of approximately $2 billion, which remains unmet due to the ongoing suspension and deteriorating investor confidence.
Finance Minister Cheikh Diba previously expressed optimism that talks with the IMF would resume in April, with the aim of securing a new deal by the end of June. However, that timeline has now shifted indefinitely as the IMF requires greater clarity on the country’s fiscal accounts.
According to Senegal’s Court of Auditors, the debt burden under Sall’s administration reached nearly 100% of gross domestic product (GDP) in 2023, substantially higher than the 74% previously reported. The budget deficit was also misrepresented, standing at 12.3% of GDP versus the 4.9% officially declared.
These discrepancies have triggered rating downgrades from both Moody’s Ratings and S&P Global Ratings, pushing Senegal further into speculative-grade territory. The country’s ability to issue new debt in international markets is now severely constrained.
The IMF is also reviewing whether to demand early repayment of $700 million already disbursed under the suspended arrangement or allow the original repayment terms to continue under a waiver. No decision has been made on that matter.
“Addressing the misreporting requires a rigorous process,” Kozack added, emphasizing that trust must be re-established through transparent and verifiable fiscal disclosures before further engagements can proceed.
The administration of President Bassirou Diomaye Faye, who assumed office earlier this year, has pledged to restore fiscal credibility and ensure compliance with international financial standards. However, the damage from previous accounting irregularities continues to affect the government’s credibility in the eyes of investors and development partners.
With limited options for external financing, Senegal may need to scale back planned expenditures or seek temporary support from regional lenders until the audit is finalized and international confidence is restored.
