Senegal’s $2.2bn IMF deal renews debate over debt sovereignty

Senegal and the International Monetary Fund have announced a new loan programme valued at $2.2bn, reviving debate over how the West African country should manage its public debt and its relationship with international financial institutions.

The agreement follows the suspension of an earlier IMF-Senegal arrangement after concealed debt equivalent to approximately 25 percent of gross domestic product was discovered in July 2024. Once included in the accounts, Senegal’s public debt rose to more than 130 percent of GDP, according to an opinion article published by Al Jazeera.

The article says the disclosure intensified scrutiny of public borrowing and drew political attention after the governing Pastef party won 80 percent of parliamentary seats in elections held in November 2024.

Calls for an independent debt review

The article argues that Senegal should not rely solely on international financial institutions to address its debt challenges. It recommends a citizens’ debt audit to determine whether the country’s borrowing was legal, legitimate and beneficial to the population.

The proposed examination would cover debt contracted between 2019 and 2024. It would also assess the responsibilities of arrangers and creditors, as well as what the article describes as a failure of IMF surveillance. The author calls for Senegal’s parliament and civil society to establish the institutional conditions for the audit.

Among the recommendations is a suspension clause for servicing disputed debt while the review is under way. The article also calls for prior parliamentary approval of public borrowing and full disclosure of government debt in national legislation.

The source says public debt at the end of 2023 was initially reported at 74 percent of GDP before being recalculated at 99 percent. The IMF attributed the reporting error to the Senegalese government, according to the article’s account of the institution’s position.

Concerns over repeated adjustment programmes

Senegal has repeatedly sought IMF assistance since 1979 and has been among the institution’s most continuous programme countries, the article says. It argues that structural adjustment measures associated with the IMF and the World Bank produced stagnation, increased poverty and failed to deliver economic transformation in Senegal.

Senegal received $488m in debt cancellation under the Heavily Indebted Poor Countries Initiative in 2004. The article says that relief was accompanied by conditions including the privatisation of state companies and deregulation.

Zambia and Ethiopia are cited as other African countries that have faced debt-management difficulties while engaging with IMF programmes. Zambia began borrowing from the IMF in the 1980s and later sought relief under the HIPC initiative. Ethiopia requested debt treatment through the G20 Common Framework in February 2021 and agreed terms with creditors in March 2025 after defaulting on debt. The article also references a $3.4bn IMF agreement with Ethiopia.

Alternative fiscal and regional measures

The opinion piece recommends that Senegal expand taxation more heavily on extractive industries and wealthy individuals instead of applying broad tax increases while reducing social spending. It also calls for protecting social expenditure and productive investment during debt-management efforts.

At the regional level, the article proposes that Senegal work with the African Union and other African governments to seek a 20-to-30-year moratorium on debt service. It further recommends mutualising liquidity risks within the West Africa Economic and Monetary Union and beginning a strategic process towards a sovereign currency with other countries using the West African CFA franc.

The article presents these measures as an alternative sequence rather than a total rejection of external financing. It argues that Senegal should first establish accountability and determine the legitimacy of its debt before accepting restructuring terms.