An IMF staff team led by Mission Chief Mercedes Vera Martin held discussions with Senegalese authorities in Dakar from August 19 to September 1, 2026.
The proposed 36-month arrangement under the Extended Credit Facility would support Senegal’s economic and financial reform programme for 2026-2029.
Final approval remains subject to IMF Management and Executive Board consideration, corrective measures linked to previous data misreporting and financing assurances from Senegal’s development partners.
The programme is expected to attract additional financing from the World Bank, African Development Bank and other partners. “Senegal’s economy remained resilient, growing by 6.7% in 2025 as oil production entered its first full year, although non-hydrocarbon gross domestic product growth eased to 2.2%,” Vera Martin said.
Inflation stood at 1.4% in 2025, while non-hydrocarbon economic growth recovered to 4.7% year-on-year during the first quarter of 2026, supported by private consumption.
The proposed reforms seek to restore sustainable public finances while protecting vulnerable households through stronger social safety nets and targeted cash transfers.
Fiscal measures will focus on increasing domestic revenue and streamlining government expenditure. Senegalese authorities also plan to introduce a medium-term revenue strategy in 2027 to create additional funding for priority services.
Further reforms will target public debt management, domestic arrears and oversight of state-owned companies. Measures to improve the business environment and expand financial inclusion are expected to support private sector growth.
Senegalese authorities have also announced plans to seek debt treatment as part of efforts to restore debt sustainability. “Further decisive action will be critical to resolving the misreporting issues and strengthening safeguards to prevent similar occurrences in the future,” Vera Martin said.
During the mission, the IMF team met Senegal President Bassirou Diomaye Diakhar Faye, Prime Minister Ahmadou Al Aminou Lo, Minister of Economy, Finance and Planning Cheikh Diba and other senior officials.
Discussions also included representatives from the Central Bank of West African States, development partners, civil society and the private sector.
–IMF/ChannelAfrica–
