Senegal’s debt talks with IMF led by president diomaye faye

As Senegal’s Prime Minister Ousmane Sonko hosted a high-profile seminar in Dakar on alternative economic models beyond traditional Bretton Woods frameworks—featuring academics and self-styled «disruptive economists»—the country’s presidency took the unusual step of clarifying a key leadership decision. In an official statement issued from Nairobi, the cabinet confirmed that President Bassirou Diomaye Faye is personally overseeing all negotiations with the International Monetary Fund (IMF) to resolve a financial crisis triggered by the revelation of previously undisclosed public liabilities in 2024.

This direct presidential involvement was underscored during a meeting between Faye and IMF Managing Director Kristalina Georgieva on the sidelines of the Africa Forward Summit in Nairobi. The two leaders explored potential debt restructuring solutions and agreed to continue talks, according to a statement from the Presidency. «This is a matter the Head of State is deeply committed to and is devoting all necessary attention to,» the communiqué emphasized. Their discussions also addressed the broader economic fallout from geopolitical instability in the Middle East, particularly rising energy costs and their impact on Senegal’s fragile economy.

The government’s hands-on approach comes after Prime Minister Sonko publicly rejected IMF pressure last year to restructure Senegal’s debt, dismissing such proposals as « dishonorable. » Those comments followed the suspension of a $1.8 billion IMF program in 2024, after auditors uncovered significant discrepancies in the country’s fiscal reports.

With public debt now exceeding 130% of GDP, Dakar is urgently seeking a new financing arrangement with the IMF to stabilize its fiscal position. In response, the Fund has downgraded its growth forecast for Senegal and warned of a wider-than-expected current account deficit, signaling growing concerns about the country’s economic resilience.