Senegal’s Debt Burden Deepens As Fiscal Gaps Widen

Fresh data from the finance ministry indicates that Senegal’s national debt surged by the end of March 2025, highlighting the government’s ongoing difficulties in managing public finances amid continuous fiscal strain.

Debt servicing payments jumped significantly—rising by 44.5% in the final quarter of 2024 to 822.32 billion CFA francs ($1.4 billion)—and saw an additional 23.98% increase in the first quarter of 2025 compared to the same time last year, reflecting mounting domestic and foreign repayment responsibilities.

Reports revealed that about two-thirds of Senegal’s outstanding debt is owed to banking institutions, with the remaining part linked to unsettled operational arrears such as overdue supplier invoices and tax obligations. These findings were part of delayed quarterly budget reports released on Monday.

The same reports show that Senegal generated 1,027.82 billion CFA francs in revenue during the first quarter of 2025, amounting to 21.44% of its yearly fiscal goals. Meanwhile, total government spending reached 1,419.45 billion CFA francs, covering both regular expenses and investment projects.

External grant receipts saw a severe decline, falling 71.49% year-on-year to 8 billion CFA francs—a reflection of the country’s struggle to attract foreign donor support.

Despite official promises to improve debt control and implement financial reforms, Senegal continues to face difficulties such as dwindling foreign aid, rising debt repayments, and accumulated arrears—challenges that weigh heavily on its economic prospects.

Last year, the International Monetary Fund (IMF) halted its disbursements to Senegal after the government acknowledged misreporting on debt and budget deficit figures. The IMF, whose funding is considered vital for economic stability and investor confidence, stated that discussions for a new program will remain suspended until these discrepancies are resolved.

A February audit of state accounts by Senegal’s court of auditors revealed that budget deficits had been understated by as much as seven percentage points of GDP annually, causing the debt-to-GDP ratio at the end of 2023 to climb to roughly 100%—far above the previously declared 74%.

Government revenue in the last quarter of 2024 was stronger than anticipated, reaching 4,005.21 billion CFA francs—3.91% above the revised projection. On the expenditure side, spending rose to 6,506.16 billion CFA francs, representing a steep 61.29% increase over the same quarter in the prior year.

However, this period also exposed notable unpaid obligations, including 146.3 billion CFA francs in fuel subsidies and 105.2 billion CFA francs owed to building contractors.

($1 = 588 CFA francs)


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