A team of International Monetary Fund (IMF), lead by Edward Gemayel, finished his stay in Senegal after a week of intensive discussions with local authorities. The main objective of the mission was to assess the consequences of the audit report of the Court of Accounts, published on February 12, 2025, which shed light on significant irregularities in the country's budget execution.
The audit, which covered the period 2019-2023, confirmed a considerable underestimation of fiscal deficits and public debt, raising alarms at both the IMF and the international financial circles"The IMF staff team welcomes the Senegalese authorities' strong commitment to transparency and fiscal accountability," the statement said. Edward Gemayel Upon concluding the mission, however, the Court of Auditors' audit detected significant revisions to Senegal's fiscal data for the period 2019-2023. Specifically, the average fiscal deficit was revised upwards by 5,6 percentage points of GDP, while central government debt was revised from 74,4% to 99,7% of GDP at the end of 2023. These revisions mainly reflect previously undisclosed liabilities, including hidden loans worth 25,3 percentage points of GDP.
These revelations point to serious deficiencies in budgetary controls and public financial reporting, underscoring the need for urgent reforms. During their visit, the IMF team focused on understanding the magnitude of the misinformation and the legal, institutional, and procedural weaknesses that allowed such discrepancies to occur.
Despite fiscal challenges, the Senegalese economy showed resilience in 2024, with real GDP growth estimated at around 6,0%, driven by the strong performance of the hydrocarbon sector. Inflation remained low, averaging 0,8%, contributing to a stable price environment. However, the fiscal deficit reached 11,7% of GDP, and central government debt is preliminarily estimated at 105,7% of GDP at the end of 2024.
Financing conditions have tightened significantly, reflecting the limitations of the regional markets, delays in donor support, and increased reliance on costly short-term external borrowing. These pressures underscore the importance of laying the groundwork for credible fiscal consolidation.
Looking ahead, it is essential to implement bold and credible reforms to ensure a timely return to the fiscal deficit target of the UEMOA “And put public debt on a firmly downward trajectory,” Gemayel emphasized. Priority measures include streamlining tax exemptions and phasing out costly, untargeted energy subsidies. These reforms will help rebuild fiscal buffers, necessary to address future crises, support development priorities, and reduce macroeconomic vulnerabilities.
The Senegalese authorities have expressed their intention to request a new IMF-supported program. The IMF stands ready to support Senegal in designing a reform-oriented mechanism based on the audit findings and aligned with the government's development strategy. Discussions on a possible new program will begin once corrective measures have been taken to address the misinformation and shortly after the IMF's Executive Board considers the case.
During their visit, the IMF team met with senior government officials, including President Bassirou Diomaye Faye, Minister of Justice Ousmane Diagne, Minister of Economy, Planning, and Cooperation Abdourahmane Sarr, and Minister of Finance and Budget Sheikh Diba. The team also held productive discussions with representatives of labor unions, civil society, and development partners.
"The IMF staff team thanks the Senegalese authorities for their warm hospitality, excellent cooperation, and the frank and constructive discussions held during the mission," Gemayel concluded.
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