An International Monetary Fund (IMF) staff team led by Ms. Mercedes Vera Martin held discussions with the Senegalese authorities in Dakar between August 19 and September 1, 2026.
At the end of the mission, Ms. Vera Martin issued the following statement:
"The Senegalese authorities and IMF staff have reached a staff-level agreement on key economic policies that could underpin a 36-month arrangement under The Extended Credit Facility (ECF) of about US$2.2 billion (SDR 1,537.1 million, or 475 percent of quota) to support the authorities' economic and financial reform program for 2026–29. The agreement remains subject to IMF Management and Executive Board approval, and it requires decisive corrective actions to support the authorities’ request for a waiver in the misreporting case prior to Executive Board approval. It also requires the receipt of the necessary financing assurances from Senegal's partners. The IMF-supported program is expected to help catalyze financing from the World Bank, the African Development Bank, and other development partners.
“Senegal’s economy remained resilient, growing by 6.7 percent in 2025 as oil production entered its first full year, although non-hydrocarbon GDP growth eased to 2.2 percent. Inflation remained within the target range at 1.4 percent. In the first quarter of 2026, non-hydrocarbon GDP growth rebounded to 4.7 percent year-on-year, supported by strong private consumption.
“Key reforms under the IMF-supported program aim to restore the sustainability of public finances while protecting vulnerable households. The fiscal strategy focuses on strengthening domestic resource mobilization and streamline expenditure, while reinforcing social safety nets, particularly through targeted cash transfers.
“Structural reforms will underpin the fiscal strategy for sustainable consolidation. The authorities plan to adopt a medium-term revenue strategy in 2027 that will strengthen domestic revenue mobilization and help create space for priority spending. The authorities are also committed to enhancing fiscal governance, including through improved public debt management, stronger monitoring of domestic arrears, and improved oversight of state-owned enterprises. Reforms to improve the business environment and promote financial inclusion will help support private sector-led growth. In addition, the authorities have further announced their intention to seek a debt treatment to restore debt sustainability.
“Staff welcomes the authorities’ continued engagement and commitment to addressing the vulnerabilities revealed by the past misreporting. Further decisive action will be critical to resolving the misreporting issues and strengthening safeguards to prevent similar occurrences in the future.
During the visit, the IMF team met with His Excellency President of the Republic Mr. Bassirou Diomaye Diakhar Faye; Prime Minister Mr. Ahmadou Al Aminou Lo; First President of the Cour des Comptes Mr. Abdoul Madjib Guèye; Minister of Economy, Finance and Planning Mr. Cheikh Diba; Minister-Delegate to the Minister of Economy, Finance and Plan in charge of the Budget Mr. Bassirou Sarr; Vice-Governor of the Central Bank of West African States (BCEAO) Mr. Mamadou Diop; and National Director of the BCEAO Mr. François Sène, as well as several senior officials. The team also held fruitful discussions with development partners, private sector and civil society representatives, and other stakeholder.
Distributed by APO Group on behalf of International Monetary Fund (IMF).
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