{ "title": "IMF Staff Concludes a Staff-Level Agreement with Senegal Under the Policy Coordination Instrument", "publication": "IMF News, September 23, 2019", "sourceUrl": "https://www.imf.org/en/news/articles/2019/09/23/pr19346-senegalimf-staff-concludes-a-staff-level-agreement-with-senegal-under-the-pci", "canonical": "https://www.imf.org/en/news/articles/2019/09/23/pr19346-senegalimf-staff-concludes-a-staff-level-agreement-with-senegal-under-the-pci", "overlayPath": "/en/news/articles/2019/09/23/pr19346-senegalimf-staff-concludes-a-staff-level-agreement-with-senegal-under-the-pci/index.md", "summary": "An IMF staff team, led by Ms. Corinne Deléchat, visited Dakar from September 12 to 23, 2019 to discuss a three-year programme supported by the Policy Coordination Instrument (PCI).", "publishDate": "2019-09-23", "sections": [ { "heading": "Overview", "content": "- An IMF staff team, led by Ms. Corinne Deléchat, visited Dakar from September 12 to 23, 2019 to discuss a three-year programme supported by the Policy Coordination Instrument (PCI).\n- “The IMF mission and Senegalese authorities reached an agreement on a set of macroeconomic policies and structural reforms that could facilitate the approval of a new program under the PCI.\"\n- The approval of this program will be submitted to the IMF Executive Board for consideration by mid-December 2019.\n- The PCI is an instrument introduced by the IMF in 2017 to support countries that can benefit from IMF support under a program, but that do not need financial resources from the IMF.\n- The program will support the implementation of the second phase of the Emerging Senegal Plan (Plan Sénégal Émergent – PSE II)." }, { "heading": "Economic Outlook and Projections", "content": "- Growth projections:\n - 6% in 2019\n - 7% in 2020-21\n - Additional momentum expected with the start of commercial production of hydrocarbons in 2022\n- Inflation:\n - Expected to remain low over the medium term\n- Current account:\n - Expected to increase until 2021 due to imports for hydrocarbon project construction\n - Expected to decline once oil and gas production and exports begin" }, { "heading": "Fiscal Policy and Debt Management", "content": "- Government intentions and targets:\n - Maintain the budget deficit target at 3% in 2019 and beyond\n - Ensure the settlement of its outstanding obligations to the private sector\n- 2019 fiscal framework:\n - Includes a one-off operation to clear unpaid obligations to the state-owned electricity company\n - Short-term measures deployed to increase the rate of revenue collection and to meet the objectives of the supplementary budget law of July 2019\n- 2020 budget preparation:\n - Based on continued efforts to increase revenue mobilization and to streamline the government's operating expenses, taking into account the need to meet the government's financial commitments for earlier years\n- WAEMU convergence and fiscal anchors:\n - Compliance with WAEMU objectives of maintaining the budget deficit at 3% of GDP\n - Objective to increase tax collection to a minimum of 20% of GDP\n- Medium-Term Revenue Strategy:\n - Being developed to widen the tax base and boost domestic resource mobilization, essential for financing PSE II\n- Fiscal policy aim:\n - Maintain the sustainability of public finances and medium-term debt sustainability (Pillar II)" }, { "heading": "PCI Pillars and Structural Reforms", "content": "- First pillar: Accelerate private sector development for strong and inclusive growth through:\n - (i) Modernization of infrastructure and strengthening of human capital\n - (ii) Improvement of the business environment by upgrading the legal framework, particularly by the reform of the labor code\n - (iii) Facilitation of access to property rights and modernization of commercial law\n - (iv) Broadening of access to funding for private companies, particularly for small and medium enterprises\n- Social and inclusion objectives:\n - Reduce economic and social disparities between urban and rural areas\n - Increase economic opportunities for women and youth" }, { "heading": "Hydrocarbons Governance (Pillar III)", "content": "- Aim to establish a sustainable and transparent governance framework for newly-discovered hydrocarbon resources\n- Government intends to implement a management framework in line with best practices\n- Program supports establishing sustainable and transparent management of the recent hydrocarbon discoveries" }, { "heading": "Mission Engagement and Next Steps", "content": "- The mission met with:\n - His Excellency, Mr. Macky Sall, President of the Republic\n - Mr. Abdoulaye Daouda Diallo, Minister of Finance and Budget\n - Mr. Amadou Hott, Minister of Economy, Planning and Cooperation\n - Mr. Mouhamadou Makhtar Cissé, Minister of Oil and Energy\n - Mr. Ahmadou Lo, BCEAO National Director\n - Other senior officials, development partners and representatives from the private sector\n- The team expressed gratitude for the authorities’ hospitality, quality of work, excellent collaboration and constructive dialogue\n- Next programme approval step:\n - Submission to the IMF Executive Board for consideration by mid-December 2019\n\nIMF Press Release No. 19/346 — September 23, 2019\n\n---\n\n\n References\n\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2019/09/23/pr19346-senegalimf-staff-concludes-a-staff-level-agreement-with-senegal-under-the-pci" } ], "bullets": [ "[Markdown version](/en/news/articles/2019/09/23/pr19346-senegalimf-staff-concludes-a-staff-level-agreement-with-senegal-under-the-pci/index.md)", "[Structured JSON version](/en/news/articles/2019/09/23/pr19346-senegalimf-staff-concludes-a-staff-level-agreement-with-senegal-under-the-pci/index.json)", "[Bundle manifest](/en/news/articles/2019/09/23/pr19346-senegalimf-staff-concludes-a-staff-level-agreement-with-senegal-under-the-pci/bundle-manifest.json)", "Published: September 23, 2019", "An IMF staff team, led by Ms. Corinne Deléchat, visited Dakar from September 12 to 23, 2019 to discuss a three-year programme supported by the Policy Coordination Instrument (PCI).", "“The IMF mission and Senegalese authorities reached an agreement on a set of macroeconomic policies and structural reforms that could facilitate the approval of a new program under the PCI.\"", "The approval of this program will be submitted to the IMF Executive Board for consideration by mid-December 2019.", "The PCI is an instrument introduced by the IMF in 2017 to support countries that can benefit from IMF support under a program, but that do not need financial resources from the IMF.", "The program will support the implementation of the second phase of the Emerging Senegal Plan (Plan Sénégal Émergent – PSE II).", "Growth projections:", "Inflation:", "Current account:", "Government intentions and targets:", "2019 fiscal framework:", "2020 budget preparation:", "WAEMU convergence and fiscal anchors:", "Medium-Term Revenue Strategy:", "Fiscal policy aim:", "First pillar: Accelerate private sector development for strong and inclusive growth through:", "Social and inclusion objectives:", "Aim to establish a sustainable and transparent governance framework for newly-discovered hydrocarbon resources", "Government intends to implement a management framework in line with best practices", "Program supports establishing sustainable and transparent management of the recent hydrocarbon discoveries", "The mission met with:", "The team expressed gratitude for the authorities’ hospitality, quality of work, excellent collaboration and constructive dialogue", "Next programme approval step:", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2019/09/23/pr19346-senegalimf-staff-concludes-a-staff-level-agreement-with-senegal-under-the-pci/index.md", "json": "/en/news/articles/2019/09/23/pr19346-senegalimf-staff-concludes-a-staff-level-agreement-with-senegal-under-the-pci/index.json", "bundleManifest": "/en/news/articles/2019/09/23/pr19346-senegalimf-staff-concludes-a-staff-level-agreement-with-senegal-under-the-pci/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T23:05:42.582Z" }