{ "title": "IMF Staff Concludes Mission to Senegal", "publication": "IMF News, November 16, 2022", "sourceUrl": "https://www.imf.org/en/news/articles/2022/11/16/pr22388-imf-staff-concludes-mission-to-senegal", "canonical": "https://www.imf.org/en/news/articles/2022/11/16/pr22388-imf-staff-concludes-mission-to-senegal", "overlayPath": "/en/news/articles/2022/11/16/pr22388-imf-staff-concludes-mission-to-senegal/index.md", "summary": "IMF Staff Concludes Mission to Senegal", "authors": [ "Credit Facility" ], "publishDate": "2022-11-16", "sections": [ { "heading": "Mission scope and contacts", "content": "- Mission dates: November 4-15, 2022.\n- Purpose: Conduct the sixth and final review under the Policy Coordination Instrument (PCI) and the third and final reviews under the Stand-By Credit Facility (SCF) and Stand-By-Arrangement (SBA).\n- Mission leader: Mr. Edward Gemayel.\n- Authorities and counterparts met: his excellency Prime Minister Amadou Ba; Minister of Finance and Budget, Mr. Mamadou Moustapha Ba; the Deputy Governor of the BCEAO, Mr. Mamadou Diop; the National Director of the BCEAO, Mr. Ahmadou Al Aminou Lo; senior government officials; and development partners.\n- Press contact: PRESS OFFICER: Tatiana Mossot; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson" }, { "heading": "Statement highlights — macroeconomic outlook", "content": "- Downside shocks cited: weaker external demand, rising food and energy prices, and the US dollar appreciation.\n- Revised 2022 growth: 4.7 percent.\n- Revised 2022 inflation: 8.5 percent (described as a multi-decade high).\n- Inflation drivers: largely from soaring food prices; pressures are broader and more persistent than anticipated, causing serious hardship for households, especially the most vulnerable.\n- 2023 projection: growth should rebound to 8.3 percent due to a temporary boost from oil and gas production and absent further escalation of the war in Ukraine.\n- 2023 inflation outlook: inflation should recede due to an expected strong harvest and lower international commodity prices." }, { "heading": "Program performance and structural reforms", "content": "- Overall program performance: described as broadly satisfactory.\n- Quantitative targets: all quantitative targets were met, except the ceiling on the share of contracts awarded through single-source procurement.\n- Structural reform progress: significant progress made but at a slower pace than envisaged under the program.\n- Pending key reforms:\n - Fiscal framework to manage oil and gas revenues not yet adopted.\n - New public procurement code, expected to ensure more open and competitive tenders, not yet adopted.\n- Cash transfer program: significant delays in payments for the poorest households observed and should be addressed urgently; authorities should move to a more effective digital payment of the cash transfer program.\n- AML/CFT: implementing the remaining AML/CFT actions to move Senegal out of the enhanced oversight by the Financial Action Task Force (FATF) is critical." }, { "heading": "Fiscal stance and recommendations", "content": "- Fiscal space characterization: limited fiscal space.\n- Recommendation: gradual fiscal consolidation efforts over the medium term to preserve debt sustainability.\n- Timing and measures:\n - Start in 2023 by raising more fiscal revenues building on the strong revenue performance this year.\n - Limit the use of the budgetary reserve envelop to help contain the fiscal deficit around 5 percent of GDP." }, { "heading": "Energy subsidies", "content": "- Projected untargeted and regressive energy subsidies:\n - Expected to amount to CFAF 750 billion in 2022 (or 4.4 percent of GDP).\n - Absent new policy measures, would reach 800 billion (or above 4 percent of GDP) in 2023.\n- Recommendation: authorities should convincingly commit to start phasing them out in 2023 and accelerate efforts to finalize a credible roadmap to gradually unwind them by 2025." }, { "heading": "Closing and next steps", "content": "- Discussions: mission made significant progress toward completion of the reviews; discussions will continue over the coming days towards reaching a staff-level agreement, subject to IMF management approval and consideration by the IMF Executive Board by mid-December.\n- IMF stance: the IMF team thanks authorities and counterparts for cooperation and reaffirms the IMF’s support to Senegal.\n\nSource: IMF Press Release No. 22/388, \"IMF Staff Concludes Mission to Senegal\", November 16, 2022.\n\n---\n\n\n References\n\n- Senegal and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2022/11/16/pr22388-imf-staff-concludes-mission-to-senegal" } ], "bullets": [ "[Markdown version](/en/news/articles/2022/11/16/pr22388-imf-staff-concludes-mission-to-senegal/index.md)", "[Structured JSON version](/en/news/articles/2022/11/16/pr22388-imf-staff-concludes-mission-to-senegal/index.json)", "[Bundle manifest](/en/news/articles/2022/11/16/pr22388-imf-staff-concludes-mission-to-senegal/bundle-manifest.json)", "Authors: Credit Facility", "Published: November 16, 2022", "Mission dates: November 4-15, 2022.", "Purpose: Conduct the sixth and final review under the Policy Coordination Instrument (PCI) and the third and final reviews under the Stand-By Credit Facility (SCF) and Stand-By-Arrangement (SBA).", "Mission leader: Mr. Edward Gemayel.", "Authorities and counterparts met: his excellency Prime Minister Amadou Ba; Minister of Finance and Budget, Mr. Mamadou Moustapha Ba; the Deputy Governor of the BCEAO, Mr. Mamadou Diop; the National Director of the BCEAO, Mr. Ahmadou Al Aminou Lo; senior government officials; and development partners.", "Press contact: PRESS OFFICER: Tatiana Mossot; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson", "Downside shocks cited: weaker external demand, rising food and energy prices, and the US dollar appreciation.", "Revised 2022 growth: 4.7 percent.", "Revised 2022 inflation: 8.5 percent (described as a multi-decade high).", "Inflation drivers: largely from soaring food prices; pressures are broader and more persistent than anticipated, causing serious hardship for households, especially the most vulnerable.", "2023 projection: growth should rebound to 8.3 percent due to a temporary boost from oil and gas production and absent further escalation of the war in Ukraine.", "2023 inflation outlook: inflation should recede due to an expected strong harvest and lower international commodity prices.", "Overall program performance: described as broadly satisfactory.", "Quantitative targets: all quantitative targets were met, except the ceiling on the share of contracts awarded through single-source procurement.", "Structural reform progress: significant progress made but at a slower pace than envisaged under the program.", "Pending key reforms:", "Cash transfer program: significant delays in payments for the poorest households observed and should be addressed urgently; authorities should move to a more effective digital payment of the cash transfer program.", "AML/CFT: implementing the remaining AML/CFT actions to move Senegal out of the enhanced oversight by the Financial Action Task Force (FATF) is critical.", "Fiscal space characterization: limited fiscal space.", "Recommendation: gradual fiscal consolidation efforts over the medium term to preserve debt sustainability.", "Timing and measures:", "Projected untargeted and regressive energy subsidies:", "Recommendation: authorities should convincingly commit to start phasing them out in 2023 and accelerate efforts to finalize a credible roadmap to gradually unwind them by 2025.", "Discussions: mission made significant progress toward completion of the reviews; discussions will continue over the coming days towards reaching a staff-level agreement, subject to IMF management approval and consideration by the IMF Executive Board by mid-December.", "IMF stance: the IMF team thanks authorities and counterparts for cooperation and reaffirms the IMF’s support to Senegal.", "[Senegal and the IMF](http://www.imf.org/external/country/SEN/index.htm)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2022/11/16/pr22388-imf-staff-concludes-mission-to-senegal/index.md", "json": "/en/news/articles/2022/11/16/pr22388-imf-staff-concludes-mission-to-senegal/index.json", "bundleManifest": "/en/news/articles/2022/11/16/pr22388-imf-staff-concludes-mission-to-senegal/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T01:39:10.260Z" }