## IMF Executive Board Completes the First Review of the Arrangements Under the Extended Fund Facility, the Extended Credit Facility, and the Resilience and Sustainability Facility for Senegal

_IMF News, December 13, 2023_

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**Canonical URL:** [IMF Executive Board Completes the First Review of the Arrangements Under the Extended Fund Facility, the Extended Credit Facility, and the Resilience and Sustainability Facility for Senegal](https://www.imf.org/en/news/articles/2023/12/13/pr23445-senegal-imf-exec-board-completes-1st-rev-arr-eff-ecf-rsf)

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## Bibliographic details
- Published: December 13, 2023

---

### Review completion and financing
- The Executive Board completed the first review of Senegal’s economic program under the EFF, the ECF, and the RSF.
- The completion enables the immediate release of about US$ 214.86 million (SDR 161.82 million) under the combined ECF/EFF.
- The completion enables the immediate release of about US$ 64.45 million (SDR 48.54 million) under the RSF.
- The Executive Board provided the country with access to SDR 210.36 million (about US$ 279.31 million).

### Economic outlook and risks
- Near-term growth for 2023/24 was revised downward and near-term inflation was revised upward due to materializing downside risks.
- Medium-term prospects are favorable conditional on appropriate policies and the start of hydrocarbon production in mid-2024, but remain subject to uncertainty with risks tilted to the downside.
- Identified shocks and risk factors include:
  - the halt of the cereal export agreement between Russia and Ukraine;
  - the recent imposition of restrictions on rice exports by India;
  - the appreciation of the U.S. dollar;
  - increasingly stringent regional and global financial conditions;
  - instability in some neighboring countries;
  - the possibility of a protracted war in Ukraine;
  - an exacerbation of the conflict in the Middle East;
  - higher commodity prices;
  - tighter financial conditions;
  - heightened political instability and increased political polarization ahead of the presidential election;
  - vulnerability to the impacts of climate change.

### Program performance and structural reforms
- Performance under the ECF/EFF/RSF was assessed as satisfactory.
- All quantitative performance criteria and indicative targets but one for end-June 2023 under the ECF/EFF were met.
- Four out of six structural benchmarks for the first review of the EFF/ECF program have been implemented; the remaining two were implemented with small delay.
- Authorities are implementing agreed structural reforms, including:
  - steps to strengthen revenue administration and public financial management;
  - measures to enhance governance and improve anti-corruption frameworks;
  - reforms under the RSF to build resilience to climate change, implemented steadily.
- The authorities are advancing reforms to enhance governance of public funds, increase transparency, and step up their anti-corruption framework.
- Urgent attention recommended to rectify deficiencies in the AML/CFT framework to minimize risks to the financial sector and facilitate an exit from the FATF's grey list.
- Recommendation to address weaknesses in the financial sector to foster more inclusive and private sector-led growth.

### Fiscal policy, revenues, and debt sustainability
- The 2024 budget law aligns with an agreed-upon deficit target of 3.9 percent of GDP.
- Fiscal consolidation strategy aims for a fiscal deficit of 3 percent of GDP by 2025.
- The budget law embeds:
  - an increase in tax revenue to 20 percent of GDP by 2025;
  - a gradual phasing out of untargeted energy subsidies with a commitment to limit them to 1 percent of GDP in 2024.
- Policy recommendations on public finances:
  - Accelerate the medium-term revenue strategy, including reduction of tax expenditures and broadening of the tax base.
  - Gradually eliminate untargeted energy subsidies while protecting the most vulnerable and strengthen the institutional framework for setting energy prices.
  - Prudent public debt management and restrict borrowing capacity of public sector entities beyond the central government.

### RSF and climate-related reforms
- Performance under the RSF arrangement was satisfactory.
- Authorities should maintain reform momentum and continue to strengthen climate mitigation and adaptation policies to catalyze new investments from donors and the private sector.

### Executive Board statement (Kenji Okamura, Deputy Managing Director and Acting Chair)
- Despite multiple shocks, Senegal’s performance under the ECF/EFF and RSF arrangements was satisfactory.
- Materialization of some downside risks led to downward revision of near-term growth and upward revision of near-term inflation.
- Containment of growing debt vulnerability and establishing a downward trajectory for public debt hinge on successful implementation of the fiscal consolidation strategy targeting a 3 percent of GDP fiscal deficit by 2025.
- Emphasis on revenue mobilization, expenditure reprioritization, energy subsidy reform, institutional strengthening for energy pricing, prudent public debt management, governance, transparency, business environment improvements, and AML/CFT remediation.

### Key statistics and projections (selected figures preserved exactly as in source)
- Immediate financing releases:
  - US$ 214.86 million (SDR 161.82 million) under combined ECF/EFF.
  - US$ 64.45 million (SDR 48.54 million) under RSF.
  - SDR 210.36 million (about US$ 279.31 million) access provided.
- GDP at constant prices (annual percent change) — selected years:
  - 2021 Act.: 6.5
  - 2022 Est.: 4.0
  - 2023 IMF CR 23/250 Proj.: 5.3
  - 2024 Proj.: 4.1
  - 2025 Proj.: 10.6
  - 2026 Proj.: 8.3
  - 2027 Proj.: 10.2
  - 2028 Proj.: 5.2
  - 2029 Proj.: 5.1
- Consumer prices (annual average):
  - 2021 Act.: 2.2
  - 2022 Est.: 9.7
  - 2023 Proj.: 5.0
  - 2024 Proj.: 3.9
- Exports, f.o.b. (CFA francs) — selected entries:
  - 2021 Act.: 26.3
  - 2022 Est.: 25.5
  - 2023 Proj.: 15.7
  - 2024 Proj.: -1.2
  - 2025 Proj.: 25.6
  - 2026 Proj.: 31.5
  - 2027 Proj.: 24.8
- Imports, f.o.b. (CFA francs) — selected entries:
  - 2021 Act.: 17.1
  - 2022 Est.: 42.4
  - 2023 Proj.: -3.2
  - 2024 Proj.: 0.7
  - 2025 Proj.: 6.7
- Broad money (changes in percent of beginning-of-year broad money):
  - 2021 Act.: 15.4
  - 2022 Est.: 21.6
  - 2023 Proj.: 20.0
  - 2024 Proj.: 17.0
  - 2025 Proj.: 10.7
- Central government operations (percent of GDP):
  - Revenue: 2021 Act.: 19.5; 2022 Est.: 19.9; 2023 Proj.: 21.5; 2024 Proj.: 21.2; 2025 Proj.: 21.8; 2026 Proj.: 22.0; 2027 Proj.: 22.5; 2028 Proj.: 23.3; 2029 Proj.: 23.4
  - Total expenditure: 2021 Act.: 25.8; 2022 Est.: 26.4; 2023 Proj.: 26.1; 2024 Proj.: 25.7; 2025 Proj.: 26.0
  - Net lending/borrowing (including grants): 2021 Act.: -6.3; 2022 Est.: -6.6; 2023 Proj.: -4.9; 2024 Proj.: -3.9; 2025 Proj.: -3.0
  - Primary fiscal balance: 2021 Act.: -4.3; 2022 Est.: -4.4; 2023 Proj.: -2.2; 2024 Proj.: -2.3; 2025 Proj.: -1.5; 2026 Proj.: -0.7; 2027 Proj.: 0.0
- Current account balance (official transfers included):
  - 2021 Act.: -11.2
  - 2022 Est.: -19.8
  - 2023 Proj.: -13.3
  - 2024 Proj.: -14.5
  - 2025 Proj.: -6.1
  - 2026 Proj.: -8.9
  - 2027 Proj.: -4.8
  - 2028 Proj.: -4.6
- Gross domestic investment (percent of GDP) — selected entries:
  - 2021 Act.: 35.4
  - 2022 Est.: 46.6
  - 2023 Proj.: 42.5
  - 2024 Proj.: 44.2
  - 2025 Proj.: 36.4
- Gross national savings (percent of GDP) — selected entries:
  - 2021 Act.: 24.3
  - 2022 Est.: 26.9
  - 2023 Proj.: 29.2
  - 2024 Proj.: 29.7
  - 2025 Proj.: 30.3
- Total public debt (percent of GDP) — selected entries:
  - 2021 Act.: 73.3
  - 2022 Est.: 76.0
  - 2023 Proj.: 77.7
  - 2024 Proj.: 79.6
  - 2025 Proj.: 73.2
  - 2026 Proj.: 72.5
  - 2027 Proj.: 67.4
  - 2028 Proj.: 67.2
  - 2029 Proj.: 67.0
  - 2030 Proj.: 65.5
- Domestic public debt (percent of GDP) — selected entries:
  - 2021 Act.: 16.1
  - 2022 Est.: 19.6
  - 2023 Proj.: 18.5
  - 2024 Proj.: 20.8
  - 2025 Proj.: 16.8
- External public debt (percent of GDP) — selected entries:
  - 2021 Act.: 57.2
  - 2022 Est.: 56.4
  - 2023 Proj.: 59.3
  - 2024 Proj.: 58.7
  - 2025 Proj.: 56.5
  - 2026 Proj.: 55.7
  - 2027 Proj.: 52.7
  - 2028 Proj.: 51.4
  - 2029 Proj.: 49.8
  - 2030 Proj.: 47.1
- Total public debt service (percent of revenue) — selected entries:
  - 2021 Act.: 28.6
  - 2022 Est.: 30.7
  - 2023 Proj.: 32.5
  - 2024 Proj.: 32.2
  - 2025 Proj.: 27.4
  - 2026 Proj.: 31.8
  - 2027 Proj.: 31.7
- Memorandum items:
  - Gross domestic product (CFAF billions) — 2021: 15,288; 2022: 17,268; 2023: 18,770; 2024: 18,930; 2025: 21,176; 2026: 21,258; 2027: 23,886; 2028: 25,624; 2029: 27,473; 2030: 29,835
  - Share of hydrocarbon in total GDP (percent) — selected entries: 4.7; 2.5; 4.8; 3.4
  - National currency per U.S. dollar (average): 554
  - WAEMU gross official reserves (billions of $US) — selected entries: 24.2; 18.4; 15.5; 19.0; 22.2
  - WAEMU gross official reserves (percent of broad money) — selected entries: 34.1; 24.9; 18.7; 16.9; 17.6; 19.2; 20.6
  - WAEMU gross official reserves (months of WAEMU imports of GNFS) — selected entries: 4.2; 3.0; 3.1; 3.3

*Source: Senegal authorities; and IMF staff calculations.*

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## References

- [https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)
- [The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Senegal and the IMF](http://www.imf.org/external/country/SEN/index.htm)
- [IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/imf-world-bank-debt-sustainability-framework-for-low-income-countries)
- [Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2023/12/13/pr23445-senegal-imf-exec-board-completes-1st-rev-arr-eff-ecf-rsf_