IMF Staff Concludes Visit to Senegal
IMF News, November 6, 2025
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Bibliographic details
- Published: November 6, 2025
Visit summary
- Mission dates: October 22 to November 6, 2025.
- Mission leader: Mr. Edward Gemayel, IMF Mission Chief for Senegal.
- Purpose: advance discussions initiated during the 2025 Annual Meetings on a new IMF-supported program and review progress on corrective measures related to the hidden debt.
- Outcome: Productive discussions focused on actions to address fiscal and debt vulnerabilities revealed by the hidden debt episode; laid a solid foundation for continued engagement toward a potential new IMF-supported program. This mission will not result in a Board discussion.
Macroeconomic outlook and near-term projections
- Real GDP growth projected at about 7.9 percent in 2025.
- Non-hydrocarbon growth projected at around 3.4 percent in 2025.
- Inflation expected to average about 1.4 percent in 2025.
- Drivers of resilience in 2025: start/first full year of oil and gas production and a rebound in agriculture.
- Global context: resilience noted despite global uncertainty and tighter financing conditions.
Fiscal performance, 2024–2026 targets, and risks
- Fiscal performance through end-September 2025: broadly in line with the revised 2025 budget; revenues on target and non-priority spending contained.
- Overall deficit projected to narrow from 13.4 percent of GDP in 2024 to 7.8 percent in 2025.
- Draft 2026 Budget Law target: reduce the deficit to 5.4 percent of GDP.
- Revenue measures in the draft 2026 Budget Law: new taxes on gambling, mobile transfers and other measures notably related to land taxation, and gradual phasing-out of tax exemptions.
- Staff caution: the very high tax yield assumed from announced measures poses a significant risk; call for more conservative projections.
- Recommendation: adopt a balanced approach to preserve high-impact investment and well-targeted priority spending to maintain credibility and safeguard growth.
Debt levels, hidden debt corrective actions, and debt-management priorities
- Total public sector debt estimated at 132 percent of GDP at end-2024.
- Included in that estimate: 4 percent in domestic expenditure arrears pending the results of the ongoing audit by the Inspectorate General of Finance.
- Authorities’ actions: pursuing active debt-management operations on domestic and external debt to reduce debt-related vulnerabilities.
- Progress on corrective actions related to misreporting: good progress achieved, notably improved debt publications.
- Remaining needs and priorities:
- Further decisive steps required to resolve the hidden debt case.
- Strengthen debt-management capacity.
- Centralize debt functions within a single ministry to enhance control, transparency, and accountability.
- Completion of the debt-management reform and full implementation of remaining corrective measures essential.
- Mission and authorities exchanged views on several options to address fiscal and debt-management challenges highlighted by the public finance audit.
Structural reforms, governance, and policy recommendations
- Authorities recognized for commitment to transparency, fiscal discipline, and sound macroeconomic management.
- Agreed priorities to underpin a new IMF-supported program and durable growth:
- Strengthen fiscal sustainability.
- Enhance debt management.
- Reinforce governance and anti-corruption measures.
- Pursue pro-growth fiscal consolidation with sustained robust reforms.
- Emphasis on continued progress to maintain investor confidence and foster durable growth.
Stakeholder engagement and meetings
- High-level meetings held with:
- His Excellency Mr. Bassirou Diomaye Diakhar Faye, President of the Republic;
- Mr. Ousmane Sonko, Prime Minister;
- Mr. Ahmadou Al Aminou Lo, Minister of State to the President of the Republic in charge of Monitoring the National Transformation Agenda;
- Ms. Yacine Fall, Keeper of the Seals, Minister of Justice;
- Mr. Abdourahmane Sarr, Minister of Economy, Planning and Cooperation;
- Mr. Cheikh Diba, Minister of Finance and Budget;
- Mr. Jean-Claude Kassi Brou, Governor of the BCEAO;
- Mr. François Sène, National Director of the BCEAO;
- Several other senior officials.
- Discussions also held with development partners and other stakeholders.
IMF Communications Department — End-of-Mission press release dated November 6, 2025.