APA-Dakar (Senegal) The International Monetary Fund (IMF) allocates over 160 billion CFA francs to Senegal.
On Wednesday December 13, the Executive Board of the International Monetary Fund (IMF) concluded the first review of the Senegalese authorities’ economic program under the Extended Fund Facility (EFF), the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF).
The conclusion of these reviews enables the immediate release to Dakar of approximately $214.86 million under the combined ECF/ECM agreement and approximately $64.45 million under the DRF agreement, i.e. a total of approximately 166 billion CFA francs.
“This approval is a positive endorsement of the satisfactory results achieved by the Government in implementing its economic and budgetary policy, and reflects recognition of the far-reaching reforms undertaken in terms of transparency and the fight against climate change,” the Ministry of Finance and Budget said in a press release sent to APA.
According to the monetary institution, performance under the FEC/MEC/FRD program has been satisfactory. All quantitative achievement criteria and indicative targets, with the exception of one for the end of June 2023 under the FEC/MEC program, have been met, it stresses. It points out that four of the six structural benchmarks for the first review of the FEC/MEC program have been implemented, while the other two have been implemented with a slight delay.
The IMF also notes that the authorities have made progress with reforms aimed at improving governance of public funds, increasing transparency and strengthening their anti-corruption framework. Implementation of reforms under the FRD program is progressing as planned, supporting Senegal’s efforts to build resilience to climate change, it goes on to say.
The Finance Law 2024 approved by the National Assembly is, according to the International Monetary Fund, in line with the agreed budget deficit target of 3.9 said of GDP, which underpins policy commitments to support fiscal consolidation and debt sustainability.
This law is in line with a steady increase in tax revenues to reach 20 percent of GDP by 2025, and the gradual elimination of non-targeted energy subsidies, with a commitment to limit them to 1 percent of GDP by 2024.
Medium-term growth prospects look more favorable with oil and gas production set to begin in mid-2024, and provided that appropriate policies are implemented, the IMF points out, however, that these prospects remain uncertain, but that the risks are tilted to the downside. These include the possibility of a protracted war in Ukraine, an exacerbation of the conflict in the Middle East, higher commodity prices and tighter financial conditions.
At local level, greater political instability and increased political polarization in the run-up to the presidential election could further weigh on the economy, warns the Fund, noting that the country remains vulnerable to the effects of climate change.
ARD/ac/fss/abj/APA