The IMF welcomes Senegal’s progress in addressing the hidden debt issue and its revenue mobilisation efforts, while calling for continued reforms in governance and budget transparency.
An International Monetary Fund (IMF) mission concluded its visit to Senegal, commending the “notable progress” made in implementing corrective measures related to the hidden debt, particularly regarding debt disclosure.
According to the mission’s findings, the Senegalese government has set an ambitious revenue mobilisation target through new taxes on gambling, mobile money transfers, and other measures, notably in the land sector, as well as the gradual elimination of tax exemptions.
This strategy is accompanied by continued fiscal discipline. However, the IMF believes that “the very high tax revenue expected from the announced measures constitutes a significant risk,” emphasising the need to establish more conservative assumptions.
Public debt remains a concern, including 4 percent in domestic payment arrears, pending the
results of the ongoing audit by the General Inspectorate of Finance (IGF). The authorities are continuing active debt management operations to reduce vulnerabilities.
Progress has been noted in implementing corrective measures related to hidden debt, particularly regarding debt disclosure, but “more decisive action is still needed,” according to the IMF.
The mission recommends strengthening debt management capacity and centralising related functions within a single ministry as “key priorities for improving oversight, transparency, and accountability.”
The IMF team met with President Bassirou Diomaye Diakhar Faye, Prime Minister Ousmane Sonko, several ministers, and the Governor of the Central Bank of West African States (BCEAO), Jean-Claude Kassi Brou.
The IMF and the Senegalese authorities agreed on the need for “sustained reforms to support fiscal consolidation conducive to growth and to advance governance and anti-corruption measures.”
AC/Sf/fss/as/APA