Senegal and the International Monetary Fund agreed on September 1 to a three-year loan programme worth about $2.2 billion. The deal comes with a condition: Senegal must seek relief from its creditors through the G20 Common Framework. A recent opinion article argues that the government is making a mistake by treating the IMF as its only option, and it lays out a different plan built around a citizen debt audit, new limits on borrowing and a coalition of African debtors.
The agreement is a staff-level deal, so the IMF’s executive board still has to approve it. Here is what the deal covers, what the author proposes instead, and what the evidence says about both.
What the IMF agreement covers
The programme is a 36-month Extended Credit Facility worth roughly $2.2 billion, according to Credendo. Final approval depends on corrective action on debt management and fiscal reforms, and on firm financing assurances from Senegal’s creditors. The IMF must also finish a debt sustainability analysis to decide how much relief the country needs.
The new deal replaces a $1.8 billion programme that the IMF suspended after the hidden debt came to light, Africanews reported. Senegal’s finance ministry said that reducing debt-related vulnerabilities was urgent and necessary to restore the state’s ability to fund its priorities. Eurobonds fell after the announcement, Bloomberg reported, and Credendo said the drop shows markets expect creditor losses.
How the hidden debt surfaced
A state audit in 2024 revealed that the government of former President Macky Sall had misreported loans. Public debt rose beyond 130 percent of GDP. Senegal’s Court of Auditors later put end-2023 debt at 99.7 percent of GDP against the 74.41 percent reported earlier, CNBC Africa reported. The IMF estimated total public sector debt at 132 percent of GDP at the end of 2024.
The size of the hidden borrowing is still debated. AllAfrica reported that more than $11 billion of borrowing had gone unreported, and that some estimates reach $13 billion, which would exceed a quarter of Senegal’s roughly $40 billion economy.
What the commentary argues
The author calls the discovery a betrayal of voters, who had been told their country was a model of stability. The outrage helped the governing Pastef party win 80 percent of parliamentary seats in November 2024, the author writes. Now, the author says, the sovereignty agenda behind that vote is slipping away, not through a formal break but through a change in vocabulary and goals.
The author points to history. Senegal has used IMF programmes since 1979, and the commentary says the structural adjustment that followed brought stagnation and rising poverty. After the country qualified for debt relief under the Heavily Indebted Poor Countries Initiative in 2004, the author says, $488 million of its debt was cancelled, but it had to accept privatisation and deregulation. The author also cites Zambia, where IMF-backed policies shrank the economy, and Ethiopia, where a restructuring request made in February 2021 was not settled until March 2025. The author says austerity under Ethiopia’s $3.4 billion IMF agreement brought rising poverty and inequality.
On the 2023 debt figures, the author says a gap of 25 percentage points of GDP held over several years was no accident and that the IMF’s own oversight failed. The author concludes that Senegalese voters deserve better than “a better-managed version of structural adjustment,” and says parliament must hold to the mandate it received in 2024.
What the author proposes
The commentary calls for a sequence that puts audits before new conditions:
- A citizen debt audit of all borrowing from 2019 to 2024, run by parliament and civil society, testing whether each debt was legal, legitimate and useful to the public. It would cover arrangers, creditors and the IMF’s surveillance, with payments on disputed debt suspended while it runs.
- A tax push aimed at extractive industries and wealthy individuals, rather than across-the-board increases paired with social spending cuts.
- A minimum share of state investment for infrastructure, agro-industrial transformation and energy, and public caps on the Total Return Swaps tied to domestic debt.
- Hydrocarbon revenue safeguards: a stabilisation fund, an investment envelope, active management of the costliest external debt, and parliamentary oversight.
- A law requiring parliament to authorise and publish every public borrowing.
Beyond Senegal, the author wants a South-South coalition. The author recalls Burkinabe President Thomas Sankara telling the Organisation of African Unity in July 1987 that creditors coordinate, so borrowers should too. The Borrowers’ Platform, set up in April, would narrow the information gap between creditors and debtors and develop common positions on conditions. With the African Union, Senegal would push for a binding 20-to-30-year moratorium on debt service, with freed funds spent on development priorities set by national parliaments. The author grounds the idea in a 1962 UN General Assembly resolution affirming that peoples hold inalienable authority over their natural wealth. The author also urges regional pooling of liquidity risk in the West African Economic and Monetary Union and a process, with other CFA franc users, to create a new currency.
Where the government stands, and the counter-arguments
Senegal’s leadership has not spoken with one voice. Africanews reported that President Bassirou Diomaye Faye favours a more conciliatory approach with the IMF, while his then prime minister, Ousmane Sonko, rejected debt restructuring. Faye met IMF Managing Director Kristalina Georgieva in Washington to discuss the reform programme, according to Pan African Visions. Moody’s downgraded Senegal’s long-term foreign-currency rating to Caa2 from Caa1 during the talks.
Supporters of the IMF route point to what it unlocks. Credendo said the agreement should help release funding from multilateral lenders such as the World Bank and the African Development Bank. The IMF’s Julie Kozack said the fund could approve a programme before the debt reprofiling is finished, according to Briefs. S&P Global Ratings said on September 24 that Senegal’s plan to restructure foreign-currency debt would not hurt rated banks in sub-Saharan Africa.
The evidence also complicates one proposal. The IPS Journal reported that most of the hidden debt consists of CFA franc loans, which sits uneasily with the claim that foreign-currency borrowing is driving up debt payments. Reporting so far shows no creditor backing for a binding moratorium.
IMF data cited by Pan African Visions show who is owed money. Senegal owes about $2.98 billion to the World Bank, $4.05 billion to Eurobond investors, $1.23 billion to China Exim Bank, $991 million to the IMF and $872 million to France’s development agency. Those creditors will shape any relief terms. CNBC Africa reported in December 2025 that the IMF was continuing an internal investigation into how it failed to detect the unreported debt.
What comes next
The IMF must complete its debt sustainability analysis and secure board approval. Creditors, including China and France, which hold almost three-quarters of Senegal’s bilateral debt according to the IPS Journal, must agree to relief terms. Parliament, which the author wants to lead, will have a say in whether an audit comes before any new conditions take effect.
The two sides disagree on sequence. Senegal’s finance ministry has called reducing debt vulnerabilities urgent. The commentary’s author puts accountability first.