What You Need to Know
The Senegalese public debt issue has entered a new phase of political and legal debate. The defense team for former President Macky Sall has sent a memo to the IMF questioning the audit methodology that revealed a so-called “hidden debt” of $7 billion. This comes amid a severe economic crisis in Senegal, with the government struggling to reach an agreement with the IMF.
Africa. The Senegalese public debt issue has entered a new phase of political and legal debate. The defense team for former President Macky Sall (2012-2024) has sent a memo to the International Monetary Fund (IMF) questioning the audit methodology that revealed a so-called “hidden debt” estimated at $7 billion.
The French law firm representing the case has requested that the international financial institution disclose the documents it relied upon in its report, questioning whether the IMF based its findings solely on data provided by the current authorities in Dakar or conducted an independent investigation.
The lawyers also pointed to what they considered “methodological errors” in the report from the Senegalese Court of Auditors, with lawyer Pierre-Olivier Sour stating that the report lacked verification of the accuracy of the data used.
Severe Economic Crisis
The debate over public debt comes at a time when the Senegalese economy is facing a severe crisis. After 17 days of negotiations in Dakar, the government failed to reach an agreement with the IMF, which had frozen a $1.8 billion loan in May 2024.
The Court of Auditors has reassessed the financial deficit, confirming that the deficit rate in 2023 was 12.3% of the Gross Domestic Product (GDP) instead of the officially announced 4.9%, rising to 14% in 2024. According to new estimates, public debt has exceeded 132% of GDP, making Senegal one of the most indebted countries on the continent.
Senegal has faced increasing scrutiny over its public debt, particularly as the economy grapples with significant challenges. The IMF’s recent findings have intensified discussions about the accuracy of financial reporting by the Senegalese government. The situation is compounded by the country’s ongoing economic struggles, which have led to a reevaluation of its financial stability and debt management practices.
The controversy surrounding the hidden debt highlights the complexities of international financial oversight and the responsibilities of national governments in providing accurate economic data.
