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Senegal Unveils 5.7 Trillion CFA Recovery Plan After IMF Funding Suspension

It hinges on mobilizing 90 percent of financing internally with tax reforms to slash dependency on foreign borrowing

Ousmane Sonko speaks after he was appointed prime minister by Senegal's newly-elected President Bassirou Diomaye Faye, in Dakar, Senegal April 2, 2024. REUTERS/Abdou Karim Ndoye/File Photo

Overview

  • The plan aims to raise 5.7 trillion CFA francs—equivalent to Senegal’s entire 2025 budget—through domestic measures
  • Officials expect 90 percent of recovery funds to come from internal resources by expanding taxes on digital, land and mining sectors
  • Key measures include renegotiating oil, gas and mining contracts, targeting energy subsidies to vulnerable groups and cutting public spending
  • Senegal’s public debt stands at 119 percent of GDP with a 14 percent budget deficit, intensifying pressure to restore fiscal credibility after IMF data misreporting
  • The International Monetary Fund has suspended planned disbursements pending proof of plan implementation and compliance with fiscal commitments