Senegal plans to raise nearly $10 billion over the next three years through new taxes, spending cuts, and renegotiation of energy contracts to address its mounting debt crisis.
Prime Minister Ousmane Sonko announced the measures Friday in Dakar, saying the government would mobilize domestic resources to stabilize public finances and restore investor confidence.
“Sixty-five years after independence, we must fully assume our future,” Sonko said. “This means mobilizing internal resources and freeing ourselves from automatic reliance on foreign assistance.”
The International Monetary Fund (IMF), which suspended a $1.8 billion loan program last year after Senegal revealed $7 billion in previously undisclosed borrowing, is set to begin talks on new funding next month.
The government plans to fund 90% of the recovery plan domestically, introducing new levies on goods and services—including mobile-money transfers—and reducing subsidies. The measures aim to generate 5.7 trillion CFA francs ($9.9 billion).
Senegal’s debt surged to 99.7% of GDP in 2023 following an audit, far exceeding earlier estimates. Economy Minister Abdourahmane Sarr said the recovery plan targets a 3% budget deficit by 2027 and includes re-basing GDP to improve debt metrics.
“The recovery plan aims to send a strong, positive signal to financial markets,” Sarr said, adding that the country would consider extending debt maturities but stop short of a full restructuring.
