In a trenchant article titled "Senegal in a Time of Economic Emergencies," Doudou Kâ, former Minister of Economy, Planning, and Cooperation under Macky Sall, sounds the alarm about the country's economic situation. He dissects the major challenges facing Senegal, notably the collapse of the 2018 Eurobond, and proposes bold solutions for emerging from the crisis.

International confidence in free fall

Doudou Kâ highlights an alarming symptom of the crisis: "The Eurobond issued in 2018 by the State of Senegal, with a maturity scheduled for 2048, has reportedly suffered a significant discount of 35%." This dizzying fall reflects, according to him, "the loss of international confidence in our country's ability to honor its obligations and quickly redress its financial situation." He attributes this setback to "clumsy and political communication" by the current government on public finances, combined with a "risky controversy" fueled by certain opponents.

The consequences are immediate and serious: "Investors now demand a 35% discount before acquiring securities issued by Senegal," while sellers are suffering losses by selling these assets deemed "high risk." Worse still, issuing new securities could force the country to offer yields exceeding 10%, a threshold that would reflect the seriousness of the deterioration of Senegal's sovereign credit rating.

A National Front for Economic Defense as a remedy

Faced with this unprecedented situation, Doudou Kâ calls for national unity around a "National Front for Economic Defense (FNDE)." This instrument, he explains, would be "a first step in addressing the economic and financial uncertainties weighing on our nation." He emphasizes the need to move beyond political quarrels: "The strong shocks that are undermining the foundations of our economy must push us to moderate political speculation."

Among the concrete measures, it proposes an overhaul of the calculation of the real debt ratio: "Update the outstanding debt at the end of 2024 by subtracting short-term bridging loans from the central government" and excluding "contingent debts of parastatal structures guaranteed by the state" which do not directly weigh on public finances. It also recommends finalizing "as soon as possible" the rebasing of GDP, which began in 2023, to reflect a more accurate image of the Senegalese economy and reduce the apparent debt ratio.

For the former minister, the centralization of public borrowing is a priority: "It seems imperative to initiate a thorough reform of public debt governance by centralizing all state borrowing." This measure, combined with a political consensus on economic figures, could, according to him, "allow Senegal to regain control of its debt" and restore market confidence.

Doudou Kâ concludes with a plea for a "republican communion" that transcends partisan divides. "Our country will not be able to overcome this exceptional situation without a true National Front for Economic Defense," he insists. An outspoken opponent of the current regime, he nevertheless seeks to be constructive: "Senegal's influence will not be built on the collective despair of the Senegalese people and the economic collapse of our country."