The debt rate of 70% of GDP so anchored in the UEMOA countries has no scientific basis. The assertion is from the economist, Pr Babacar Sène, lecturer-researcher at UCAD. "When we look at this ceiling, what we say is true, it allows countries to converge, it helps the UMOA commission to have criteria for multilateral surveillance. But there is not really an economic basis," he maintains.

Professor Babacar Sène spoke on Thursday, February 27, during a panel organized at UCAD by the Development Policy Analysis Laboratory (LAPD) on the theme “Public policies and sustainable financing: the challenge of the current international financial architecture”. According to Sène, it was a former French president who, tired of the solicitations of African countries, asked his Ministry of Economy and Finance to find him an argument to justify his refusals. This is how a civil servant came up with 70% of GDP as a ceiling.

Given the financial situation in which Senegal finds itself, Pr Sène maintains that the most important thing at this level of debt is to consolidate. "If we manage to generate growth and we also manage to have an acceptable level of budgetary consolidation, that should allow us to resolve the debt problem we are facing."

Today, Senegal's debt rate has crossed the 100% mark. But Babacar Sène remains optimistic. "As I said some time ago, Senegal's debt remains sustainable," he insists. A position he shares with the Minister of Economy, Planning and Cooperation, Abdourahmane Sarr, who used the same words during the government press conference following the publication of the Court of Auditors' report.

Currently, recalls the professor-researcher, the Ministry of Finance has planned to go towards 3% of the GDP in 2027. Which, in his eyes, constitutes an important message sent to national and international investors. "This will actually allow to stabilize the debt in the medium term," he reassures.

If Senegal's debt is still sustainable, as Professor Babacar Sène claims, why then have the rating agencies, Moody's in particular, downgraded Senegal's rating so significantly?

The economist responds that there are many criteria in defining a country's rating. Among these criteria, there is certainly the debt-to-GDP ratio, which has increased significantly in Senegal. "But also, the deterioration is linked to the fact that the governance factors in 2023 had deteriorated. And when you look at the latest report that Moody's published yesterday (detailed rating report published on Wednesday, February 27, according to Pr Sène), you will see that the governance of 2023 has strongly impacted Senegal's rating on the domestic market."

So don't panic, especially if we know that Senegal today has the same level of debt as countries like Egypt and Kenya.