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Public debt: A high level that requires rigorous and selective management

Auteur: Yandé DIOP

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Dette publique : Un niveau élevé qui impose une gestion rigoureuse et sélective

During the review of the Ministry of Economy, Planning and Cooperation's (MEPC) 2026 draft budget, the Government revealed the true level of Senegal's public debt, estimated at 119% of GDP at the end of 2024, and at 132% of GDP when certain additional unconsolidated commitments are included. This revelation comes in the context of improved budgetary governance, marked by the authorities' stated commitment to restoring transparency in public finances and rebuilding the State's credibility with technical and financial partners.

The Minister of Economy, Abdourahmane Sarr, explained that this level of debt is the result of combined findings from audits conducted by the General Inspectorate of Finance (IGF), the Court of Auditors, and the Forvis Mazars firm. These audits revealed erroneous data submitted in the past, delaying the opening of a formal dialogue with the International Monetary Fund (IMF).

 

According to the Minister, the central government's debt alone remains at 119% of GDP, while the additional 13-point difference corresponds to additional commitments, particularly those related to certain public entities and indirect financing mechanisms. The revelation of this true level of debt has had a direct impact on the downgrade of Senegal's sovereign rating. The Government attributes this development not to a sudden deterioration in economic fundamentals, but to a correction of the financial information now made public. This situation has led to an increase in the cost of financing on international markets and reinforced investor caution, in a context already marked by strains on public finances.

 

A consolidation path to restore credibility

 

Faced with this level of debt, the authorities have defined a fiscal consolidation trajectory aimed at gradually reducing the public deficit to sustainable levels: 7.8% of GDP in 2025, 5.4% in 2026 and 3% in 2027. This strategy is based on a controlled fiscal adjustment, increased revenue mobilization within the framework of the Economic and Social Recovery Plan (PRES), as well as a strengthened selectivity of public investments, favoring projects with high economic and social returns.

To cover financing needs estimated at nearly 6 trillion CFA francs, the State intends to leverage several mechanisms: concessional financing, regional and international financial markets, and public-private partnerships. However, the Government has ruled out, at this stage, the option of debt restructuring, believing that there is still room for maneuver.

Prioritizing concessional resources aims to limit the increase in debt service, while public-private partnerships (PPPs) will be subject to rigorous assessment of their fiscal sustainability. With public debt significantly exceeding the 70% of GDP threshold generally used in the West African Economic and Monetary Union (WAEMU), Senegal faces a delicate balancing act between economic recovery, macroeconomic stability, and social demands. In this context, the credibility of the fiscal trajectory, the quality of investments, and transparency in debt management appear essential conditions for restoring the confidence of partners, reviving private investment, and putting the economy back on a path of sustainable growth.

Auteur: Yandé DIOP
Publié le: Samedi 13 Décembre 2025

Commentaires (5)

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    MFDC il y a 12 heures
    Maudit soit le gars qui a émis l idée de dette cachee sans vouloir publier tous les documents y afférents
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    Ciel caché il y a 10 heures
    Macky le kuluna a caché le ciel on voit une teinture non c pas le soleil c une lampe torche. Mbééé
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    Ciel caché il y a 10 heures
    Macky le kuluna a caché le ciel on voit une teinture non c pas le soleil c une lampe torche. Mbééé
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    Anni il y a 9 heures
    F︆︆i︆︆ll︆︆e︆︆s c︆︆h︆︆au︆︆d︆︆es v︆︆o︆︆u︆︆s a︆︆t︆︆te︆︆nd︆︆en︆︆t s︆︆u︆︆r ~~ H︆︆o︆︆t︆︆2︆︆1︆︆.︆︆F︆︆u︆︆n
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    Quantbusiness il y a 8 heures
    These maths don't add up.. Cet exercice d'arithmetique ne suffit point pour demontrer la soutenabilite de la dette du Senegal. Je suis loin d'etre convaincu par les chiffres que le ministre avance durant cette eprauve du budget.La reduction progressive du deficit n'implique pas necessairement une reduction drastique du niveau de la dette pour plusieurs raisons. Le Senegal emprunte a des taux qui sont superieurs que le taux de croissance et des sommes beaucoup plus importantes que les recettes mobilisees. Dans ce cas precis comment stabiliser la dettes par une reduction du deficit budgetaire. Cette consolidation a une faible probabilite. C'est encore pire quand le Senegal n'a aucune maitrise de l'environement economique (le cour du baril de petrole, les taux d'interets....etc). Toutes ces variables aleatoires peuvent avoir un impact sur vos previsions. Vous avez une dette une progression geometrique de la dette vs une progression arithmetique de la croissance et des recettes fiscales. Et vous pensez qu'une reduction du deficit bugetaire plus une hausse des recttes fiscales peuvent changer ces rapports de force extremes ou cette equation complexe. Cela devient le crepuscule des magiciens. L'histoire va nous edifier sur vos qualites de magiciens vous messieurs Abdourahmane Diouf et Diba. Huuuum good luck.
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    Quantbusiness il y a 6 heures
    C'est une excellente chose de clarifier la dette des l'Etat et celle des cies publiques ou para publiques. Ce que j'ai du mal a comprendre est la strategie du gouvernement pour tacler la dette en dehors du rebasage et la reduction du deficit budgetaire. Ces deux initiatives sont des conditions necessaires mais pas suffisantes pour contenire la dette du Senegal. Est=ce qu'il existe d'autres initiatives beaucoup plus tangibles pour changer la trajectoire de la dette a la place d'une consolidation?

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