IMF Lauds Senegal’s Reforms as Economy Grows 7.9% in 2025
Mr. Edward Gemayel, IMF Mission Chief for Senegal- Photo credit Reuters
Dakar, Senegal — A team from the International Monetary Fund (IMF), led by Edward Gemayel, Mission Chief for Senegal, concluded a two-week visit to Dakar on Thursday after advancing talks on a new IMF-supported reform program and assessing progress on corrective measures tied to Senegal’s hidden debt case.
The mission, held from October 22 to November 6, 2025, also reviewed Senegal’s recent macroeconomic performance, fiscal outlook, and medium-term reform priorities. In a statement following the visit, Mr. Gemayel lauded the government’s strong commitment to transparency, debt control, and macroeconomic stability, describing Senegal’s economy as “robust despite global headwinds and tight financial conditions.”
“The IMF staff team held constructive discussions with the Senegalese authorities, making significant strides toward laying the foundation for a new IMF-supported program,” Gemayel said. “These talks focused on fiscal sustainability, enhanced debt management, and stronger governance, key pillars for Senegal’s continued economic success.”
The IMF estimates Senegal’s real GDP growth at 7.9% in 2025, buoyed by the first full year of oil and gas production and a rebound in agriculture, while non-hydrocarbon growth stands at about 3.4%. Inflation is expected to average a modest 1.4%, marking one of the lowest rates in West Africa.
Fiscal performance through September was broadly aligned with budget targets, with revenues on track and non-priority spending contained. As a result, the budget deficit is projected to narrow sharply from 13.4% of GDP in 2024 to 7.8% in 2025 evidence, the IMF says, of “strong fiscal consolidation.”
Senegal’s 2026 Draft Budget Law aims to reduce the deficit even further to 5.4% of GDP, anchored on new revenue-mobilization measures, including new taxes on gambling, mobile transfers, and land, phased reduction of tax exemptions and continued spending restraint.
While the IMF welcomed these measures, it cautioned that the assumed tax yields are overly optimistic and urged more conservative projections to avoid fiscal slippage. “A balanced approach will help preserve high-impact investment and priority spending essential to safeguard growth,” Gemayel emphasized.
Senegal’s public sector debt remains elevated, estimated at 132% of GDP by end-2024, including 4% in domestic expenditure arrears pending audit. The IMF mission acknowledged active debt management operations being undertaken to ease vulnerabilities and strengthen transparency.
The team noted good progress on corrective measures related to the hidden debt misreporting episode including improved debt publication and audit follow-ups but called for “further decisive actions.”
Priority reforms include: Centralizing debt-management functions under a single ministry, Finalizing the debt management reform framework and Strengthening governance and anti-corruption mechanisms.
Completion of these steps, the IMF stated, is “essential to resolving the hidden debt case and restoring full confidence in Senegal’s fiscal reporting.”
During the visit, the IMF team met with His Excellency Mr. Bassirou Diomaye Diakhar Faye, President of the Republic; Mr. Ousmane Sonko, Prime Minister; Mr. Ahmadou Al Aminou Lo, Minister of State to the President of the Republic in charge of Monitoring the National Transformation Agenda; Ms. Yacine Fall, Keeper of the Seals, Minister of Justice; Mr. Abdourahmane Sarr, Minister of Economy, Planning and Cooperation; Mr. Cheikh Diba, Minister of Finance and Budget; Mr. Jean-Claude Kassi Brou, Governor of the BCEAO; Mr. François Sène, National Director of the BCEAO; as well as several other senior officials. The team also held fruitful discussions with development partners and other stakeholders.
“Senegal’s reform trajectory remains impressive,” Gemayel concluded. “But continued vigilance, transparent governance, and prudent fiscal management will be vital to sustain investor confidence and inclusive growth.”
The IMF’s cautious optimism signals renewed confidence in Senegal’s economic reform agenda under President Faye’s administration but fiscal risks remain.
Analysts note that the country’s oil and gas windfall could strengthen public finances in the short term, yet without tighter debt controls and structural reform execution, Senegal may face renewed vulnerabilities by 2027.
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