Senegal’s Debt Crisis: Scrutiny Over Hidden Debt and Transparency

Senegal’s Debt Crisis: Transparency Struggles and the Battle Over Hidden Liabilities

Senegal is currently navigating a precarious economic crossroads as it grapples with a severe debt crisis and conflicting reports regarding the transparency of its national finances. With public debt reportedly surging toward 120% of GDP, the nation is under intense scrutiny from international financial institutions and domestic critics alike.

The Unraveling of Hidden Liabilities

The current crisis gained momentum in September 2024, when an audit ordered by President Bassirou Diomaye Faye—who took office in April 2024—exposed significant discrepancies in the country’s fiscal reporting. According to reports from the African Sovereign Debt Justice Network, the audit revealed that the previous administration had systematically understated the national deficit by 5 percentage points and total public debt by 10 percentage points.

These findings were further validated in February 2025 by Senegal’s Court of Audit. The court’s review confirmed that outstanding debt was higher than what had been presented in official reporting documents. This revelation has sparked critical questions about the reliability of Senegal’s fiscal data and its relationship with the International Monetary Fund (IMF).

Accelerating Debt and the WAEMU Bond Market

While the government works to address past misreporting, current borrowing trends have raised new alarms. MP Thierno Alassane Sall has highlighted a significant acceleration in debt accumulation, citing figures from the UMOA-Titres Agency. Between May 3, 2024 and May 30, 2025, the Senegalese government conducted 70 debt securities issues on the West African Economic and Monetary Union (WAEMU) bond market, raising a total of 1,694 billion CFA francs.

The composition of this debt is a primary point of contention. The government issued 39 Bonds Assimilables du Trésor (OAT)—medium- and long-term securities—compared to 31 short-term Bonds Assimilables du Trésor (BAT). According to SeneNews, this trend suggests that the state is using long-term borrowing to cover day-to-day operating expenses instead of investing in projects with high economic impact.

The pace of borrowing intensified sharply in 2025. From January 1 to May 30, 2025, the government raised 960 billion CFA francs through 35 issues—an amount that already exceeds the 734 billion raised during the preceding eight months of 2024. May 2025 alone saw a record fundraising of 499.9 billion CFA francs.

Government Response and the Push for Transparency

The Senegalese government has maintained a defensive stance against claims of ongoing secrecy. In a press conference in Dakar on March 26, 2026, Minister of Finance and Budget Cheikh Diba strongly refuted “allegations” of hidden debt that had been mentioned by the Financial Times, as reported by Financial Afrik.

Despite these denials, the government has accepted several recommendations from the Court of Audit aimed at improving public financial management. To enhance transparency, the Minister of Finance and Budget has committed to assigning transactions financed through external resources to a public accountant.

Looking Ahead

Senegal’s ability to stabilize its economy depends on its capacity to bridge the gap between official denials and the findings of its own audit institutions. As the country manages a debt load approaching 120% of GDP, the focus will likely remain on whether the government can shift its borrowing strategy away from operational funding and toward sustainable, structural growth.