Senegal Faces Severe Financial Crisis, Opposition Calls for Debt Restructuring

Published: 2025/11/30 07:28:54

During the examination of the 2026 finance bill, Anta Babacar Ngom, a Senegalese parliamentarian, raised serious concerns about the country’s public finances, describing the situation as “exceptionally serious.” She emphasized that the stability, credibility, and dignity of the state are directly linked to the nation’s financial health and called for responsible, rigorous, and forward-thinking management from all government actors.

Grim Financial Indicators

Ngom presented a concerning financial picture, highlighting several key macroeconomic indicators:

• Deficit: Reaching 13.4% of GDP.
• Public Debt: Increased from 74% to an “astronomical” level of 119%.
• Annual Financing Need: Exceeding 6,000 billion CFA francs, further complicated by domestic arrears.

She also pointed to saturation in the financial market, a deterioration of external finances, and a loss of credibility with international partners due to “misreporting” of debt, which the Prime Minister has referred to as “hidden debt.”

“This is a real liquidity crisis, very serious. And if we don’t find solutions very quickly, it could lead us straight to failure,” ngom warned.

GDP Base Year Revision and Budgetary Concerns

ngom acknowledged the government’s decision to change the GDP base year from 2014 to 2021, noting that this change “mechanically modifies nominal GDP” and impacts key ratios like debt, tax burden, and deficit. She recognized that this revision could also affect the assessment of the country’s sovereignty and sovereign allocation.

However, she questioned whether the figures presented in the draft budget were calculated using the new GDP data, specifically regarding the projected deficit of 5.3%, tax pressure of 23.2%, and debt levels.

Operating Expenditure Inconsistencies

Analyzing the expenditure details, Ngom identified an inconsistency in the government’s claim of reduced operating expenditure. While the “goods and services plus current transfers” line decreased by 14.5% (or 295 billion CFA francs), she pointed out that key components like payroll (increased by 3.2%) and interest payments (an explosion to 27.7%) were not factored into the reduction.”you will then agree with me that operating costs have indeed increased by 25.3 billion,” she insisted.

Debt Restructuring as a Key Solution

The core of Ngom’s intervention focused on the debt issue. She firmly believes that Senegal cannot achieve a “recovery trajectory” unless the debt is addressed “frontally and in an orderly manner.” She advocated for a controlled and negotiated restructuring of the debt, acknowledging the minister’s reluctance to address the topic.

“I ask you,Mr. Minister, I invite you to reconsider this question to confront our worrying liquidity crisis. Or if not, explain to us better why,” she insisted.

call for Transparency and Constructive Opposition

Anta Babacar Ngom urged the government to demonstrate “courage, consistency and total transparency.” She wished the minister “a lot of strength and above all a lot of success,” emphasizing that their success is “a national imperative” and a guarantee of sovereignty. She assured that, despite continued vigilance and demands, the opposition would remain “constructive and above all responsible to get our country out of this impasse.”