Senegal's public debt surged by the end of March 2025, reflecting mounting fiscal strain as the government struggles to balance spending and revenue. Finance ministry data showed debt servicing costs rose 44.5 per cent year-on-year (YoY) in Q4 2024 to 822.3 billion CFA francs ($1.4 billion), and climbed another 24 per cent in Q1 2025. Roughly two-thirds of the debt is owed to banks, while the rest stems from arrears such as unpaid supplier bills and taxes. In Q1 2025, revenues reached just over 1 trillion CFA francs—only 21 per cent of the annual target—against spending of 1.42 trillion CFA francs. External grants plunged 71 per cent YoY. The International Monetary Fund has suspended disbursements to Senegal, citing misreported debt and deficit figures. A court audit earlier this year found deficits had been understated by as much as 7 per cent of GDP, placing the 2023 debt-to-GDP ratio near 100 per cent—far higher than the 74 per cent previously claimed. Despite better revenue performance late last year, Senegal faces mounting arrears, including 146.3 billion CFA francs in energy subsidies and 105.2 billion owed to contractors, raising concerns over fiscal sustainability. Attribution: Reuters Subediting: M. S. Salama
