IMF and Senegal agree on $2.2 billion program with structural reform conditions
The International Monetary Fund IMF and Senegalese authorities have reached an agreement on a $2.2 billion program, following a mission to Dakar led by Mercedes Vera Martin, IMF Mission Chief for Senegal. This program is expected to facilitate additional financing from the World Bank, the African Development Bank, and other development partners. However, this financial support is contingent upon Senegal implementing several structural reforms. The IMF's primary focus is on fiscal consolidation, aiming to restore public finance sustainability while protecting vulnerable households. This strategy involves strengthening domestic resource mobilization, rationalizing expenditures, and reinforcing social safety nets through targeted cash transfers. Senegalese authorities have committed to adopting a medium-term revenue mobilization strategy by 2027 to boost domestic revenue and create fiscal space for priority spending. The agreement also includes commitments to enhance fiscal governance, improve public debt management, increase monitoring of domestic arrears, and strengthen oversight of public enterprises. Reforms are also anticipated to improve the business environment and promote financial inclusion, with the goal of fostering private sector-led growth to reduce the economy's reliance on public and external financing. The IMF acknowledged Senegal's commitment to addressing vulnerabilities from the previous administration's misreporting of budgetary data, which led to the discove
