Senegal establishes new directorate for public debt management

This new body aims to centralize the management of public debt, following revelations of irregularities in public finances between 2019 and March 2024, as confirmed by an audit from the Court of Accounts. Previously, responsibilities for debt and external financing were fragmented across four different structures: the Directorate of Public Debt, the Directorate of Public Expenditure Authorization, the Directorate of Economic and Financial Cooperation, and the National Public Debt Committee. This fragmented approach led to imperfect information flow and management deficiencies.

The DGFD will now consolidate all missions related to the negotiation, mobilization, monitoring, and management of debt into a single entity. This move also aligns Senegal with a nearly twenty-year-old recommendation from UEMOA West African Economic and Monetary Union Regulation No. 09/2007/CM/UEMOA, which mandates member states to designate a single authority for managing public loans and associated guarantees. The reform is intended to restore confidence among financial partners, improve public debt portfolio management, and establish greater transparency and rigor in public finance management, especially given the current financial challenges and significant financing needs faced by Senegal.