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West Africa and Sahel

IMF Reveals Senegal’s Actual Debt… Why Did the Previous Government Hide It?

The International Monetary Fund (IMF) has revealed that the administration of former Senegalese President Macky Sall concealed debts amounting to approximately $7 billion between 2019 and 2024. This finding largely aligns with a previous report issued by the country’s Court of Auditors.

Edward Gemayel, head of an IMF mission that visited Senegal and held discussions with its official authorities, stated that there was a “deliberate decision to underreport the debt” over the past five years. He added, “Therefore, we agree with the conclusions of the Court of Auditors’ report.”

Speaking to local media, Gemayel explained that “hiding part of the debt allowed the (previous) authorities to borrow more, send a more positive signal to financial markets, and secure loans at more favorable interest rates than would have been possible if the debt had been accurately reported.”

He also noted that the IMF cannot start discussions with Senegalese authorities on a new financing program until the “misrepresented economic reports provided by the previous government are addressed.”

The international financial institution urged Senegal to “adopt corrective measures to prevent such situations from recurring,” emphasizing the necessity of “having a single treasury account, for instance, and centralizing the entities responsible for debt management.”

For his part, Macky Sall has repeatedly denied the allegations against his administration, stating that he does not fear any potential legal action and describing the situation as a “political maneuver.”

It is worth noting that confusion over debt figures is not unique to Senegal. Many governments struggle to keep track of their total debt, especially when it comes to state-owned enterprises, which often engage in uncontrolled borrowing.

Others resort to secret borrowing to avoid public scrutiny, according to the British magazine The Economist.

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