IMF, Senegal Reach Staff-Level Agreement on $2.2bn Credit Facility

Africa

THE International Monetary Fund (IMF) says it has reached a staff-level agreement with Senegal on a new Extended Credit Facility (ECF) arrangement worth about 2.2 billion dollars.

The IMF said the 36-month arrangement would support Senegal’s economic and financial reform programme for 2026–2029.

It said the agreement remained subject to approval by IMF Management and the Executive Board.

The IMF said the agreement also required decisive corrective actions to support Senegal’s request for a waiver in the misreporting case.

It added that the necessary financing assurances from Senegal’s development partners would also be required before Executive Board approval.

The IMF said the programme was expected to help catalyse financing from the World Bank, African Development Bank and other development partners.

The statement followed an IMF mission to Dakar from Aug. 19 to Sept. 1, led by Ms. Mercedes Vera Martin.

It said Senegal’s economy remained resilient, growing by 6.7 per cent in 2025 as oil production entered its first full year.

However, non-hydrocarbon Gross Domestic Product (GDP) growth eased to 2.2 per cent during the year.

Inflation remained within the target range at 1.4 per cent, while non-hydrocarbon GDP growth rebounded to 4.7 per cent year-on-year in the first quarter of 2026.

The IMF attributed the first-quarter growth to strong private consumption.

According to the IMF, key reforms under the programme would focus on restoring the sustainability of public finances while protecting vulnerable households.

It said the fiscal strategy would strengthen domestic resource mobilisation and streamline expenditure.

The strategy would also reinforce social safety nets, particularly through targeted cash transfers, it added.

The IMF said structural reforms would support sustainable fiscal consolidation.

It said Senegal planned to adopt a medium-term revenue strategy in 2027 to strengthen domestic revenue mobilisation and create space for priority spending.

The authorities also committed to enhancing fiscal governance through improved public debt management and stronger monitoring of domestic arrears.

They would also improve oversight of state-owned enterprises, the IMF said.

It added that reforms to improve the business environment and promote financial inclusion would support private sector-led growth.

The authorities had also announced their intention to seek debt treatment to restore debt sustainability.

The IMF welcomed Senegal’s continued engagement and commitment to addressing vulnerabilities revealed by past misreporting.

It said further decisive action would be critical to resolving the misreporting issues and strengthening safeguards against similar occurrences in the future.

During the mission, the IMF team met President Bassirou Diomaye Diakhar Faye; Prime Minister Ahmadou Al Aminou Lo and other senior government officials.

The team also met officials of the Cour des Comptes, the Central Bank of West African States (BCEAO), development partners, private sector and civil society representatives.

The IMF said it also held discussions with other stakeholders during the visit.

M.P

Tags: IMFi Stall loevel agreement