Senegal appoints economist PM as $13 billion debt crisis deepens pressure on Faye’s govt

Lo, a former head of the Senegal branch of the Central Bank of West African States, immediately sought to calm investor and business nerves following his appointment on Monday, May 25, 226.

Appearing on state television, the new prime minister acknowledged the scale of Senegal’s financial troubles while insisting the country remained a credible destination for investment.

“We must all be aware of the state of emergency our country currently finds itself in,” Lo said, pointing specifically to deteriorating public finances and mounting economic pressure.

But he also attempted to reassure markets rattled by weeks of political drama and fiscal concerns.

“Senegal is a safe and reliable country and intends to remain so,” he added.

The leadership reshuffle comes at a sensitive moment for Senegal’s economy. The International Monetary Fund suspended Senegal’s $1.8 billion lending programme after the discovery of previously misreported debt figures pushed the country’s end-2024 debt burden to 132% of gross domestic product.

The debt crisis has become one of the biggest tests yet for Faye’s young administration.

Sonko, whose populist rhetoric helped power Faye to victory, had publicly opposed any restructuring of Senegal’s estimated $13 billion debt, arguing that the IMF was pushing the country toward painful concessions. Faye, by contrast, has remained more cautious and measured on the issue.

Behind the scenes, tensions between the two men had reportedly been escalating for months.

Earlier this year, Sonko warned he could pull the ruling Pastef party, which controls the National Assembly, into opposition if the government abandoned its political agenda, raising fears of legislative paralysis at a time Senegal urgently needs reforms to restore investor confidence and unlock international funding.

The uncertainty is far from over as Senegal’s National Assembly is expected to meet on Tuesday, May 26, 2026, to discuss Sonko’s possible return as a lawmaker, while speculation is growing that he could seek the powerful role of parliamentary speaker following the resignation of the current assembly head.