A team from the International Monetary Fund (IMF), led by Edward Gemayel, recently concluded a visit to Senegal. The mission, which took place from March 18 to 26, 2025, aimed to engage with Senegalese authorities regarding the findings of an audit report by the Court of Auditors released on February 12, 2025. This audit revealed significant underreporting of fiscal deficits and public debt for the period between 2019 and 2023.
The IMF staff sought to understand the extent of misreporting and identify mechanisms that contributed to these discrepancies. They also discussed potential corrective measures to prevent future occurrences. In his statement at the end of the mission, Mr. Gemayel emphasized the importance of fiscal transparency and accountability, noting that revisions had been made to Senegal's fiscal data due to previously undisclosed liabilities.
Mr. Gemayel stated: “The IMF staff team welcomes the Senegalese authorities’ strong commitment to fiscal transparency and accountability." He highlighted that "the average fiscal deficit was revised upward by 5.6 percentage points of GDP," while central government debt increased significantly in reported figures.
These findings indicate serious lapses in budget controls and financial reporting, necessitating urgent reforms according to Mr. Gemayel: “These findings point to serious lapses in budget controls and public financial reporting.” Discussions during the visit focused on enhancing fiscal transparency and reinforcing budget oversight.
Despite these challenges, Senegal's economic activity showed resilience in 2024 with an estimated real GDP growth of around six percent. However, financing conditions have tightened considerably due to various factors including delays in donor support.
Looking forward, Mr. Gemayel stressed: “Bold and credible reforms are essential” for achieving a return to WAEMU’s fiscal deficit target and managing public debt effectively. Key reform areas include streamlining tax exemptions and phasing out untargeted energy subsidies.
Senegal has expressed its intention to request a new IMF-supported program once corrective actions are underway: “The authorities have expressed their intention,” said Mr. Gemayel regarding future collaboration with IMF support aligned with development strategies.
During their stay in Dakar, IMF representatives met with President Bassirou Diomaye Faye among other senior officials as well as representatives from labor unions and civil society groups.