Senegal’s 2026 debt bill jumps 11% after hidden loans scandal

Senegal’s 2026 debt-service bill is projected to be 11% higher than previously estimated after the government uncovered billions of dollars in unreported liabilities left by the former administration, newly released budget documents show.

According to figures posted on the Finance Ministry’s Budget Directorate website, debt servicing costs are now expected to reach 5.49 trillion CFA francs ($9.7 billion) in 2026, compared with an earlier estimate of 4.95 trillion CFA francs.

Total debt service over the next three years is forecast to exceed earlier projections by more than fourfold, totalling 14.9 trillion CFA francs, Bloomberg reported.

The sharp revision follows a financial audit launched by President Bassirou Diomaye Faye’s administration, which discovered about $7 billion in hidden borrowing.

The revelation prompted the International Monetary Fund (IMF) to suspend its $1.8 billion support program for the West African nation.

In the wake of the discovery, S&P Global Ratings and Moody’s Ratings downgraded Senegal’s sovereign credit further into junk territory, making it more difficult and costly for the government to borrow internationally.

Over 40% of Senegal’s public debt is denominated in foreign currencies, according to S&P.

Senegal expects its debt-to-GDP ratio to stabilise around 101% by 2028, according to its medium-term debt management strategy.

The IMF estimates that Senegal’s total liabilities, including those of state-owned enterprises, climbed to 132% of GDP by the end of 2024. When those entities are excluded, government data places the figure at 119%.

As part of efforts to stabilise public finances and rebuild investor confidence, Senegal plans to mobilise nearly $10 billion over the next three years through a mix of tax increases, energy contract renegotiations, and spending cuts, according to a fiscal reform plan unveiled in August.

Economic growth is forecast to accelerate to 7.8% in 2025, driven by new oil and gas production, before averaging 5.5% annually between 2026 and 2028. The fiscal deficit is projected at 5.4% of GDP next year, above the initial 5% target.