The Senegalese government intends to pursue an economic and financial recovery policy while ruling out any "harsh adjustment” following the agreement reached with the International Monetary Fund (IMF), Prime Minister Ahmadou Al Aminou Lo said on Tuesday in Dakar.
Presenting the government’s programme before the National Assembly, Mr. Lo outlined the state of public finances, notably marked by consolidated public-sector debt estimated at around 132% of gross domestic product (GDP) at the end of 2024 and a deficit revised to 13.7% of GDP for the same year.
"We have to tell ourselves the truth about the accounts. We have to begin the recovery. Our country has come a long way,” the Prime Minister said, adding that audits initiated in 2024 by the Court of Auditors had revealed "indisputable facts.”
He also highlighted a structural imbalance between savings and investment, with national savings estimated at 24% of GDP in 2026, compared with public and private investment needs estimated at 31% of GDP.
Regarding development financing, Mr. Lo said Senegal could not live in isolation despite its economic and financial difficulties, calling for a solution to the country’s high debt burden.
However, he ruled out any scenario of "harsh adjustment” under the programme agreed with the IMF. "We will not sacrifice the interests of the Senegalese people. There will be no harsh adjustment like in the 1980s,” he said.
Economy Minister Cheikh Diba had already stated on September 1 that the agreement with the IMF would have no negative impact on social sectors, particularly health and education, and that no new tax burden would be imposed on households and businesses.
The government’s statement comes one week after the agreement reached between Senegal and the IMF to establish a $2.2 billion, 36-month assistance programme aimed at helping restore public finances.
Mr. Lo, appointed at the end of May by President Bassirou Diomaye Faye, also presented a broad economic and social recovery plan aimed at addressing the country’s structural imbalances and financing needs.