Senegal secures $2.2 billion IMF deal to stabilise economy

The government of Senegal and the International Monetary Fund (IMF) have reached a staff-level agreement for a 36-month programme under the Extended Credit Facility (ECF). Valued at nearly $2.2 billion (approximately 1,229 billion FCFA), this financial backing aims to restore the country’s fiscal sustainability while fostering private sector growth.

Senegal’s economic outlook is set for a significant boost as the IMF and Dakar authorities finalise a technical arrangement to support the nation’s economic trajectory from 2026 to 2029.

Hydrocarbon sector fuels economic momentum

Despite financial constraints, Senegal’s macroeconomic indicators reflect the country’s economic resilience:

• A 6.7% growth projection for 2025, driven by rising oil production.
• A rebound in non-hydrocarbon GDP at 4.7% in early 2026, propelled by household consumption.
• Inflation held steady at 1.4%, safeguarding household purchasing power.

Strategic priorities for fiscal health and social equity

The three-year programme outlines key measures to strengthen Senegal’s economic foundation:

1. Enhancing domestic revenue collection to minimise reliance on borrowing.
2. Improving governance and fiscal transparency standards.
3. Safeguarding social safety nets to shield vulnerable populations from economic adjustments.

Final approval and disbursement of funds are contingent upon validation by the IMF Executive Board, implementation of corrective measures, and securing financing assurances from Dakar’s international partners.