Former Senegalese Prime Minister Ousmane Sonko has doubled down on his debt management strategy, rejecting claims of inaction while addressing mounting criticism over the country’s public finances during his tenure from 2024 to 2026. In a press conference held on October 19, 2026, Sonko defended his administration’s decision to avoid debt restructuring, instead opting for alternative financing solutions with international partners, including the United Arab Emirates.
Sonko rejects restructuring amid public backlash
Sonko categorically denied ever supporting a debt restructuring plan, despite widespread speculation. He emphasized that his position was shared by key financial officials, including former Finance Minister Abdourahmane Sarr and current Finance Minister Cheikh Diba, along with President Bassirou Diomaye Faye, who reportedly aligned with this stance after multiple high-level discussions.
« Neither I nor any of my finance team ever advocated for debt restructuring. Not once during my time in office, » Sonko asserted, dismissing accusations of economic mismanagement. He further noted that the president’s support solidified a unified government position against restructuring.
Mobilizing 1.8 to 2 trillion FCFA in alternative funding
To counter criticism of passive financial management, Sonko highlighted efforts to secure funding through innovative channels. He pointed to the government’s Economic and Social Recovery Plan, which, he claimed, included detailed discussions on restructuring—though no binding decisions were made. He also mentioned collaborations with major financial institutions, such as the African Development Bank (AfDB), the West African Development Bank (BOAD), the Islamic Development Bank (IsDB), and JPMorgan.
The proposed solution involved creating a guarantee fund designed to raise between 1.8 and 2 trillion West African CFA francs (approximately $3 to $3.3 billion). This fund was intended to provide the government with financial resources without resorting to debt restructuring, offering a more flexible alternative to traditional borrowing methods.
UAE deal brings $2 billion in mixed financing
Sonko revealed that negotiations with the United Arab Emirates yielded a significant financial package, including investments in local projects. He stated that he visited Abu Dhabi twice and secured an agreement worth nearly $2 billion, which combined concessional loans with direct investments.
Key components of the UAE deal included:
- A commitment of $1 billion in early 2026, with $900 million allocated for financial operations and $100 million earmarked for a business center project in Dakar’s Mermoz district—a former French military site.
- Additional financing terms designed to ease immediate liquidity pressures while supporting long-term development.
While Sonko claimed these funds were confirmed in writing via exchanges with the Finance Ministry and Emirati officials, the actual disbursement and precise terms remain unverified. The former prime minister insisted that all necessary documentation exists, though independent verification will be required to confirm the details.
Why Senegal avoided the G20 debt framework
Sonko argued that the alternative financing secured made debt restructuring unnecessary, while also criticizing the G20 Common Framework as an untested model that Senegal should avoid as a « Guinea pig » for global debt policies. He stressed that the country’s challenges were more about liquidity and financing gaps than unsustainable debt levels, citing supportive statements from the International Monetary Fund (IMF) as evidence of Senegal’s underlying economic strengths.
Questions linger over financing credibility
Despite Sonko’s defense, lingering skepticism persists. Key unanswered questions include:
- Were the alternative financing agreements backed by formal commitments?
- Have the disbursements from the UAE deal materialized as announced?
- Could the proposed guarantee fund have sufficiently addressed Senegal’s financing needs over the long term?
For broader clarity, official confirmation from involved institutions and the release of relevant documents would be essential to evaluate the feasibility and impact of the strategies Sonko promoted.