Senegal successfully met $471 million in debt obligations on Friday, avoiding a default, but the West African nation continues to confront economic and social pressures.
The Central Bank of West African States completed payments of 380 million euros to eurobond holders and $33 million for dollar-denominated bonds, covering both principal and interest.
The government relied on local and regional financial markets after the International Monetary Fund suspended its program, following the revelation of $13 billion in previously undisclosed debt – one of the largest hidden debts recorded in a country under an IMF program.
While the payment temporarily eases immediate debt concerns, the cost has been significant. Recent protests over government aid resulted in the death of a university student, teachers have gone on strike, and construction projects have seen tens of thousands of job losses. Senegal is also reportedly behind on payments to foreign creditors, including France, Britain, Italy, and Spain.
Looking ahead, Senegal aims to raise 4.1 trillion CFA francs through regional markets in 2026. Analysts warn, however, that the country needs billions in affordable, long-term financing to manage debt, which currently stands at 132% of GDP, with $9.7 billion due in interest and principal this year.
Prime Minister Ousmane Sonko has rejected IMF debt restructuring proposals, calling them “a disgrace,” leaving the government to carefully balance fiscal stability with social and political pressures.
