Senegal takes a decisive step in its active debt management strategy with the launch of the Senegal Debt Treatment Plan (PTDS)

Following the public finance audit, which highlighted the magnitude of fiscal imbalances and the high level of public debt, the Government has undertaken, since 2024, a series of reforms aimed at restoring a sound macro-fiscal framework, notably by strengthening the governance and transparency of public financial management. This strategy reduced the fiscal deficit from 13.4% of GDP in 2024 down to 6.4% of GDP in 2025.

Against a backdrop of deterioration in Senegal’s credit risk profile and progressively reduced access to international capital markets, the Ministry of Economy, Finance and Planning successfully embarked on liability management operations in the regional capital market of the West African Economic and Monetary Union.

Despite successive economic shocks that have constrained the Republic’s fiscal space, the economy has remained resilient, with real GDP growth of 6.5% in 2024 and 6.7% in 2025, driven by the ramp-up in hydrocarbon production.

This resilience was significantly affected in 2026 by the increasingly narrowing of fiscal space, notably as a result of the war in the Middle East, which weighed on public and private investment in Senegal and placed additional pressure on energy-related expenditure. Real GDP growth is therefore projected at 2.7% for the year.

In this context, continued fiscal consolidation and the reduction of debt-related vulnerabilities are both crucial and urgent to restore the Republic’s capacity to finance its priorities, support investment and create the conditions for a return to stronger and durable growth.

In light of these considerations and following a thorough and documented assessment of the opportunity cost of maintaining the status quo for the Senegalese economy and its financial partners, the Government has decided to take the decisive next step in its active debt management strategy through the Senegal Debt Treatment Plan (PTDS), a sovereign initiative designed and led by the Senegalese authorities.

The PTDS provides a response tailored to the specific characteristics of Senegal’s debt. It will durably improve the profile of public debt, bring the burden of debt service on the country’s budget back within generally accepted benchmarks, and gradually create the fiscal space needed to finance public investment in priority sectors, particularly the social sectors.

Debt denominated in CFA francs will be outside the scope, given the important role of the regional market in financing both the Republic and the economy.

The PTDS will be implemented through a concerted and coordinated approach with all of Senegal’s international partners. In this regard, the Government has already informed its official partners of its intention to make use of the G20 Common Framework in an enhanced form, with a view to ensuring a compressed implementation timeline, early and enhanced information-sharing with all stakeholders, and parallel consultations with all relevant creditors.

This enhanced Common Framework will provide a response tailored to the specific characteristics of Senegal’s debt composition and enable the swift implementation of the Government’s objectives for reprioritising public finances.

The PTDS will have yield effects beyond debt management alone. The reduction in debt service and refinancing needs will gradually create fiscal space and allow more resources to be redirected towards clearing the Republic’s pending bills owed to the private sector. It will also help reinject resources into the economy, improve companies’ liquidity, preserve their investment capacity and shore up employment.

The Government of Senegal reaffirms its commitment to restoring debt sustainability on a lasting basis, preserving growth momentum and social priorities, strengthening the economy’s financing capacity, and reinforcing the confidence of investors and Senegal’s partners.

The Ministry of Economy, Finance and Planning will provide regular updates on the next steps and the progress of the process.