The International Monetary Fund (IMF) said on Wednesday that it supports Senegal’s efforts to boost tax compliance and reduce reliance on external financing, but emphasized that these reforms will not influence the resolution of a pending debt misreporting case.
Senegal has been in talks with the IMF to address the fallout from inaccurate reporting of its debt and deficit figures. As a result, disbursements under its $1.8 billion program have been frozen for over a year.
Despite the suspension, Prime Minister Ousmane Sonko said this week the country has demonstrated its ability to manage the economy independently. His office has not yet responded to requests for comment.
“The IMF welcomes the Senegalese government’s efforts to enhance domestic revenue mobilization. These initiatives can support fiscal sustainability and strengthen economic resilience,” an IMF spokesperson said.
“While the ambition to fund expenditures through internal resources is a positive step, it does not directly impact the ongoing process to resolve the misreporting case,” the spokesperson added.
The IMF reiterated its commitment to working with Senegal to reach a resolution “as soon as possible.”
According to Le Soleil newspaper, Sonko said the government aims to ensure all citizens contribute their fair share in taxes, avoiding the need for rate hikes.
The discovery of unreported debt has weighed heavily on Senegal’s financial markets. The country’s dollar-denominated bonds are currently the worst performers among African issuers this year. The crisis has also pushed the government to lean more heavily on regional debt markets—an approach that has drawn criticism from opposition leaders demanding greater transparency.