Economic experts call for smarter debt strategies in Senegal
With public debt levels raising concerns, economists gathered in Dakar have proposed a radical shift in Senegal’s borrowing approach. Their recommendations include a comprehensive debt audit and exploring alternative financing partners beyond traditional multilateral institutions.
Rethinking debt management for sustainable growth
During a high-level conference on Senegal’s debt challenges, economists emphasized the need for innovative financial partnerships. The current debt-to-GDP ratio of 132% has prompted calls for a thorough reassessment of the country’s debt portfolio and its exposure to hidden financial obligations.
Demba Moussa Dembélé, president of the African Research and Cooperation for Endogenous Development, argued for partnerships with nations that respect state sovereignty, highlighting China as a potential ally. “These partners could help us break free from neo-colonial financial systems,” he stated. Dembélé also stressed the importance of a full public debt audit to identify the true extent of the country’s financial commitments.
Ali Zafar, an economic advisor at the United Nations Development Programme (UNDP), suggested Senegal follow Turkey’s example by diversifying its creditor base. “Turkey successfully engaged with Saudi Arabia—why can’t Senegal do the same?” he asked. Zafar also urged Senegal to approach International Monetary Fund (IMF) negotiations with strong counterproposals, warning against blindly accepting imposed conditions.
Balancing debt payments with social priorities
The UNDP advisor cautioned that diverting all revenue to debt servicing could harm critical sectors like education and healthcare. “Loans should not be used to pay other creditors,” he emphasized. He further proposed that Senegal consider establishing an independent central bank to regain greater financial autonomy.
Zafar’s remarks underscored the need for African nations to collectively challenge unfair financial practices. “No Asian country would tolerate the debt burden Senegal faces today,” he noted. “There are concrete solutions within our reach to escape this crisis without relying solely on the IMF.”
The ongoing negotiations between Senegal and the IMF continue, with officials from the Ministry of Finance and Budget recently engaging in discussions in Washington at the end of April.
