Rumors are swirling in Dakar’s financial circles about Senegal’s potential move to bring in Lazard, the global financial advisory giant, to play a pivotal role in managing its sovereign debt. While no official announcement has been made, multiple sources confirm that discussions are underway regarding the bank’s potential involvement. The move could signal a significant shift in how Dakar approaches its mounting debt challenges.
Lazard has built a strong reputation as a go-to expert for sovereign debt restructurings worldwide, with hands-on experience across Africa. The firm has advised nations like Zambia, Ghana, Chad, and Mozambique through complex debt crises, lending weight to the speculation that its expertise might soon be tapped in Dakar. Local analysts are speculating about possible strategies—whether it’s an extension of repayment terms, a reshaping of debt profiles, or a more comprehensive restructuring.
However, the engagement of Lazard does not necessarily mean a decision has been finalized. For now, the Paris-based Global Sovereign Advisory, which has long advised Senegal, remains actively involved. If Lazard joins the team, it would likely complement rather than replace the existing advisory structure.
Senegal faces a pressing financial reality. After discovering billions of dollars in previously undisclosed loans in 2024, the country’s public debt has ballooned to over 130% of GDP—far exceeding the UEMOA ceiling of 70%. The International Monetary Fund has paused its $1.8 billion lending program, and credit rating agencies have downgraded Senegal’s sovereign rating to speculative territory.
On global markets, Senegalese Treasury bonds are under strain. Recent data shows underperformance compared to peers in emerging markets, particularly for bonds maturing in 2033 and 2048. With international borrowing conditions tightening, Dakar has increasingly relied on the regional UEMOA public securities market. Yet even here, long-term issuance demand is weakening, narrowing the government’s financing options.
The 2026 budget allocates approximately 5,490 billion CFA francs (about $9.6 billion) for debt servicing. This figure includes both principal repayments and interest, reflecting the growing burden of the country’s financial obligations.
