Senegal has firmly established its position at the highest level of government. El Malick Ndiaye, President of the National Assembly, used a meeting in Dakar on Monday to emphatically reject any restructuring of the country’s public debt. Instead, he advocates for a sovereign approach, prioritizing internal fiscal adjustments over negotiations with external creditors. This stance aligns with the economic policy defended by the executive since late 2024, when revised debt figures revealed a higher-than-reported deficit.
a firm political stance against debt restructuring
The refusal to restructure debt has become a defining feature of the economic doctrine shared by President Diomaye Faye and Prime Minister Ousmane Sonko. For Senegalese authorities, initiating renegotiations would signal a de facto default, undermining the country’s financial credibility on global markets. El Malick Ndiaye reinforced this position by asserting that Senegal possesses sufficient domestic tools to meet its obligations. The Assembly President framed the decision as a political imperative, transcending mere fiscal arithmetic.
This approach contrasts sharply with the recommendations of key multilateral partners. The International Monetary Fund (IMF), whose program with Senegal remains suspended following the debt revision, has repeatedly emphasized the need for a sustainable fiscal trajectory. Credit rating agencies have also downgraded Senegal’s sovereign rating multiple times in recent months, increasing the cost of future market access.
sovereign debt management: balancing ambition and constraints
The sovereign debt strategy championed by El Malick Ndiaye hinges on a mix of pre-existing and new measures. These include broadening the tax base, streamlining public spending, renegotiating imbalanced contracts, and boosting revenue from hydrocarbon projects. While these tools offer potential, their short-term impact remains uncertain. Oil production from the Sangomar field and gas from Grand Tortue Ahmeyim are expected to gradually bolster state coffers, but they are unlikely to single-handedly reverse the debt trajectory.
Following a reassessment by the Audit Court, Senegal’s public debt-to-GDP ratio now exceeds the thresholds set by the West African Economic and Monetary Union (WAEMU). In this context, Dakar’s goal is to create fiscal space without alienating traditional lenders. The challenge is compounded by the growing share of revenue consumed by debt servicing, which limits public investment in social sectors and infrastructure.
a dual message to markets and citizens
El Malick Ndiaye’s remarks were directed at multiple audiences. To international investors, he signaled Senegal’s commitment to honoring its debts without resorting to formal default mechanisms. To domestic audiences, he underscored a campaign promise to break free from financial dependency. To regional partners, he reinforced a narrative of economic self-determination, increasingly central in West Africa.
The success of this strategy hinges on the government’s ability to translate its plans into measurable outcomes in upcoming budget laws. A return to an IMF program—albeit in a non-traditional form—remains a closely watched possibility by markets. Some African economists suggest that a technical compromise, distinct from formal restructuring, could eventually pave the way for renewed access to concessional financing.
For El Malick Ndiaye, the stakes extend beyond public finance: it’s about validating an economic model rooted in the sovereignist discourse that defined the current administration’s rise to power. He emphasized a long-term perspective, rejecting any short-term interpretation of Senegal’s position.
