Gambiaj.com – (DAKAR, Senegal) – The International Monetary Fund and the State of Senegal are making progress in ongoing negotiations, despite lingering differences over economic projections and financing needs, Finance and Budget Minister Cheikh Diba told lawmakers on Tuesday.
Speaking before the National Assembly, Diba dismissed suggestions that discussions had stalled, revealing that formal engagements resumed on January 19, 2026, following the arrival of the IMF’s new mission chief, Vera Mercedes.
“The discussions are going very well. After receiving the new mission chief, we put all the issues on the table, particularly the misreporting and the negotiation of a new program,” the minister said.
Agreements Reached on Misreporting Issues
Diba explained that substantial progress has been made in resolving the misreporting issue – the submission of inaccurate economic data to the IMF – with both sides reaching agreement on key corrective measures.
These include an audit of the country’s debt situation, revisions to public finance statistics, quantitative benchmarks, and a reform measures matrix. He added that both parties had endorsed the credibility of the government’s proposed recovery process.
However, the minister noted that two prior actions still need to be completed before the IMF’s Executive Board can formally consider the misreporting case.
“We will be able to execute these measures before the board meeting. The problem does not arise on this first subject,” he assured lawmakers.
New IMF Program Talks Continue Amid Disagreements
On negotiations for a new IMF-supported program, Diba recalled that IMF Managing Director Kristalina Georgieva authorized her teams on October 3, 2025, to begin discussions with Senegal following an informal board meeting.
Subsequent talks have focused on the country’s macroeconomic and budgetary framework, but disagreements persist, particularly regarding economic growth forecasts.
“We are often not in agreement because we believe the IMF’s assumptions are pessimistic, while the IMF considers our projections to be optimistic,” Diba explained.
He disclosed that the IMF had updated its macroeconomic framework and submitted it to the government last Friday, with further discussions expected by the end of this week aimed at reaching consensus and finalizing negotiations.
The outcome of these discussions is critical, as it will determine Senegal’s financing requirements between 2026 and 2028 and the volume of funds the government will need to raise on financial markets.
“If we diverge on this point, the financing volume will be significant, and the IMF believes we may not be able to close the financing gap, suggesting restructuring as a solution. But if we converge on key indicators, the financing need will narrow to a manageable level,” Diba said.
Prime Minister Sonko Criticizes Debt System, Calls for African Sovereignty
Meanwhile, Prime Minister Ousmane Sonko used the occasion to strongly criticize what he described as Africa’s dependence on “unjust and odious” debt, urging the continent to pursue endogenous growth to secure economic sovereignty.
“Africa is the only island of growth in this world. Everything remains to be built here. It is up to Africans to lead this process,” Sonko said.
Citing discussions with American economist Jeffrey Sachs in Addis Ababa, Sonko claimed that international financial institutions are more concerned with financial discipline than Africa’s development.
According to him, Senegal and other African nations do not necessarily need debt cancellation or restructuring but rather a 20- to 30-year reprieve to focus on economic expansion without the burden of heavy debt servicing.
Sonko called for African nations to target double-digit endogenous growth driven by investments in infrastructure and education, stressing that Senegal is well-positioned to play a leadership role.
“Our country has the leadership needed to be part of this group. Our struggle has been for good governance, and it remains a struggle for good governance,” he said, while emphasizing the importance of political integrity and exemplary public management.
The government hopes that ongoing negotiations with the IMF will result in a program that supports Senegal’s economic recovery while preserving its long-term financial sustainability.
