Gambiaj.com – (DAKAR, Senegal) – Economist and journalist Cheikh Thiam, former managing director of Senegal’s state daily Le Soleil, has dismissed concerns that Prime Minister Ousmane Sonko’s recent sovereignist remarks could jeopardize ongoing negotiations for a new program with the International Monetary Fund (IMF).
Speaking in an interview with TFM, Thiam argued that the Fund’s engagement with Senegal is based on technical and financial commitments—not on political declarations.
“Talks about monetary sovereignty or the creation of a national currency are sovereign decisions for Senegal. These are not issues the IMF will use against the country,” Thiam stressed.
“The IMF works with documents, frameworks, and reform commitments. It does not arbitrate political debates.”
Optimism for a New IMF Program
Thiam expressed optimism that Senegal and the IMF are close to concluding an agreement, pointing to signals from IMF Managing Director Kristalina Georgieva, who recently confirmed that discussions were advancing positively.
“I am convinced that in the coming days, good news will be announced for Senegal,” he said, citing convergence between the Fund and Senegalese authorities on the issue of “hidden debt” uncovered earlier this year.
According to Thiam, Senegal has already laid the groundwork with its Programme de Redressement Économique et Social, which outlines a financing package of CFAF 4,600 billion ($7.5 billion), largely sourced from internal savings, budgetary cuts, and domestic financing.
For Thiam, this signals seriousness and credibility in the government’s fiscal approach, which the IMF and other donors are likely to reward.
“The IMF acts as the lead guarantor for both multilateral and bilateral donors. Once Senegal finalizes its program with the IMF, suspended aid and financing from partners such as France, Belgium, Germany, the Islamic Development Bank, and the African Development Bank will automatically resume,” he explained.
Borrowing Spree and Debt Concerns
In the meantime, the Sonko-Diomaye administration has turned heavily to the regional financial market to cover budgetary gaps, borrowing extensively from the WAEMU bond market. Between now and December, Senegal is expected to raise around CFAF 488 billion ($800 million) in treasury bills and bonds.
Thiam described this as a rational choice given the prohibitive costs of borrowing on international markets, where Senegal’s credit rating has been downgraded by agencies such as Moody’s and Standard & Poor’s.
“Going to the eurobond market today would be extremely expensive for Senegal. Borrowing within the UEMOA zone is a more affordable option,” he said.
However, he warned that the debt buildup must remain transparent and aligned with authorizations from the National Assembly—something that had not been the case with the so-called hidden debts, which bypassed parliamentary approval.
Social Pressure and the Need for Growth
Looking beyond the debt and IMF talks, Thiam underscored Senegal’s urgent need to stimulate job creation, particularly for its swelling youth population. Each year, more than 200,000 young Senegalese enter the labor market with limited opportunities.
“The biggest social time bomb we face is youth unemployment. That is why I welcome the government’s push to invest in agriculture, which can generate value chains, industrial transformation, and new jobs,” Thiam said.
While calling for prudence in communication around sensitive economic issues, Thiam concluded that the IMF agreement is not only likely but essential for restoring investor confidence, stabilizing Senegal’s finances, and reopening doors to vital external financing.
“Senegal has every interest in concluding this program quickly. The IMF’s green light will be a prime signal of transparency and stability for all our partners,” he said.
