The International Monetary Fund on Wednesday welcomed Senegal’s push to rely less on external aid and boost domestic revenue collection.
Senegal, which has faced a freeze on IMF disbursements for a year due to misreporting its debt and deficit figures, is striving to regain trust.
Prime Minister Ousmane Sonko said the country has managed its economy without IMF funds, according to local media, though his office has not commented.
“The IMF welcomes the Senegalese government’s efforts to enhance domestic revenue mobilization,” said a Fund spokesperson, calling the move a path to fiscal resilience.
However, the IMF stressed that these steps do not alter the ongoing process to address the misreporting case that led to the suspension of its $1.8 billion programme.
The Fund remains in talks with Dakar to find a resolution, saying it is committed to securing an acceptable outcome as quickly as possible.
Sonko has vowed to improve tax compliance so that all Senegalese contribute fairly, aiming to avoid raising tax rates, Le Soleil reported.
Still, the fallout from hidden debt revelations has battered Senegal’s financial credibility, making its dollar bonds the worst-performing in Africa this year.
The scandal has also forced the government to lean more heavily on the regional debt market, fuelling criticism and calls for transparency from the opposition.
As Senegal walks a tightrope between reform and recovery, both international observers and citizens await the outcome of its financial reckoning.