Senegal Unveils $10 Billion Recovery Plan to Tackle Debt Crisis
Senegal Unveils $10 Billion Recovery Plan to Tackle Debt Crisis
The $10 billion initiative will be 90% financed through domestic resources and focuses on fiscal discipline, revenue generation, and institutional reform, PM Ousmane Sonko has announced.
🟠The plan follows revelations of $7 billion in hidden debt left by the previous administration, which led the IMF to suspend a $1.8 billion loan program.
Sonko emphasized the need to “mobilize our internal resources” and reduce dependence on foreign assistance.
Key measures include:
🟡Cutting public spending and merging state institutions.
🟡Raising taxes on tobacco and introducing visa fees.
🟡Eliminating tax exemptions, especially in the digital economy.
🟡Renegotiating contracts in oil, mining, and telecom sectors to boost revenue.
🟡Phasing out inefficient energy subsidies and better targeting social programs.
↘ Senegal aims to cut its budget deficit from 12% of GDP in 2024 to 3% by 2027. Economy Minister Abdourahmane Sarr noted that a credible path to fiscal sustainability is essential to restore market confidence and reengage with the IMF.
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