Senegal’s Ministry of Finance has delayed the release of its budget execution reports for the final quarter of 2024 and the first quarter of 2025, now rescheduling the publication to June 23. The delay comes as the country’s newly elected administration takes steps to restore fiscal transparency and rebuild investor trust following revelations of misreported public debt figures under the previous government.
While the original date for publishing the reports was not disclosed, the ministry stated in a communique dated June 16 that the decision was made to ensure the “sincerity and reliability” of the data. The government is currently engaged in a process of thoroughly identifying, reclassifying, and verifying public finance data—part of a broader strategy to address past financial irregularities and realign with international fiscal standards.
The delay is seen as a key move in restoring confidence among international partners, particularly the International Monetary Fund (IMF), which halted disbursements under its support program with Senegal last year. The suspension came after Senegal acknowledged that it had misrepresented its fiscal deficit and public debt figures, a breach of trust that significantly impacted the country’s financial credibility.
A report released in February by Senegal’s court of auditors revealed that the country’s fiscal deficit had been understated by as much as seven percentage points of GDP per year. This significant discrepancy led to a revised debt-to-GDP ratio of approximately 100% at the end of 2023—much higher than the previously reported 74%. The findings sparked concern among investors and raised questions about the reliability of Senegal’s fiscal reporting mechanisms.
In response, the new administration has pledged to prioritize fiscal discipline and improve budget transparency. “This adjustment reflects our commitment to reestablishing budget orthodoxy,” the finance ministry said. The government has also signaled its intent to engage in deeper reforms, including enhanced tax compliance and a reduced dependence on external financing.
Although the IMF recently expressed support for Senegal’s new fiscal direction, it made clear that these efforts do not yet meet the conditions for lifting the current waiver freeze. Talks on resuming IMF support remain stalled, with no immediate timeline for the resumption of disbursements.
Market reactions to Senegal’s fiscal woes have been harsh. According to JPMorgan, the country’s dollar-denominated sovereign bonds are the worst performers across Africa in 2024, registering a year-to-date loss of 11.5%. In contrast, African sovereign bonds as a whole have returned an average gain of 4.9% during the same period.
Senegal’s 2033 bonds continue to trade at steep discounts. Tradeweb data showed that the bonds slipped by 0.3 cents to 65.75 cents on the dollar. According to Thys Louw, portfolio manager at asset manager Ninety One, the bonds are priced well below those of neighboring countries, reflecting investor caution and persistent concerns over fiscal management.
Kevin Daly, investment director at Aberdeen Investments, warned of continued financial uncertainty ahead. “It’s still potentially a very bumpy road for Senegal,” he said, maintaining a bearish outlook on the country’s fiscal prospects.
As Senegal works to clean up its public accounts and reengage with key international partners, the upcoming data release on June 23 will be a critical moment for both domestic stakeholders and global investors seeking reassurance about the country’s economic trajectory.