The African Development Bank has approved 20 billion CFA francs ($35.4 million) in financing to help Senegal strengthen its public finance management as the West African country grapples with a debt crisis, the bank said in a statement.
The money aims to help Senegal increase domestic resource mobilisation, implement structural reforms and strengthen public finance management and transparency, the AfDB said.
It was not immediately clear whether the financing is a grant or a loan.
Investors are closely watching Senegal’s efforts to tackle its debt burden after the government in 2024 disclosed previously unreported debts that eventually topped $13 billion.
“Through this operation, the African Development Bank reaffirms its commitment to standing alongside Senegal to consolidate economic reforms, strengthen domestic resource mobilisation, and create the conditions for more resilient growth,” said Wilfrid Abiola, the head of AfDB’s Senegal country office.
Senegal is in talks with the International Monetary Fund for a new loan after the Fund froze its previous credit line. Officials have said they are pursuing measures other than debt default in order to meet the IMF’s sustainability requirements.
The country is expected to appoint Lazard as its financial adviser on debt matters.
($1 = 565.5000 CFA francs)
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Reporting by Portia Crowe; Editing by Libby George and Andrei Khalip
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