WASHINGTON, October 30, 2026 — The International Monetary Fund has urged Senegal to strengthen budgetary controls and commission an independent international audit of its public debt as the West African country seeks approval for a $2.2bn financing programme following revelations of previously undisclosed government liabilities.
The IMF said it was closely monitoring parliamentary discussions over Senegal’s 2026 supplementary budget and 2027 budget law, warning that fiscal measures must remain consistent with the objectives of a staff-level agreement reached in September.
Julie Kozack, the IMF’s communications director, told reporters on Thursday that the proposed three-year Extended Credit Facility remained subject to approval by the fund’s executive board.
“A budget that keeps intact those goals will be essential for advancing with the IMF program,” Kozack said, referring to fiscal sustainability, protection of vulnerable households and safeguarding priority public spending.
The comments underscore the challenges facing Senegal as President Bassirou Diomaye Faye’s administration attempts to restore confidence in public finances after the disclosure of previously unreported debt raised concerns about the country’s fiscal position.
The IMF and Senegalese authorities reached a staff-level agreement on September 1 for a proposed $2.2bn programme, intended to support economic reforms and address mounting debt vulnerabilities.
However, the agreement has yet to receive final approval, with the fund continuing to assess progress on fiscal transparency, debt management and budgetary reforms.
Kozack acknowledged that Senegal had already taken several steps to improve public financial management, including successive debt audits by the Inspector General of Finance and the Court of Auditors.
The government has also published revised debt statistics covering 2019 to 2024, conducted a comprehensive audit of payment arrears and introduced measures to consolidate debt management.
Nevertheless, the IMF said further action was necessary to address the institutional weaknesses that allowed liabilities to remain unreported.
“One is the launch of an audit by a private international firm,” Kozack said, identifying an outstanding measure required to strengthen transparency.
She also highlighted the need to eliminate so-called comfort letters and reinforce budgetary controls to prevent the accumulation of further undisclosed financial obligations.
Senegal has decided to pursue external debt treatment under the G20 Common Framework, a mechanism designed to coordinate debt relief discussions between eligible debtor countries and their creditors.
According to the IMF, the decision is intended to address Senegal’s elevated debt vulnerabilities and help restore fiscal sustainability.
On October 6, Senegalese authorities convened an initial meeting with external creditors under the IMF’s Good Offices mechanism, which facilitates dialogue between governments and creditors.
IMF staff presented publicly available information during the meeting to establish a common understanding of Senegal’s financial position.
The fund did not provide a firm timetable for executive board approval of the financing programme, despite questions about whether an agreement could be finalised before the end of 2026.
Nigeria’s economic recovery has yet to reach millions, IMF warns
The IMF also acknowledged that Nigeria’s recent economic reforms had strengthened macroeconomic resilience but warned that poverty, food insecurity and high living costs continued to undermine improvements in economic indicators.
Kozack said Nigeria’s economy was expected to grow by 4.2 per cent in 2026, compared with 4 per cent in 2025, with further strengthening projected next year.
She pointed to rising foreign exchange reserves, improving investor confidence and declining inflation as evidence of progress.
However, inflation remained elevated at approximately 15 per cent, while the benefits of economic reforms had yet to reach large sections of the population.
“But a challenge for Nigeria is that these gains have not yet been felt by all Nigerians, and poverty is still high, and food insecurity is still a major concern,” Kozack said.
The IMF urged Nigerian authorities to maintain policies that support external stability and bring inflation down further.
It also recommended expanding targeted social protection measures, particularly cash transfers, to provide relief to households affected by the cost-of-living crisis.
Over the medium term, the fund said Nigeria would need to improve domestic revenue mobilisation to strengthen public finances and sustain economic resilience.
IMF urges Kenya to broaden tax base rather than raise rates
Turning to Kenya, the IMF said the East African country faced significant fiscal and debt-related challenges that would require a combination of revenue reforms, spending discipline and stronger financial transparency.
However, the fund suggested that Nairobi should prioritise widening the tax base rather than increasing existing tax rates.
“Our focus or our recommendation, is that there should be a focus not so much on increasing tax rates, but on broadening the tax base,” Kozack said.
She explained that reducing tax exemptions, improving compliance and ensuring that eligible taxpayers meet their obligations could help increase government revenue without imposing higher tax rates.
The IMF also called for more targeted social protection to shield vulnerable households from the effects of fiscal consolidation.
The recommendations come as Kenya seeks to balance debt servicing obligations with pressure to maintain essential public spending.
Egypt seeks $2.33bn IMF payment before December deadline
In North Africa, the IMF said its officials were holding discussions in Cairo over the final reviews of Egypt’s Extended Fund Facility and Resilience and Sustainability Facility arrangements.
The fund is seeking to reach a staff-level agreement and secure executive board approval before Egypt’s Extended Fund Facility expires on December 15.
Successful completion of the reviews could unlock a final disbursement of approximately $2.33bn.
Kozack said the discussions would focus on maintaining tight monetary policy, fiscal consolidation and stronger domestic revenue mobilisation to reduce debt vulnerabilities.
The IMF is also pressing Egypt to accelerate structural reforms aimed at reducing the state’s involvement in economic activity and creating more opportunities for private investment.
These include advancing the government’s divestment programme, implementing its state ownership policy, strengthening governance in state-owned enterprises and improving competition between public and private businesses.
The fund said such reforms were essential to improving productivity, attracting investment and generating employment.
African economies face continued pressure from global financing conditions
The IMF also warned that monetary policy developments in the United States could affect emerging and developing economies, including African countries, through changes in borrowing costs, capital flows and exchange rates.
Kozack said global financing conditions had tightened somewhat, with bond yields and borrowing costs rising, although spreads on emerging-market debt remained relatively compressed.
She noted that a stronger US dollar could create additional pressures for countries exposed to external financing risks.
The fund nevertheless said improvements in economic fundamentals across developing economies had helped cushion some of the effects of global financial uncertainty.
The IMF did not provide new country-specific assessments for Uganda or Botswana, despite questions about monetary policy and economic diversification.
For Senegal, the immediate priority remains securing approval for its proposed $2.2bn programme while demonstrating that the government has established credible safeguards against further undisclosed borrowing.
Across the continent, the IMF’s latest assessments highlight a common policy challenge: restoring fiscal stability and investor confidence while ensuring that economic reforms translate into improvements in living standards.
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