AfDB Approves $35 Million for Senegal Finance Reforms

The African Development Bank (AfDB) has approved financing worth 20 billion CFA francs (about $35.4 million) to support Senegal’s efforts to strengthen public finance management and advance economic reforms as the country works to address its debt challenges.

According to the bank, the funding will be used to improve domestic revenue mobilisation, enhance transparency in public financial management and support structural reforms aimed at strengthening economic governance. The AfDB did not specify whether the financing would be provided as a loan or a grant.

The approval comes as Senegal seeks to restore investor confidence after the government disclosed more than $13 billion in previously unreported debt in 2024. The revelation triggered closer scrutiny of the country’s public finances and complicated its engagement with international lenders.

AfDB Country Manager for Senegal, Wilfrid Abiola, said the financing demonstrates the bank’s commitment to supporting the country’s reform programme and laying the foundation for stronger and more resilient economic growth.

Senegal is also negotiating a new financing programme with the International Monetary Fund after the IMF suspended an earlier credit arrangement over concerns about the country’s debt position. Government officials have maintained that they are committed to meeting the Fund’s debt sustainability requirements while avoiding a debt default.

The government is also expected to appoint investment bank Lazard as its financial adviser on debt-related matters as it continues efforts to strengthen fiscal management and rebuild confidence among investors and development partners.

SOURCE: Reuters