Senegal’s economic recovery plan faces scrutiny amid IMF talks

Cheikh Diba, Senegal’s Finance Minister, recently addressed the National Assembly, revealing that the Plan de Redressement Économique et Social (PRES) had generated 63.4 billion West African CFA francs this year. These figures emerged during tense negotiations with the International Monetary Fund (IMF), prompting Waly Diouf Bodian, a political advisor to Prime Minister Ousmane Sonko, to vigorously defend the government’s performance.

Progress and challenges in revenue collection

The PRES, unveiled by Prime Minister Sonko on August 1, 2024, aims to mobilize a total of 5,667 billion West African CFA francs between 2025 and 2028. For 2026 alone, the government has set a target of 762.6 billion additional francs in its initial budget law. Of this amount, 63.4 billion has already been collected, including 7.9 billion from customs revenue, according to Cheikh Diba’s report. However, nearly 700 billion francs remain to be recovered to meet the annual target.

The IMF is closely monitoring Senegal’s budget trajectory, which faces significant financial challenges. The government’s ability to achieve its revenue targets will heavily influence ongoing discussions with the Bretton Woods institution regarding a potential support program.

Government pushes back against critical narratives

In response to critical media analyses questioning the pace of revenue collection, Waly Diouf Bodian highlighted that the plan generates between 15 and 20 billion West African CFA francs monthly. He emphasized that upcoming measures targeting land and money transfers are expected to yield increasingly positive results in the coming months.

The government will face scrutiny on this issue during an upcoming parliamentary session where lawmakers will examine the actual trajectory of PRES revenue against the quarterly targets outlined in the finance law.