DPG: The "raw" figures and "worrying" announcements of Prime Minister Al Aminou Lô

The Senegalese state is going through a particularly tense financial period. Its high level of debt has led it to consider debt restructuring. This Tuesday, before the members of parliament, Prime Minister Al Aminou Lô presented an even more alarming picture. He noted that public sector debt has reached 132% of GDP, amounting to 23.5 trillion CFA francs, while the deficit for the fiscal year stood at 14%.

Moreover, with non-hydrocarbon growth projected to fall to 2.2% in 2025, the Prime Minister believes the country is far from becoming wealthier. "When you have this growth rate and your birth rate is 3%, you are getting poorer. We became poorer in 2025 and we will become even poorer in 2026," declared the former Secretary General of the Central Bank of West African States (BCEAO).

Al Aminou Lô also reveals that "many projects have been halted." According to him, this situation reflects a abandonment of certain public social and productive investments, with consequences for payment arrears, the viability of SMEs, and employment in large companies.

"In such a context, it is obvious that many things have been delayed. And while we were trying to get out of it, the shock of the Iran-United States-Israel war came and called everything into question. So the Senegalese people have a right to clarity," explained the head of government.

“Soul bouki souli bouki”

To meet its debt obligations, the Senegalese government has, until now, resorted to a "soul bouki souli bouki" strategy, taking out new loans to cover the repayments of existing ones. According to the Prime Minister, this strategy is a dead end and can only further damage the country's creditworthiness.

“What is clear is that when you do that, nobody trusts you anymore. And we saw it in the markets. Our government securities, the bonds we had on the international market, if they cost 100, they are now selling for 50. That is the reality of this country,” revealed Al Aminou Lô.

The situation on the secondary market is hardly more reassuring. The Prime Minister mentioned particularly high interest rates. "There are figures I don't dare mention. Today, if we were to take on debt again over two years, the secondary market would cost us 60% in interest rates. I didn't say 6%," he declared.

Al Aminou Lô also believes that a new very long-term loan, particularly with a horizon of 2048, would have been contracted under prohibitively expensive conditions given the deterioration of the country's financial situation.

"We are worthless on the international market. So the reality is there. I'm not talking about the rating agencies: they have brought us to the 5th basement level. That's what adjustment is. We're there," he insisted.

A situation which, according to the Prime Minister, has finally paved the way for debt treatment and the conclusion of a new program with the International Monetary Fund (IMF).