Senegal vows tax reform to cut IMF dependence
Facing suspended IMF support and shaken investor confidence, Prime Minister calls for nationwide tax compliance
DAKAR, Senegal (MNTV) — Senegal has announced a major push for tax reform, pledging to improve domestic revenue collection and reduce the country’s reliance on external lenders like the International Monetary Fund (IMF).
The move comes as Senegal grapples with the fallout of a debt misreporting scandal that led to the suspension of its $1.8 billion IMF financing program.
Speaking to Senegalese nationals in Guinea, Senegalese Prime Minister Ousmane Sonko declared that “good tax reform” could help the country withstand the loss of 250 billion CFA francs ($437 million) in annual IMF disbursements.
He emphasized that true development comes from within, not from international aid.
“Senegal is still standing,” Sonko said.
“A country does not develop by being held by the hand, but by building on its own strengths, its own resources, and its own budgetary discipline.”
The prime minister said his government will ensure all Senegalese pay their fair share in taxes, without raising rates, to support the national budget.
His remarks signal a pivot away from dependency on multilateral lenders — a theme that has resonated with his political base.
However, the crisis has already taken a toll on Senegal’s financial standing.
The revelation of understated debt levels has rattled markets, causing Senegal’s dollar bonds to drop 7.3% this year — the worst performance among African sovereign bonds, according to JPMorgan.
In comparison, other African bonds have gained an average of 3%, while Angola, the second-worst performer, is down only 1.5%.
In the absence of IMF disbursements, Senegal has turned to the regional debt market, issuing a 405 billion CFA franc ($709 million) bond in April — a move that has drawn criticism from the opposition, which is demanding more transparency in fiscal reporting.
As Senegal navigates a path toward economic self-reliance, Sonko’s reforms face the dual challenge of winning public support and restoring investor confidence.
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