Dakar is buzzing with speculation as reports suggest the government may enlist Lazard—a global leader in sovereign debt restructuring—as a financial advisor to manage its mounting debt burden. While details of the mandate remain unclear, the move has intensified discussions about potential debt restructuring strategies in political and financial circles.
Lazard brings a wealth of experience to the table, having advised governments in Zambia, Ghana, Chad, and Mozambique through complex debt crises. Its involvement in Senegal could signal a shift toward restructuring, reprofiling, or rescheduling the country’s debt, though no final decision has been made. The Paris-based Global Sovereign Advisory, which has long supported Senegal, is expected to continue playing a key role, with Lazard potentially complementing rather than replacing its services.
Behind the urgency lies a stark financial reality. In early 2024, the discovery of billions in undisclosed loans inflated Senegal’s public debt to over 130% of GDP—far exceeding the UEMOA ceiling of 70%. The IMF has since frozen a $1.8 billion loan program, while credit rating agencies have downgraded the country’s sovereign debt to speculative status. The situation has left Senegal’s dollar-denominated Treasury bonds under heavy strain, with 2033 and 2048 maturities underperforming against emerging market peers.
With international market access tightening due to unfavorable terms, Dakar has increasingly relied on the UEMOA regional bond market. However, demand for long-term issuances is waning, further limiting financing options. The 2026 budget allocates approximately 5,490 billion CFA francs (9.6 billion USD) for debt servicing, covering both principal repayments and interest—though this figure does not solely reflect financing costs.
