Senegal shuts 19 state agencies to reduce public debt

Senegal has announced a strategic plan to shutter 19 government agencies in a bid to reduce public spending and manage its substantial debt burden. The decision, detailed in a statement following a Council of Ministers meeting, is expected to save the country at least 55 billion CFA francs ($97.95 million) over the next three years. This fiscal move comes as the West African nation grapples with a debt-to-GDP ratio that climbed to 132% by the end of 2024, prompting the International Monetary Fund to suspend its lending program after discovering misreported financial data. The 19 entities targeted for closure collectively employed 982 people and had a combined budget allocation of 28.051 billion CFA francs ($49.96 million) for 2025. While the government has not yet identified the specific agencies affected, the official statement noted that their annual payroll is estimated at 9.227 billion CFA francs, with total debts reaching 2.6 billion CFA francs at the end of 2024. In addition to the closures, the administration plans to focus on strengthening financial evaluations, harmonizing public sector pay scales, and ensuring the optimal use of budgetary resources. Despite a challenging repayment schedule, Prime Minister Ousmane Sonko has dismissed the possibility of a formal debt restructuring plan, with Senegal continuing to rely on the regional debt market to meet its financing requirements.