Senegal taps Deloitte to audit public debt as it chases IMF deal

What happened

Senegal has appointed Deloitte to audit its public debt, said people with knowledge of the move, who asked not to be named because the information remains private. Deloitte declined to comment, and the Finance Ministry did not immediately respond to requests by phone and email.

The audit comes after Forvis Mazars' reconciliation, which prompted officials to revise the central government debt burden to 111 percent of output, from about 74 percent as of end-2023. The IMF's current view is that the ratio stands at 132 percent of output by the end of 2024.

What the IMF still wants

Senegal reached a staff-level understanding with the IMF in September on a proposed $2.2 billion program aimed at restoring debt sustainability and reopening access to international markets. The program needs IMF board signoff, and naming an auditor is one of the steps required before a board discussion.

IMF spokeswoman Julie Kozack said on Thursday the fund is closely watching parliament's talks on the 2026 supplementary budget and the 2027 spending plan. The IMF is not part of the political debate, she said, but it needs a budget framework aligned with policies agreed with the authorities.

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Politics and creditors

Parliamentary approval is a swing factor. With a majority in parliament, members of Ousmane Sonko's Pastef party have resisted elements of the proposal, especially reductions in public investment. Sonko has likewise taken issue with the overhaul of the debt, arguing that the necessary conditions are not yet in place.

Beyond the audit, the IMF wants Senegal to finish corrective measures tied to the misreporting of previously undisclosed borrowing and to secure financing assurances from partners. An official creditor committee that would include two of Senegal's largest bilateral lenders, China and France, has not yet been formed, Kozack said.

Why it matters for markets

Senegal has lined up advisers on all sides. The state's financial advisers include Lazard and Paris-based Global Sovereign Advisory. A bondholder group has hired Alvarez & Marsal as financial adviser and White & Case as legal counsel. Senegal has told creditors it aims to secure in-principle agreements by December with both official lenders and bond investors.

In plain English: the Deloitte audit checks an important box, but parliamentary votes, corrective actions, financing assurances and a creditor committee still stand between Senegal and IMF board approval. Watch those milestones to gauge timing for market reentry and how risk premia on Senegal paper might move.

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