(3 Minutes Read)
Senegalese Eurobonds experienced a brief period of massive selling. The audit, commissioned by the new president Bassirou Diomaye Faye, revealed alarming figures regarding the last five years of Macky Sall’s presidency.
The debt-to-GDP ratio at the end of 2023 exceeds 80%, compared to the previously announced 73%, according to the audit’s findings confirmed by an independent IMF review.
Additionally, the government has initiated a review of contracts in the natural resources sector. The Minister of Finance, Cheikh Diba stated that he could not change the rules of the game mid-play. The state has the right to verify if the contracts comply with the mining and oil codes in effect.
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This review comes as Senegal is set to become a significant producer of oil and gas. The USD 4.8 billion GTA liquefied natural gas project, led by BP and Kosmos Energy, is expected to commence this year, while the Sangomar oil development, operated by Woodside Energy, has been in production since June. These projects are anticipated to boost the country’s economic growth, projected at 6% this year and over 10% in 2025.
