This has raised concerns about the country's ability to manage its mounting debt.

In a report released recently, it was disclosed that Senegal's public debt has surged significantly, now estimated at nearly 100% of the country’s Gross Domestic Product (GDP), a 25% increase from previous figures. The initial government claims suggested the debt was around 74% of GDP, but a more recent audit has revealed the true scale to be much higher. These figures now show a sharp discrepancy, with debt reaching 99.67% of GDP in 2023 and potentially climbing to 107% in 2024.

The revised data also indicated a budget deficit far greater than previously stated, with the deficit now expected to exceed 11% of GDP, a substantial increase from the earlier estimate of 7.1%. These findings, unveiled by Senegal's Court of Auditors, have sparked serious concerns about the country’s financial health.

Nyasha Mpani, Project Leader at the Institute for Justice and Reconciliation in South Africa, called the findings "shocking," noting that the scale of the discrepancies could undermine the country’s economic stability. He warned that if the government deliberately underestimated the deficit to maintain investor confidence, it would severely damage the country’s credibility. He also suggested that these financial errors might be indicative of deeper systemic issues, requiring stronger fiscal oversight and transparency.

Senegal’s political landscape has been heavily affected by the findings, with conflicting opinions regarding the government’s role in the financial missteps. Political and economic Commentator Mademba Ndiaye highlighted the lack of transparency during the previous administration, while the current government has disputed the findings, claiming the Court of Auditors’ reports were politically motivated.

As a result of these developments, Moody’s downgraded Senegal’s credit rating from B1 to B3 and revised the country’s outlook to negative. The agency expressed concerns that Senegal is now more vulnerable to economic shocks than previously thought, which is likely to erode investor confidence and make borrowing more expensive.

--ChannelAfrica--