After a visit a few weeks ago, the Mission of the International Monetary Fund (IMF) returns this June to Dakar, as part of another mission of the 2023-2026 program concluded with Senegal, which provides for a total disbursement of around 1150 billion CFA francs. Initially scheduled for June 3, it was postponed until June 6, to allow it to review the terms of reference of the journal’s mission letter. This new mission was to review the program and prepare a second disbursement in July 2024. 

After a week of discussions with the Senegalese authorities, the Mission of the International Monetary Fund (IMF) in Senegal from April 25 to May 3, 2024, had planned to return to Dakar this Monday, June 3. It was to deepen discussions for the second review of the program supported by the IMF under the Extended Credit Mechanism (ECM), the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (FRD).  This stay has been postponed by a few days: it will take place from June 6 to 19. Why this change in calendar? According to a source close to the IMF, “this is a logistical problem”, without giving further details.

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On the other hand, Le Quotidien knows that the IMF has decided to review the terms of reference of the mission letter to have more visibility on certain conditionalities of the discussions, in particular the democratic environment, which is experiencing its first tremors. In recent days, there have been tensions over freedoms, with for example the arrest of activists and the summoning of journalists to the gendarmerie as part of the exercise of their function. Without forgetting the debate on the supposed renegotiation of military agreements, which also affects the environment of economic cooperation.

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Today, the IMF wants to have more details and visibility on all these elements. It should be noted that relations should continue, after the two parties laid four weeks ago, “the foundations for discussions of the second review of the program supported by the IMF”. After the new authorities admitted that the main pillars of the program align with their own strategic objectives, such as improving fiscal resilience and reducing debt vulnerabilities, among others.

This new mission from the Bretton Woods institution was to review the program and prepare a second disbursement in July 2024, after validation by the IMF Board of Directors, within the framework of the 2023-2026 program concluded with Senegal, which provides for a total disbursement of around 1,150 billion CFA francs. This new instalment would give another breath of fresh air for Diomaye and Sonko, who have decided to continue the program concluded by the Sall regime.

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As a reminder, the IMF had asked the State to take “ambitious measures to rationalize tax expenditures and improve the efficiency of spending” within the framework of an amended budget which would enable the achievement of the regional budget deficit objective. of 3% of GDP in 2025.

They should also be followed by “structural reforms” on the revision of the formula for determining petroleum products and an audit of Senelec “in order to implement a new tariff for electricity, including a social tariff for vulnerable households.

By Bocar SAKHO / bsakho@lequotidien.sn

  • Translation by Ndey T. SOSSEH