Africa Finance Corporation advises Senegal to focus on growth
The advice comes as Dakar negotiates its new $2.2 billion International Monetary Fund program.
The Africa Finance Corporation (AFC) has counseled Senegal's government to prioritize economic growth over fiscal austerity measures as the nation negotiates its $2.2 billion International Monetary Fund (IMF) program, disclosed Samaila Zubairu, the AFC's CEO. In an address at Semafor's The Next 3 Billion summit in New York, Zubairu revealed that the AFC had engaged directly with Senegal's incoming administration following the revelation of undisclosed loans taken by the previous administration, which had pushed public debt past 130% of GDP.
He advised Dakar to secure investments that expand revenue, such as infrastructure development and formalizing mineral value chains, instead of relying solely on budget cuts. Zubairu emphasized that growth is the only way out of tight fiscal positions, adding that African economies must be empowered to expand their economies to tackle debt challenges.
"We can't pay back if we don't have revenue," he asserted. The AFC's involvement in Senegal underscores a growing trend among African regional lenders to challenge conventional Western-led bailout conditions. The IMF currently lists over a third of African countries as either in debt distress or at high risk of it. Various African nations, including Ethiopia, Ghana, and Zambia, have in recent years accepted IMF deals that imposed budget cuts, sparking public debate and protests.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
