Senegal has achieved debt stability through strategic refinancing, with its government reporting a managed debt service burden despite a regional economic slowdown. The country's debt-to-GDP ratio remains under control as it restructures obligations to maintain fiscal resilience.
- Senegal's debt-to-GDP ratio stabilized at 63.4% in Q3 2025
- Annual debt service costs reduced by 12% through refinancing
- New Eurobond issuance of $750 million at 6.8% coupon and 10-year maturity
- Average debt maturity increased from 5.2 to 7.4 years
- West Africa’s growth slowed to 3.7% in 2025, down from 3.9% in 2024
- Senegal’s economy projected to grow at 4.1% in 2025
Senegal's public debt has stabilized following a comprehensive refinancing initiative led by the Ministry of Economy and Finance, according to the country's finance chief. The effort focused on extending maturities and reducing interest rates on existing obligations, resulting in a 12% decrease in annual debt service costs compared to 2024 levels. This shift has helped maintain the debt-to-GDP ratio at 63.4% as of Q3 2025, within the government's target range of 60% to 65%. The refinancing program, which included a $750 million Eurobond issuance in November 2025 with a 10-year maturity and a 6.8% coupon rate, replaced higher-cost instruments from previous years. This move has increased the average debt maturity from 5.2 years to 7.4 years, reducing refinancing risks in the near term. The government also secured a $300 million loan from the African Development Bank with a 4.2% interest rate, further lowering its weighted average cost of borrowing. These measures come amid a broader regional economic deceleration. West Africa’s growth rate declined to 3.7% in 2025 from 3.9% in 2024, primarily due to subdued global demand, elevated inflation, and persistent currency pressures. Senegal’s economy, however, is projected to grow at 4.1% in 2025, outpacing the regional average, supported by improved fiscal discipline and infrastructure investment. Financial markets have responded positively, with Senegal’s sovereign credit default swaps (CDS) narrowing by 18 basis points since the start of the year. Rating agencies have maintained the country’s investment-grade outlook, citing improved debt sustainability. The initiatives are expected to support continued access to international capital markets and reduce vulnerability to external shocks.