Senegal’s President Dismisses Prime Minister Amid IMF Bailout Talks

TL/DR –

Senegal’s President, Bassirou Diomaye Faye, has dismissed Prime Minister Ousmane Sonko, dissolved the government, and dismissed all ministers, thereby deepening uncertainty in a country currently negotiating with the International Monetary Fund (IMF) amid a debt crisis. The IMF had previously frozen a $1.8bn lending programme after discovering misreported debt from the previous government, pushing Senegal’s debt level to 132% of its economic output. This political change risks further delays in reaching a new agreement with the IMF, especially as the country faces mounting economic pressure.

Senegal’s President Dismisses Prime Minister Amid IMF Bailout Negotiations

Senegal’s President, Bassirou Diomaye Faye, has dismissed Prime Minister Ousmane Sonko and dissolved the government, increasing uncertainty in a country tackling a debt crisis and ongoing IMF negotiations.

A statement from the Presidential aide on state media on Friday announced that all ministers were dismissed, instructing the outgoing government to manage everyday affairs.

Faye’s decision followed months of escalating tensions with Sonko. A supporter of Faye during his 2024 election campaign, Sonko gradually became estranged from the President due to political differences, adding to the nation’s economic struggles.

As Senegal grapples with a dire economic outlook, the IMF suspended its $1.8bn loan programme after discovering concealed misreported debt from the previous government, inflating the country’s end-2024 debt to 132 percent of its GDP.

This development heightens the risk of further IMF negotiation delays.

Prior to Sonko’s dismissal, Finance Minister Cheikh Diba announced resumption plans for IMF talks in the week of June 8 and an aspiration to agree on key points by June 30.

Sonko, popular among the youth, was an opposition leader under Macky Sall’s presidency. Both Faye and Sonko, former tax officials, were imprisoned prior to the 2024 election but released 10 days preceding the vote. Faye won with 54 percent of the vote and appointed Sonko as Prime Minister.

With Sonko removed, his future actions remain uncertain. Sonko had previously stated his readiness to withdraw his Pastef party from the government and return to opposition if he disagreed with Faye’s agenda.

Pastef, dominant in the National Assembly, could hinder the passage of critical reforms to secure IMF backing. Last month, politicians approved electoral changes potentially enabling Sonko to run for president in 2029.

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