Rumors swirling through Dakar’s financial corridors suggest Senegal is on the verge of appointing Lazard, a top-tier global advisory firm, to oversee its sovereign debt strategy. While no official announcement has been made, the move has ignited fresh speculation about a potential debt overhaul—though the exact scope of Lazard’s role remains unclear.
With a sterling track record in sovereign debt restructurings—having advised Zambia, Ghana, Chad, and Mozambique through similar crises—Lazard’s involvement naturally raises eyebrows. Could Dakar be eyeing a rescheduling, reprofiling, or even a full-scale restructuring? Locals in the banking and government circles are already dissecting the possibilities. Yet, even if Lazard joins the team, it wouldn’t replace the long-standing advisor, Global Sovereign Advisory, which has been guiding Senegal for years. Instead, it would complement their efforts.
Behind the speculation lies a pressing financial reality. After the 2024 revelation of billions in previously undisclosed loans, Senegal’s public debt has ballooned to over 130% of GDP—far exceeding the UEMOA ceiling of 70%. The fallout has been swift: the IMF suspended a $1.8 billion loan program, while credit rating agencies downgraded Senegal’s sovereign rating to speculative status. On the global markets, Senegal’s dollar-denominated bonds—particularly those maturing in 2033 and 2048—have struggled, underperforming peers from other emerging economies.
With international borrowing terms becoming increasingly unfavorable, Dakar has pivoted toward regional financing. However, even the UEMOA market is showing signs of fatigue, especially for long-term bond issuances. This squeeze limits the government’s options as it prepares for the 2026 budget, which allocates a staggering 5,490 billion West African CFA francs (roughly $9.6 billion) just for debt servicing—a figure that includes both interest payments and principal repayments, not just financial costs.