Wednesday, January 26

IMF Concludes 2021 Article IV Consultation for Senegal

Recent indicators suggest that a strong recovery is underway, driven by industrial production, services, and retail activity. COVID-19 case numbers remain comparatively low and about 14 percent of the adult population is vaccinated.

Performance under the program remains satisfactory. Concurrently with the PCI, the SCF/SBA arrangements are helping support the authorities’ crisis response; promote a broad-based recovery; catalyze additional concessional financing; and strengthen the external position of the WAEMU.

The completion of the first reviews under the SCF/SBA allows the disbursement of SDR 129.4 million (about US$180 million). Maintaining macroeconomic stability, improving public service delivery, gradually phasing out energy subsidies, stepping up investment in education and social protection as well as accelerating reforms aimed at overcoming key constraints to private sector development will support strong, inclusive, and job-rich growth.

The Executive Board of the International Monetary Fund (IMF) on Monday completed the Fourth Review under the Policy Coordination Instrument (PCI)[1] and the First Reviews Under the Stand-by Arrangement (SBA)[2] and the Arrangement under the Standby Credit Facility (SCF). [3] The completion of the reviews enables the release of SDR 129.4 million (about US$180 million), bringing total disbursements under the arrangements to SDR 258.8 million (about US$360 million).

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Senegal’s three-year PCI was approved on January 10, 2020 and is built around three pillars: (I) achieving inclusive and private-sector-led growth, (ii) consolidating macroeconomic stability through prudent fiscal policy and sound debt, and (iii) managing oil and gas revenues in a sustainable and transparent manner (see Press Release No. 20/06).

Senegal’s 18-month SCF/SBA arrangements, for a total amount of 140 percent of quota, were approved on June 7, 2021 to help support the authorities’ COVID-19 crisis response, catalyze additional concessional financing, and strengthen the external position of the WAEMU (see Press Release No. 21/259).

The authorities are delivering on their commitments regarding the transparency of COVID-19 spending; they have published detailed budget execution reports, a special audit of the COVID-19 fund and an audit on the regularity of COVID-19 procurement procedures. The final report by the Audit Court on the 2020 budget and COVID-19 spending execution is expected by March 2022.

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