The Senegalese government is expected to appoint the investment bank Lazard as a financial advisor on its sovereign debt, according to several sources close to the file cited by Bloomberg and Reuters. The arrival of the bank is reinforcing expectations of a restructuring of Senegal’s debt, but the exact scope of the mandate has not yet been established.
Lazard is known for being one of the world’s leading specialists in sovereign debt restructurings and has a solid African presence. The firm has advised other countries such as Zambia and Ghana on managing their debt crises, as well as Chad and Mozambique. Its reputation in this field should fuel speculation among Dakar’s financial community about options being considered by the government, whether it be a refinancing, repackaging or broader restructuring.
The use of this investment bank does not however mean that such an operation has already been decided. The timeline is still unclear. In addition, the Paris-based Global Sovereign Advisory firm, which has advised Senegal for several years, will continue to accompany the country. If confirmed, Lazard would reinforce the existing mechanism and not replace it.
The urgency for Senegal is tangible. Since the discovery in 2024 of several billion dollars worth of loans that did not appear on official accounts, the public debt has been revalued at over 130% of GDP, well above the UEMOA ceiling of 70% of GDP. The IMF suspended its $1.8 billion loan program and major rating agencies downgraded Senegal’s sovereign credit rating to speculative grade.
On the markets, Senegalese treasury bonds in dollars are under pressure. Bonds due for maturity in 2033 and 2048 have particularly underperformed their counterparts on emerging markets exchanges yesterday, according to Bloomberg.
The lack of access «to acceptable conditions» to international markets has led Dakar to focus more on the regional market for public debt securities of UEMOA. However, demand for long-term emissions also weakened in this market, reducing financing options for the government. The 2026 budget allocates around $4.9 billion CFA (around $9.6 billion) to debt servicing, including interest and capital repayment.
