Senegal debt crisis: lazard’s involvement sparks excitement in Dakar

The senegalese government is set to appoint lazarod, a leading global debt restructuring firm, as its financial advisor on the country’s soaring public debt. The move has reignited speculation about the options being considered by the authorities, including a possible debt restructuring or refinancing.

lazarod has extensive experience in restructurings of sovereign debts and has advised several african countries, including Zambia, Ghana, Tchad, and Mozambique. its reputation in this field has fueled excitement among market players in Dakar, who are weighing the possibilities of a debt restructuring.

the appointment is not yet official, however, as global sovereign advisory, which has been advising the senegalese government for several years, continues to be involved. if confirmed, lazarod’s involvement would strengthen the country’s debt management team rather than replace it.

for the senegalese government, time is of the essence. since 2024, the discovery of several billions of dollars in unlisted loans has increased the country’s public debt to over 130% of gdp, far exceeding the UEMOA ceiling of 70%. the imf has suspended a $1.8 billion loan program, while credit rating agencies have downgraded Senegal’s sovereign credit rating.

on the markets, senegalese government bonds are under pressure, with titles maturing in 2033 and 2048 performing poorly compared to their african peers. the central bank has been struggling to access international markets due to high borrowing costs, forcing it to rely on regional UEMOA markets, which have also seen demand for long-term debt decrease, reducing the options available to the government.

the budget for 2026 anticipates approximately 5.49 trillion cfa francs (9.6 billion usd) in debt servicing costs, although this includes interest and capital repayments, not just financing costs.