The International Monetary Fund’s approach, characterised by conditional lending and delayed disbursements, has withheld funds that are vital for the survival of Senegal’s economy. By tying financial assistance to austerity measures, subsidy removals, and strict fiscal contraction, the IMF has deepened social hardship, constrained public investment, and limited the government’s capacity to protect workers and vulnerable citizens.According to recent discussions reported by Reuters (9 November 2025), the IMF has proposed that Senegal undertake a comprehensive debt restructuring as a precondition for renewed access to funding under its suspended US $1.8 billion programme. The Fund’s mission, which concluded in early November without agreement, insists that Senegal must “place debt on a sustainable path” under IMF parameters before any disbursement.
The Senegalese government has firmly rejected this proposal. Prime Minister Ousmane Sonko denounced the IMF’s demand for restructuring as “a disgrace”, declaring that such a move would unjustly imply fiscal irresponsibility and undermine national dignity. President Bassirou Diomaye Faye has pledged that Senegal will finance 90 per cent of its national recovery plan from domestic resources, avoid new debt accumulation, and meet its obligations transparently while defending the country’s sovereignty and pride.

ITUC-Africa recognises the legitimacy of this stance. Debt restructuring driven by external conditions typically transfers the adjustment burden to workers and communities through wage restraint, subsidy cuts, and reductions in social spending. We, therefore, support Senegal’s decision to pursue a home-grown recovery strategy that prioritises debt transparency, domestic resource mobilisation, and investment in people.A critical component of this effort must be the fair taxation of multinational enterprises (MNEs) operating in Senegal. Nigeria’s Tax Law No. 7 of 2025 introduces a 15 per cent domestic minimum tax consistent with the OECD’s global minimum tax framework. While this represents progress, the global trade union movement, led by Public Services International and ITUC-Africa, calls for a stronger and fairer standard, thus a 25 per cent minimum effective tax rate on multinational profits apportioned according to real economic activity in each country, including employment, sales, and payroll.

ITUC-Africa therefore urges Senegal to enact a Domestic Minimum Effective Tax law at the 25 per cent level, ensuring that multinational corporations contribute equitably to national development. Revenues mobilised through such reform should be directed to strengthening public services such as health, education, energy, social protection, and employment creation, which form the foundation of inclusive and sustainable growth.

Privatisation has never been a viable development strategy. In Senegal, as across Africa, it has fragmented essential services, increased costs for citizens, and weakened decent work. Reclaiming and strengthening public utilities, particularly in electricity, water, and transport is essential for achieving universal access, advancing industrialisation, and fulfilling the African Union’s Agenda 2063.

ITUC-Africa calls for a new fiscal and development model grounded in debt justice, progressive taxation, and strong public services. Social spending and decent work must never be regarded as fiscal liabilities but as essential investments in human development and national resilience. The International Monetary Fund must refrain from erecting conditions or encumbrances that deliberately frustrate domestic efforts at economic recovery, as such measures risk fuelling public discontent, weakening national ownership of reforms, and fostering long-term dependency on external financing. Moreover, the Senegalese government should broaden its domestic revenue base by ensuring effective taxation of high-net-worth individuals and multinational enterprises, thereby promoting fairness and shared responsibility in national development. The IMF and international partners must, therefore, respect Senegal’s sovereign right to design and implement policies that place people before creditors and development before austerity.
A fair and worker-centred recovery begins with taxing global wealth equitably, rebuilding public institutions, and reaffirming the state as the driving force of sustainable and inclusive progress.

Signed

Akhator Joel Odigie
General Secretary, ITUC-Africa
Lomé, Togo