DAKAR – Senegal plans to raise 100 billion CFA francs ($180 million) through a local Islamic bond (sukuk) by the end of 2025 as part of efforts to strengthen state finances. The West African nation, where Islam is the dominant religion, is also preparing a benchmark $500 million international sukuk targeted for 2026, a government source told Reuters.
The move comes as Senegal struggles with over $11 billion in hidden debt inherited from the previous administration, which derailed its $1.8 billion IMF programme suspended in October 2024. The sukuk plan is part of a broader push to diversify funding sources and rebuild investor confidence.
The government is also seeking to raise 300 billion CFA francs ($540 million) through a domestic bond sale, following oversubscribed offerings in April and July. Multilateral guarantees are being considered for the international sukuk to reduce borrowing costs, with Senegal’s current international bond yields above 12%, making conventional debt sales too expensive.
The IMF recently confirmed Senegal’s intention to pursue a new programme after the launch of its August 2025 economic recovery plan, which pledges to finance 90% of initiatives through domestic resources to limit further borrowing.
