Khalifa Ababacar Sall, Senegal's opposition leader and former Dakar mayor, warned on Friday that the current government's handling of the nation's debt crisis is a "real disaster." Speaking to 7TV television channel, Sall stated that the Senegalese state is borrowing at high rates primarily to repay existing debts, negatively impacting investment. He specifically noted that the handling of the situation stemming from the so-called hidden debt scandal is a “real disaster,” showing the severity of the financial predicament. "What they’re doing is suicide," Sall asserted, criticizing the approach. He further described the borrowing method as "a mess," contending that current leaders have placed themselves in a position where they can only cover salaries and debts.
Borrowing to Repay Debts
Khalifa Ababacar Sall stated that the Senegalese state is currently borrowing at high rates, particularly to repay its debts, which he described as a "real disaster." "The way they’re borrowing is just a mess. You’re borrowing to repay debts, and it’s investment that suffers," Sall said. He also claimed that those currently in power have only themselves to blame for a situation where they can solely cover salaries and debts. The opposition leader noted that the state is forced to mobilise resources on the local market at rates that can exceed 8%. He reiterated his strong criticism, emphasizing that the current administration has put itself in a difficult position where its financial flexibility is severely limited, forcing it to prioritize basic operational costs over developmental investments.
Economic Isolation and Consequences
Khalifa Ababacar Sall noted that the International Monetary Fund (IMF) has suspended its programme with Senegal. He also pointed out that rating agencies are downgrading the country’s credit rating. Sall reiterated that borrowing to repay existing debts directly impacts investment, stating, "You’re borrowing to repay debts, and it’s investment that suffers." The opposition leader warned of the broader implications of such economic practices. He emphasized the fragility of state perception, asserting, "The state is a myth, and if you shatter that myth, you’re the first to suffer." Sall’s comments show concerns about Senegal's financial stability and its standing with international institutions. The downgrades by rating agencies further exacerbate the country's borrowing conditions, making it more expensive to secure necessary funds and deepening the debt cycle.
Criticism of Current Projects
Opposition leader Khalifa Ababacar Sall claimed that since the current Pastef regime took office, "not a single brick" has been laid in terms of new development projects. He asserted that "Everything that has been inaugurated is Macky Sall’s project." Sall further argued that those currently in power "have only themselves to blame" for a situation where they are primarily focused on covering salaries and debts. He emphasized the fragility of the state's perceived authority, stating, "The state is a myth, and if you shatter that myth, you’re the first to suffer. Today, those in power are the first to pay." This criticism notes a perceived lack of new initiatives and a reliance on projects initiated by the previous administration, suggesting a stagnation in national development under the current government.
Call for Partnership
Opposition leader Khalifa Ababacar Sall stated it is essential for Senegal to reconnect with partners and move away from rhetoric that could lead to isolation. He claimed that countries refusing debt restructuring often possess other resources to compensate for a void left by partners. Sall argued that if Senegal's oil, zircon, gold, and agricultural sectors generated sufficient resources for self-reliance, the situation would be less complicated. Without such resources, he asserted, the country is compelled to collaborate with partners. He stressed the importance of fostering strong international relationships, noting that if Senegal does not possess these alternative resources, it is inherently forced to work with partners to ensure its economic stability and growth. Sall's remarks show the critical need for strategic alliances and a pragmatic approach to international relations to navigate the country's economic challenges.