Senegal president and ruling party clash over leadership post

• Senegal faces leadership discord within the ruling coalition, complicating IMF negotiations for a new lending programme.
• Political tension arises as President Faye and PM Sonko differ on coalition leadership, raising concerns over debt restructuring.
• Senegal’s bonds tumble following IMF-related uncertainties and hidden debt revelations from the previous government.

Senegal’s president and the political party he belongs to have issued conflicting statements over the leadership of the ruling coalition, a clear sign of dissension among top leaders amid drawn-out talks with the International Monetary Fund.

The West African country is trying to negotiate a new lending programme after the IMF froze a $1.8 billion financial support package last year. That decision was made after the government disclosed hidden debts, now estimated at more than $11 billion, which it attributes to the previous government.

President Bassirou Diomaye Faye and Prime Minister Ousmane Sonko hail from the same political party and have dismissed long-swirling rumours of a power struggle between them.

The charismatic Sonko, popular among Senegalese youth, chose the little-known Faye as his replacement to run for president when Sonko was barred from contesting in 2024.

Faye then appointed Sonko as prime minister.

Any suggestion of discord raises the possibility of further delays in negotiations with the IMF.

Senegal’s bonds dropped by more than 3 cents on Wednesday to hit a new four-month low, extending recent falls amid concerns over progress toward a deal with the IMF.

Sonko said over the weekend, Fund officials were pushing for a restructuring of Senegal’s debt - a move he said the government would not accept - which sent the country’s international bonds sharply lower on Monday.

A Fund spokesperson on Tuesday said the Fund had discussed various options with Senegal to address “significant debt vulnerabilities” but that restructuring was a sovereign decision.

Faye did not comment on Sonko’s remarks. Later on Tuesday, he said he was appointing former Prime Minister Aminata Toure, a close ally, to lead the coalition of parties that supported his presidential campaign.

However, the ruling Pastef party, of which Sonko is president, said that it would continue to recognise Aissatou Mbodj, who is close to Sonko, as the leader of the coalition.

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