(Bloomberg) — Senegal plans to approach investors to extend debt maturities after a state audit showed public debt and deficit figures were larger than previously reported .

The objective is to seek an agreement with investors to achieve “a more appropriate repayment profile favoring reprofiling with extended maturities”, according to the draft budget documents.

“This active debt management exercise will also focus on international market issues to smooth debt service, particularly in 2026 and 2027,” specifies the 2025 budget published on the government website.

The country has $3.2 billion in dollar and euro bonds maturing in the next 10 years, according to data compiled by Bloomberg.

The move comes as Senegal awaits the results of an audit of public finances, after concluding that public debt represented more than 80% of economic output at the end of last year, compared to 73% previously announced.

It also showed that the budget deficit was more than 10% of gross domestic product, almost double the 5.5% reported under former President Macky Sall, leading the International Monetary Fund to freeze 1.8 billion of dollars in loans earlier this year. The Washington-based lender will discuss the country’s frozen facility in January.

The data revisions, currently being evaluated by the Senegal Court of Auditors, have weighed on the country’s finances. The auditors’ examination expected by mid-December will lead to “an upward revision of the outstanding debt and debt service” in 2024-2025, the Ministry of Finance said. The budget deficit will exceed 11% in 2024, it is specified.

Senegal is targeting a budget deficit of 7% next year for a budget of 6.4 trillion CFA francs, according to the draft budget, which is expected to be approved by lawmakers in the coming days.

Diaspora Bonds

The West African country is planning 1.5 trillion CFA francs ($2.4 billion) in diaspora bonds to wean the country off external financing, according to the document. It also aims to finalize a revision of the mining code by May to optimize revenue sharing.

Senegal wants to increase the amount of local content used and jobs created by foreign operators in the oil and gas sector. Likewise, it will update its tax code to maximize state profits.

Economic growth is expected to reach 8.8% in 2025 based on oil production which started this year, followed by gas production from the Grand Tortue Ahmeyim field, operated by BP Plc, worth 4.8 billion dollars, in 2025.

Inflation is expected to average 1.9% next year, according to the draft budget.

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