Debt in Senegal

Private debt in Senegal may arise from a bank loan, a loan from a decentralized financial system (SFD), a microfinance institution (IMF), public financing or an informal family or group arrangement. In 2024, Senegal had 128 IMF institutions, 1,011 service points and 4,467,772 accounts; access among adults was 20.3%. The IMF loan portfolio was FCFA 772.6 billion, while portfolio quality worsened from 4.7% to 8.4%, compared with a community norm of 3%. These figures show why the repayment terms and the lender's collection practices matter before money is borrowed. Public financing channels include the General Delegation for Rapid Entrepreneurship (DER/FJ), which targets women, young people and entrepreneurship. Its documented terms include a 5% overall effective interest rate (TEG) and co-financing of up to 8%, with digital application and disbursement channels possible depending on the programme. The Senegalese Guarantee Fund for Priority Investments (FONGIP) can guarantee financing for Senegal-based very small, small and medium-sized or large enterprises. It requires a business plan and own funds of at least 15% for an SME, 20% for a large enterprise and 20% for a start-up; the guaranteed financing can reach FCFA 500 million for up to 60 months, with a guarantee of up to 80%, an interest rate below 10% per year and a guarantee commission of 1% to 2% per year. A credit agreement should state the principal, TEG, fees, instalments, duration, collateral and any guarantor obligation. From 1 June 2026, the UMOA usury ceiling is 14% per year for banks and 24% per year for credit institutions, IMFs and other economic agents. A missed payment can create late-payment and collection costs, affect the borrower's record with the UMOA Credit Information Bureau (BIC), and lead to enforcement against pledged assets or other security. Banks, financial institutions and IMFs provide data to the BIC after written consent; a person or company can request correction through the BIC or the creditor and should attach supporting documents. Collateral under the Organization for the Harmonization of Business Law in Africa (OHADA) framework can include a personal guarantee, an autonomous guarantee or counter-guarantee, a retention right, ownership-based security, a pledge, a lien, a mortgage or security over business assets. An agent des sûretés may administer security for creditors. A guarantee can make another person liable even when that person did not receive the loan, so its scope and maximum amount should be checked before signing. When repayment becomes difficult, the debtor should contact the lender early and negotiate a written repayment plan or restructuring. Family or group solutions are locally possible, but their enforceability, proof and security depend on the agreement. A complaint normally starts with the bank's, SFD's, IMF's or electronic money issuer's internal complaint system under the relevant Commission Bancaire circular. The Senegalese Observatory for Financial Quality (OQSF-Sénégal) offers free, consensual financial mediation for individuals and legal entities against banks, financial institutions, IMFs, La Poste and electronic money issuers. OQSF issues an admissibility decision within one week and aims to process the mediation within two months; mediation does not automatically cancel the debt. Further options can include the Commission Bancaire's e-complaints service or a court. The OHADA Uniform Act on Simplified Recovery Procedures and Enforcement Measures (AUVE), in force from 16 February 2024, provides court procedures such as an order to pay and orders to deliver or return property. Courts may authorize protective or enforcement seizures involving claims, movable property, wages or real estate. Senegal therefore has a court-based collection and enforcement system rather than a general administrative debt release. Business distress follows a different process from ordinary consumer debt. Before cessation of payments, eligible businesses may use conciliation or preventive settlement. After cessation of payments, judicial reorganization or liquidation of assets may apply. The OHADA Uniform Act on Insolvency Proceedings (AUPC) covers merchants, commercial individuals and companies, entrepreneurs, certain private non-commercial legal entities and public enterprises operating under private law. Simplified procedures exist for small entities; a court-appointed syndic or judicial agent manages relevant steps, creditors file claims, and priorities and sanctions can affect the result. Personal bankruptcy, banqueroute and rehabilitation are separate legal concepts. These business procedures do not create a general insolvency procedure for private consumers. Senegal's public debt is separate from a household's or company's loan. The 2025 projection recorded a public debt stock of FCFA 25,368.3 billion, equal to 117.3% of GDP, and external debt service equal to 46.1% of government revenue against a community ceiling of 22%. Since 2026, the Public Debt and Treasury Strategy (PTDS) has aimed to manage debt actively on the UEMOA regional capital market, restore the debt profile and protect debt-service standards and fiscal room. Those measures concern the sovereign state and do not give an individual borrower a right to debt cancellation.