Senegal is accused of covertly borrowing $754 million to avoid a potential default

Senegal has rejected claims that it covertly borrowed $754 million to avoid a potential default.

Reports had alleged that the government secretly secured the funds last year from development lender Africa Finance Corporation and First Abu Dhabi Bank, with terms that gave the lenders priority over existing bondholders. In response, the country’s Finance Ministry says the transactions were part of a broader strategy to diversify funding sources as the West African nation seeks to raise capital to service its substantial debt and meet government expenditure needs.

Thami Ngubeni spoke to Isaac Abotebuno Akolgo.