Senegal's parliament elected Ousmane Sonko as its speaker on Tuesday, days after President Bassirou ‌Diomaye Faye fired him as prime minister amid a deepening rift over the government's reform agenda and how to resolve a worsening debt crisis.

Political analysts said the speaker position could give the former premier, who was ousted on Friday, a platform to challenge Faye, though ​Sonko moved to downplay that prospect.

"We are not here to fight against the president of the ​republic, but the assembly will fully play its role," Sonko told lawmakers as he accepted ⁠the new post.

International investors are likely to price in a higher risk of Senegal defaulting on its debt ​following Sonko's removal as prime minister, investment bank Morgan Stanley warned on Tuesday, as the country's bonds fell sharply.

Lawmakers rebelled ​against Faye's decision to dissolve the cabinet and fire Sonko by reinstating him as a member of parliament and overwhelmingly backing him as speaker with the support of 132 lawmakers in the 165-member assembly.

The opposition described the manoeuvre as a scandal and questioned ​its legality.

A POWER STRUGGLE BETWEEN FORMER ALLIES

As parliamentary speaker, Sonko will have significant scope to block Faye's legislative ​agenda, according to Signal Risk analyst Greg Musiker.

The two former allies - both senior figures in the ruling PASTEF party - have been ‌engaged in ⁠a fast-moving battle for control since they swept to power together in 2024, falling out over policy, authority and the direction of Senegal's reform agenda.

Faye appointed Ahmadou Al Aminou Lo, a seasoned economist and former regional central bank official, to replace Sonko late on Monday.

Sonko, a vocal critic of the International Monetary Fund, had opposed any ​restructuring of Senegal's debt, whereas ​Lo's views on the ⁠subject are not yet clear.

Sonko's return to a powerful political post ramps up uncertainty over the approach the government will take in talks with the IMF and Senegal's creditors.

"I ​must be truthful and say that we have some differences," Sonko said, referring ​to Lo. "Notably on ⁠monetary policy, debt management and other similar issues."

Before the cabinet was dissolved last week, Senegal had expected to resume talks with the IMF over a new lending programme next month.

Sonko said on Tuesday the latest political developments were a ⁠test of ​the West African nation's democracy.

"Senegal must show Africa that a political ​crisis can be faced without hatred, without violence and without institutional collapse. We must prove that an African people can debate firmly without ​destroying its own state," he said.