Senegal introduced an ambitious 25-year development plan aimed at fostering economic independence through improved competitiveness, sustainable resource management, and enhanced governance. Announced seven months after President Bassirou Diomaye Faye’s decisive election victory, the plan aligns with his commitment to elevate the country’s economy and living standards. During the launch, Faye emphasized the need to build a diversified, resilient economy, highlighting the challenges posed by Senegal’s traditional reliance on raw material exports, which has limited local processing capabilities and stunted the private sector’s growth.
The new development agenda comes as Senegal positions itself as an emerging player in the oil and gas sectors. This year, the nation began oil production at the Sangomar field, managed by Australia’s Woodside Energy, and expects to start gas production by year-end at the Greater Tortue Ahmeyim LNG project, operated by BP. Early in his presidency, Faye ordered an audit of oil and mining contracts to ensure transparency in resource management, although no updates on its findings have been released. The first phase of the plan, budgeted at $30.1 billion from 2025 to 2029, aims to reduce Senegal’s budget deficit from 4.9% to 3% of GDP, with funding sourced from a mix of public, private, and partnership financing.
In addition to fiscal reforms, Senegal’s government seeks to achieve full electrification, raising access from 84% to 100%, and to make the country energy self-sufficient. The plan targets a 6.5% economic growth rate while increasing the tax burden to 21.7%, and anticipates a shift in Senegal’s debt financing structure to reprofile its national debt. Although the International Monetary Fund recently lowered Senegal’s 2024 growth forecast to 6.0% due to slower-than-expected economic expansion, the new agenda’s holistic approach is expected to stabilize growth and promote sustainable development across the nation.
- Tags: Senegal, Sustainable economy
