Senegal’s government launched a comprehensive 25-year development plan on Monday, aimed at fostering economic sovereignty through enhanced competitiveness, sustainable resource management, and effective governance. This initiative follows President Bassirou Diomaye Faye’s landslide victory seven months ago, where he promised to improve living standards across the West African nation.
At the launch event, held just a month before a snap legislative election, President Faye emphasized the goal of building “a diversified and resilient economy.” He criticized the existing economic model, which has largely depended on raw material extraction without adequate local processing, resulting in a weakened domestic private sector and a generation of youth seeking employment opportunities.
The plan comes in the wake of Senegal’s emergence as an oil-producing nation in June, with Australia’s Woodside Energy beginning production at the Sangomar oil and gas field. Additionally, gas production at the Greater Tortue Ahmeyim liquefied natural gas project, operated by BP, is expected to commence by the end of the year.
In a bid to enhance transparency, President Faye initiated an audit of oil and mining contracts early in his presidency; however, the government has yet to release updates on its progress. The first phase of the economic plan, set to cost $30.1 billion from 2025 to 2029, aims to reduce the budget deficit to 3% of GDP from the current 4.9%. Funding for this ambitious plan will be sourced from public, private, and public-private partnership investments, with an anticipated growth rate of 6.5% and an increase in the average tax burden to 21.7%.
In September, the International Monetary Fund adjusted its growth forecast for Senegal to 6.0%, down from 7.1% in June, citing slower-than-expected growth in the first half of the year. The government’s new plan aims to boost electricity access from 84% to 100%, ensuring energy self-sufficiency for the nation. Additionally, the administration plans to reform the structure of deficit financing to effectively manage the country’s national debt.