Diamniadio, Senegal – October 14, 2024 – Senegal’s government has unveiled a bold 25-year economic and social development plan aimed at achieving economic sovereignty and improving the lives of its citizens.
President Bassirou Diomaye Faye, who secured a landslide victory in March on a platform of economic reform, launched the plan on Monday. It comes just a month before snap legislative elections on November 17th.
“We are building a diversified and resilient economy,” President Faye declared at the launch. He acknowledged the limitations of the current resource-extraction model, stating, “Our economy has been stifled by a system that prioritizes raw material exploitation without significant local processing or value addition. This leaves our domestic private sector weak and our young talent struggling to find opportunities.”
Senegal recently entered the oil production game in June with the commencement of operations at the Sangomar field by Australian firm Woodside Energy. Gas production is also expected to begin later this year at the Greater Tortue Ahmeyim project, led by BP. Early in his presidency, Faye initiated an audit of oil and mining contracts, but updates on its progress remain undisclosed.
The ambitious plan’s first phase, with a budget of $30.1 billion, will run from 2025 to 2029. Key objectives include reducing the budget deficit from 4.9% to 3% of GDP and achieving an average annual growth rate of 6.5%. Funding will come from a mix of public, private, and public-private partnership investments. The International Monetary Fund (IMF) recently revised Senegal’s growth projection for 2024 downwards to 6.0% due to a slower-than-expected first half of the year.
The plan also prioritizes universal access to electricity, aiming to increase coverage from the current 84% to 100%. Additionally, it outlines strategies for achieving energy self-sufficiency. Restructuring the national debt and improving deficit financing are also on the agenda.
President Faye faces pressure to deliver on his election promises, particularly to the young urban voters who propelled him to power. He recently dissolved parliament due to a lack of support from the previous assembly, where his Pastef party held only 26 seats. The upcoming legislative election holds the potential to delay crucial IMF financing due to a projected decline in government revenue during the first eight months of 2024.
