Senegal government has revealed a 25-year development plan aimed at securing economic sovereignty, enhancing competitiveness, and promoting sustainable resource management. The long-term strategy, launched on Monday, follows President Bassirou Diomaye Faye’s landslide election victory earlier this year, which was driven by his pledge to improve livelihoods across the West African nation.
‘We aim to build a diversified and resilient economy,’ Faye said during the launch ceremony, held just a month before the upcoming snap legislative elections. ‘Our economy has been neutralised by a model of exploiting raw materials without any significant local processing or valorisation, leaving our domestic private sector too weak, and our young talent in desperate search of opportunities,’ he said.
He outlined the country’s dependence on raw material exports without significant local processing, which has weakened the domestic private sector and left young talent searching for opportunities abroad.
Senegal, which became an oil producer in June with the start of operations at Australia’s Woodside Energy’s Sangomar oil field, is set to begin gas production by the end of the year at the Greater Tortue Ahmeyim liquefied natural gas project, operated by BP. Faye’s administration has also initiated an audit of oil and mining contracts, though the government has yet to release updates on its progress.
The first phase of the development plan, spanning 2025-2029, is projected to cost $30.1bn. The plan’s goal is to reduce the national budget deficit to 3 percent of GDP, down from the current 4.9 percent. It will be funded through a combination of public, private, and public-private partnership (PPP) financing, with the government targeting an average economic growth rate of 6.5 percent and aiming to raise the tax burden to 21.7 percent.
President Faye has faced mounting pressure to deliver on his campaign promises, particularly from disenfranchised urban youth, whose overwhelming support helped propel him to office. One of the plan’s central objectives is to increase access to electricity, pushing it to 100 percent from the current 84 percent, and to make Senegal energy self-sufficient. Additionally, the government will reform its deficit financing approach to restructure national debt.
Despite these ambitious plans, Senegal’s economy faces challenges. The IMF recently lowered its 2023 growth forecast for the country to 6.0 percent, down from 7.1 percent, citing slower-than-expected growth in the first half of the year. Government revenues have also dropped sharply in the first eight months of 2024, raising concerns about the availability of IMF financing, particularly with the upcoming snap election.
Faye’s political challenges also extend to Senegal’s national assembly. Last month, he dissolved parliament, triggering the 17 November legislative election after his Pastef party struggled with only 26 seats in the 165-member assembly. The dissolution aims to secure stronger political support for the president’s development agenda.
Senegal’s new 25-year plan is a crucial part of the government’s efforts to redefine the country’s economic future by building a robust, self-sufficient economy that benefits all citizens. However, its success will depend on effective governance, steady economic growth, and overcoming significant political and financial hurdles in the years to come.
Credit: Africabriefing
