Boureima Amadou
The once-thriving flow of foreign direct investment (FDI) into Sénégal has experienced a dramatic reversal, plummeting from an average of three billion dollars annually over the past four years to a mere 37 million dollars in 2025. This sharp decline, highlighted in the latest United Nations Conference on Trade and Development (UNCTAD) report, raises critical questions about the country’s economic trajectory and investor confidence.
Analysts attribute this collapse primarily to cyclical factors. The recent surge in investments—driven by major oil and gas projects like Sangomar and Grand Tortue—has largely reached completion, shifting the focus from funding to production. However, experts argue that Sénégal could—and should—be attracting far more than the 37 million dollars recorded in 2025.
Structural challenges hinder investment growth
Moubarak Lo, former economic advisor to the Prime Minister and now an independent consultant, emphasizes the need for a proactive approach to economic promotion. He states, «Sénégal has the potential to consistently attract three to five billion dollars annually in investments, but this requires a robust promotional network abroad. While roadshows are conducted, they are insufficient. A passive approach won’t suffice—proactivity is essential. The country excels in attracting portfolio investments like government bonds and treasury bills but lags in promoting direct foreign investments. This paradigm shift is urgently needed.»
Debt concerns overshadowed by lack of clarity
Despite a public debt reaching 132% of GDP by the end of 2024—according to the International Monetary Fund (IMF)—this does not appear to deter private investors. Justin Maria, Director of Access Bank in France, asserts that debt levels alone do not deter investment, pointing to France as an example, where private investors continue to flow despite a public debt exceeding 3.5 trillion euros.
The primary concern for investors, Maria explains, is the lack of transparency: «Sénégal is now perceived as a high-risk destination, not necessarily due to long-term fundamentals, as no one possesses a crystal ball, but because short-term uncertainties—such as the state of public finances and liquidity—create hesitation among investors.»
Path to recovery: targeted projects and proactive engagement
Moubarak Lo dismisses the «high-risk» label, asserting that Sénégal possesses the tools to swiftly regain its appeal. He notes that the country currently has around two dozen major projects in the pipeline. His strategy? Target key global enterprises and persuade them to invest in Sénégal. «Recovery is possible as early as this year, or certainly by 2027,» he asserts. «The groundwork is already laid; what’s missing is decisive action.»
While Sénégal grapples with this downturn, neighboring countries like Guinée have seen their FDI inflows surge, with over 7.7 billion dollars recorded in 2025, according to the UNCTAD report.
