Sénégal: why political truce is vital for economic revival

The arrival of a new administration in Dakar raised hopes that Senegal’s economy would rebound after nearly three years of turbulence triggered by the political storms preceding the April 2024 presidential vote.

Since October 2024, the launch of the Senegal 2050 Agenda and the subsequent unveiling of the Economic and Social Recovery Plan (PRES) on August 2, 2025, aimed to reassure citizens that socio-economic development had become a national priority.

Yet, close to thirty months later, that optimism is fading. The country seems mired in a stalemate where economic debate is drowned out by partisan clamour. Political squabbles overshadow serious policy discussions, and polarization deepens. Party headquarters are already gearing up for the 2029 elections—a premature mobilization that raises eyebrows. After thirty months of leadership change, Senegalese still await the first major structural projects promised by President Bassirou Diomaye Faye’s administration. The former dual leadership at the top—between the head of state and the former prime minister—was often cited as the main obstacle to public policy implementation. Yet even after the reshuffle at the Prime Ministry, the expected acceleration has yet to materialize. As the saying goes, breaking the thermometer does not cure the fever.

The political divorce is final, yet the economic take-off remains elusive. Political infighting continues to hog the spotlight, relegating economic priorities to the back burner. On one side, the presidential camp is consolidating its political base, illustrated by the creation of the Kiiraye party. On the other, PASTEF is tightening ranks to preserve cohesion and influence ahead of the 2029 vote. Trapped between these dynamics, the economy risks paying the heaviest price.

Today, doubts swirl about the government’s economic direction. Some observers question whether the implementation of the Senegal 2050 Agenda has slowed. A political truce is urgently needed to refocus national priorities on economic revival. While Senegal remains bogged down in internal rivalries, other economies within the Union are pushing ahead with reforms and consolidating their performance.

Senegal’s growth lags behind peers

The latest BCEAO data, published in the June 2026 monetary policy report, tracks real GDP growth for the first quarter. Senegal ranks among the least dynamic economies in the Union, with growth of 4.7%, trailing Guinea-Bissau (5.5%), Burkina Faso (5.6%), Togo (5.8%), Mali (6.1%), Niger (6.1%), Benin (6.4%) and Côte d’Ivoire (6.4%). After achieving one of the Union’s top performances in 2025 (7.8%), Senegal’s growth has sharply decelerated in early 2026. This 3.1-point drop from the 2025 average is the steepest decline among all WAEMU member states.

Foreign direct investment (FDI) has also plummeted, from $3.319 billion in 2024 to a mere $37 million in 2025. These figures underscore the scale of the challenges facing Senegal’s economy.

To reverse this trend and restore Senegal’s status as the WAEMU’s economic engine, the next three years leading up to the 2029 presidential election must be leveraged to lay the groundwork for sustainable economic transformation—aligned with the stated ambition to build a sovereign, just, prosperous nation anchored in strong values.

Three levers for economic recovery

Concrete, measurable actions are needed to produce tangible results in the short and medium term. Three key levers stand out:

Restoring confidence among partners and investors

A new economic program with the International Monetary Fund (IMF) would be a strategic milestone. Beyond unlocking resources, an IMF agreement would send a strong signal to global financial markets, credit rating agencies and development partners about the credibility of Senegal’s economic trajectory. Senegal currently struggles to access international markets under favourable financing conditions due to a perceived high-risk profile. Rebuilding confidence also requires a robust nation-branding strategy to enhance Senegal’s attractiveness, showcase its economic strengths and shine a brighter light on investment opportunities for global investors.

Empowering the domestic private sector

The private sector must be positioned as the true engine of growth. This calls for easing access to financing, streamlining administrative procedures, improving the business environment and strengthening public-private partnerships. Priority should be given to sectors capable of driving broader economic momentum: infrastructure, energy, agriculture, industry, digital technology, transport and logistics.

Rationalizing public resources

With limited fiscal headroom and constrained resource mobilization, prudent management of public resources is critical—especially given one of the PRES’s central promises: reducing state overhead costs. The much-anticipated merger of support agencies and structures has yet to materialize, moving at a glacial pace despite the urgency of the situation.