When the new administration took office in Senegal, citizens dared to hope that the economy would finally rebound after nearly three years of turbulence sparked by the political tensions leading up to the April 2024 presidential election.
In October 2024, the launch of the Senegal 2050 Agenda and, on August 2, 2025, the Economic and Social Recovery Plan (PRES) reinforced that optimism. These initiatives signaled that the new leadership was prioritizing socio-economic development as a national imperative.
Yet, nearly 30 months later, those hopes are fading. The country appears trapped in a cycle of political gridlock. Economic discourse is being drowned out by partisan squabbles, while political polarization deepens. Party strategists are already preparing for the 2029 elections—an unusual level of preparation that raises questions. Why the rush when the economy remains stagnant?
Three decades after the transition, Senegalese citizens are still waiting for the flagship projects promised by President Bassirou Diomaye Faye’s administration. A recurring obstacle—the dual leadership at the state’s helm—has often been cited as the root cause of policy implementation delays. Though the Prime Minister’s office has changed hands, progress has not accelerated. As the saying goes, breaking the thermometer doesn’t cure the fever.
The political divide is now irreversible, yet economic takeoff remains elusive. Political bickering continues to dominate headlines, pushing economic priorities to the back burner. On one side, the presidential camp is consolidating its political base, exemplified by the creation of the Kiiraye party. On the other, PASTEF is tightening its ranks to preserve cohesion and influence ahead of 2029. In this tug-of-war, the economy risks bearing the heaviest cost.
Today, questions abound about the government’s economic direction. Some wonder if the Senegal 2050 Agenda is losing momentum. Yet a political truce could be the game-changer needed to refocus national priorities on economic revival. While Senegal remains mired in internal rivalries, neighboring economies in the Union are pushing forward with reforms and strengthening their growth trajectories.
According to the latest statistics from the Central Bank of West African States (BCEAO), published in the June 2026 Monetary Policy Report, Senegal ranks among the least dynamic economies in the Union. Real GDP growth stood at just 4.7% in the first quarter of 2026, trailing behind 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 strongest growth rates in 2025 (7.8%), Senegal’s economy has slowed sharply, with a 3.1-point drop compared to the 2025 average—the steepest decline among UEMOA member states.
Foreign direct investment (FDI) has also plummeted, falling from $3.319 billion in 2024 to just $37 million in 2025. These figures underscore the magnitude of the challenges facing Senegal’s economy.
Why urgent action is needed
To restore Senegal’s status as the UEMOA’s economic locomotive, the next three years leading up to the 2029 presidential election must be used to lay the groundwork for sustainable economic transformation. But what concrete steps can yield tangible results in the short and medium terms? Three levers stand out.
1. Restore investor confidence
The first priority is to rebuild trust with technical and financial partners as well as investors. Negotiating a new economic program with the International Monetary Fund (IMF) would be a strategic move. Beyond the financial resources it could unlock, an IMF agreement would send a strong signal to global markets, rating agencies, and donors about the credibility of Senegal’s economic trajectory. Currently, the country struggles to access international markets under favorable financing terms due to perceived high-risk levels. Reclaiming investor confidence also requires a robust nation branding strategy—one that highlights Senegal’s economic strengths, promotes investment opportunities, and enhances its global appeal.
2. Unlock the private sector’s potential
The second lever involves positioning the national private sector as the engine of growth. This means improving access to financing, simplifying administrative procedures, enhancing the business environment, and strengthening public-private partnerships. Efforts should focus on high-impact sectors capable of driving broader economic momentum: infrastructure, energy, agriculture, industry, digital technology, transport, and logistics.
3. Optimize public spending
The third lever is the rationalization of public resources. With limited fiscal space and constrained revenue mobilization, efficiency is key. The PRES promised to reduce state expenditure, yet the much-anticipated merger of support agencies and structures remains stalled. With every day counting, delays in reform implementation are indefensible.
Senegal stands at a crossroads. The path forward demands more than political posturing—it requires decisive action to steer the economy back on course. The next three years are critical. Will the leadership seize this moment to deliver on its promises, or will the country continue to lag behind its peers? The choice will shape Senegal’s economic future.
Dr Abdou Diaw
CEO & Founder, Le Marché Economic and Financial Magazine
