When Senegal’s new administration took office, citizens dared to hope for an economic rebound after years of instability triggered by the political turmoil preceding the 2024 presidential election.
The launch of the Senegal 2050 Agenda in October 2024 and the Economic and Social Recovery Plan (PRES) on August 2, 2025, were meant to signal a firm commitment to socio-economic development. Yet nearly two and a half years later, those hopes are fading fast. Instead of progress, the country seems stuck in a spiral of political squabbles. The national conversation has shifted from policy debates to partisan bickering, with the 2029 elections already casting a long shadow over governance. This early mobilization raises serious questions about priorities.
From hope to stagnation: where did Senegal’s economic momentum go?
Two and a half years into the new administration led by President Bassirou Diomaye Faye, major structural projects remain conspicuously absent. The much-publicized rift between the head of state and his former prime minister was often cited as a roadblock to policy implementation. However, the reshuffle at the helm of government has not, so far, delivered the expected acceleration. As the saying goes, breaking the thermometer doesn’t cure the fever—political discord persists, pushing economic priorities to the back burner.
Today, the rift is no longer political but structural. The ruling camp is consolidating its political base, exemplified by the creation of the Kiiraye party, while PASTEF is rallying its ranks ahead of the 2029 vote. In this tug-of-war, the economy risks bearing the brunt.
Questions mount about the government’s economic direction. Is the Senegal 2050 Agenda losing steam? One thing is certain: without a political truce, recovery will remain elusive. Meanwhile, other economies in the West African Economic and Monetary Union (WAEMU) are forging ahead with reforms and stronger growth.
Senegal’s growth lags behind peers
The latest BCEAO statistics, published in the June 2026 monetary policy report, reveal a stark reality: Senegal’s real GDP growth of 4.7% in Q1 2026 places it among the least dynamic economies in the Union. Behind Senegal are 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 performances in 2025 (7.8%), Senegal’s growth has plummeted by 3.1 percentage points—a sharper decline than any other WAEMU member.
Foreign direct investment (FDI) has also taken a nosedive, plunging from $3.319 billion in 2024 to just $37 million in 2025. These figures underscore the severity of the challenges facing Senegal’s economy.
With three years until the 2029 presidential election, urgent action is needed to restore Senegal’s status as the WAEMU’s economic engine. The path forward must prioritize tangible, measurable actions that yield short- and medium-term results. Three levers stand out as critical.
Rebuilding investor confidence
The first step is restoring trust among technical and financial partners as well as investors. Securing a new economic program with the International Monetary Fund (IMF) would be strategic—not only for the resources it could unlock but also for the strong signal it would send to financial markets, rating agencies, and donors about the credibility of Senegal’s economic trajectory.
Senegal currently struggles to access international markets on favorable terms due to perceived high risk. Rebuilding confidence also requires a robust nation-branding strategy to enhance Senegal’s attractiveness, showcase its economic strengths, and highlight investment opportunities for global investors.
Empowering the private sector
The second lever is making the national private sector the engine of growth. This means improving access to financing, simplifying administrative procedures, enhancing the business environment, and strengthening public-private partnerships. Priority should be given to sectors with high multiplier effects: infrastructure, energy, agriculture, industry, digital, transport, and logistics.
Rationalizing public expenditure
The third lever involves optimizing public resources in a context of tight fiscal space. Promised reductions in government spending, as outlined in the PRES, have yet to materialize. The much-delayed merger of support agencies and structures reflects a lack of urgency at a time when every day counts.
Senegal stands at a crossroads. To reclaim its role as a regional economic leader, the country must move beyond political infighting and focus on delivering results. The next three years are not just about preparing for 2029—they are about laying the foundations for a sustainable and prosperous future.
Dr Abdou Diaw
CEO & Founder of Le Marché, an economic and financial magazine