Sénégal’s economic slowdown amid political tensions

Three years after the presidential election of April 2024, Senegal finds itself at a critical juncture where political rivalries are overshadowing economic imperatives. The transition to a new administration sparked hopes for recovery following years of instability, but those aspirations are now fading as the nation remains mired in partisan disputes.

From hope to stagnation: the unfulfilled promise of renewal

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 new era of development. Yet nearly three years into the new regime, tangible progress remains elusive. The political landscape is increasingly polarized, with parties already positioning themselves for the 2029 elections. The intricate balance between the presidency and the former prime minister’s office, once a major obstacle, has been resolved, but this shift has not translated into accelerated policy execution.

The country’s economic trajectory has been stifled by the relentless focus on political maneuvering. While Senegal debates its internal divisions, neighboring economies in the West African Economic and Monetary Union (WAEMU) are advancing their reforms. The latest data from the Central Bank of West African States (BCEAO) reveals a stark contrast: Senegal’s real GDP growth of 4.7% in early 2026 places it at the bottom of the regional ranking, far behind Mali (6.1%), Niger (6.1%), Bénin (6.4%), and Côte d’Ivoire (6.4%). This represents a sharp decline from 2025’s growth rate of 7.8%, marking the largest drop among WAEMU members.

Foreign direct investment has also plummeted, collapsing from $3.319 billion in 2024 to just $37 million in 2025. These figures underscore the urgent need for a strategic pivot.

Breaking the cycle: three priorities for economic revival

To reverse this downward trend and restore Senegal’s position as the WAEMU’s economic powerhouse, three critical measures must be implemented without delay.

1. Restoring investor confidence

A new economic program with the International Monetary Fund (IMF) could serve as a catalyst for Senegal’s credibility in global markets. Beyond financial support, such an agreement would signal fiscal discipline and attract international investors. Equally vital is a robust nation-branding strategy to showcase Senegal’s economic strengths, diversify its appeal, and highlight investment opportunities across sectors such as energy, agriculture, and digital innovation.

2. Empowering the private sector

The private sector must be positioned as the engine of growth. This requires simplifying administrative procedures, enhancing the business environment, and fostering public-private partnerships. Key industries—infrastructure, energy, manufacturing, logistics, and digital services—should be prioritized to create a multiplier effect across the economy.

3. Streamlining public resources

Fiscal responsibility is non-negotiable, especially given the PRES’s pledge to reduce state overhead. Yet the much-anticipated merger of public agencies and support structures has stalled. Swift action is needed to cut wasteful spending and reallocate resources toward productive investments.

An urgent truce

The next three years leading up to the 2029 elections must be dedicated to laying the groundwork for sustainable economic transformation. The vision of a sovereign, just, and prosperous nation anchored in strong values cannot be realized without immediate, measurable action. Senegal’s leaders must shift their focus from political infighting to concrete economic revival, ensuring that the country reclaims its role as a regional leader.

Dr Abdou Diaw
CEO & Founder, Le Marché Magazine