KEY POINTS
- Senegal plans 100% electricity access and energy self-sufficiency by 2029.
- Faye dissolves parliament ahead of the Nov. 17 snap election.
- IMF warns economic growth has slowed, raising concerns over financing.
Senegal’s government on Monday unveiled a 25-year development plan aimed at achieving economic sovereignty through competitiveness, sustainable resource management, and good governance.
Senegal seeks economic sovereignty through energy and resource management
The agenda, launched seven months after President Bassirou Diomaye Faye’s landslide election victory, focuses on improving livelihoods in the West African nation.
“We aim to build a diversified and resilient economy,” Faye said during the launch ceremony, held one month before a snap legislative election.
“A model that relies on raw material exports with little local processing or value addition has constrained our economy, leaving the domestic private sector weak and young talent struggling to find opportunities,” Faye said.
Senegal became an oil producer in June when Australia’s Woodside Energy began production at the Sangomar oil and gas field. By the end of the year, BP expects to start producing gas at the Greater Tortue Ahmeyim liquefied natural gas project.
Early in his presidency, Faye ordered an audit of oil and mining contracts, but no updates on its progress have been shared publicly.
The first phase of the economic plan, which will cost $30.1 billion, will run from 2025 to 2029. It aims to reduce the budget deficit to 3% of GDP during this period, down from 4.9%. The plan relies on public, private, and public-private partnership financing and is based on an expected average growth rate of 6.5% and a tax burden increase of 21.7%, Reuters reported
In September, the International Monetary Fund (IMF) lowered Senegal’s 2023 growth forecast to 6.0%, down from 7.1% projected in June, after slower-than-expected economic performance in the first half of the year.
Snap election looms as Faye faces political and economic pressure
The government aims to achieve 100% electricity access, up from 84%, and make Senegal energy self-sufficient. It will also restructure its debt management strategy to stabilize public finances.
Faye dissolved parliament in September, clearing the way for a snap legislative election on Nov. 17. His Pastef party previously held only 26 seats in the 165-member national assembly, limiting its influence.
Faye has faced growing pressure from urban youth to deliver on his campaign promises. The IMF warned that government revenue has declined in recent months and cautioned that the upcoming election could delay future IMF financing.
