Senegal PM launches domestic-resources economic revival plan

Senegal’s Economic Revival Plan Announces a Shift Toward Internal Funding

Senegal’s Prime Minister Ousmane Sonko introduced a bold recovery strategy aimed at restoring the nation’s highly indebted economy. The plan, unveiled on Friday at Dakar’s Grand Theatre, emphasizes a move toward greater domestic resource mobilization.

Key Indicators of Senegal’s Economic Struggle

• Budget deficit: 14 % of GDP.
• Public debt: 119 % of GDP.
• Unemployment: 20 %.
• Poverty: 36 % of the population.

Senegal’s current minister of economy, Abdourahmane Sarr, cited these figures as evidence of a deteriorating financial situation. The new strategy promises to reverse the legacy of excessive borrowing while retaining national sovereignty.

What the New Plan Promises

• Internal resource mobilisation: 90 % of the plan’s funding is expected to derive from domestically sourced revenues, without the addition of external debt.
• Reduction of public spending: Targeted cuts across non-essential government expenditures.
• Taxation focus: Enhanced revenue collection in digital, land, and mining sectors.
• Debt management: A three‑phase plan addressing debt reduction, domestic resource mobilization, and internally funded financing that does not create new liabilities.

Contextual Background

Since taking office more than a year ago, President Bassirou Diomaye Faye pledged both economic and political sovereignty. He aimed to break Senegal’s dependence on former colonial powers, especially France. Mr. Faye’s political mentor, Mr. Sonko, was ineligible to contest the March 2024 election, handing the mandate to his protégé and pushing a left‑wing Pan‑Africanist stance governing the nation.

Both leaders attribute heavy fiscal mismanagement to the last administration of President Macky Sall, claiming widespread financial fraud from 2012 onward. An IMF taskforce that visited Senegal in March confirmed false statements about budget deficits and public debt over 2019‑2023. The IMF cited a 12.3 % of GDP budget deficit for 2023, while the prior government had reported a 4.9 % figure.

Implementation and Future Outlook

Sonko stressed that the plan respects Senegal’s international commitments, especially debt repayment obligations. He emphasized the importance of avoiding increased taxes that could deter foreign investment and harm the country’s market attractiveness.

Finally, the plan was introduced ahead of an upcoming IMF mission to Senegal expected later this month. The IMF has suspended planned disbursements, awaiting corrective measures from the current government following previous misrepresentations.