The dawn of a new political era in Senegal brought with it high hopes for economic recovery after nearly three years of turbulence triggered by pre-election tensions in April 2024. The launch of the Senegal 2050 Agenda in October 2024, followed by the Economic and Social Recovery Plan (PRES) on August 2, 2025, reinforced public trust in the new administration’s commitment to prioritize socio-economic development.

Yet, nearly thirty months later, that optimism has faded. The nation appears stuck in a cycle of political infighting, where partisan squabbles overshadow serious economic discussions. The political polarization deepens as campaign machinery gears up prematurely for the 2029 elections—raising eyebrows across civil society. Despite the leadership transition and the departure of the former Prime Minister, the anticipated acceleration in public policy implementation has yet to materialize. As the saying goes, breaking the thermometer doesn’t cure the fever.

From political rivalry to economic stagnation

Senegal’s economic ambitions—once hailed as among the most promising in West Africa—now face growing uncertainty. The once-strong partnership between the President and his former Prime Minister, frequently cited as a roadblock to progress, was expected to dissolve with the change in leadership. However, the anticipated momentum for structural transformation has not materialized. Instead, the political arena remains dominated by power consolidation and internal cohesion efforts. The ruling coalition’s creation of the Kiiraye party and PASTEF’s strategic regrouping ahead of 2029 suggest that economic priorities are being sidelined—leaving the country’s development at risk.

The consequences are already visible. While Senegal remains mired in domestic rivalries, neighboring economies within the West African Economic and Monetary Union (WAEMU) are forging ahead with reforms and strengthening their economic performance. The latest BCEAO data, published in the June 2026 Monetary Policy Report, paints a sobering picture: Senegal’s real GDP growth stands at 4.7% in Q1 2026—far below the regional average. It ranks 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%). This marks a sharp decline from Senegal’s impressive 7.8% growth in 2025, a drop of 3.1 percentage points—the largest contraction among WAEMU member states.

Foreign direct investment (FDI) has also plummeted, falling from $3.319 billion in 2024 to a mere $37 million in 2025. These figures underscore the urgent need for action.

Three urgent levers to restore growth

For Senegal to reclaim its position as the economic engine of WAEMU, decisive and measurable steps must be taken over the next three years leading to the 2029 elections. Three strategic levers stand out as critical to reversing the current slowdown.

1. Restoring investor confidence

Rebuilding trust with technical and financial partners, as well as international investors, is paramount. Finalizing a new economic program with the International Monetary Fund (IMF) would be a pivotal milestone—not only for mobilizing resources but also for signaling to global markets, credit rating agencies, and development partners that Senegal’s economic trajectory is credible and sustainable.

Accessing international markets on favorable terms remains a challenge due to elevated risk perceptions. Beyond policy agreements, a robust nation branding strategy is essential. This would involve highlighting Senegal’s economic strengths, promoting investment opportunities, and positioning the country as a prime destination for global capital.

2. Empowering the private sector

The private sector must be positioned as the primary driver of growth. This requires improving access to financing, streamlining administrative procedures, enhancing the business environment, and strengthening public-private partnerships. Priority must be given to sectors with high multiplier effects: infrastructure, energy, agriculture, industry, digital technology, transportation, and logistics.

3. Streamlining public spending

With limited fiscal space and austerity measures promised under the PRES, rationalizing public expenditure is non-negotiable. Yet, the much-anticipated merger of support agencies and structures continues to move at a sluggish pace. Urgency is required—delay risks undermining the very foundations of economic recovery.

A call for national unity

The time has come for a political truce. Only by shifting focus from partisan rivalry back to national development can Senegal restore its growth trajectory and fulfill its ambition to become a sovereign, just, prosperous nation anchored in strong values. The next three years must be used wisely—not for political maneuvering, but for laying the groundwork of a sustainable economic transformation.

Dr Abdou Diaw
CEO & Founder, Le Marché Economic and Financial Magazine