Senegal’s new PM charts steady course

Addressing the National Assembly in an extraordinary session on Tuesday, September 8, 2026, Prime Minister Ahmadou Alhaminou Mohamed Lo delivered his General Policy Declaration (DPG) under Article 55 of the Constitution. The address came just over three months after his appointment on May 25, 2026, by President Bassirou Diomaye Diakhar Faye, and following the formation of his government on June 1.
Drawing on his background as former Secretary-General of the Government and Minister of State for the Senegal 2050 Agenda, the Prime Minister immediately asserted continuity with his predecessor, Ousmane Sonko, who has since become President of the National Assembly. “Nothing changes, the course will be maintained,” he stressed, reaffirming the seven breaks outlined in the previous DPG and the “Senegal 2050” framework as the sole guiding compass. He clarified that only the methodology would evolve, organized around six principles: prioritize, finance differently, execute, measure, engage in dialogue, and ensure accountability.
The Prime Minister offered an unflinching assessment of public finances. The consolidated public sector debt stood at around 132% of GDP at the end of 2024, exceeding 23,500 billion CFA francs, with a budget deficit revised to 13.7% of GDP. In 2025, growth excluding hydrocarbons was limited to 2.2%, and the budget deficit was 6.4%. This situation, aggravated in his view by the outbreak of a war between Iran, the United States, and Israel in February 2026, led to five successive downgrades of the sovereign rating by Moody’s and Standard & Poor’s.
Lo confirmed that a technical agreement was reached on September 1, 2026, with the International Monetary Fund (IMF) on a new program centered on investment and transparency. He stressed that no conditionality exceeds commitments already made under the presidential program “Diomaye President.” He also detailed a Senegal Debt Treatment Plan (PTDS), announced on September 1 and “almost finalized,” aimed at extending maturities and reducing the average cost of debt, with support from the IMF, the World Bank, and official creditors. Clearing arrears owed to the private sector, estimated at 1,956 billion CFA francs as of end-March 2025, is also a top priority.
The Prime Minister announced a reform of energy subsidies, with the cost to be reduced to less than 1% of GDP by 2029, while focusing support on the most vulnerable households. He set an objective of a 30% reduction in the price of a kilowatt-hour of electricity by 2030. He also targeted covering one million poor and vulnerable households with a social safety net by 2027, backed by a doubled budget allocation of 140 billion CFA francs. In housing, the stated ambition is to deliver at least 30,000 units per year, addressing an estimated shortage of 500,000 homes.
Additionally, the head of government touched on several sensitive issues: ongoing investigations into events between February 2021 and February 2024, a review of mining and oil contracts, land audits on the coast and state domain, and the Yakaar-Teranga gas field matter, whose contract expires in July 2026 with $55 million in compensations expected by the state. On the diplomatic and security front, he recalled the end, since July 2025, of any foreign military presence on Senegalese soil.
A series of so-called “catalytic” projects was presented as structural for the decade: development of the Yakaar-Teranga gas field, a national gas network, modernization of the refinery (SAR 2), the Kédougou mining hub, the Great Water Transfer, a new Dakar-Tambacounda-Kidira railway line, four new regional hospitals, and the Dakar Millenium Center, an urban project worth 500 billion CFA francs in Ouakam.
Lo concluded by placing institutional, macroeconomic, and social stability as the “compass needle” of his action, while calling for a shared effort among Senegalese citizens, based on tax compliance, local consumption, and volunteerism. “This government does not ask to be judged on its intentions, but on its efficiency and results,” he said, promising quarterly implementation reviews that he would chair personally.