Horizon Senegal

"Senegal has one of the most resilient economies in West Africa. The country is also a strategic hub in the region. Through its Senegal 2050 Plan, the Senegalese authorities aim to develop all economic sectors. The main focus of development is agriculture and the agri-food sector, which offers great prospects in this sector. At the same time, other key sectors present numerous opportunities, such as the energy transition, water management, health, space, and security. In this context, our priority is to connect Senegalese and French entrepreneurs to strengthen examples of co-investment, particularly in productive sectors."

Christophe PLASTRE
Regional Manager – West and Central Africa – Bpifrance

KEY FIGURES

• Population : 19,2 million inhabitants
• GPD : 34,7 billion (in USD)
• 125ème world economic power
• Currency : CFA franc
• Exchange rate regime : fixed (indexed to the euro)

COUNTRY RISKS

• Growth vulnerability : despite a downward revision linked to the deficit and debt, growth forecasts remain solid for 2025 (+8,4%), but more moderate in 2026 (+4,1%). In 2025, activity will be driven in particular by the exploitation of hydrocarbons and the fall in inflation. Economic performance will depend on the international economic situation and government measures to stabilize public finances.
• Climate vulnerability : Senegal is vulnerable to climate change (153rd out of 181 according to the ND Gain indicators) but remains a low emitter of CO2. It is developing renewable energies while facing the environmental challenges linked to the exploitation of offshore hydrocarbons.
• Inequality Senegal faces marked socioeconomic inequalities, particularly between urban and rural areas. Access to education, healthcare, and infrastructure remains limited for a large portion of the population, with disparities exacerbated by income gaps and unemployment.
• Vulnerability of public accounts : The Court of Auditors revealed an average budget deficit of -11,4% of GDP between 2019 and 2023, well above the -5,5% announced. Public debt is expected to reach nearly 100% of GDP in 2023, with a risk of exceeding 110% in 2024, according to IMF forecasts.

AREA OPPORTUNITIES

• Growth outlook : Consumption would benefit from the decline in inflation (-0,2% in March and April 2025). Investments will continue to be driven by projects in the extractive sector. The drop in interest rates expected in 2025 should support private investment.
• Political and social stability Senegal's governance performance is generally better than that of other countries in the region. The government encourages private sector initiatives, particularly SMEs and startups. The legal framework is improving, strengthening the business climate.
• Strategic geographical position Located on the West African coast, Senegal enjoys privileged access to international markets thanks to its coastline and its port of Dakar, one of the largest in the region. This position makes it a key logistics and commercial hub for West Africa.
• Growth sectors Senegal offers strong economic opportunities in agribusiness, renewable energy, digital technology, and tourism. The boom in hydrocarbons is driving growth, while technological innovation and sustainable development are strengthening its attractiveness.

To discover the full content, check out our edition Horizon Senegal.