Senegal unveils recovery plan to rely on domestic funding
The plan, aimed at stabilizing the finances of a West African nation that began producing oil and gas last year, comes with Senegal facing financial challenges and scrutiny over debt misreporting.
The country is grappling with billions of dollars in hidden debts from the previous administration, which led to the International Monetary Fund (IMF) freezing its loan programme.
"We have identified more than 4.6-trillion CFA francs [R145.81bn] in available resources between 2025 and 2028, without increasing the state's debt," Sonko said during a presentation in the capital Dakar.
The plan to cut public spending and boost revenues aims to help narrow the budget deficit to 3% of GDP by 2027 from 12% in 2024.
Its measures include merging and downsizing state institutions, which the government estimates could save around 50-billion CFA francs (R1.59bn), and scrapping tax exemptions in certain sectors, particularly in the largely untaxed digital economy. He cited online gaming and mobile money as examples.
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Prime Minister Ousmane Sonko on Friday unveiled a new economic recovery plan for Senegal, pledging to finance 90% of the initiative through domestic resources and avoid additional debt. The plan, aimed at stabilizing the finances of a West African nation that began producing oil and gas last year, comes with Senegal facing financial challenges and scrutiny over debt misreporting. The country is grappling with billions of dollars in hidden debts from the previous administration, which led to the International Monetary Fund (IMF) freezing its loan programme. "We have identified more than 4.6-trillion CFA francs [R145.81bn] in available resources between 2025 and 2028, without increasing the state's debt," Sonko said during a presentation in the capital Dakar. The plan to cut public spending and boost revenues aims to help narrow the budget deficit to 3% of GDP by 2027 from 12% in 2024. Its measures include merging and downsizing state institutions, which the government estimates could save around 50-billion CFA francs (R1.59bn), and scrapping tax exemptions in certain sectors, particularly in the largely untaxed digital economy. He cited online gaming and mobile money as examples.
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