Senegal's PM Sonko Unveils Recovery Plan to Tackle Soaring Debt and Boost Sovereignty

Senegal unveils domestic-focused economic recovery plan to cut debt, boost sovereignty, and reduce foreign dependence.

Senegal's prime minister unveiled an economic recovery plan on Friday aimed at revitalizing the country's economy through a shift toward greater reliance on domestic funding sources. The West African nation is grappling with significant economic challenges, including a budget deficit of 14 percent and public debt amounting to 119 percent of its gross domestic product, according to Economy Minister Abdourahmane Sarr.

Prime Minister Ousmane Sonko announced that under the newly introduced plan, 90 percent of the necessary resources are expected to be derived from internal mobilization rather than external borrowing. This announcement was met with enthusiastic applause at the Grand Theatre de Dakar, where the plan was presented during a formal ceremony attended by government officials, including President Bassirou Diomaye Faye.

President Faye, who assumed office more than a year ago, had pledged to secure both economic and political sovereignty for Senegal. A central element of his promise was to end the nation's dependence on foreign economic support, particularly from former colonial power France. Sonko emphasized that the plan “reflects the strong commitment of reinforcing our country's sovereignty.”

Key components of the strategy include cutting government spending and increasing taxation in specific sectors such as digital services, land, and mining. The plan is structured around three primary objectives: reducing public debt, enhancing the mobilization of domestic resources, and securing additional internal financing without accumulating new debt.

These measures come at a time when the country is facing high unemployment—estimated at 20 percent—and poverty, which affects 36 percent of the population, according to Minister Sarr. The announcement of the plan precedes an upcoming mission from the International Monetary Fund (IMF) scheduled to visit Senegal later this month.

The IMF had earlier suspended planned disbursements to Senegal pending corrective actions from the current administration in response to financial misrepresentations by the previous government. Sonko stated that the recovery plan aligns with core principles, including the commitment to honoring Senegal’s international obligations, particularly with regard to debt repayment.

He also stressed that the government aims to reverse the inherited economic challenges without increasing public debt or compromising the country’s natural and land resources. Additionally, he noted that the plan is designed to avoid placing an undue tax burden on investors, thereby maintaining Senegal’s economic appeal.