Senegal announces a 25-year plan for economic and social development

Senegal’s government released a 25-year plan of development on Monday. It said that the plan would lay the groundwork for economic sovereignty by focusing on competitiveness, resource management sustainability and good governance.

The agenda was launched in March, seven months after the West African president Bassirou Diomaye Faye won a landslide victory at elections on the promise of improving livelihoods.

Faye, who spoke at the ceremony a month before a snap election for legislative seats, said: "We want to build a diverse and resilient economy."

He said: "Our... economic model has been neutralised because it relies on exploitation of raw materials, without significant local processing and valorisation. This leaves our domestic private sector weak...and our young talent desperately searching for opportunities."

Senegal has become an oil producer since June when Woodside Energy, a company from Australia, began production at the Sangomar oil-and-gas field. Gas production will also begin at the Greater Tortue Ahmeyim liquefied gas project by the end the year, which is operated by BP.

Faye began an audit of oil contracts and mining contracts early in his presidency, but authorities haven't shared any details about its progress.

The first phase, which costs $30.1 billion, will run from 2025-2029 and aims to bring the budget deficit down to 3% from 4.9%.

The funding will come from a combination of public, private and public-private partnerships. The average growth rate is 6.5%, and the average tax burden has increased to 21.7%.

The International Monetary Fund reduced Senegal's growth forecast to 6.0% in September, down from a forecast 7.1% in June, after the economy expanded at a slower-than-projected pace in the first half.

The government's new plan aims to make Senegal an energy-independent country by increasing access to electricity from 84% to 100%.

Senegal will also restructure its deficit financing structure to reduce national debt.

Faye is under pressure from disenfranchised youth in the city, who helped him come to power.

In addition, the president faced opposition from the National Assembly, which led him to dissolve the parliament last month. This paved the way for a snap legislative election scheduled for November 17. The president's Pastef Party had very little influence with just 26 seats in a 165 member parliament that was now dissolved.

The IMF has stated that government revenue dropped significantly in the first 8 months of this year. There are also concerns about the IMF's financing being delayed by the election. (Written by Sofia Christensen, Portia Crowe and Alison Williams; edited by Alison Williams).

(source: Reuters)