• GSMA outlines reforms needed to meet targets of the New Technological Deal 2034
• High mobile taxes, device costs, and limited electrification impede digital use
• Reforms could expand mobile broadband, add CFA1 100 billion in value, and create 280 000 jobs

Senegal wants the digital sector to become a major driver of its economy. This is the ambition set out in the New Technological Deal 2034, unveiled in February 2025, which calls for CFA1 105 billion ($1.7 billion) in investment to reach 95 % connectivity, ensure that 80 % of public services are available online, create 350 000 jobs, and raise the digital sector’s contribution to 15 % of GDP. In its study, “Stimuler la transformation numérique de l’économie au Sénégal. Opportunité, recommandations politiques et rôle du mobile,” submitted to the government on December 5 during the first Digital Africa Summit Senegal held in Dakar, the GSMA presented an overview of the digital economy and a set of recommendations to achieve these goals.

The country already performs above the West African average, with nearly universal 4G coverage reaching 97 % of the population and 5G covering about 39 %, mainly in major urban centers. Out of a population of about 18 million, GSMA estimates that around 9.9 million people in 2025 used mobile services, or nearly 52 % of the total population, higher than the regional average of 49 % and the African average of 48 %. Yet only 8.16 million Senegalese use mobile broadband, or about 42 % of the population. The “usage gap” — people who could connect but do not — is estimated at nearly 54 %. In other words, the challenge is no longer to cover the territory but to make access truly usable and affordable, especially for lower-income households and rural communities.

Senegal stands out more clearly in financial inclusion. According to BCEAO data cited by the GSMA, 76 % of the adult population has a mobile money account, one of the highest rates on the continent. In 2024, the country had 14.65 million active accounts, with nearly 2.9 billion transactions worth CFA48 488 billion. Mobile money contributed about $6 billion to GDP in 2023, or around 8.6 %, a level comparable to the construction or real estate sectors. This silent transformation is driven by strong competition among Orange Money, Wave, Yas, Wizall, and E-Money. It also raises questions about the coherence of the fiscal and regulatory framework, which remains fragmented among several authorities.

Ensuring essential foundations for access

The report identifies taxation as one of the main obstacles to accelerating digital adoption. Mobile services are subject to several sector-specific taxes — a specialized contribution and a usage fee — in addition to the 18 % VAT. Devices, especially entry-level smartphones, remain heavily taxed even though they are the primary gateway to digital services for lower-income users. The GSMA recommends reducing both sector taxes to 3 %, exempting smartphones under CFA17 500 from VAT and customs duties, eliminating the 0.5 % tax on mobile money transfers and withdrawals, and harmonizing taxation across all operators. Paradoxically, these tax reductions would not necessarily lead to a net loss for the state. According to GSMA simulations, the growth generated by increased digital use could bring the net fiscal impact to CFA417 billion by 2030, including CFA174 billion from digitalizing the collection of taxes and duties.

Another essential condition is reliable electricity for telecom sites. About 35 % of 4G antennas are located more than one kilometer from the power grid, and nearly all new sites required to extend coverage would be off-grid. The GSMA argues that telecom networks should be recognized as critical national infrastructure and integrated into major energy programs. The Association estimates that improved electricity supply would cut in half — from $20 billion to $10 billion — the investment needed to bring 4G coverage to 99.5 % of the population.

“There is an obvious synergy between access to digital services and access to energy in Senegal. The government’s Energy Pact adopted under Mission 300 calls for universal access to energy by 2029. Because electricity is a prerequisite for digital development, efforts should be coordinated, especially in areas that lack both services and in growing regional hubs,” said Jana Kunicova, digital sector director for West and Central Africa at the World Bank.

Acting quickly and effectively

If the full set of recommendations is implemented — a more predictable spectrum policy, reduced taxation, support for affordable smartphones, stronger digital skills, and faster deployment of online public services — Senegal could secure a true digital dividend by 2030. GSMA projections estimate 2.6 million additional mobile internet users, bringing the total to 13.1 million people (60 % of the population, 94 % of adults); CFA1 100 billion in added value from the impact of digital technology in sectors such as agriculture, industry, transport, trade, health, and public services; and the creation of about 280 000 jobs, which would help support the government’s target of 350 000.

A political question remains; can Senegal quickly align its tax system, regulatory framework, and energy strategy with the ambition of the New Technological Deal 2034? The country has undeniable strengths: advanced 4G infrastructure, a dynamic mobile money ecosystem, and a clear strategic vision. But without decisive action to remove the identified constraints, the risk is a widening gap between the ambition of becoming a “leading digital nation” and the everyday experience of users, many of whom remain excluded from the digital transition. For the GSMA, the responsibility now lies with the state and the regulator: they must convert the current momentum into results and ensure that mobile becomes the engine — not only the mirror — of Senegal’s economic transformation.

For Alioune Sall, Minister of Communication, Telecommunications, and the Digital Economy, “this report represents a significant contribution to national reflection. It does not replace a vision but clarifies it, contextualizes it, and at times questions it with analytical rigor […] this report helps reinforce a collective dynamic. It encourages us to continue our efforts, consolidate our achievements, and show clarity in identifying short-, medium-, and long-term priorities.”

Muriel Edjo