• Senegal plans dissolving 19 parastatal entities to cut public spending
• Reform could save 55 billion CFA francs over three years
• Plan includes restructuring 10 entities and redeploying affected employees

The government of Senegal has announced a plan to streamline its parastatal sector that could generate a net budgetary saving of at least 55 billion CFA francs (approximately $97 million) over the next three years. The announcement was made during a Council of Ministers meeting on Wednesday, March 4.

According to the official report, this reform is based on the findings of a working group tasked with examining all structures within the sector. Its work recommends the dissolution of 19 parastatal entities. In 2025, these entities had combined budget allocations of 28.051 billion CFA francs, an annual payroll of 9.227 billion CFA francs for 982 employees, and a total debt of 2.6 billion CFA francs at the end of 2024.

The report also recommends the repositioning of 10 other entities through a redefinition of their missions, the adaptation of their intervention models, and the revision of their legal frameworks.

According to authorities, this reform aims to strengthen transparency in public management, reduce government lifestyle spending, and optimize the use of budgetary resources. Social support measures are planned, specifically the redeployment of the affected employees and the management of disputes related to the restructurings.

"This rationalization plan must be accompanied by a dynamic of improving governance in the parastatal sector, focused in particular on the control of salaries and staff numbers, the harmonization of pay scales, the optimal use of budget credits, the updating of structure classifications, compliance with creation standards, the reinforcement of control and evaluation, as well as the capacity building of actors," Prime Minister Ousmane Sonko said.

Reform amid fiscal pressures

This initiative occurs in a context marked by tensions regarding public finances. A diagnostic conducted by the firm Mazars estimates Senegal's debt level at approximately 119% of GDP.

Faced with these constraints, Senegalese authorities have initiated a progressive modernization of public finance management, notably through the strengthening of control bodies such as the Court of Auditors and the General Inspectorate of Finance. The debt management strategy has also been adjusted to preserve sustainability and limit dependence on external debt. The implementation of the rationalization plan will be led by an inter-ministerial committee.

Charlène N’dimon