• Senegal’s Prime Minister Ousmane Sonko launched a $10 billion economic recovery plan mostly funded from domestic resources, aiming to reduce the budget deficit without relying on the IMF.
• The government is targeting fiscal reforms and expanding the tax base while facing criticism over rising tax pressure and declining public investment.
• Despite economic growth driven by new oil exports, Senegal faces soaring debt service costs and a downgraded credit rating, raising doubts about the plan’s sustainability without international support.

Cut off from international financial markets and grappling with a public debt now estimated at 119% of GDP, Senegal is pivoting its economic strategy. On August 1, Prime Minister Ousmane Sonko unveiled "Jubbanti Koom," an ambitious economic recovery plan valued at CFA5,567 billion (roughly $10 billion), with 90% of funding sourced domestically.

Présentation du Plan de redressement économique et social « Jubbanti Koom» https://t.co/AEeYkhw4r0

— Ousmane Sonko (@SonkoOfficiel) August 1, 2025

The plan aims to slash the budget deficit—from an estimated 12 to 14 percent of GDP in 2024—to a target of 3 percent by 2027. “We inherited a structurally unsustainable model,” Sonko told reporters. “We will not add to our debt. We don’t need the IMF.”

Yet, an IMF delegation is scheduled to visit Dakar this month. The fund last disbursed funds in September, halting support after the government revised debt and deficit figures downward. During an April 14 address to the National Assembly, the Prime Minister noted that Senegal’s financing needs would peak at CFA1,195 billion in 2025 but could decline to CFA155 billion by 2029—assuming a renewed deal with the IMF is secured.

Senegal has firmly shifted its focus toward regional financial markets as it seeks to navigate a challenging fiscal landscape. The Agence UMOA-Titres reports that the country raised CFA1,262.5 billion in the first half of 2025—a staggering 267% increase compared to the previous year. While this approach is helping to balance the budget, it has also driven up costs significantly; debt servicing soared by 44.5% in the last quarter of 2024 and rose another 24% entering 2025, totaling nearly $1.4 billion over nine months.

Amid these pressures, the government remains steadfast. Economic growth surged 12.1% in Q1, buoyed by the inaugural oil exports from the Sangomar field. Tax revenues climbed 11.6%, while non-tax income jumped 24.4%. Officials project 8% growth for 2025, expecting additional stimulus from the forthcoming production at the GTA gas field.

To sustain momentum, a comprehensive reform package encompassing 37 fiscal and structural measures is underway. These include eliminating or merging public agencies, curbing overseas missions, and tightening utility expenses. The government also plans to widen the tax net, targeting under-taxed sectors like digital services, gambling, mobile money, and real estate. Asset recycling initiatives are projected to bring in over FCFA 1,100 billion.

However, criticism is mounting. Former MP Thierno Bocoum warns, “The state is investing less but taxing more,” pointing to a more than 30% drop in public investment during Q1. Opposition voices denounce the tax burden on lower-income groups, with MP Abdou Mbow quipping that “even Netflix subscribers will be taxed.”

Senegal’s sovereign credit rating was downgraded by S&P in July, which forecasts a 2025 deficit of 8.9%, surpassing government targets. Outstanding arrears to private companies linger unpaid. Prime Minister Sonko frames the plan not merely as fiscal tightening but as a “refoundation project” for the economy. The question remains whether this pursuit of financial autonomy can succeed without renewed external backing.

Fiacre E. Kakpo

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