Senegal Unveils Economic Recovery Plan Prioritizing Domestic Funding, Fiscal Sovereignty

Senegal's new administration, led by President Bassirou Diomaye Faye and Prime Minister Ousmane Sonko, has unveiled a comprehensive economic and social recovery plan called "Jubanti Komm," focusing on restoring fiscal sovereignty, boosting domestic resource mobilization, and addressing social equity. The plan aims to reduce Senegal's budget deficit from 12% to 3% of GDP by 2027 by cutting public spending, increasing revenues through tax reforms—including higher tobacco taxes and visa fees—and renegotiating contracts in the oil and mining sectors. Recognizing the country's severe debt challenges and misreporting under the previous administration, the government intends to finance about 90% of the recovery through domestic resources to avoid additional external debt, signaling a shift from reliance on the IMF, which had frozen its loan program. Measures also include merging and downsizing state institutions, scrapping tax exemptions in the digital economy, and improving investment conditions by easing land access and adjusting vehicle import rules. The initiative aligns with Senegal's long-term "Vision 2050" and the 2025-2029 macroeconomic framework, with a strong emphasis on benefiting vulnerable populations and restoring investor confidence. Both leaders frame the plan as essential to achieving national self-reliance and economic sovereignty amid global pressures and internal fiscal challenges.