Senegal PM Sonko Unveils Domestic-Led Recovery Plan Amid Debt Crisis

Senegal's Prime Minister Ousmane Sonko unveiled an ambitious economic recovery plan focused on stabilizing the country's finances primarily through domestic resource mobilization, pledging that 90% of the plan's funding will come from internal sources to avoid further debt. The plan aims to reduce the country's significant public debt, which stands at 119% of GDP, and addresses economic challenges including a 14% budget deficit, 20% unemployment, and 36% poverty rates. It includes measures such as cutting government expenditures and increasing taxes on digital, land, and mining sectors, while also emphasizing respect for Senegal's international commitments and debt repayment. This initiative follows revelations of hidden debts by the previous administration that led to the IMF suspending its loan program to Senegal. Sonko highlighted that external partnerships would be limited to asset recycling only, reinforcing the commitment to economic sovereignty and reducing dependence on foreign debt, particularly from former colonial powers. The plan was presented as a strategic move towards structural transformation, governance reform, employment generation, and social justice, calling for national unity to overcome these economic challenges.