Finance Agenda 2050: Group Consultatif Strategies – Dr Abdou Diaw
Senegal Charts a New Course: The “national Agenda for Senegal Transformation 2050” and the Imperative for Diversified Financing
Table of Contents
Dakar,Senegal – on October 14,2024,Senegal unveiled a transformative economic and social policy blueprint: the “National Agenda for Senegal Transformation 2050” (ANST 2050). This ambitious strategy,succeeding the Emerging Senegal Plan (PSE),aims to forge a sovereign,equitable,and prosperous Senegal. Anchored by four pivotal pillars – a competitive economy, quality human capital with reinforced social equity, optimal and sustainable advancement, and exemplary governance with an assertive African commitment - the ANST 2050 signals a strategic recalibration for the nation’s future.
The National development Strategy: A Medium-Term Roadmap
To operationalize this grand vision, senegal has adopted the National Development Strategy (SND) as its medium-term reference framework. The initial phase of the SND, spanning 2025-2029, is specifically designed to foster endogenous and sustainable development, rooted in viable and competitive territories, thereby laying the groundwork for national sovereignty.
Financing the future: Challenges and Opportunities
The projected cost for this crucial first phase of the SND is substantial, estimated at 18,496.83 billion FCFA. The state is slated to bear the majority of this burden, contributing 12,821.45 billion FCFA (69.3%), while the private sector, notably through public-private partnerships (PPPs), is expected to provide 5,675.38 billion FCFA (30.7%).
Though, achieving these ambitious goals necessitates a significant mobilization of long-term financial resources. In a climate characterized by constrained budgetary margins and mounting pressure on domestic funding, the current model, heavily reliant on state intervention, appears to be reaching its limitations. This reality underscores the urgent need to broaden Senegal’s financing strategy to encompass external resources, with a particular focus on bilateral and multilateral donors.
beyond Conventional Avenues: The advisory group advantage
While existing financing mechanisms, including the issuance of assimilable Treasury bonds (OAT) and Treasury bills (BAT), and also support from conventional donors and PPPs, remain vital, the association of an advisory group presents a compelling option. Such an approach would not only alleviate pressure on local markets like UMOA-Titres and the BRVM,which are already under strain,but also proactively mitigate potential liquidity tensions.
The Senegalese government must thus pivot away from a stance of autarky and actively present the investment opportunities embedded within the SND to potential partners and investors. In an era defined by globalization and the diversification of partnerships, the new administration has a strategic window to bolster the confidence of its traditional allies and considerably expand its donor base.
Embracing Flexibility and Reform for Investor Confidence
To this end, flexibility and a strategic re-evaluation of the financing approach are paramount. Senegal must move beyond a logic of almost exclusive reliance on public resources. This transition requires the implementation of incentive-based reforms, including the modernization of investment, customs, and tax codes, to cultivate a more attractive surroundings for investors.
Beyond mobilizing long-term capital through ppps and capitalizing on spontaneous offers for structuring projects, the establishment of an advisory group can play a crucial role in restoring Senegal’s international image, which has been recently impacted by the repeated downgrading of its sovereign ratings. This strategic move will also serve to strengthen the country’s positioning on the global stage.
Learning from the Past, Building for the Future
On an organizational level, senegal stands to benefit immensely from leveraging its past experiences. Drawing inspiration from the accomplished advisory groups and donor roundtables convened under the presidencies of Abdou Diouf, Abdoulaye Wade, and more recently Macky Sall, will be instrumental. Crucially, mobilizing human resources with proven expertise in managing such operations will be key to the successful execution of the ANST 2050 and its vital financing strategies.
By Dr. Abdou Diaw