Senegal's Prime Minister Sonko unveils recovery plan amid high debt

Senegal's prime minster unveiled an economic recovery plan on Friday focused on reviving its economy with a shift towards greater domestic funding.

The West African country faces a struggling economy, marked by a 14-percent budget deficit and outstanding public debt that represents 119 percent of GDP, said Senegal Economy Minister Abdourahmane Sarr.

Prime Minister Ousmane Sonko declared that under the new economic plan "90 percent of resources are expected to come from the mobilisation of internal resources and without external debt".

The declaration received strong applause at the Grand Theatre de Dakar, where it was revealed in a ceremony before members of the government, including President Bassirou Diomaye Faye.

End economic dependence

Faye took power more than a year ago promising economic and political sovereignty, including putting an end to economic dependence on foreign countries, notably former colonial ruler France.

Sonko said that the new economic plan "reflects the strong commitment of reinforcing our country's sovereignty".

The plan includes a reduction in government expenditures and increased taxation in the digital, land and mining sectors.

It will focus on three main areas: reduction of public debt, mobilisation of domestic resources and additional internal financing that does not create debt.

The proposal comes as the unemployment rate is estimated at 20 percent, while poverty affects 36 percent of the population, according to Sarr, the economy minister.

The new economic plan was unveiled ahead of an IMF mission to Senegal expected later this month.

Corrective measures

The fund suspended planned disbursements to Senegal as it waits on the current government to take corrective measures following the previous misrepresentations.

In unveiling the new plan, Sonko said it was based on principles including "respect for Senegal's international commitments", particularly debt repayment.

But "we want to reverse this legacy situation without worsening public debt and without selling off our natural and land resources", he said.

He added that the plan would be implemented "without imposing excessive additional taxes on investors, to the detriment of our country's attractiveness".