Following a robust four-year period where foreign direct investments (FDI) into Senegal consistently averaged three billion dollars annually, there was a stark decline to just 37 million dollars in 2025. This dramatic shift is highlighted in the latest annual report from the United Nations Conference on Trade and Development (UNCTAD). The crucial question now is whether this represents the natural conclusion of a substantial investment cycle or a growing hesitation towards the current government and its financial policies.
The sharp drop in investments can be largely attributed to a cyclical shift. Significant capital inflows over recent years were driven by major oil and gas projects, such as Sangomar and Grand Tortue. However, the bulk of these initial investment phases has concluded, and the focus is now transitioning towards production.
Despite this, Senegal could have attracted significantly more than the 37 million dollars recorded in 2025, according to Moubarak Lo, a former economic advisor to the prime minister and now a consultant. He asserts, “Senegal possesses the structural capacity to sustain three to five billion dollars in annual investments, but this necessitates an active promotion of its economy. Unlike many other nations, the country currently lacks a dedicated network for promoting investments abroad. While roadshows are conducted, they are insufficient. We cannot merely wait for investors; we must be proactive. This approach is well-understood for portfolio investments in government securities or treasury bonds, but not yet for direct investments. This is the crucial update we need to implement.”
Lack of clear economic outlook
The considerable national debt of Senegal, estimated by the IMF to reach 132% of GDP by the end of 2024, might, on paper, appear as a deterrent to potential investors. However, in practice, this shouldn’t weigh on private sector confidence, as per the Senegalese expert. Justin Maria, France Director for Access Bank, supports this view, highlighting that national debt is not the primary concern. He points to France, which continues to attract private investors despite its public debt of 3,500 billion euros.
For Maria, the true concern lies in the absence of clear economic visibility: “Senegal has entered a period of perceived risk. This is not so much about long-term fundamentals, as no one can predict the future with certainty; rather, it’s the short-term lack of transparency regarding public finances and liquidity that is deterring investors.”
“We can recover next year”
Moubarak Lo challenges the notion of Senegal being a
