Senegal PM unveils economic recovery plan based on domestic resources
DAKAR: Senegal's prime minister unveiled an economic recovery plan for the highly indebted nation on Friday, focused on reviving its economy with a shift towards greater domestic funding.
The west African country faces a deteriorating economy, marked by a 14 per cent budget deficit and outstanding public debt that represents 119 per cent of GDP, said Senegal economy minister Abdourahmane Sarr.
'Trump Cannot Dictate': Putin & His Top Ally Unite Against U.S. Over Ukraine Ultimatum | FULL SPEECH
Prime Minister Ousmane Sonko declared that under the new economic plan "90 per cent 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.
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, a political mentor to Faye, was ineligible to run in the March 2024 election, pushing his mentee to the forefront instead. Together, the pair have presented themselves as left-wing pan-Africanists.
Faye and Sonko claim to have inherited a heavy burden from their predecessor, president Macky Sall, whom they accuse of having presided over widespread financial mismanagement since he assumed power in 2012.
An International monetary fund (IMF) team that visited Senegal in March confirmed that officials had made false statements regarding budget deficits and public debt for the period 2019-2023.
It said the 2023 budget deficit was 12.3 per cent of GDP, when the last government said it was 4.9 per cent.
Reductions, renegotiations
Sonko told the ceremony 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.
It will also involve the renegotiation of contracts in the oil, gas and mining sectors, among other measures such as the targeting of energy subsidy beneficiaries.
According to Sonko, the measure should raise 5.7 trillion CFA francs (8.6 billion euros, $9.9 billion), which is equivalent to the country's 2025 budget.
The proposal comes as the unemployment rate is estimated at 20 per cent, while poverty affects 36 per cent 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.
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".
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
40 minutes ago
- India Today
Why only someone very ignorant can think that Indian economy is dead
India's economic ascent in recent years has positioned it as a global powerhouse, standing tall amidst a turbulent world economy. With a unique blend of robust GDP growth, stable macroeconomic fundamentals, and strategic sectoral advancements, India is not only the fastest-growing major economy but also one of the most resilient. There are several key drivers behind India's economic strength, supported by compelling data points and emerging opportunities that underscore its enduring momentum. An honest perusal of these key parameters will exorcise the farcical claim by India's Leader of Opposition (LoP) that the Indian economy is dead. What will emerge is a picture to the GDP Growth and Global StandingIndia's GDP growth has consistently outpaced that of other major economies, cementing its status as a global economic leader. In FY24, India's real GDP grew by an impressive 8.2%, surpassing the growth rates of major economies like the United States (2.5%), China (5.2%), Japan (1.9%), and Germany (0.3%). For FY25, the International Monetary Fund (IMF) projects India's growth at 6.5–7%, revised upward from 6.6% due to strong rural demand and government infrastructure spending. This makes India the fastest-growing major economy, with projections indicating it will maintain this position through FY26, with GDP growth expected between 6.3–6.8%.By 2027, India is forecasted to overtake Germany to become the world's third-largest economy, with a projected GDP of $5.2 trillion. By 2030, this figure is expected to reach $7.3 trillion, driven by robust domestic demand, a young demographic, and sustained economic reforms. India's contribution to global economic growth is projected to be 12.9% over the next five years, surpassing the United States' 11.3%. This trajectory highlights India's ability to thrive despite global headwinds, such as geopolitical tensions and trade PMI: A Beacon of Industrial Strength India's manufacturing sector is a cornerstone of its economic resilience, as evidenced by the S&P Global India Manufacturing Purchasing Managers' Index (PMI). In August 2023, the PMI stood at 58.6, reflecting robust expansion driven by strong demand, competitive pricing, and increased new orders—the fastest upturn since January 2021. For FY24, manufacturing growth reached 9.9%, significantly contributing to Gross Value Added (GVA) growth of 7.2%. Most recently, the PMI showed robust growth, with a high of 59.2 in July 2025, marking the highest reading in nearly 17.5 years, reflecting strong demand and performance underscores India's growing industrial capacity, bolstered by initiatives like the Production Linked Incentive (PLI) Scheme, which has attracted investment in pharmaceuticals, electronics, and global supply chain disruptions, India's manufacturing sector has shown remarkable adaptability. The sector's contribution to GDP, though currently at 13%, is poised for growth through policies like 'Make in India,' which aims to elevate it to 25%. Companies like Apple are shifting production to India, with iPhone manufacturing for the U.S. market increasingly moving from China. This trend signals India's emergence as a global manufacturing hub, enhancing its economic Inflation: A Pillar of Economic StabilityIndia's ability to maintain low inflation amidst global volatility is a testament to its prudent monetary policies. In March 2025, the Consumer Price Index (CPI) inflation rate was 3.34%, down from 4.85% the previous year. This decline, driven by stable food prices and lower crude oil costs (projected at $65/barrel in FY25), has bolstered purchasing power and economic stability []. The Reserve Bank of India's (RBI) steady interest rate policy and potential rate cuts of 25 basis points in FY25 further support growth by encouraging credit and to advanced economies grappling with high inflation—such as the U.S. (3.0% in mid-2023) and the Eurozone (5.3%)—India's low inflation rate provides a competitive edge, fostering consumer confidence and sustaining domestic demand []. This stability is crucial for long-term economic resilience, especially in a global environment marked by inflationary FDI Inflows: A Vote of Global ConfidenceForeign Direct Investment (FDI) inflows into India have surged, reflecting global confidence in its economic potential. Between April 2000 and December 2024, cumulative FDI equity inflows reached $1.05 trillion, with $71 billion recorded in FY24 alone. Key sectors like finance, banking, insurance, and R&D have been major recipients, with Maharashtra (31%) and Karnataka (21%) emerging as top destinations. Singapore, Mauritius, and the U.S. account for significant shares, with 25%, 24%, and 10% of inflows, liberalised FDI regime, allowing 100% foreign investment in sectors like construction and renewable energy, has been a game-changer. The rise of Indian unicorns—108 by mid-2023, with 44 achieving unicorn status in 2021—has further attracted global investors. However, a dip in net FDI to $0.35 billion in FY24 due to increased outward investments highlights the need for sustained policy efforts to maintain inflow momentum. Nonetheless, India's ability to attract substantial FDI underscores its appeal as a stable and lucrative investment Opportunities in Tier 2 and Tier 3 CitiesIndia's economic growth is not confined to metropolitan hubs; Tier 2 and Tier 3 cities are emerging as vibrant centers of opportunity. Cities like Jaipur, Indore, Surat, and Coimbatore are witnessing rapid infrastructure development, driven by initiatives like the UDAN regional airport scheme, which plans to build 20 new airports, and the Ganga Expressway, enhancing connectivity in Uttar Pradesh. These projects are unlocking economic potential by improving logistics, boosting tourism, and attracting Smart City Mission and Atal Mission for Rejuvenation and Urban Transformation are fostering sustainable urban development in these cities, creating jobs and stimulating local economies. For instance, Hyderabad's tier-4 data center, with 1,600 racks and 18MW capacity, highlights the growing digital infrastructure in Tier 2 cities. The public cloud services market in India is projected to reach $13 billion by 2026, with a CAGR of 23.1%, driven by demand in these regions. This decentralization of economic activity reduces regional disparities and enhances India's overall economic Shoots: Renewable Energy and Space TechnologyIndia's focus on green shoot sectors like renewable energy and space technology is propelling its economic transformation. In renewable energy, India is targeting 100 GW of solar capacity by 2025, alongside investments in wind, hydropower, and green hydrogen. The India Green Energy Corridor and Green Hydrogen Mission align with the goal of net-zero emissions by 2070, positioning India as a global leader in clean energy. Two-thirds of new energy consumption is expected to come from renewables, reducing reliance on imported fossil fuels and creating jobs in manufacturing and space technology, India's achievements, such as the Chandrayaan-3 lunar mission and the upcoming Gaganyaan human spaceflight program, have elevated its global standing. The Indian space sector is projected to grow from $8 billion in 2023 to $44 billion by 2033, driven by private-sector participation and government support []. Initiatives like the Indian Space Research Organisation's (ISRO) partnerships with startups are fostering innovation and economic diversification, further strengthening India's growth Pillars of ResilienceBeyond these key drivers, India's economic strength is bolstered by several other factors, such as India's Demographic Dividend. With 17.8% of the global population and a growing working-age cohort, India is set to overtake China's working-age population share by 2030. This demographic advantage fuels consumption and the Digital Transformation front, initiatives like IndiaStack and Aadhaar have digitised financial transactions, with the credit-to-GDP ratio expected to rise from 57% to 100% by 2031. This enhances financial inclusion and economic it comes to infrastructure push, the Modi government's record-breaking Rs. 11 lac crore capital expenditure in the last two successive financial years has driven projects like the Bharat Expressway and Sagarmala 2.0, improving connectivity and banking sector has shown remarkable stability, driven by reforms. Gross non-performing assets (NPAs) fell to a 12-year low of 2.6% in FY24, reflecting a robust financial and the Path ForwardDespite its strengths, India faces challenges, including a skills gap and a manufacturing sector that needs to further scale up. Structural reforms, such as those in agriculture and labour, are critical to sustaining high growth. The government's National Manufacturing Mission and focus on skill development aim to address these gaps, but consistent implementation is economy today is stronger and more resilient than ever, driven by robust GDP growth, a thriving manufacturing sector, low inflation, high FDI inflows, and burgeoning opportunities in Tier 2 and Tier 3 cities. Emerging sectors like renewable energy and space technology, combined with a favourable demographic and digital transformation, position India as a global economic leader. As it navigates challenges with strategic reforms, India's trajectory toward becoming the world's third-largest economy by 2027 is not just a possibility but an inevitability. With visionary governance and sustained momentum, India is poised to shape the global economic landscape for decades to come.(Tuhin A Sinha is a national spokesperson of the BJP, and an author)- Ends(Views expressed in this opinion piece are those of the author)Must Watch
Indian Express
2 hours ago
- Indian Express
A tribute to economist Shankar Acharya, A World in Flux, explores what needs to be done to achieve India's goal of becoming Viksit by 2047
A confession — I have known Shankar Acharya, a friend and fellow cricket junkie, far longer than he or I are willing to admit. It is an honour to review 'A World in Flux – India's Economic Priorities', a timely and deeply researched collection of essays in honour of Shankar's thinking and contributions. The book is about what change is needed to allow India to meet its tryst with a destiny that is viksit by its 100th anniversary in 2047. The contributors are much more than eminent scholars — they are acknowledged experts in their fields. The biggest — and the most well-deserved — tribute to Shankar is that the contributors have chosen to write a learned and expert commentary. Much of what they have written and advocated as policy is spot on, so what is a reviewer supposed to do? I can summarise the issues raised by the authors, but the editors, Amita Batra and AK Bhattacharya, provide a must-read analysis — a model introduction to a very distinguished economist, policy advisor and policy-maker. There has only been one major policy question on which Shankar and I have disagreed — and continue to disagree — and that is the danger that fiscal deficits pose to growth and inflation. He, of course, initiated India's long-term fiscal policy in the early 1980s, at a time when such a roadmap was very much needed. Before going further, I want to add that we have differences — differences that arise not out of a difference in expertise or analysis but differences in our genes. Shankar, by his own admission, gravitates towards pessimism; and when I have to err, I err on the side of my DNA++ disposition. The 'what should be done about fiscal deficits' debate is a good point ofdeparture for illustrating why 'yeh dil mange more' than offered by the experts in the volume. Does India have a high fiscal deficits problem or a problem of plenty, one which allows policy makers from doing nothing (at best) or actually implementing bad policies? Sajjid Chinoy in his tour de force essay ('Getting Rich Before Getting Old') speaks about raising India's tax/GDP ratio from an already high level of around 19 per cent today. It is quite the fashion among Indian commentators (I include myself in this galaxy) to point to China as a worthy example to follow — when in doubt, do what China does and thou shalt succeed. China's tax/GDP ratio of 14.5 per cent in 2024 suggests we should radically decrease our rate of taxation. But our experts do not advocate that. Why? India's fiscal problem is one oftoo high taxation, not too little. 'Easy' revenue allows the government (state and central) to indulge in ever more wasteful expenditure (freebies) which slows growth. Our slow growth, relative to potential, is the problem, not that fiscal deficits are causing inflation to be at a historic low. The IMF orthodoxy of 'when in doubt, raise tax revenue' is now hopelessly outdated. Another example of divergence between necessary policy, and one offered by experts, pertains to the low share of manufacturing (and even the ever lower share of manufactured exports). We all agree that something needs to be done, but what? One favourite solution (like raising the tax revenue) is to join the China-led RCEP. This is dictated by the specious reasoning that since China leads in manufactured export growth, by joining RCEP we will do so too. However, 13 of 15 RCEP countries have lower growth of manufactured exports than before (joining) RCEP. As far as policy analysis goes, why not note that our two 'global champions' — Ambani and Adani-led enterprises — produce zero manufactured goods (unless an intermediate good like polyester is considered a final manufactured good, like shirts)? And why, iflack of textile growth is a problem (it is!), our reform experts (except Amitabh Kant) don't point to the fact that a very very low hanging fruit is the reduction of high import duties on manmade fibres? Why don't the experts argue that the government should choose winners like Ambani and Adani? The government should appoint these global experts to lead the march on manufactured goods. Instead of Production Linked Incentives (PIL) we should have EIL — Export Linked Incentives. If subsidies are involved (as they will be), the government should provide them. Learn from China (again) how to sidestep WTO regulations. This is how Korea, China and the US have succeeded — we will succeed too. Bhattacharya also has a much-needed, must-read chapter on the political economy of reforms. AK notes that in the near-50-year history of economic reforms in India, an important pattern emerges. 'But once the immediate economic crisis was overcome, the pace of implementing subsequent reforms slowed considerably'. Phrased differently, the story of economic reforms in India is that reforms stop because our politicians (and the Deep State behind them) are not risk-takers, but comfort-zone seekers. They like the comfort zone of 'not rocking the boat', and thereby insure that Viksit Bharat 2047 might very well be no more than a dream. Before ending, I have a quibble with even this most worthy chapter. Bhattacharya's path to reform is via consensus-building (the mantra of every failed and defeated optimist). But AK fails to note that the path to consensus is littered with sabotage by the major groups (or group) hurt by the proposed reforms. Why, if everything is as well-known and as dutifully documented by all of us, are we still asking for basic reforms in agriculture, manufacturing, and governance? Note that a Supreme Court survey conducted after the withdrawal of farm-reform legislation, found an overwhelming consensus (87 per cent) among farmers wanting the proposed farm laws reform. Bhalla is chairperson of the Technical Expert Group for the first official Household Income Survey for India. Views are personal
&w=3840&q=100)
First Post
3 hours ago
- First Post
Former Malian prime minister charged after criticising military rule online
A Malian court has detained and charged former Prime Minister Moussa Mara over a social media post critical of the country's military-led government. read more A Malian court has detained and charged former Prime Minister Moussa Mara over a social media post criticising shrinking democratic space under military rule in the West African nation, his lawyer said late Friday. Mara is one of few public figures in the country who has been willing to openly question moves taken this year to dissolve political parties and grant the military government, led by Assimi Goita, a five-year mandate without elections. STORY CONTINUES BELOW THIS AD Last month, authorities formally approved Goita's five-year term and said it could be renewed as many times as necessary as Mali struggles to respond to a long-running jihadist insurgency. More from World Trump new tariffs: How India stacks up against rest of Asia Goita assumed power after military coups in 2020 and 2021. Mara had been summoned several times for questioning this month over a social media post dated July 4 expressing solidarity with government critics who have been jailed. On July 21, his lawyer, Mountaga Tall, posted on social media site X that Mara had been barred from boarding a flight to Senegal to participate in a regional conference on peace and security. On Friday, Mara was summoned by a judicial cybercrimes unit, and a prosecutor charged him with offences including undermining the credibility of the state and spreading false information, Tall said in a statement. Mara's trial has been scheduled for September 29, Tall said. A government spokesperson did not immediately respond to a request for comment. The case against Mara comes amid worsening insecurity in Mali. The past few months have seen a surge of deadly attacks by Jama'at Nusrat al-Islam wal-Muslimin (JNIM), an al-Qaeda-linked group that also operates in Burkina Faso and Niger. STORY CONTINUES BELOW THIS AD Analysts say the group's battlefield tactics have grown increasingly sophisticated and that it has amassed substantial resources through raids on military posts, cattle rustling, hijacking of goods, kidnappings and taxes on local communities. On Friday, the group said it had ambushed a convoy of Malian soldiers and Russian mercenaries in the Tenenkou locality in central Mali. Mali's army confirmed the ambush in a statement on X. Neither statement gave a death toll.
