The first phase of the plan outlines a strategy to address fiscal challenges and mobilize CFA 5,667 billion CFA francs. With a commitment to financing 90% of the initiative through domestic resources, the government seeks to reduce the budget deficit from 12% of GDP in 2024 to 3% by 2027 by leveraging five pillars. https://www.reuters.com/world/africa/senegal-unveils-recovery-plan-rely-domestic-funding-2025-08-01 https://www.bbc.com/afrique/articles/cx2xnw1lzmyo#:~:text=Souveraineté%20financière,déjà%20commencé%20ces%20derniers%20mois.

Cutting Public Spending

A cornerstone of the recovery plan is the reduction of public expenditure. The government plans to streamline state institutions by merging and downsizing agencies, estimating potential savings of approximately 50 billion CFA francs. Additionally, the elimination of tax exemptions in sectors such as digital services, including online gaming and mobile money, is expected to enhance revenue collection and promote fiscal discipline. 

 Generating New Fiscal Revenue

To bolster domestic revenue, the plan introduces new taxes targeting previously underregulated sectors. This includes levies on tobacco products, digital advertising and online gaming. The taxation of the online gaming sector, in particular, aims to curb potential social costs while bringing in over 100 billion FCFA in annual revenue. 

Contract Renegotiation and Asset Mobilization

Senegal aims to raise 884 billion CFA francs through renegotiation of contracts in the oil, mining and energy sectors. An additional 200 billion CFA francs is expected from the renewal of telecom licenses. Senegal will also seek external partners to recycle existing assets and continue to mobilize resources on the domestic market in local currency, while foreign currency debt will be reserved for strategic sectors such as hydrocarbons, oil, gas and mining. 

Diaspora Investment

Building on historical remittance flows of €35.6 billion (2000‑2024), Senegal aims to transform diaspora contributions into productive investments supporting public finances. Senegal has tapped into its diaspora through a public bond issuance on the WAEMU market, attracting participation from Senegalese living in over 45 countries alongside resident and regional investors. While direct subscription from abroad is not yet possible, diaspora members can invest via licensed management companies or local banks holding CFA accounts. 

Green and Blue Fiscal Policies

The recovery plan aims to introduce green and blue fiscal policies, leveraging environmental taxation and green financing to support sustainable development. Facing climate vulnerability, Senegal has committed to reducing greenhouse gas emissions by 5% unconditionally and 23.7% conditionally by 2030. Studies by the West African Development Bank and UNFCCC identify a carbon tax as the most suitable instrument for Senegal, offering low administrative cost, clear price signals for emitters and flexibility in revenue use. Carbon taxation could generate substantial state revenue, potentially 362 billion CFA francs annually from maritime and aviation sectors. 

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