Senegal will have crumbs until 2027

Those who thought they could count on hydrocarbons to get the Senegalese economy off the ground risk becoming disillusioned very quickly. The exploitation of oil and gas will not soon impact the Senegalese economy, at least the state budget. According to forecasts, the Diomaye-Sonko duo will have to make do with the crumbs until the end of the presidential term.

Indeed, according to the initial finance bill for the year 2025, “the revenue estimates (…) are established for the years 2024, 2025, 2026 and 2027, with respective amounts of 49.65 billion FCFA, 72.53 billion FCFA, 87.87 billion FCFA and 155.20 billion FCFA.” In other words, out of the 6,395 billion in the 2025 budget, hydrocarbon exploitation only contributes 72.53 billion FCFA, a contribution well below 1%. And until 2027, the country will not have more than 155.20 billion in cash receipts in the state coffers.

For this year, the envelope of 72.53 billion is distributed as follows: the 50.85 billion FCFA, or 70% of the amount, will go to the general budget. The Special Treasury Accounts will take the rest, or 21.68 billion FCFA. This last sum will be distributed between the Intergenerational Fund with 7.25 billion FCFA (10%) and the Stabilization Fund which collects 14.43 billion FCFA (20%).

In light of these figures, Senegal will have to rely on other resources for its budget, unless the renegotiation of contracts announced by Prime Minister Ousmane Sonko bears fruit. In addition, we can also expect that the undue effects of oil and gas production will boost the economy in general, particularly sub-sectors such as electricity with gas to power, the price of fuel or other fields (technical, mechanical, legal, manufacturing, financial, etc.) used in oil production. But for now, this is all just hope. Nothing really visible in the daily life of the Senegalese.

Auteur: Senewebnews – Seneweb.com