Senegal is betting its economic future on a sweeping digital transformation, even as fiscal pressures mount and skeptics question whether the country can afford its ambition.
A few years ago, the word “numerique” — French for digital — barely resonated beyond policy circles in Senegal. Today, it defines the country’s economic conversation.
From mobile money payments in Dakar’s markets to government plans for artificial intelligence, digital has moved from abstraction to necessity. It is now central to President Bassirou Diomaye Faye’s economic vision — and a test of whether Senegal can leapfrog into a tech-driven future.
At the heart of this transformation is the “New Deal Technologique”, a national strategy designed to turn Senegal into a digital hub by 2034 and lift the sector’s contribution to GDP to 15%, from its current single-digit level.
Officials say the difference between past failures and present optimism lies in timing. Earlier attempts to digitize the economy faltered, largely because infrastructure and public readiness were insufficient. This time, the groundwork appears firmer.
Internet penetration has surged. Fourth-generation (4G) coverage now reaches 98% of the population, while 5G stands at 39%. Mobile penetration has climbed to 131%, with smartphones accounting for 65% of usage, according to data from the Telecommunications and Postal Regulatory Authority (ARTP) and the National Agency for Statistics and Demography (ANSD).
In practical terms, digitalization has already reshaped everyday life. Financial transactions — once cash-dominated — are increasingly conducted electronically, making mobile money the gateway into the broader digital economy.
Yet beneath the optimism lies a more complex question: can Senegal finance this transformation without destabilizing its macroeconomic foundations?
A bold blueprint meets fiscal reality
The New Deal Technologique is built around four pillars: digital sovereignty, the digitization of public services, the development of the digital economy, and the positioning of Senegal as a leading exporter of digital services in Africa. It is, by design, ambitious.
The government plans to digitize 90% of public services by 2034, reduce reliance on foreign technologies, expand connectivity, and integrate emerging technologies, such as artificial intelligence, into the economy.
Over the first phase, from 2025 to 2029, authorities intend to invest approximately $1.7bn across 12 priority programmes and 50 flagship projects. These include training 100,000 young people in digital skills, creating more than 500 startups, and pushing 5G coverage towards 95%.
Proponents argue the returns could be transformative. The programme is expected to generate more than $2bn within its first five years and create up to 300,000 jobs — a critical objective in a country where unemployment reached 23.3% in 2025.
For President Faye, who rode to power on strong youth support in March 2024, the stakes are particularly high. Senegal’s demographic profile makes digital policy not just an economic strategy, but a political imperative.
Roughly 75% of the population is under 35, according to the latest census (RGPH-5 2023). Half are under 19, and nearly 40% are below 15. This youth bulge represents both an opportunity and a risk: a workforce that could drive innovation — or a generation facing unemployment and frustration.
“We understand why the government is so focused on projects like the New Deal Technologique, which is mostly oriented towards young people. President Faye got massive support from the youth, so he needs to deliver for them.
He needs to cater to their needs irrespective of budgetary pressure,” said Malick Thioub, project director at the Dakar-based Center for Information Science and Technology Studies (CESTI).
But the fiscal backdrop complicates the narrative
Senegal’s debt-to-GDP ratio has climbed above 90%, well beyond the 70% threshold set by the West African Economic and Monetary Union (WAEMU). At the same time, the country is undergoing structural adjustments to ease budgetary pressures.
“Senegal is battling a severe budget crisis currently. A structural adjustment is underway to reduce funds allocated to key sectors, in view of easing the pressure,” Thioub said.
“I am not against the New Deal Technologique. It is an ambitious project, but we are living from hand to mouth as a country currently. Is it an absolute priority?”
This tension — between long-term ambition and short-term constraints — sits at the core of Senegal’s digital gamble.
The government appears undeterred.
Officials point to recent macroeconomic improvements, including 10.2% growth last year and a 4% reduction in the budget deficit, driven largely by new oil and gas production.
Senegal joined the ranks of oil-producing nations in June 2024, with the Sangomar field delivering 100,000 barrels per day. Gas production from the Grand Tortue Ahmeyim (GTA) project is also contributing to revenue expectations.
“I believe the government is exercising its faith, based on recent oil and gas achievements and the predictions so far. Despite criticisms, officials feel the digital project falls within their financial capacity and that there is no cause for concern,” Thioub added.
Still, funding remains a key concern
Authorities are exploring new revenue streams, including increased taxation of the digital financial services sector. Mobile money — which already accounts for more than 5% of GDP — is under consideration for a tax rate between 0.5% and 2%.
The government aims to raise around 220bn FCFA ($400mn) from this sector between 2025 and 2028, though such measures risk dampening growth in one of the economy’s most dynamic segments.
