AfDB Approves CFA20 Billion to Support Senegal’s Economic Reforms

A major part of the project will modernise tax administration, improve public debt management and increase the efficiency of public spending.

The African Development Bank (AfDB) has approved 20 billion CFA francs in financing for Senegal to strengthen public finance management, increase domestic resource mobilisation and create a stronger environment for private investment. Approved by the Bank's Board of Directors in Abidjan on 17 July 2026, the financing will support Senegal's ongoing economic reform programme, which focuses on improving fiscal sustainability, strengthening economic governance and encouraging private sector-led growth.

The funding will also support the second phase of the Institutional Support Project for Resource Mobilisation and Investment Attractiveness (PAIMRAI), helping the government create the fiscal space needed to finance national development priorities under Senegal Vision 2050 and the National Development Strategy 2025–2029.

Focus on stronger governance and fiscal reforms

A major part of the project will modernise tax administration, improve public debt management and increase the efficiency of public spending. These measures are expected to strengthen government finances while improving transparency and accountability across public institutions.

The programme will also assist the Senegalese authorities in implementing structural reforms following the findings of the Court of Auditors' audit covering the management of public finances between 2019 and 31 March 2024. The reforms are intended to restore confidence in the country's financial management system and reinforce long-term fiscal stability.

Wilfrid Abiola, Head of the African Development Bank Group's Country Office in Senegal, said the financing demonstrates the Bank's commitment to supporting Senegal as it advances economic reforms, strengthens domestic revenue collection and builds the conditions for more resilient, private sector-driven growth.

Private sector and entrepreneurs to benefit

The operation also includes measures to improve Senegal's business environment by promoting entrepreneurship and making the country more attractive to investors. The reforms are expected to strengthen economic activity across different regions while creating better opportunities for businesses to grow.

Special attention will be given to small and medium-sized enterprises (SMEs), as well as businesses led by young entrepreneurs and women, through targeted capacity-building initiatives designed to improve competitiveness and expand access to economic opportunities.

Supporting Senegal's long-term development vision

The project is aligned with Senegal's national economic transformation agenda and the African Development Bank Group's strategic framework built around its Four Cardinal Points. It is also expected to improve the country's access to international capital markets through stronger public debt management and better use of climate finance mechanisms.

By supporting fiscal reforms alongside private sector development, the Bank expects the programme to strengthen economic resilience and help Senegal create a more sustainable foundation for future growth.