Located in West Africa, Senegal is a member of the West African Economic and Monetary Union (WAEMU) and shares borders with Mauritania, Mali, Guinea, Guinea-Bissau, and The Gambia. Politically, Senegal stands out as one of Africa's pillars of stability, having experienced three peaceful transitions since its 1960 independence. Economically, 2022 was a challenging year due to global events, notably the COVID-19 pandemic, the war in Ukraine and regional conflicts leading to slower GDP growth and inflationary pressures. In 2014, Senegal initiated the Plan Sénégal Émergent (PSE), which is a strategic blueprint for economic and social policy built on four key pillars: (i) structural transformation of the economy and growth, (ii) human capital, social protection, and sustainable development, (iii) governance, strong institutions, peace, and security, and (iv) promoting financing. In June 2023, the Executive Board approved a new financing arrangement under the Extended Credit Facility/Extended Fund Facility (ECF/EFF) with the objective to support the government’s efforts to maintain debt at sustainable levels through a growth-friendly fiscal consolidation strategy, enhance governance, and promote inclusive growth. Additionally, the Board also approved a Resilience and Sustainability Facility (RSF) to address long-term challenges posed by climate change. As Senegal navigates these challenges, its primary focus remains on fostering sustainable growth, enhancing resilience, and ensuring socio-economic advancements for its population.
