During the CDP Country Consultation, the Government of Senegal provided an update on preparations for graduation from the LDC category and progress toward finalizing its Smooth Transition Strategy (STS) by early 2026. Senegal highlighted strong macroeconomic performance, with robust growth projections and stabilized inflation, while acknowledging growing fiscal constraints and heightened debt vulnerabilities that may affect the implementation of development and transition priorities.
The Government requested continued technical assistance and capacity development to support the completion and effective rollout of the STS and to address key structural and financing challenges. Priority areas of requested support include:
• Fiscal space, debt management, and resource mobilization: Technical assistance to strengthen public financial management, improve domestic revenue mobilization, enhance spending efficiency, and reassess financing strategies in light of elevated debt levels and tightened external financing conditions.
• Structural transformation and industrial development: Advisory and analytical support to accelerate industrialization, strengthen private-sector development and SME resilience, and develop strategic sectors such as fertilizer production and agribusiness, including improvements in production capacity and technology.
• Climate resilience, water management, and agriculture: Support for climate adaptation, flood resilience, and water infrastructure development to enhance agricultural productivity, food security, and rural livelihoods.
• Energy transition: Continued support for renewable energy development and implementation of the Just Energy Transition Partnership (JETP), including measures to reduce energy costs and enhance competitiveness.
• Trade diversification and regional integration: Assistance to prepare for the phasing out of LDC-specific trade preferences, strengthen competitiveness in the context of AfCFTA implementation, and promote export diversification.
• Statistical capacity and monitoring: Capacity building to strengthen data systems, monitoring frameworks, and evidence-based policy formulation in support of STS implementation.