According to Al Aminou Lo, the primary area requiring substantial adjustments is public spending. As part of the review of the five-year plan, reforms will be implemented to drastically reduce the state’s expenditures to more reasonable levels. In this regard, the Secretary-General of the Government noted an excessive number of government agencies. “There will be agency closures,” he announced.
Citing tax exemptions as an example, the minister disclosed that Senegal’s exemptions were nearing 1,000 billion CFA francs, necessitating a review along with subsidies, particularly in the electricity, water, and fuel sectors. “These subsidies should be directed toward those who genuinely need them, especially vulnerable populations,” he stated. Moreover, these subsidies are set to be abolished.
Regarding salaries, the minister emphasised the need for a reassessment, stating, “Those with high salaries will be affected.” The minister further pointed out that Ministers, heads of parastatals and other top government officials will have their salaries reduced.
In a separate development, a funding pact of 1000 billion FCFA was launched to support small and medium -sized enterprises (SMEs) and small and medium -sized industries (PMI) in Senegal. This initiative was announced last Tuesday during a preparatory meeting of the 4th SME forum, scheduled for February 2025. The objective is to facilitate access to financing, a major obstacle for these companies, and to strengthen their competitiveness.
The massive financing program has been developed in collaboration with financial institutions, such as local banks, and aims to increase credits intended for SMEs-PMIs. It is expected to reach 3000 billion FCFA by 2028, with the application of nine strategic reforms.
Authorities and financial institutions, including Ecobank Senegal, indicated their commitment to support this program to stimulate innovation, job creation and economic growth. The program is based on a single financing window, simplifying procedures for businesses.
Meanwhile, the media in Senegal yesterday reported that doctors and nurses were on a two-day strike over low wages and lack of enough personnel in hospitals and health centers since 2020.
