COVID-19 and its Impact on Senegal’s Macroeconomic Structure

The document analyzes Senegal's macroeconomic trajectory from the 1970s through the COVID-19 pandemic. It highlights how the pandemic caused a significant drop in GDP growth in 2020, severely impacting sectors such as tourism, transport, and agriculture. To counter this, the Senegalese government and the Central Bank of West African States (BCEAO) deployed a combination of stimulus packages, tax rebates, and liquidity measures. These interventions are credited with achieving a 1.3% real GDP growth in 2020, outperforming initial IMF forecasts of -0.4%. The paper also discusses the role of foreign direct investment, the potential of future oil and gas production, and the long-term goals of the Emerging Senegal Plan.

• The COVID-19 pandemic caused a sharp economic downturn in Senegal, resulting in a 1.3% real GDP growth in 2020, which was a six percentage point drop compared to previous trends and significantly lower than the 6% average growth seen between 2014 and 2019.
• The pandemic severely impacted specific economic drivers, with the World Bank projecting major declines in tourism (-60%), exports (-16%), imports (-18%), and transport (-9%).
• The labor market suffered significantly, with 40% of the working population affected—particularly those in the hotel and restaurant industries—leading to unemployment rates of 15% in 2020 and 20% in 2021.
• Senegal implemented extensive fiscal measures, including a $100 million post-COVID development plan, a $330 million fund for partial tax debt forgiveness, and $200 million in support for the hotel, agriculture, transport, and infrastructure sectors.
• The Central Bank of West African States (BCEAO) supported the economy by increasing local bank financial resources from CFA 340 billion to CFA 4,750 billion and issuing COVID-19 bonds at a record low rate of 2.5% to boost liquidity.
• Public debt increased due to the pandemic, with the debt-to-GDP ratio rising to 68.6% in 2020 from 61.9% at the start of the year, and total public debt expected to reach $9.8 billion in 2021.
• The discovery of petroleum deposits (SNE and FAN) and natural gas reserves (including the St Louis block) positions Senegal as a potential producer, with gas production forecast for 2021 and oil between 2021 and 2023.

APA

Ndiaye, M. F. (n.d.). COVID-19 and its Impact on Senegal’s Macroeconomic Structure. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2021/10/CoMPRA-08-ndiaye.pdf

Chicago

Ndiaye, Mouhamadou Fallilou. COVID-19 and its Impact on Senegal’s Macroeconomic Structure. South African Institute of International Affairs, n.d. https://saiia.org.za/wp-content/uploads/2021/10/CoMPRA-08-ndiaye.pdf.

Wikipedia

{{cite report |last1=Ndiaye |first1=Mouhamadou Fallilou |title=COVID-19 and its Impact on Senegal’s Macroeconomic Structure |publisher=South African Institute of International Affairs |url=https://saiia.org.za/wp-content/uploads/2021/10/CoMPRA-08-ndiaye.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ndiayendcovid19, author = {Ndiaye, Mouhamadou Fallilou}, title = {{COVID-19 and its Impact on Senegal’s Macroeconomic Structure}}, institution = {South African Institute of International Affairs}, url = {https://saiia.org.za/wp-content/uploads/2021/10/CoMPRA-08-ndiaye.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }