Senegal is fast emerging as one of West Africa’s most attractive destinations for foreign direct investment, leveraging political stability, strategic infrastructure projects, and newfound energy resources to reshape its economic trajectory.
The nation of 19 million, located on Africa’s westernmost tip, has seen FDI nearly triple in four years, from $1.06 billion in 2019 to $2.64 billion in 2023, according to the latest World Investment Report by UNCTAD.
World Bank data also shows that FDI as a share of GDP climbed from 4.6% to 15.5% in the same period.
While the 2024 presidential election was not without controversy, including a delay and public unrest, the peaceful transition of power from Macky Sall to Bassirou Diomaye Faye, Senegal’s youngest president, reinforced the country’s democratic credentials.
“Senegal has low political risk. There are no civil wars or major conflicts,” said Abdoulaye Sambou, managing director at advisory firm Worldinnova.
“There has recently been a peaceful democratic transition, which makes Senegal a compelling investment case compared to its neighbours.”
That stability has underpinned a wave of investment focused primarily on oil and gas, and to a lesser extent, infrastructure, mining, services, energy, and agriculture.
Offshore production at the Greater Tortue Ahmeyim gas field, operated by BP and Kosmos Energy, and the Sangomar oil field, led by Woodside Energy, both began operations in 2024.
These projects are expected to significantly boost the country’s exports and government revenues.
The International Monetary Fund projects that Senegal’s GDP will grow by 6% in 2024 and accelerate to 8.8% in 2025.
Positioned as a gateway to the 15-nation ECOWAS market of over 400 million people, Senegal is bolstering its role as a regional logistics hub.
The Port of Dakar, one of the continent’s deepest natural harbors, will be complemented by the $1.2 billion Ndayane Port project, financed largely by a $1.1 billion investment from UAE-based DP World.
Expected to be operational by 2028, the new port could raise GDP by up to 3% and add as much as $15 billion in trade value by 2035.
Projects such as the Blaise Diagne International Airport, Dakar Regional Express Train, and Diamniadio Industrial Park have also improved regional connectivity and lowered costs for foreign firms.
The discovery of offshore oil and gas reserves in 2014 and 2015 fundamentally altered Senegal’s economic outlook.
“Senegal offers significant opportunities in oil and gas, as well as renewable energy,” said Sambou.
“There’s been strong investment, but more is needed in refining, storage and downstream infrastructure.”
Bakary Sega Bathily, general manager at national investment promotion agency APIX, said Senegal’s energy strategy aims to strike a balance.
“We are committed to becoming a key energy player by combining our oil and gas development with renewables. We aim for 40% clean energy in our national mix by 2030.”
Efforts to diversify the investment portfolio beyond hydrocarbons have centered on reforms aimed at improving the ease of doing business.
These include digitizing company registration, enhancing investor protections, and facilitating public-private partnerships.
“The Sall administration worked hard to facilitate the entrance of foreign investors through a ‘single window’ system to establish the wider Dakar region as an alternative for business outsourcing and a business centre for dealing with Francophone Africa, mainly in competition with Casablanca,” said Mark Bohlund, senior credit analyst at REDD Intelligence.
Digital transformation is another emerging priority.
In February 2025, the government launched the New Deal Technologique initiative to modernize public services and promote innovation in digital sectors.
“Senegal aims to become a regional technological hub in West Africa by attracting investments in the digital economy, fintechs and technological innovation,” said Bathily.
“Our recent partnerships with Silicon Valley-based organisations and US government initiative Prosper Africa open up unprecedented opportunities for technology companies.”
Still, persistent challenges remain.
While Senegal operates under the OHADA legal framework, which unifies business law across much of West Africa, bureaucratic bottlenecks, especially related to permitting, land registration, and customs, continue to delay project implementation.
“Although the country is very regulated, the application of the regulation and deadlines are not always predictable,” said Mouhamed Kebe, managing partner at Dakar-based law firm GENI & KEBE.
“Also, from a legal point of view, the lack of databases containing all case law means that precedents cannot always be relied upon.”
Other constraints include limited access to local financing, gaps in dispute resolution, and shortages of skilled labor in high-demand sectors such as technology and manufacturing.
The country’s fiscal management has also drawn scrutiny.
In February 2025, Senegal’s Court of Auditors revealed that the previous administration significantly underreported public debt and deficits.
This disclosure prompted S&P Global Ratings to downgrade Senegal’s sovereign credit rating from B+ to B, citing immediate liquidity pressures.
Yet despite these hurdles, Senegal’s investment narrative remains one of potential and momentum.
Backed by democratic resilience, energy wealth, and bold reforms, the country is positioning itself as a rising economic force in West Africa.
