Prof. Amath Ndiaye, FASEG-UCAD
The latest data from the UNCTAD’s World Investment Report 2026 highlights a spectacular reversal of foreign direct investments (FDI) in Senegal. After several years of exceptionally high flows, FDI sharply contracted in 2025.
According to UNCTAD, FDI inflows were:
– 2020: $1.846 billion;
– 2021: $2.588 billion;
– 2022: $2.929 billion;
– 2023: $4.790 billion;
– 2024: $3.319 billion;
– 2025: only $337 million.
Between 2020 and 2024, Senegal attracted a total of $15.472 billion in FDI, with an average annual of $3.094 billion. The country had never experienced such a high level of foreign investments. This performance is mainly explained by the massive investments in major oil and gas projects, notably Sangomar and Greater Tortue Ahmeyim (GTA), which required significant construction, equipment, and infrastructure expenses.
In 2025, FDI flows dropped to $337 million, a decrease of nearly 90% compared to 2024. This shift marks the end of an exceptional investment cycle.
This evolution is primarily explained by a structural phenomenon. The major oil and gas projects have now entered the production phase. With construction investments largely completed, the need for new foreign capital naturally decreases. Such a decline was therefore partly predictable.
However, this explanation probably does not fully account for the extent of the observed drop. This decline also occurs in a context marked by the revelation of significant undisclosed public debt commitments between 2019 and 2024. This situation led to a crisis of confidence, the suspension of the program with the IMF, and a deterioration in Senegal’s sovereign risk perception. Although UNCTAD statistics do not establish a direct causal relationship, it is plausible that this context contributed to delaying or discouraging some foreign investment projects.
The evolution of FDI reminds us of an essential reality: investments related to natural resources, no matter how significant, are often temporary. They peak during the project development phase before decreasing when production begins.
The real challenge now is to attract more diversified and sustainable investments. Senegal will need to enhance its attractiveness in manufacturing, agro-industry, digital services, renewable energies, logistics, tourism, and infrastructure.
Faced with this situation, it is urgent to implement a credible budget recovery program, restructure public debt to restore sustainability, and conclude a new agreement with the IMF. These three levers are complementary: they will restore investor confidence, reduce pressures on public finances, facilitate access to external financing, and create the conditions for a sustainable return of foreign direct investments.
Prof. Amath Ndiaye, FASEG-UCAD
