Keypoints:
- Construction orders drop sharply in Senegal
- Unpaid government debts halt major projects
- Workforce downsized amid economic strain
A YEAR after President Bassirou Diomaye Faye swept into office promising economic independence and sweeping reform, Senegal’s construction industry is buckling under the weight of broken promises, unpaid government bills, and shrinking project pipelines.
At a unit of the Consortium of Senegalese Enterprises (CSE) in Dakar, idle machines sit silent — a symbol of the slowdown choking the sector. ‘Nothing is working,’ a CSE worker, requesting anonymity, told AFP as he gestured toward dormant drilling and milling equipment.
CSE, once a cornerstone in Senegal’s infrastructure development, has seen its order book plummet from CFA140bn ($231 million) to just CFA20bn ($33 million), according to trade union representative Souleymane Camara. The company has been forced to slash its workforce by nearly half, from 3,000 to 1,700 employees.
Sweeping promises, stalled projects
President Faye assumed office in April 2024 on a wave of popular support, vowing to steer Senegal away from dependence on foreign
influence, particularly France, and reclaim national economic sovereignty.
Identifying as a pan-African leftist, Faye’s message resonated with a population weary from economic inequality and the lingering scars of political unrest under former president Macky Sall. Despite major infrastructure investments during Sall’s 12-year tenure — including a high-speed train, highways, hospitals, and a new city — much of the work went to foreign fir
ms.
Senegal’s 2024 emergence as an oil and gas producer raised expectations of change. However, for local businesses and workers in the construction sector, the anticipated boom has yet to materialise.
Debt pile-up and worksite shutdowns
‘Construction site shutdowns have impacted the industry,’ building company owner Kader Ndiaye told AFP, highlighting unpaid government bills as a central issue. The National Statistics Agency reported a 2.6 percent fall in construction turnover last year compared to 2023.
The situation has been compounded by a state-initiated land audit, which led to the suspension or halting of numerous projects, particularly in Dakar — a hotspot for real estate activity. Local media estimate the government’s debt to construction firms exceeds CFA300bn ($494 million).
While Ndiaye acknowledged the government’s intention to increase transparency, he stressed the cost to livelihoods. ‘Because of these halted projects, we have been forced to lay off workers,’ he said, noting that authorities recently pledged to fast-track overdue payments to businesses.
Fiscal reality bites
In late January, President Faye painted a grim picture of national finances, accusing the previous administration of manipulating key indicators. A subsequent report by the Court of Auditors revealed that public debt had reached 99.67 percent of GDP — far higher than previously declared — and revised Senegal’s 2023 budget deficit from 4.9 percent to 12.3 percent.
Following this disclosure, credit ratings agencies Moody’s and Standard & Poor’s downgraded Senegal’s creditworthiness, further straining the country’s financial position.
Prime Minister Ousmane Sonko has since unveiled a suite of austerity measures, including a civil service audit and plans to consolidate costly public institutions.
Bleak outlook for financing
Economist Ahmadou Aly Mbaye, speaking to AFP, said Senegal now faces ‘a very difficult situation’ due to a global slowdown in development financing.
‘Every component — domestic budgetary resources, foreign investment, development aid, and private borrowing — is under pressure,’ said Mbaye, a professor at the University of Dakar. ‘Senegal, once a darling of donors, has always lived beyond its means. And the credit downgrades will only make things harder.’
As construction firms scale back and jobs disappear, the human cost of Senegal’s fiscal woes is becoming painfully clear — and the optimism that fuelled Faye’s rise now hangs in the balance.
