Senegal: the dramatic collapse of foreign investment in 2025 raises concern

Since 2020, Senegal has been one of West Africa's leading destinations for foreign direct investment (FDI), driven by the major Sangomar oil project and the Grand Tortue Ahmeyim (GTA) gas project, which entered production in 2024. This momentum was abruptly interrupted in 2025, against the backdrop of a political transition underway since President Bassirou Diomaye Faye's election in March 2024. According to Prof. Amath Ndiaye (FASEG-UCAD), citing UNCTAD's 2026 World Investment Report, FDI inflows evolved as follows: $1.846 billion in 2020, $2.588 billion in 2021, $2.929 billion in 2022, a peak of $4.790 billion in 2023, then $3.319 billion in 2024, before plunging to just $337 million in 2025 - a drop of more than 89% in one year, described as a "spectacular reversal" that "raises concern". This collapse deprives the economy of a crucial source of external financing, at a time when the country is already dealing with public debt revised upward since 2024 and more constrained access to financial markets. Two hypotheses arise, absent further detail: a mechanical end-of-cycle effect as major energy projects shift from capital-intensive construction to a less capital-hungry operational phase; or heightened investor caution linked to the political and fiscal climate since 2024. Only a sector-by-sector analysis could settle the matter.