Senegal: The Collapse of Foreign Direct Investment Raises Concerns

Since 2020, Senegal has experienced a rising trajectory of foreign direct investment (FDI), driven notably by the major Sangomar oil project and the Grand Tortue Ahmeyim (GTA) gas project, before a major political shift in March 2024 with the election of Bassirou Diomaye Faye. It is in this context that Professor Amath Ndiaye (FASEG-UCAD) raises the alarm on the latest figures from UNCTAD's World Investment Report 2026. According to this data, FDI inflows rose from $1.846 billion in 2020 to a peak of $4.790 billion in 2023, before falling to $3.319 billion in 2024, then collapsing to just $337 million in 2025 — a drop of more than 90% in one year. This contraction is alarming as it comes after revelations about hidden debt under the former regime and tensions with international creditors, which weighed on investor confidence. For the state, this means less foreign currency and external financing for infrastructure; for local businesses, a slowdown in partnerships. Analytically, two readings combine: on one hand, the logical end of the investment phase of mega oil and gas projects now in production, mechanically reducing capital needs; on the other, a governance and country-risk perception factor, amid a global context of high interest rates and increased investor caution toward emerging markets. The respective weight of each factor remains an open question that only detailed sectoral data could resolve.