The Senegalese government is targeting the country’s diaspora as a primary source of economic funding to address a public debt currently estimated at 119% of GDP. According to a report by A&A Strategy, mobilizing the savings of Senegalese citizens living abroad could generate an additional 600 billion FCFA in the short term, with that potential rising to 1,218 billion FCFA by 2034.
How the diaspora currently impacts the economy
Transfers from the Senegalese diaspora have grown significantly over the last decade, rising from 1,029 billion FCFA in 2013 to 1,982 billion FCFA in 2024. These inflows now represent nearly 11% of the national GDP, a figure that surpasses the 6% contribution from official development assistance in 2024. Despite this volume, the report by Amarou Aw, Pape Cheikh Diack, Jean Bertrand Ousmane Bodian, and Ndeye Fatou Sow indicates that 75% of formal transfers are directed toward household consumption rather than productive investment.
Did You Know? Approximately 45% of the total savings held by the Senegalese diaspora remains in their respective countries of residence, totaling roughly 1,545 billion FCFA in 2024.
Strategic goals for 2034
The A&A Strategy document establishes two specific objectives to shift these financial flows toward national development. The firm aims to increase diaspora investments to 4% of GDP and mobilize an additional 5% of GDP in financial savings by 2034. If successful, these combined efforts would result in 3,311 billion FCFA in cumulative productive transfers, helping the state manage a budget deficit that reached 6.4% of GDP in 2025.
What may happen next
Without new government incentives, the report estimates that productive transfers will remain capped at 975 billion FCFA by 2034. However, the implementation of a proactive strategy could bridge the gap to reach 1,218 billion FCFA in additional funding. Success in this scenario depends on institutional reforms, including strengthened legal security, increased transparency, and the creation of financial instruments that offer competitive returns and protection against currency exchange risks.
Expert Insight: The transition from simple remittance-based support to formal investment hinges on the state’s ability to move beyond sentiment. By providing digital, multi-currency platforms and clear, project-based investment opportunities in sectors like energy and infrastructure, the government may successfully convert savings into tangible economic assets.
Frequently Asked Questions
What is the main obstacle to using diaspora funds for investment?
According to the report, 75% of formal transfers are currently used to cover the daily consumption needs of families, which limits the capital available for productive investment projects.
What is the total estimated savings potential of the diaspora by 2034?
The A&A Strategy study projects that total savings, including those kept abroad and those transferred to Senegal, could reach 7,148 billion FCFA by 2034.
What conditions are necessary to attract these investments?
The cabinet highlights the need for institutional credibility, legal security, transparent fund management, and the development of financial products with competitive returns and reduced transfer fees.
How do you believe the government should prioritize these investments to ensure long-term trust from the diaspora?
