The latest data from the UNCTAD’s World Investment Report 2026 highlights a dramatic 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: US$1,846 billion; 2021: $2,588 billion; 2022: US$2,929 billion; 2023: US$4,790 billion; 2024: US$3,319 billion; and 2025: only US$337 million.
Between 2020 and 2024, Senegal attracted US$15,472 billion in FDI, averaging US$3.094 billion annually. The country had never seen such a level of foreign investment before. This performance is mainly explained by the massive investments made in major oil and gas projects, notably Sangomar and Greater Tortue Ahmeyim (GTA), which required significant spending on construction, equipment, and infrastructure.
In 2025, FDI flows dropped to US$337 million, a decrease of nearly 90% compared to 2024. This shift marks the end of an exceptional investment cycle.
According to Professor Amath Ndiaye, a prominent Senegalese economist, this trend is primarily explained by a structural phenomenon. He explained: “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 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 programme 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 may have delayed or discouraged some foreign investment projects.
“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.
“It is urgent to implement a credible budget recovery programme, restructure public debt to restore sustainability, and conclude a new agreement with the IMF. These three levers are complementary: they will help restore investor confidence, reduce pressures on public finances, facilitate access to external financing, and create conditions for a sustainable return of foreign direct investments,” said Prof Ndiaye who has been teaching at the Faculty of Economics and Management Sciences at Cheikh Anta Diop University in Dakar since 1987.
PressAfrik