French politician Jacques Chirac once said that democracy is a luxury Africa can ill afford. But last year, the people of Senegal made clear in a free and fair presidential election that democracy can prevail in Africa.
Almost a year since his election, President Bassirou Diomaye Faye now has a clear mandate to carry out reforms, following his party’s resounding victory in November’s legislative elections. He must now turn his focus to continuing along the democratic track, lifting the constraints associated with credit rationing and leveraging commodity-based industrialization, and setting Senegal up for robust economic growth and welfare improvements.
By the end of the presidential election early last year, outgoing President Macky Sall—who had attempted to postpone the election, a move that led to deadly protests—congratulated Faye, calling the elections the “victory of Senegalese democracy.” Such a victory is important for Senegal, as democracy (contrary to what Chirac suggested) is not a luxury but a necessity for national reconciliation, the legitimacy of national institutions, and, ultimately, shared prosperity.
The presidential election was a victory not only for Senegal’s democracy but for democracy globally, rekindling confidence internationally in a system of government that has come under strain in Africa, especially in West Africa, where military coups have surged. That boost in confidence comes as people in even Western democracies grow dissatisfied with how democracy works in their countries. For example, an Ipsos poll in 2023 conducted across seven Western countries (including France, the United Kingdom, and the United States) found that most respondents believed the economy is rigged to the advantage of the rich and powerful and that “radical change” is needed to improve the political system.
In that poll, 70 percent of American respondents and 73 percent of French respondents—whose countries are seeing rising political polarization—said they believe that the state of democracy has declined in their countries in recent years. Moreover, the 2024 Economist Intelligence Unit’s Democracy Index ranked both the United States and France as “flawed democracies.”
While massive amounts of campaign financing are considered a prerequisite (and perhaps the most important attribute) for winning an election, Senegal’s presidential election was a reminder that conviction and ideas still matter. Faye—who secured 54.28 percent of the vote as an independent after his party was banned—defeated candidates who had far more financial firepower and ample time to rally support on their campaign trails. Despite being released from prison just a little over a week before the presidential election, Faye’s message and program were in sync with people’s aspirations and garnered broad-based support at the ballot box.
Faye promised to improve the living conditions in Senegal. For too long, the country has contended with widespread poverty, especially in rural areas where as many as 57 percent of people are considered poor. Furthermore, Senegalese youth continue to face high unemployment. The informal economy—which is generally associated with low productivity and endemic poverty—has become a major piece of the economy, accounting for nearly 37 percent of Senegal’s gross domestic product (GDP). Recently, the rising cost of living and income inequality have exacerbated Senegal’s socioeconomic challenges. Inflation has proven particularly sticky and is eroding household purchasing power. Amid these challenges, increasing numbers of Senegalese migrants are risking their lives to sail the seas en route to Europe in search of better opportunities.
Faye has also promised to fight corruption, promote good governance, and strengthen the rule of law and democratic institutions. For years, a “strongman” culture across Africa has enabled collusion between politicians and multinational companies, which has weakened agency and popular ownership of policies to undermine economic opportunity and exacerbate income inequality. This is especially the case in countries rich in natural resources, which are more vulnerable to corruption due to the significant revenues generated by resource exploitation, management, and trade.
Departing from the norm, Faye declared his assets in the lead-up to the presidential election. Upon becoming president, he announced he would conduct an audit of Senegal’s oil, gas, and mining sectors to rebalance them in the national interest. These moves establish baselines against which the people of Senegal can assess the president’s work toward tackling corruption and enhancing efficiency in the allocation of resources, with an ultimate goal of achieving more inclusive growth and shared prosperity in the country.
These are important steps in the right direction. Improving welfare for the Senegalese people requires a fundamental transformation of the economy. Expectations in Senegal are high following the discovery of major oil and gas reserves a few years ago. There are similarly high expectations for Africa as a whole. Despite its immense natural-resource wealth, the continent has, over the last several decades, become the world’s epicenter of poverty: Africa has the largest share of extreme poverty rates globally and is home to twenty-three of the world’s poorest twenty-eight countries.
This starkly contrasts with Nordic countries and the Gulf states, which have successfully leveraged their natural-resource wealth to boost prosperity in a span of a few decades. This contrast is partly due to the fact that rather than processing its own natural resources, Africa instead largely exports them overseas, increasing the prevalence of macroeconomic shocks and the risk of poor governance—both of which adversely affect the investment climate and heighten growth volatility.
But Senegal, arguably a latecomer to the hydrocarbon world, can learn from other African countries’ management (and mismanagement) of natural resources.
Considering the experience of the most successful oil-rich countries, Faye should look to alter the structure of value chains to retain more production and refining processes locally. If Senegal can nurture these industries, it will set up the country for commodity-based industrialization that expands employment opportunities, enhances technology transfer, and accelerates integration into the global economy. This will help Senegal avoid a deterioration in commodity terms of trade, which is fueling internal and external imbalances. Last October, Moody’s downgraded Senegal’s long-term credit rating, citing a significantly weaker fiscal and debt position.
There are mechanisms and conditions in Africa that would help Faye in localizing natural-resource production and refining processes. The African Continental Free Trade Area’s rules of origin (which prioritize made-in-Africa goods) should help catalyze the production of intermediate and manufactured goods and the development of robust regional value chains. The scale of the continental market should help Senegal offset the potential losses of international trade associated with expanding protectionist barriers in a geopolitically fractured world.
The rise of globally competitive African businesses necessitates large-scale, long-term investment, so reforming the banking system will also be important. Affordable patient capital is particularly critical in Senegal, where domestic credit to the private sector remains very low (31.3 percent of GDP, versus 126.8 percent in Norway) and overwhelmingly short term. According to a report by the Central Bank of West African States, more than 80 percent of loans issued in 2022 had a maturity within less than two years.
Faye has an opportunity to achieve the systemic change he promised. Democracy has provided a path to greater ownership of policies that equalize access to opportunities and raise living standards in Senegal and more generally across Africa, a continent rich in resources and where the people are no longer prepared to accept intergenerational poverty as an inevitability. But democracy must not be regarded as an end; it must be seen as a means to greater security and prosperity. Thus, Faye must actively use the opportunity provided by the rekindling flame of democracy to usher in a new era—one that yields huge democratic and economic dividends.
Hippolyte Fofack, a former chief economist at the African Export-Import Bank, is a fellow with the Sustainable Development Solutions Network at Columbia University, a research associate at Harvard University, a distinguished fellow at the Global Federation of Competitiveness Councils, and a fellow at the African Academy of Sciences.
The Africa Center works to promote dynamic geopolitical partnerships with African states and to redirect US and European policy priorities toward strengthening security and bolstering economic growth and prosperity on the continent.
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Image: Senegal's president Bassirou Diomaye Faye poses for a group photo during the opening of the 38th Ordinary Session of the Heads of State and Government of the African Union at the African Union Commission headquarters in Addis Ababa, Ethiopia, on February 15, 2025. Photo via REUTERS/Tiksa Negeri.