SENEGAL · MARKETS
Key Facts
- —The country Senegal is a West African coastal economy that shares the CFA franc, pegged to the euro, with seven other countries.
- —What happened On Monday 12 October, Senegal’s statistics agency, ANSD, said Senegal industrial output fell 2.2% in August 2026 from August 2025.
- —The numbers Extractive output fell 5.8% and manufacturing 4.5%, while oil and gas extraction rose 4.5% and electricity and gas jumped 27.0%.
- —The year so far Over the first eight months of 2026, industrial output was 0.2% below the same period of 2025.
- —Prices Consumer prices rose 1.0% from a year earlier in September, ANSD said on Friday 9 October, after 1.2% in August.
- —Still open IMF staff agreed a US$2.2 billion loan with Dakar on 1 September, but it still needs board approval, which Senegal is targeting for November.
Senegal industrial output fell 2.2% in August from a year earlier, the national statistics agency, ANSD, said on Monday 12 October. Output fell in oil refining, chemicals and mining, while oil and gas extraction and power generation grew.
For US investors in Senegal’s dollar bonds, the data are an early read on growth as Dakar seeks an International Monetary Fund loan. Weaker industry can mean less tax revenue for a government that has said it will seek a treatment of its debt.
Where Senegal’s Industry Lost Ground in August
The Agence nationale de la Statistique et de la Démographie (ANSD) is Senegal’s official statistics office, led by Director General Abdou Diouf. Its monthly index tracks the volume of output at factories, mines, power plants and water utilities.
Within Senegal industrial output, extractive industries, which cover mining as well as oil and gas, produced 5.8% less than in August 2025. Other mined products fell 28.9%, and metal ores fell 3.0%.
Manufacturing output dropped 4.5%, pulled down by chemicals and pharmaceuticals, down 32.7%, and oil refining, down 22.6%. Tobacco products slumped 78.7%, and paper and cardboard slipped 9.2%.
Some industries still grew from a year earlier. Metal products and foundries rose 87.1%, drinks 20.9% and food products 4.6%.
Oil, Gas and Power Moved the Other Way
Oil and gas extraction rose 4.5% from August 2025, and electricity and gas production jumped 27.0%. Water supply rose 8.9%, while waste collection and treatment grew 9.5%.
Without hydrocarbons, Senegal industrial output fell 3.9% from a year earlier, a steeper drop than the headline figure. The gap shows how much oil and gas now support the index.
Over the first eight months of 2026, Senegal industrial output was 0.2% lower than a year earlier, but 1.4% higher without hydrocarbons. Oil and gas extraction was 3.0% lower over those eight months, while manufacturing was 4.7% higher.
Cotton ginning, which ANSD tracks separately, had no activity in August because of the crop cycle. It was still up 20.5% over the first eight months.
Prices Stay Calm After a Fuel Price Rise
The production figures follow consumer price data that ANSD released on Friday 9 October. Prices rose 1.0% in September from a year earlier, down from 1.2% in August.
From August to September alone, prices rose 1.1%, led by food, which was up 2.0% as vegetable supplies fell in the rainy season. Fresh leafy and stem vegetables cost 23.9% more than a month earlier.
Fuel prices rose 4.4% in the month, following an adjustment of pump prices. Diesel at regulated stations rose from 719 CFA francs (about US$1.23) to 755 CFA francs (about US$1.29) a litre.
Premium petrol went from 956 CFA francs (about US$1.63) to 990 CFA francs (about US$1.69) a litre. Those conversions use the rate of 12 October 2026, about 585.5 to the US dollar.
Core inflation, which strips out energy and fresh food, was 1.0% over the year. Imported goods cost 0.2% less than a year earlier, while local products cost 1.4% more.
The IMF Loan and Senegal’s Debt
The International Monetary Fund (IMF) is the Washington-based lender to governments in financial trouble, funded by member countries including the United States. On Tuesday 1 September, IMF staff reached a deal with Senegal on a 36-month loan of about US$2.2 billion.
The deal, under the fund’s Extended Credit Facility for low-income countries, still needs approval by the IMF board, APA News reported from Dakar. The fund also asked for corrective steps over earlier misreported data and for financing assurances from Senegal’s partners.
Dakar also said it would ask for a treatment of its debt to restore its sustainability, according to APA. That makes Senegal’s growth and debt outlook more than a routine matter for the investors who lend to it.
At an online meeting with foreign creditors on Tuesday 6 October, Senegal set November 2026 as its target for IMF board approval, Le Soleil reported. The state-owned Dakar daily said deals in principle with official lenders and a bondholder group are planned for December.
What It Means for US Readers
For US investors in Senegal’s Eurobonds, the bonds it sells to foreign investors, Senegal industrial output signals future tax revenue and repayment capacity. A 2.2% drop is modest, but it comes while Dakar seeks a debt treatment.
Rising oil and gas output matters to foreign energy companies in Senegal and to the government’s export income. The 22.6% fall in refining means less locally made fuel came off the line in August.
The Central Bank of West African States (BCEAO), based in Dakar, issues the CFA franc at a fixed 655.957 per euro. For US investors, that turns currency risk into a bet on the euro against the dollar.
Senegal’s 1.2% inflation in August was just below the 1.3% rate for the eight-country West African monetary union as a whole, ANSD’s figures show. Steady prices also matter to US companies and aid groups that pay staff and suppliers in CFA francs.
What Is Not Known
ANSD does not name the companies behind the falls in refining, chemicals or mined products. It also does not say whether August was a one-off or the start of a longer slowdown.
The index behind Senegal industrial output rests on answers from 89.2% of surveyed firms, so ANSD may revise it. It already revised its July figures, and the September index is due within 42 days of the month’s end.
The IMF has not published a date for its board vote on the US$2.2 billion loan, although Senegal is aiming for November. The ANSD note also does not split the 4.5% rise in hydrocarbons between oil and gas.
More: Senegal news in English, every day from The Rio Times.
Frequently Asked Questions
How much did Senegal industrial output fall in August?
ANSD said on Monday 12 October that industrial production fell 2.2% in August 2026 from August 2025. Excluding oil and gas, the drop was 3.9%.
Which sectors fell and which grew?
Extractive output fell 5.8% and manufacturing 4.5%, led by chemicals and refining. Oil and gas extraction rose 4.5% and electricity and gas production rose 27.0%.
What is Senegal’s inflation rate?
Consumer prices rose 1.0% in September 2026 from a year earlier, after 1.2% in August, ANSD said on 9 October. Month on month, prices rose 1.1%.
Why does Senegal industrial output matter to US investors?
Senegal is seeking a US$2.2 billion IMF loan and has said it will ask for a treatment of its debt. Output data help bondholders judge how fast the economy and tax revenue can grow.
What currency does Senegal use?
Senegal uses the West African CFA franc, which the BCEAO issues at a fixed rate of 655.957 francs per euro. On 12 October 2026, the rate was about 585.5 to the US dollar.
Sources: ANSD, Indice harmonisé de la production industrielle, août 2026, 12 October 2026; ANSD, IHPI indicator page (posted 12 October 2026), 12 October 2026; ANSD, Indice harmonisé des prix à la consommation, septembre 2026, 9 October 2026; APA News (Dakar), 1 September 2026; International Monetary Fund, press release 26/282, 1 September 2026; Le Soleil (Dakar), 7 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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