Senegal Targets Online Gambling, Tobacco, and Mobile Money in Sweeping Austerity Drive

Confronted with public debt surpassing 119% of GDP, Senegal’s government is set to sharply raise taxes on online gambling, tobacco, and mobile money transactions as part of a new austerity program aimed at achieving fiscal independence. The measures form the backbone of a three-year National Economic and Social Recovery Plan, presented on August 1 by Prime Minister Ousmane Sonko and President Bassirou Diomaye Faye, which pointedly rejects reliance on International Monetary Fund assistance.

The Prime Minister unveiled the strategy at Dakar’s Grand Théâtre alongside the president, before an audience of legislators, diplomats, and civil society representatives. Approved by the Council of Ministers on July 30, 2025, the plan focuses on revenue generation from sectors the government has labeled “high-margin or under-regulated.”

These tax hikes are central to Senegal’s long-term “Sénégal 2050” vision, which seeks to cut external borrowing from 14% to just 3% of GDP by 2027. Officials have identified the booming online gambling industry as a key domestic revenue source. “We choose self-financing reform over perpetual debt,” declared Prime Minister Sonko, portraying the plan as a decisive step away from economic dependency.

The austerity program extends beyond gambling taxes. It calls for public sector downsizing through streamlined payrolls and reduced expenditures, monetization of underused state assets including decommissioned French military bases, the introduction of new visa fees for non-African visitors, and a national savings drive aimed at mobilizing citizen contributions to strengthen reserves.

Although the government projects these measures will stabilize public finances by 2027, some economists warn that the plan’s success will depend on strict enforcement. “Revenue gains from gambling taxes could backfire if higher rates fuel black-market operations. Transparent enforcement and anti-corruption safeguards are non-negotiable,” cautioned Dakar-based economist Mbaye Diallo.

The online gambling sector, which generated over $200 million in revenue last year, now faces major restructuring as Senegal joins other West African nations such as Ghana and Nigeria in leveraging the industry for fiscal recovery. Regulatory specifics for the new measures are expected to be announced within 60 days.

By fLEXI tEAM