Since the January 1994 CFA franc devaluation, the International Monetary Fund (IMF), the World Bank, and other multilateral and bilateral creditors have been supporting the Government of Senegalís structural and sectoral adjustment programs. The broad objectives of the program have been to facilitate growth and development by reducing the role of government in the economy, improving public sector management, enhancing incentives for the private sector, and reducing poverty.

With an external debt of $ 3,919 million, and with its economic reform program on track, Senegal reached its Heavily Indebted Poor Countries (HIPC) debt relief completion point in April 2004. Senegal will apply for cancellation of approximately $850 million in debt from Paris Club and other donors. Progress on structural reforms is on track, but the pace of reforms remains slow, as delays occur in implementing a number of measures on the privatization program, good governance issues, and the promotion of private sector activity. Senegal continues to lead the West African Economic and Monetary Union (WAEMU) countries in macroeconomic performance. For 2003, inflation was at -0.5%, and in most indicators, Senegal surpassed the WAEMU monetary convergence criteria with a tax revenue to gross domestic product (GDP) ratio of 18.3%, public investment to tax revenue ratio of 24.4%, and a current account deficit at 4.3%.

The fishing sector has replaced the groundnut sector as Senegal's export leader. Its export earnings reached $298.1 million in 2003. The industrial fishing operations struggle with high costs, and Senegalese tuna is rapidly losing the French market to more efficient Asian competitors.

Phosphate production, the second major foreign exchange earner, has been steady at about $230 million. Exports of peanut products reached $63 million in 2003. Receipts from tourism, the fourth major foreign exchange earner, have picked up since the January 1994 devaluation. Although final figures are not yet available, some 400,000 tourists were expected to visit Senegal in 2003-04, earning the country approximately $120 million.

Senegalís new Agency for the Promotion of Investment (APIX) plays a pivotal role in the governmentís foreign investment program. Its objective is to increase the investment rate from its current level of 20.6% to 30%. Currently, there are no restrictions on the transfer or repatriation of capital and income earned, or investment financed with convertible foreign exchange. Direct U.S. investment in Senegal remains about $38 million, mainly in petroleum marketing, pharmaceuticals manufacturing, chemicals, and banking. Economic assistance, about $350 million a year, comes largely from France, the IMF, the World Bank, and the United States. Canada, Italy, Japan, and Germany also provide assistance.

Senegal has well-developed though costly port facilities, an international airport serving 28 international airlines that serves as a regional hub, and advanced telecommunications infrastructure, including a fiber optics backbone and cellular phone penetration approaching 10% of the population.