Senegal has taken a major step towards strengthening its national fiscal strategy through a new partnership with the Bank of West African Development (BOAD), aimed at transforming the way the country’s public assets are managed and utilized.
The Government of Senegal and BOAD signed a memorandum of understanding on Monday, November 24, 2025, establishing the Senegal Asset Development Fund (FOVAS). This is an innovative mechanism aimed at unlocking the economic value of a country’s infrastructure and channeling it into long-term development financing. The French acronym for this fund stands for Fonds de Valorisation des Actifs du Sénégal.
Under the arrangement, BOAD will provide financial structuring expertise and act as a catalyst to attract private investors and international development partners, positioning the Fund as an important vehicle for mobilizing additional resources for the country. The initiative aims to consolidate key public infrastructure assets under a dedicated organization and use the resulting revenue streams to diversify funding sources and increase fiscal flexibility.
Eligible assets include roads, ports, airports, public buildings, and logistics facilities. These are structured for commercial operations and generate revenue, which is then used to finance new projects and support economic growth. The fund was introduced as Senegal seeks to strengthen its financing strategy without going through the IMF-recommended debt restructuring.
Senegal’s Minister of Finance and Budget, Sheikh Diba, said the agreement was a major step forward, stressing that FOVAS goes beyond a financial tool to become a strategic instrument to create value from public assets and support national development priorities. He added that this initiative reflects the country’s commitment to structuring the economic utilization of public assets to create greater value, increase fiscal flexibility and strengthen the financing of development processes.
BOAD President Serge Equé highlighted the common vision behind this initiative, noting that the Bank’s role is to help Senegal realize the full value potential of its infrastructure portfolio, while strengthening its fiscal resilience and supporting regional integration. He emphasized that this partnership reflects the shared commitment of BOAD and the Government of Senegal to work together to accelerate resource mobilization.
The partnership marks a significant evolution in Senegal’s financing model, aligning with broader efforts across West Africa to improve resource mobilization, strengthen economic performance and make more efficient use of public assets. BOAD was founded in 1976 and serves eight West African countries, including Benin, Burkina Faso, Ivory Coast, Niger, Senegal, Togo, Mali, and Guinea-Bissau.
The establishment of FOVAS comes as Senegal pursues ambitious economic development plans while managing fiscal constraints. The country recently began oil production at its Sangomar field in June 2024 and continues to overcome energy subsidy pressures and revenue collection challenges.
