Gambiaj.com – (Dakar,Senegal) – After months of firm rhetoric towards employers and labor unions, Senegalese Prime Minister Ousmane Sonko appears to be shifting towards a more conciliatory approach, signaling a willingness to negotiate the clearance of the country’s internal debt.

This change in tone comes amid growing concerns from the private sector and workers’ unions, as the government seeks to establish a “national social stability pact” to avert further economic and labor unions’ unrest.

At Wednesday’s Council of Ministers meeting, the Prime Minister, under apparent direction from President Bassirou Diomaye Faye, instructed the Minister of Finance and Budget to swiftly present a strategy for settling the state’s outstanding financial obligations to businesses. The move is seen as a significant departure from Sonko’s earlier insistence that businesses and unions must show resilience in light of Senegal’s financial difficulties.

Acknowledging Private Sector Concerns

The shift in approach follows stark warnings from Baïdy Agne, President of the National Council of Employers (CNP), who recently highlighted the precarious situation faced by Senegalese companies. Speaking at a tripartite meeting at the Grand Théâtre, Agne urged the government and international financial institutions to uphold their commitments to facilitate the gradual clearance of debts owed to businesses.

“If companies have greater visibility on payment deadlines, they can reorganize accordingly, maintain jobs, and continue their investments,” Agne emphasized, underscoring the dire financial strain on key economic players.

Government data indicates that Senegal’s internal debt stood at over 3,000 billion CFA francs by the end of 2024, with more than 2,500 billion CFA francs owed to local banks—a burden that threatens the stability of the national economy. As such, businesses, especially in the construction and public works sectors, are expected to be directly engaged in the state’s renewed infrastructure plans, which include projects for schools, universities, and hospitals.

A Ceasefire with Workers Ahead of Workers’ Day

Beyond its engagements with the private sector, the government is also making overtures to labor unions, signaling a readiness to address some of their longstanding demands. With May 1 (International Workers’ Day) approaching, the administration appears keen on finalizing the national social stability pact by then.

According to the official communiqué, Prime Minister Sonko stressed the urgency of establishing an inclusive and sincere social dialogue to reach a balanced agreement that considers both labor concerns and the country’s financial realities. However, the government remains steadfast in attributing Senegal’s current economic struggles to the legacy of the previous administration, as detailed in a recent Court of Auditors report on financial mismanagement under former President Macky Sall.

While it remains to be seen how swiftly the state can act on debt repayments and labor grievances, the Prime Minister’s softened stance marks a pivotal moment in his administration’s economic strategy—one aimed at restoring confidence among businesses, stabilizing labor relations, and averting potential economic turmoil.