Senegal’s Faye Wins Parliamentary Landslide to Boost Reforms
(Bloomberg) -- Senegalese President Bassirou Diomaye Faye’s party won an overwhelming majority in parliamentary elections, paving the way for the country’s new leader to deliver on a reform agenda that’s targeted at stabilizing the state’s finances and creating jobs.
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The Pastef party won 130 of 165 seats in the National Assembly, according to preliminary results released Thursday by the commission responsible for the tally. It previously held 29 seats.
The result of the Nov. 17 vote gives Faye a super majority, or at least 60% of the parliamentary seats, providing him with sufficient backing to pass legislation needed to amend the constitution.
Faye, 44, won the presidency by a landslide in March, pledging economic and judicial reforms and calling for a review of oil and gas contracts to ensure the state derives greater benefit from the nation’s natural resources. To date, he’s struggled to push policy changes through the opposition-dominated legislature.
“With control over both the executive and legislative, Faye will be able to move faster on the reforms that the party’s promised, with their main priority becoming the economy,” said Babacar Ndiaye, head of research at the Dakar-based WATHI think tank. “A strong Pastef majority will reassure investors at a time when Senegal is looking for new partners.”
Senegal’s eurobonds are among the best performers in emerging markets this month. Dollar bonds due May 2033 rose for the first day in three by 0.2 cent to 84.24 cents on the dollar at 10:43 a.m. in London. Notes due March 2048 gained 0.1 cent to 72.52 cents on the dollar.
Among Faye’s most pressing priorities will be to secure the legislature’s backing to pass next year’s budget, rein in a fiscal deficit estimated at more than 10% of gross domestic product and lay the groundwork for a new International Monetary Fund program.
Those will include subsidy cuts on fuel, expanding the tax base and lowering general taxes to enable the private sector to create more jobs.
With Pastef now holding a parliamentary majority Faye “will continue the public-spending cuts introduced by Sonko in April while intensifying efforts to boost domestic tax collection,” Susanna Eusebi, a Dakar-based analyst with Control Risks, said in an emailed response to questions. “Businesses operating in Senegal should anticipate stricter enforcement of tax regulations, along with increased audits and potential tax adjustments.”
In the longer term, Faye wants to review deals Senegal struck with BP Plc and Woodside Energy Group to extract oil and gas and renegotiate a controversial fishing agreement with the European Union that expired on Nov. 17. As a growing number of young Senegalese undertake dangerous sea voyages to reach Europe, where they see greater economic opportunities, he’s also undertaken to tackle migration issues.
A former tax inspector, Faye is Africa’s youngest elected leader. His rise to power reflected widespread discontent with the government’s failure to improve living standards for the youth in a country where two-thirds of the population of 18 million are under 35.
Former President Macky Sall’s Takku Wallu Senegal coalition secured 16 parliamentary seats in the election, according to the commission.
Sall, whose alliance held a slim majority in the previous legislature, conceded defeat after unofficial tallies from last week’s vote were reported.
(Updates with additional information in eighth paragraph.)
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