Public Asset Recycling through PPPs: a strategic lever to finance Senegal’s infrastructure despite budget constraints
I am Mamoudou Bocoum, a Senegalese infrastructure development practitioner. I believe that Senegal is at a crossroads after having invested heavily in its infrastructure over the past 10 years. Let me explain my thinking.
The country now faces a delicate dilemma: how to maintain this momentum in a context of budgetary constraints and high public debt?
In my view, public asset recycling through public-private partnerships (PPPs) represents a strategic avenue that remains largely underexplored. As an infrastructure development practitioner, I would like to contribute to this debate and shed light on the issues at stake. Although this path is still little known, it is nonetheless promising.
In brief
- Senegal has invested massively in infrastructure between 2012 and 2024,thereby increasing its public debt.
- Faced with this situation, it is urgent to think differently.
- What if existing infrastructure were the key to financing the next ones?
- If well-structured, public asset recycling through PPPs could be the strategic lever Senegal needs.
First, let’s clarify what is meant by public asset recycling through PPPs
Public asset recycling through PPPs means leveraging the economic value of existing public infrastructure to finance new priority projects without increasing public debt. I will discuss this mechanism and its potential for Senegal in detail in the following sections.
Why can asset recycling become a strategic lever for Senegal?
The Senegalese Court of Auditors’ report1 on the audit of public finances from 2019 to 2024 recently sparked an uproar.
The country is currently facing a debt level of around 119% of gross domestic product (GDP), whereas the limit set by the convergence criteria of the West African Economic and Monetary Union (UEMOA) is 70% of GDP. The budget deficit is estimated to have reached 11% in 2024, well above the 3% standard.
This worrying situation has led to Senegal’s sovereign rating being downgraded by several rating agencies, making access to financing significantly more expensive. In 2025, for example, some Senegalese Eurobonds are trading on the secondary market with yields above 10%, well above the levels seen in previous years.
Added to this are significant cash flow pressures, with delays in the payment of invoices owed to companies, particularly in the construction and public works sector.
In a context of budgetary constraints, does Senegal have the means to invest in transformative infrastructure in the short and medium term?
My answer is yes.
I believe in Senegal’s ability to innovate, build new models, and mobilize the resources needed for infrastructure development in new ways. The country has always shown resilience. Given the current budgetary challenges, it is essential to adopt a more strategic and bold approach to financing, leveraging existing and underutilized levers.
The former government made infrastructure development a priority during its 12 years in office. But the work remains substantial, and the current government, led by President Bassirou Diomaye Faye and Prime Minister Ousmane Sonko, will need to make it a central pillar of their strategy for the structural transformation of the national economy.
Paradoxically, certain projects developed under the former administration and financed directly through public debt now present a genuine opportunity to launch a new approach: that of asset recycling through PPPs. Several operational infrastructures that have already been developed and built or are nearing completion can be leveraged and transferred to private sector management, thereby freeing up resources for today’s priorities — without increasing the country’s debt level.
A decade of investment: how much and in which sectors?
Between 2012 and 2024, Senegal implemented a comprehensive infrastructure development policy, driven by the vision of the Emerging Senegal Plan under President Sall’s leadership. This period was marked by massive investments in key sectors of the economy. These efforts have enabled the gradual modernization of the economy but have also contributed to the increase in public debt, making it necessary today to diversify financing methods.
Consolidated data across four sectors —transport, energy, water and sanitation, and information and communication technologies (ICT) — based on reports published by the African Infrastructure Consortium (ICA) and other public data from the Ministry of Finance and Budget as well as technical and financial partners, show that the country has mobilized an average of nearly 660 million US dollars per year for infrastructure in these four sectors.
Sector focus on investments between 2018 and 2023
Senegal’s investments by sector between 2018 and 2023, in millions of US dollars
Source: ICA, Budget Reports, Technical and Financial Partners of Senegal
At the regional level, Senegal has risen to third place among the countries of the Economic Community of West African States (ECOWAS) in terms of infrastructure investment in recent years, behind Nigeria and Côte d’Ivoire. It alone accounts for around 9% of annual infrastructure investment flows in the sub-region, according to ICA figures.
This momentum, which has been building for over a decade, has created a wealth of mature public assets that can now be mobilized for asset recycling. Rethinking how these assets are managed could free up room for maneuver in a tight budgetary context.
What are the principles of asset recycling in the context of PPPs?
PPP recycling is a mechanism that generally involves the temporary transfer of the rights to operate a public asset to a private entity through a structured contract, most often a concession.
The government retains full ownership of the infrastructure, while the private sector is authorized to operate, maintain, and sometimes modernize it in exchange for a fee and/or an initial payment.
The proceeds from this transaction can then be reallocated to priority infrastructure projects or to repaying the debt associated with the original asset. This model can take several forms: traditional concessions, long-term leases, partial asset disposals via project companies or, more rarely, via public share offerings, while maintaining public control.
Asset recycling: Benefits for the State
- Free up financial resources for new projects. Allocate funds to new projects without increasing debt or taxes.
- Contribute to the repayment existing debt. Enable the State to repay debt related to the transferred assets.
- Value underutilized assets. Through the transfer of operating or ownership rights.
- Generate new sources of revenue. Through investments in revenue-generating infrastructure.
- Mobilize private sector resources and experts. With an ultimate allocation if risks.
- Stimulate innovation in public services. To improve the design, implementation, and delivery of services.
This model offers several key advantages for the states :
- It frees up financial resources for new projects without increasing public debt or taxes.
- It contributes to the repayment of existing debt related to transferred assets.
- It promotes the appreciation of underutilized or non-productive assets through the transfer of operating rights.
- It can generate new sources of revenue through reinvestment in revenue-generating infrastructure.
- It enables the mobilization of private sector resources and expertise, with an optimal allocation of risks.
- It stimulates innovation in the design, execution, and delivery of public services.
In a context of budgetary constraints and the urgent need to modernize economic infrastructure, public assets recycling could be a promising avenue for Senegal to explore.
Recycling assets into PPPs is not privatization
It is essential to clear up a common misconception: recycling assets through PPPs does not mean privatizing
In this model :
- The state remains the owner of the asset in question (port, highway, airport, etc.).
- The private sector obtains a temporary right of exploitation through a concession or lease agreement.
- The private sector pays a royalty to the government and/or an initial lump sum payment, depending on the model chosen.
- At the end of the contract, the asset reverts to the state, often modernized or better maintained.
Unlike definitive privatization, asset recycling through PPPs preserves public control while mobilizing private financing to meet investment needs. It allows the state to leverage its existing assets without relinquishing its sovereignty over strategic infrastructure.
Are there any inspiring examples of asset recycling in Africa and elsewhere in the world?
Yes, there are several
In a context of increasing budgetary constraints, there is growing interest in asset recycling in Africa and internationally. Several countries have experimented with innovative approaches to monetizing existing infrastructure to generate new sources of revenue to finance structural projects.
In Africa, there are three examples, all developed with Africa 50:
Togo (Lomé–Kpalimé Road)
In July 2023, the Togolese government reached an asset recycling agreement with Africa50 concerning the Lomé–Kpalimé road project (120 km). This agreement involves transferring the concession of this national highway to a private investor, enabling the monetization of the existing infrastructure and freeing up financial resources for new priority projects, while also reducing the public debt associated with this road.
Gambia (Senegambia Bridge)
Gambia was one of the first countries to join Africa50’s asset recycling program. In October 2024, Africa50 disbursed an initial instalment of US$15.5 million (out of a total US$100 million agreement) and took over the operation of the transborder Senegambia bridge through a dedicated PPP. The funds obtained are being used to modernize the bridge (automated toll stations, maintenance centers, weigh stations, etc.) while freeing up public capital that the Gambian government can reinvest in other essential infrastructure projects.
Zimbabwe (International Airports)
In December 2022, Africa50 signed a memorandum of understanding with the Zimbabwean government for the PPP management of three international airports (Harare, Victoria Falls, and Bulawayo). This asset recycling project will enable the concession and operation of these airports by a private operator over the long term, in exchange for payments to the State that will significantly ease the repayment of debt related to these infrastructures, thereby freeing up capital to finance other development projects.
Internationally, here are three inspiring examples :
The Australian federation launched an asset recycling initiative in 2014 (National Partnership on Asset Recycling, running until 2019) to encourage its states to privatize or lease certain mature public assets and reinvest the proceeds into new infrastructure. This program was widely successful: the state of New South Wales, for example, generated more than AUD 32 billion (approximately USD 25 billion) in revenue by divesting ports, energy networks, and other assets, and was able to finance an ambitious new infrastructure plan with these funds.
In 2021, India unveiled a national monetization plan called the National Monetisation Pipeline (NMP). Between 2022 and 2025, this program aims to mobilize around 6 trillion rupees (nearly 80 billion US dollars) by leasing existing public assets (roads, railways, energy infrastructure, etc.) to private operators on a long-term basis.
The objective is to transfer these assets under concession to generate additional financial resources for the development of new infrastructure, without increasing public debt.
To accelerate its investments, Indonesia introduced the innovative Limited Concession Scheme (LCS) in 2020, which is similar to asset recycling. This scheme allows the government to grant concessions for the operation of existing public infrastructure (ports, airports, highways, water or electricity networks, etc.) to a specialized private entity in exchange for an initial fee paid to the government. The funds thus obtained are used to finance new infrastructure projects, while the state retains ownership of the assets granted (this is a time-limited operating right, not total privatization).
These experiences demonstrate that asset recycling can be a powerful and flexible tool for mobilizing additional resources without resorting to massive debt, provided it is governed by rigorous oversight and a clear strategy.
What is the potential for asset recycling in Senegal?
Macky Sall’s government has launched numerous infrastructure projects (transport, ports, energy, etc.), mainly financed by public debt or concessional loans and contracts commonly referred to as EPC-F (Engineering, Procurement, Construction, and Finance) with China.
These economic infrastructures — which generate direct revenue (tolls, usage fees) — can be “recycled” through PPPs. In concrete terms, this involves monetizing an already-built asset (road, bridge, port, stadium, etc.) by granting its operation or maintenance to a private partner to free up funds for new projects.
Several examples confirm this potential in Senegal:
Regional Express Train (Dakar – Diamniadio/AIBD)
This train was fully financed to the tune of approximately 1 billion euros for the first phase from Dakar to Diamniadio by a consortium of major lenders (the AfDB, the IsDB, and the AFD) and Senegalese public investment. The assets (tracks, rolling stock) are owned by the State via the national company SENTER; management and operation are delegated to SETER (a subsidiary of SNCF) under a 5-year renewable contract. Inaugurated at the end of 2021, the TER already carries 17 million passengers (≈90,000/day). This infrastructure – equipped with toll gates – constitutes a monetizable asset (via a long-term concession).
North Access Road (Voie de Dégagement Nord [VDN])
Inaugurated in 2016, the third section extended the VDN between Guédiawaye and Tivaouane Peulh by 17.2 km. This section cost 73 billion CFA francs, financed by the Kuwait Fund and the Senegalese government. The option of tolls has been raised several times by the country’s authorities, but this road remains free for the time being. In fact, the VDN is an economic asset (toll revenue potential) that can be exploited in a PPP — for example, in the form of a highway concession to a private operator.
Equalizing highway network
Several major recently completed road corridors were financed by concessional loans from China. For example, the Mbour–Fatick–Kaolack highway (≈100 km) is financed with 432 billion FCFA by the State and China Eximbank. Similarly, the Dakar–Thiès and Thiès–Touba toll highways were largely financed by loans from China Eximbank. These roads (several sections of which are already open to traffic) have tolls. They will therefore be bankable assets, eligible for concession-type PPPs (management, operation, and maintenance delegated to the private sector).
Foundiougne Bridge
This toll bridge (1.29 km across the Saloum River) was built by a Chinese consortium at a cost of ≈$70.6 million, financed by a concessional loan from China Eximbank. The Senegalese government provided additional funding. Inaugurated in 2022, the “Nelson Mandela Bridge” now generates regular toll revenues. This commercial nature (toll bridge) makes the structure a natural candidate for recycling through a PPP — for example, through a long-term operating concession.
Dakar–Saint-Louis coastal highway
This future toll road (≈200 km in total) is currently under construction. Its estimated cost (USD 870 million) is being covered by a pool of lenders (IDB, AfDB, BOAD, Saudi Development Fund, etc.) and public investment. The first phase (Dakar–Saint-Louis, 128 billion FCFA) has already been approved by the Islamic Development Bank. This highway project, designed to capture cross-border traffic, will be operated as a toll road: it therefore constitutes a monetizable asset in a PPP (operation of the section, distribution of toll revenues).
Ndakhonga (Fatick) Port
Developed in two phases with total funding of US$173 million (mainly from South Korea via Eximbank Korea)18, the port of Ndakhonga includes a ferry terminal, an oil terminal (11,000 m³), a pumping station, and dredging equipment. Transferred to SN-PAD in 2023, it aims to serve the central/southern regions and the Mali corridor. This multifunctional revenue-generating asset (port calls, storage, dredging) lends itself to recycling via an operating PPP.
Sport and events infrastructure
Large, recently constructed venues (Abdoulaye Wade Stadium in Diamniadio, Dakar Arena, exhibition/conference centers) are explicitly listed in the national PPP portfolio. For example, UNAPPP plans to award a PPP contract for the management and operation of the “Diamniadio event and sports infrastructure ” (Dakar Arena, Abdoulaye Wade Stadium, Exhibition Center, Abdou Diouf International Conference Center). These facilities already generate revenue (ticket sales, space rentals, sponsorship) and are naturally suited to a concession model.
This list is not exhaustive
Other public assets – including those owned by state-owned companies – offer similar potential. This is the case for airports (e.g., Blaise Diagne International Airport), national ports, maritime infrastructure (piers, shelters), and energy infrastructure, which, although owned by the state, could be managed and maintained by the private sector through a PPP. Senegal’s PPP pipeline (several dozen projects) covers several social, transport, and energy infrastructures where asset recycling through concessions represents a major opportunity.
What are the conditions for a successful asset recycling program in Senegal?
The examples analyzed in Africa and around the world show that the success of an asset recycling program does not depend solely on the existence of valuable infrastructure. It also requires a favorable environment, strong institutional capacities, and clear political support.
In light of the project’s portfolio identified above, which provides a tangible basis for initiating a pilot program, it is essential to analyze the conditions that must be met for asset recycling to become an effective and sustainable tool for infrastructure financing in Senegal.
Several levers must be activated to ensure the success of this approach:
Strong political leadership and institutional coordination: Asset recycling involves complex trade-offs between valuing public assets, maintaining strategic control over certain assets, and mobilizing private capital. It is therefore essential that this initiative be led at the highest level of government, ideally under the leadership of the Prime Minister’s Office, with coordination between sectoral ministries, the National Unit for Support to Public-Private Partnerships (UNAPPP), the National Agency for the Promotion of Investment and Major Projects (APIX), and the Ministry of Finance and Budget.
A clear regulatory and contractual framework: Although Senegal already has an advanced PPP framework, specific adjustments may be necessary to provide a legal framework for the temporary or partial transfer of existing assets. Mechanisms for valuation, risk sharing, and transparency must be put in place to reassure both investors and citizens.
Strengthened institutional capacity: Implementing an asset recycling program requires advanced skills in financial engineering, asset valuation, complex contract structuring, and performance management. It will be crucial to mobilize or train technical teams within the institutions concerned, while drawing on the expertise of experienced consulting firms.
Consultation with stakeholders: The recycling of public assets raises social and economic issues: perceptions of privatization, the risk of price increases, and impacts on employment. Transparent communication and a participatory approach involving users, unions, and local.
A demonstrated appetite from the private sector: Investors will only commit if projects are well structured, revenue-generating, and backed by credible contractual guarantees. It is therefore essential to identify the right investment vehicles (specialized funds, debt funds, concessions, etc.) and to engage financial partners with existing experience in this type of transaction, such as Africa50.
A prioritized and credible project pipeline: Finally, the portfolio of projects presented to the market must be technically and financially structured, with a clear hierarchy based on revenue generation potential, asset maturity, and downstream financing needs. This is the role of the upcoming roadmap.
These conditions together form the basis for an ambitious and structured program. It is now necessary to propose a clear roadmap to initiate the asset recycling process in Senegal, capitalizing on lessons learned from successful initiatives around the world and the specificities of the Senegalese context.
Key levers for a successful asset recycling program in Senegal
A national roadmap to structure asset recycling through PPPs
International and African examples show that asset recycling is not just a theoretical idea, but a real complementary financing lever that is already in use in several countries.
Senegal, which has invested heavily in its infrastructure over the past decade, has a mature base of public assets that could be used for such a program. But to realize this potential, a structured, progressive, and coordinated approach among stakeholders is needed.
The World Bank has proposed a framework for implementing asset recycling programs, which could be adapted to the Senegalese context. Such an initiative would enable Senegal to mobilize additional resources without further increasing its public debt, while enhancing the country’s attractiveness to private investors in infrastructure.
1. Develop a national asset recycling strategy
UNAPPP or APIX could initiate this process, with the support of specialized consulting firms. This strategy should :
- Identify a multisectoral portfolio of mature public assets that could be recycled through PPPs (transport infrastructure, energy, ports, water, etc.);
- Define a clear action plan for their gradual implementation;
- Strongly involve the relevant technical ministries: Ministry of Infrastructure and Land and Air Transport (MITTA), Ministry of Fisheries, Maritime and Port Infrastructure (MPIMP) and other sectoral ministries to ensure ownership of the projects.
Such a strategic study would likely be eligible for funding from technical and financial partners, including the World Bank or the African Development Bank (AfDB).
2. Define the program’s objectives and the use of the resources generated
The proceeds from asset recycling operations could be used to:
- Reduce the public debt associated with these projects;
- Finance new priority infrastructure projects under Vision Senegal 2050, especially the 2025–2034 master plan and the 2025–2029 business plan.
This step requires strategic arbitration at the level of the Prime Minister’s Office, in coordination with sectoral ministries.
3. Structure a portfolio and organize a roadshow for investors
Once the projects have been selected, APIX, in collaboration with the relevant ministries, could organize a national and international roadshow to:
- Present the assets to be recycled and the proposed contractual arrangements;
- Engage in preliminary discussions with private investors, financial institutions, and technical operators;
- Prepare the ground for invitation to tender or over-the-counter negotiations.
This roadshow could target strategic partners such as Africa50, which already has an active asset recycling program in Africa, as well as infrastructure investors such as Meridiam, African Infrastructure Investment Managers, Africa Finance Corporation, Arise IIP, and financing institutions such as the International Finance Corporation (IFC).
4. Reinvesting the resources generated in new structural projects
Revenues from asset recycling should be allocated to a fund dedicated to financing new infrastructure or targeted debt reduction. A transparent budget reallocation mechanism should be put in place to maximize the leverage effect on development.
5. Institutionalize and update the program
Once the first phase has been launched, the program should be evaluated regularly to:
- Identify new assets to be recycled over time;
- Adjust contractual mechanisms and incentives considering feedback;
- Strengthen institutional capacity in structuring PPPs on existing assets.
Roadmap for structuring asset recycling through PPPs in Senegal
Mobilizing public and private actors to accelerate infrastructure development
The examples analyzed in Africa and around the world show that the success of an asset recycling program does not depend solely on the existence of valuable infrastructure. It also requires a favorable environment, strong institutional capacities, and clear political support.
Considering the portfolio of projects identified above, which provides a tangible basis for initiating a pilot program, it is essential to analyze the conditions that need to be met for asset recycling to become an effective and sustainable tool for financing infrastructure in Senegal.
But for this strategy to be successful, it must be implemented methodically, transparently, and ambitiously. This requires a clear vision, a strengthened institutional framework, a strong political will, and the ability to engage in structured dialogue with private actors.
It’s time to act. It’s up to:
- The government to launch a national asset recycling strategy, led by UNAPPP and/or APIX, with the support of the relevant ministries.
- Lenders to support this innovative approach by financing studies, structuring, and implementing the first projects.
- Investors to position themselves with a portfolio of attractive assets in a country undergoing rapid transformation.
- And it is up to us, experts, practitioners, and citizens, to fuel the debate, to propose, challenge, and support this transformation with rigor and commitment.
In this context of transition, asset recycling can be much more than a financial tool: a strong signal of modernization of our governance and our infrastructure development model. This is the path I believe in as an infrastructure development practitioner, and it is the one I wish to help chart — with the deep conviction that our country can become a model for the continent.
About the author
Mamoudou Bocoum is Vice President, Africa at CPCS, where he leads strategic advisory assignments on major infrastructure projects across the continent. He advises governments, lenders, and private investors on the development of bankable projects, financial structuring, public-private partnerships (PPPs), and regulatory framework transformation. With more than 15 years of experience, he has played a key role in structuring and negotiating complex projects in the transportation, energy, mining, and industrial infrastructure sectors.
A graduate of HEC Paris (MBA), Sciences Po Paris (MPA), and the Centre des Hautes Études de la Construction (MSc in reinforced and prestressed concrete), he is also a civil engineer trained at the École Polytechnique de Thiès (Senegal).
About CPCS
CPCS is a globally recognized infrastructure management consulting firm with over 30 years of experience. We support governments, lenders, and investors in the development, financing, and implementation of infrastructure projects in the transportation, energy, and public-private partnership (PPP) sectors.
We combine technical, financial, legal, and regulatory expertise to support sustainable growth strategies. With a presence in Africa for over 30 years, CPCS plays a key role in transforming development models.
