Name of the Asset | Digital Transformation and Labor Market Dynamics in Sub-Saharan Africa: Evidence from Senegal's Emerging Plan Senegal’s Emerging Plan
Type of Asset | Research
Date | January 2026
DOI | 10.69814/wp/2025110
SUMMARY
The aim of this study is to assess the impact of the Plan Sénégal Émergent (PSE) on the Senegalese labor market in the context of digital transition. Using a synthetic control method, we analyze the effects of this strategic policy on job creation in three key sectors: agriculture, industry and services. The data cover the pre- and post-implementation period of the PES (2014), enabling a precise comparison between the trajectories associated with Senegal and those simulated in the absence of the intervention, based on a panel of ECOWAS countries. Our results show contrasting dynamics across sectors. In agriculture, employment fell significantly (-11%) after 2014, a trend attributed to the widespread adoption of digital technologies (agricultural machinery, IoT sensors) that have reduced demand for low-skilled labor. Conversely, industry saw a moderate rise in employment (+3.45%), while the service sector recorded substantial growth (+12.68%), driven by the rise of digital services (fintech, e-commerce) and the modernization of traditional services. These results are corroborated by robustness tests, including a spatial placebo test, a Leave-One-Out analysis and a placebo robustness tests over time, which confirm the validity of the estimates. This study highlights the importance of better articulating digitization policies with social protection schemes to mitigate the negative effects on vulnerable populations while maximizing the economic opportunities generated by the digital transition. Our conclusions call for further reflection on economic inclusion mechanisms and vocational training strategies adapted to the challenges of the future of work in sub-Saharan Africa.
AUTHOR | Yasser Boina
COUNTRY AND/OR REGION | Senegal, Sub-Saharan Africa
PROGRAMME | Global Development Conference 2025: Call for Papers
