In a significant development, Senegal has been removed from the global "dirty money" grey list, a move that is expected to boost investor confidence and capital flows into the country. The Financial Action Task Force (FATF) took Senegal off the list after the country strengthened its measures to combat money laundering and terrorism financing.

Since being grey-listed in 2021, Senegal's government has tightened regulations, imposing penalties on non-compliant financial institutions. The country has also adopted a new bill against illicit financing and implemented targeted financial sanctions.

The removal from the grey list is a welcome development for Senegal's economy, which has faced challenges in recent times. The country's eurobonds were among the worst emerging market performers this month, following the IMF's flagging of issues with underreported financial data and S&P Global's revision of the country's credit outlook to negative.

Studies have shown that grey-listing can lead to a decline in capital flows, with one study by the International Monetary Fund (IMF) revealing an average decline in capital flows equivalent to 7.6% of gross domestic product (GDP).

The removal from the grey list is expected to boost investor confidence and attract more capital into Senegal, creating opportunities for startups and businesses operating in the country. This development is also significant for the broader African tech ecosystem, as it demonstrates the continent's commitment to strengthening financial regulations and combating illicit activities.