In medieval times, parts of Senegal belonged to the empires of Mali, Ghana and Songhai. The first Portuguese explorers arrived in the 15th century, followed by French colonists in the 17th century. Throughout the 17th and 18th centuries, the Senegalese coast was a major landing point for the transatlantic and European trades in ivory, gold and slaves. In 1763, Senegal was ceded to Britain as part of the settlement of the Seven Years War (which was a dispute over North American territories) but returned to the French in 1817. In 1895, Senegal was incorporated into French West Africa. After World War II, it became a French Overseas Territory.

Senegal achieved full independence in 1960 after a brief and unsuccessful attempt to establish a union with neighbouring Mali. Léopold Senghor became the country’s first President that year, and remained in office until 1981, when he was replaced by Abdou Diouf who went on to hold the post for almost two decades. National politics were monopolised by the Parti Socialiste Sénégalais (PSS) from 1960 until 2000, although Senegal was never formally a one-party state and opposition parties and the media managed to operate more or less effectively at least some of the time. That said, the current President, Abdoulaye Wade of the Parti Démocratique Sénégalais (PDS), who defeated Diouf in the March 2000 poll, spent several periods as a political prisoner and in exile. The PDS formed an alliance with the smaller Communist party, known as Sopi (Change), to fight the April 2001 National Assembly elections which they won by an absolute majority. Madior Boye of the PDS was appointed Prime Minister, but was sacked in autumn 2002. This followed the tragic sinking of the ferry Joola in September 2002 in which over 1100 people died. This was Africa’s worst maritime disaster and had a profound impact upon the country. Boye’s replacement was Idrissa Seck, an experienced PDS political fixer and supposedly long-time ally of President Wade. However, future mounting tensions between Seck and President Wade led to Seck's mysterious and unexplained dismissal in April 2004. The then Interior Minister, Macky Sall, was the replacement, who immediately made a point of pledging absolute loyalty to the President.

Apart from the economy (see Business Profile section), the most pressing domestic problem for the PDS Government is the continuing strife in the Casamance region of southern Senegal. The secessionists of the Casamance Movement of Democratic Forces have been fighting the Dakar government since 1984: an accord brokered by Guinea-Bissau was signed by the Government and the rebels in August 2001, but it was not until October 2003 that secessionist hard-liners finally gave up the fight.

Senegal has close historic links with France, the former colonial power and the source of essential aid and trade. There has been some friction between Paris and Dakar recently as the Sengalese have responded positively to American overtures (part of a broader US strategy to increase its influence in West Africa). Relations with neighbours are by and large good. The Sengalese were initially suspicious of the military regime – since civilianised – which took power in Gambia in 1994, but they now have a good working relationship. There is little prospect, however, of them resuming the level of closeness which brought about the Senegambian Confederation between 1981 and 1989. Difficulties with Mauritania over cross-border trade, refugees and ethnic rivalries – which also brought the two countries to war in 1992 – have been largely settled.

The President holds executive power and is elected (since amendments made to the electoral code in 1991) for a maximum of two seven-year terms. The unicameral National Assembly, which has 120 elected members and a five-year term of office, is responsible for legislation.