Located in West Africa, Senegal is a member of the West African Economic and Monetary Union (WAEMU) and shares borders with Mauritania, Mali, Guinea, Guinea-Bissau, and The Gambia. Politically, Senegal stands out as one of Africa's pillars of stability, having experienced three peaceful transitions since its 1960 independence. Economically, 2022 was a challenging year due to global events, notably the COVID-19 pandemic, the war in Ukraine and regional conflicts leading to slower GDP growth and inflationary pressures. In 2014, Senegal initiated the Plan Sénégal Émergent (PSE), which is a strategic blueprint for economic and social policy built on four key pillars: (i) structural transformation of the economy and growth, (ii) human capital, social protection, and sustainable development, (iii) governance, strong institutions, peace, and security, and (iv) promoting financing. In June 2023, the Executive Board approved a new financing arrangement under the Extended Credit Facility/Extended Fund Facility (ECF/EFF) with the objective to support the government’s efforts to maintain debt at sustainable levels through a growth-friendly fiscal consolidation strategy, enhance governance, and promote inclusive growth. Additionally, the Board also approved a Resilience and Sustainability Facility (RSF) to address long-term challenges posed by climate change. As Senegal navigates these challenges, its primary focus remains on fostering sustainable growth, enhancing resilience, and ensuring socio-economic advancements for its population..
Key Indicators |
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| Population in millions, 2022 | 17.7 | |
| GDP per Capita, U.S. dollars, 2022 | 1570 | |
| GDP Growth, percent, 2022 | 4.0 | |
| Inflation, CPI average, change in percent, 2022 | 9.7 | |
| General Government Debt, percent of GDP, 2022 | 76.6 | |
| Source: WEO, October 2023 | ||
Energy
Objective is to improve the energy mix through: (i) the development of new electricity production capacities; (ii) diversification of energy generation sources; and (iii) enhancement and development of the transmission and distribution network.
Specific Opportunities
- Construction of a 1000 MW thermal gas power plant
- Construction of the Ferlo and Dakar 225 KV networks
- Development of refining capacities, energy storage capacities and exploration of access to LNG
Public-Private Partnerships
Senegal opted for a liberal economy oriented towards the development of public-private partnerships : water, energy and especially infrastructure with the project of toll motorway Dakar-Diamniadio.
Specific Opportunities
- Highways— Dakar—Diamniadio toll motorway on a line of 31.6 km; A concession period of 30 years; A cost of $ 264 million; PPP ratio 70/30
- Energy— PPPs in the urban electricity production sector are among the first PPP projects experienced in Senegal with the GTI—IPP contract in 1996. IPP Tobene: USD 165 million; IPP GTI: 59 million and IPP Kounoune: 46 million
- Ports— 25 years concession for container terminal and port
of the future with Dubai port world; The ro-ro terminal with the Bolloré group dedicated mainly to the transport of vehicles; The bulk terminal with Necotrans for minerals, phosphate, cement, clinker or coal. These contracts were made with 100% private investments.
Digital Economy & Tourism
Objective is to establish Dakar as the region’s service hub in areas such as corporate headquarters, health services, education facilities and tourism with a goal of reaching 3 million tourists per year by 2023.
Specific Opportunities
- Digital economy—establishment of digital technology parks to include laying a fiber optic backbone that links regional capital cities and implementation of digital activity centers in cities that have universities.
- Medical services—building, equipping and operating four hospitals in Touba, Kaffrine, Sedhiou and Kedougou
- Tourism—enhance existing tourist areas of Saly Portudal and Casamance; upgrade infrastructure in Point Sarene, Mobodiene and Joal Finion
- Modernize regional airports
Logistics & Industrial Regional Hub
Objective is to position Senegal as the main entry point for business within the sub-region
Specific Opportunities
- Integrated industrial platform of Diamniadio—construction of three warehouses of 7,200 sq. meters, one warehouse of 3,200 sq. meters, one administrative building offering 4,910 sq. meters of offices
- Express regional rail link—construction of an express railway covering the 57km from Dakar to the Blaise Diagne International Airport
- Thies-Touba Highway—construction of 115km of highways to allow fast track connection between main growth areas.
Agriculture, Fisheries, & Food
Objective is to reduce Senegal’s dependence on imported food and to promote Senegalese agriculture as a growth driver.
Specific Opportunities
- Improvement of dairy production through intensification and modernization of farming systemsDevelopment of cereal corridors for rice, millet and maize
- Development of aquaculture industry
- Development of horticulture (fruits and vegetables)
See Full Prospectus
