OPPORTUNITIES

SENEGAL: ONE OF THE BEST ECONOMIC OPPORTUNITIES IN WEST AFRICA

GEOGRAPHY & POPULATION:

Located at fore front of West Africa, between latitude 12⁰ and 16⁰ 30 north and longitudes 11^O 30 west, Senegal extends over an area of around 200,000 km² . It is bordered by Mauritania in the North, Mali in the East, Guinea Conakry in the Southeast and Guinea Bissau in the Southwest. The Gambia constitutes an enclave of 10,300 km² in the southern part of Senegal.

The maritime front extends over more than 700 km2 covering a coastal strip from the extreme south to the extreme north. The main surface water resources are constituted by River Senegal (1800 km long) and River Gambia (1150 km long), and the Casamance and Kayanga water courses as well as the Guier Lake.

The Senegalese population totals 9.5 millions, ie. average density of 48 inhabitants per km² . Over 25% of the population are concentrated in the region of Dakar. The other point of concentration is the center of the country (the groundnut basin) with over 35% of the population. The East of Senegal is very sparsely populated.

Senegal has about twenty ethnic groups, the major ones being the Wolof (43%), Pulaar (24%) and Sereer (15%).

Foreigners constitute about 2% of the population. They are particularly present in the capital, Dakar, where they intervene in the trade, industry and services sectors as well as in the international organizations. They are also found in the northern and southern parts of the country, and come particularly from neighbouring countries.

ECONOMIC ACTIVITIES :

The Senegalese economy continues to be dominated by tertiary activities which contribute close to 60% of the GDP; primary activities provide for 20% and secondary activities 20% as well. The promotion of external exchanges and the development of both physical and human capital constitute priority development axis for the government.

Gross Development Product :

In 1999, Senegal's nominal GDP is estimated at close to 3000 billion CFA Francs, i.e. an increase of over 7% in relation to the level attained in 1998. Since 1994 economic activity has markedly improved. The average growth rate of the real GDP was still above 5%.

GDP per inhabitant was estimated at 530 dollars in 1998. According to World Bank classification, this per capita GDP ranks Senegal as a low revenue country.

For the year 2000, the first growth indications are very favourable. The real GDP should increase by 6.5%. The primary sector (13.1%) and the secondary sector (7.2%) seem more dynamic. The good 1999/2000 agricultural season due to abundant rains coupled with the normal phyto-sanitary situation of plants, are the key explanations. The tertiary sector should increase by 4.5%, i.e. a contribution of 2.3 percentage points to the GDP growth.

The nominal GDP growth will exceed 8%.

GDP: 3000 billion CF4 F

Growth rate of real GDP: 5%

RATED “B+/STABLE/B"

Senegal is the first West African Sovereign Rated by Standard & Poor's.

STABLE GROWTH:

Real GDP growth has exceed 5 percent in real terms in each year since1995. In contrast to other African countries, the tertiary sector is very important. It accounts for over 60 percent of GDP, employs 55 percent of the workforce and has contributed more than 80 percent of growth in 1997-98.37 percent of exports originated in the tertiary sector, largely tourism and transport activities.

LOW INFLATION :

Inflation rates (changes in the consumer price index) have been below 2 percent since 1997.

PRUDENT FISCAL POLICY:

In recent years, the government has run surpluses (1996,1997) or small deficits below 2 percent of GDP (1998,1999).

FIXED EXCHANGE RATE REGIME:

The franc CFA is pegged at a rate of 100:1 to the French franc and at a rate of 655,957 to the Euro. Senegal is a member of the West-African Economic and Monetary Union (WAEMU), and monetary policy is conducted by the Central Bank of West-African States.

REDUCTION OF TARIFF RATES:

Under the cover of the WAEMU, broad-based tariff reform has been implemented in 1999 (so-called common external tariff). The number of tariff categories were reduced from 7 to 4, since January 2000, there remain only 4 statutory tariff rates set at 0,5, 10, and 20 percent. The 5 percent customs statistics duty has been replaced by a 1 percent statistical tax on all imports. As a result of tariff reform, the average tariff rates has halved from 24 to 12 percent. Most trade within the WAEMU is free of duties.

COMPOSITION OF TRADE:

In 1999, about 30 percent of exports were fish and fish products, followed by phosphates and chemicals (14 percent), and groundnut products (6.5 percent).

TRADING PARTNERS:

In recent years, 30-40 percent of exports have gone to other African countries, mostly within the WAEMU, around 20 percent to Europe (two-thirds off which to France) and 25 percent to Asia. About 60 of imports come from Europe, half of which from France. Another 20 percent of imports arrive from Asia.

RELATIONS WITH MULTILATERAL ORGANIZATIONS:

Senegal has maintained close and cordial relations with the World Bank and the International Monetary Fund. The World Bank is engaged in project lending in poverty-related areas such as education and health as well as infrastructure, urban development, electricity, and water. The IMF has maintained a program under Poverty Reduction and Growth Facility with the government since 1994 that includes a fairly broad-based privatisation of public enterprises. On account of its good program performance and macroeconomic policies, the World Bank and the IMF recently declared Senegal eligible for debt relief under the High-Indebted Poor Country Initiative, which will free government resources for improvements of the education and health system.

ROADS:

The road system is dense and easily services every region of the country. More than 90% of the population uses road transportation and 70% of merchandise is transported overland by road.

RAILWAY :

The railway, which serves much of the territory and links Senegal and Mali, is also used to tranship cargo.

AIRPORTS:

Senegal has three international airports: Dakar, Saint-Louis and CapSkirring. The country's main cities also have secondary airports for internal lines.

DAKAR-PORT:

Dakar has a seaport at the intersection of the lines linking Europe, South America and Africa. This port enjoys excellent nautical conditions: a 195 metre wide entrance channel provides access at all times.

TELECOMMUNICATIONS:

Senegal has been investing for some years in telecommunications, more than any other African country up till now. And the country is preparing the 21st century with the Trade Point, the Dakar Science Park and the development of e-services. In 1994, the International telecommunication Union has classified Senegal as the first Sub-Saharan African country in terms of penetration growth and quality of services. Senegal has been locked up to the Internet since April 1996.

EN ROUTE TO REGIONAL INTEGRATION:

Senegal is member of the West African Economic and Monetary Union (WAEMU-UEMOA) which include: Benin, Burkina Faso, Cote d’Ivoire, Guinea Bissau, Mali, Togo, Niger and Senegal.

It is a market of 60 millions consumers based on free movement of people, goods, services and capital.

The Economic Community of West African States (ECOWAS-CDEAO) has a market of 200 million consumers (16 member states)

IN THE SPIRIT OF MULTILATERAL TRADE AGREEMENTS AND WTO PRINCIPLES:

Senegal is a prime location offering a preferential access to:

- the European Market (EU/ACP agreement)

- and the US Market (Africa Growth and Opportunity Act)

SOME MAJOR PROJECTS:

- Mining sector

- Phosphates of Matam: a deposit of more than 40 million tones

- Gold: Rush of many foreign mining companies (AGEM, BRGM, GOLDFIELDS, etc)

- Hydrocarbons: A potential 3 billion cubic meters of gas

- Marble: Reserves estimated at millions of cubic meters

- Oil: The substratum is still under-exploited.

MAJOR INFRASTRUCTURE PROJECTS:

- a standard gauge railway (1200km)

- a new international airport

- the modernisation of Dakar Port

[Home][Embassy][Visa and Passport][Business][Senegal A-Z][Arts and Culture][Annoucements][Gallery]