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Senegal

 Flag of Senegal

Map of Senegal Last reviewed: 02 June 2009

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ECONOMY

Basic Economic Facts

Annual Growth: 4.0% (2006 est)
GDP: US$10.8bn (2006 est)
Inflation: 2.0% (2006 est)
Main economic sectors: agricultural products (groundnuts, millet, corn, sorghum, rice, cotton, market gardening and livestock), fish processing, phosphate mining, fertiliser production, petroleum refining, construction materials and tourism.
Exports: fish, groundnuts, petroleum products, phosphates, cotton
Main trade partners: EU, United States and India
Exchange rate: €1=656 CFA.

Senegal’s economy is based on primary product export (groundnuts, phosphates and fish) and tourism. Remittances from abroad also make a considerable contribution to the economy, especially in the booming construction industry. As a member of the Franc Zone, the country enjoys low inflation. Privatisation of the parastatal which deals in groundnuts and groundnut products (Sonacos) was completed in 2005. The planned privatisation of the electricity sector (Senelec) has been halted and Senelec continues to experience problems in paying market prices for its fuel inputs.

The government’s economic policies continue to concentrate on large scale infrastructure projects, including the planned second international airport near Dakar (to be called the Blaise Diagne Airport). Textiles, IT and tourism are other priority sectors for the government. A major project to improve the Dakar to Bamako road is being financed by the Japanese and the EU. The country runs a successful airline (Air Senegal) in partnership with the Moroccan national airline. Telecoms is another dynamic sector, and plans are being considered to tender for a third mobile phone licence. However, despite these signs of success, several key sectors (groundnut oil, fertiliser production) are suffering from management problems and stiff competition from imports.

Senegal enjoys good relations with international donors, and reached HIPC completion point in April 2004, which has since led to debt alleviation measures by bilateral and multilateral donors. Senegal's IMF negotiated Poverty Reduction and Growth facility loan package expired in April 2006. Senegal has now negotiated a financial monitoring arrangement with the IMF (a Policy Support Instrument) which provides technical support for its domestic poverty reduction programme.

International Monetary Fund (IMF)

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