Senegal: Country Strategy Paper Sets Out Its Objectives Between Regional Integration, Agricultural Transformation, Infrastructure And Industrial Development

Issued by the African Development Bank.

In support of solid economic performance between 2014 and 2019, Senegal benefits from renewed confidence from the African Development Bank. For the period 2021-2025, the Pan-African development institution will support the country in strengthening its infrastructure and regional integration as well as the resilience of its economy through agricultural transformation and industrial development.

The Country Strategy Paper (CSP 2021-2025), validated and made public by the Bank on April 19, aims to support inclusive, robust and stable growth in Senegal and contribute to strengthening the country's resilience.

The Bank's interventions will improve access and quality of transport services: for paved roads, from 82% in a “good/average” index in 2019 to 85% in 2025, and for unpaved roads, in “good/average” from 55% to 60% over the period. It is planned to rehabilitate 500 kilometres of paved roads and to construct 100 kilometres of paved roads, as well as related social and economic developments.

The construction of the Rosso bridge (between Senegal and Mauritania) should reduce the crossing of the Senegal river to two minutes and will contribute, with the Dakar-Bamako railway and the construction of the Farim-Tanaff road (Senegal-Guinea Bissau), to the improvement of the logistics performance index from 2.32 in 2019 to 2.60 in 2025.

These various structures will help strengthen regional integration infrastructures in order to boost exchanges with the main partners. Above all, they will ensure a better connection between Senegal and its neighbors, in particular the Gambia, Mauritania and Mali, but also the development of transport activities along the Tanger-Lagos and Algiers-Dakar trans-African corridors on the one hand. and between Europe and sub-Saharan Africa on the other hand. Senegal should thus be better prepared for the implementation of the African Continental Free Trade Area (AfCFTA) in order to fully exploit its potential for intraregional trade.

To achieve universal access to electricity and strengthen the energy mix, it is planned to build 819 km of medium voltage lines and 2,466 km of low voltage lines. The national grid will be extended to 786 new localities by 2025, bringing access to electricity to 85% in 2025, against 76% in 2019, with an increase in the share of renewable energy from 21% to 30 % and a demand reduction of 20 MW.

The second priority area of the 2021-2025 CSP aims to increase the resilience of Senegal's economy through agricultural transformation and industrial development, in particular the establishment of agropoles. The Bank is banking on agricultural potential by supporting high value-added sectors in order to improve agricultural productivity and job creation, revitalize agricultural exports, reduce the trade balance deficit on cereal crops (millet, rice and maize) and intensify irrigated agricultural basins to cope with climatic shocks.

Rice production is expected to increase from 1.1 million to 1.5 million tonnes between 2019 and 2025 and horticultural exports from 108,000 tonnes to 135,000 tonnes over the period, thanks to the development of 15,000 hectares and l supervision of 30,000 producers. This strategy will reduce the prevalence of food insecurity described as “moderate / severe” from 16.5% in 2019 to 10% in 2025.

Support for agricultural and agro-industrial value chains will increase the share of industrial employment in total jobs to 16% in 2025, against 13.8% in 2019, and the share of value added manufacturing in the Gross Domestic Product is expected to increase from 12% to 20%.

"The implementation of the 2021-2025 CSP will make it possible to support Senegal in its implementation of the adjusted and accelerated priority action plan for post-Covid-19 economic recovery, but also to increase productivity and creation jobs, especially for young people and women said Mohamed Chérif, country manager for the African Development Bank.

The performance of the Bank's portfolio in Senegal is deemed satisfactory, with a score of 3 out of 4 in 2020. Around 54% of operations are thus deemed satisfactory and only 18% of projects are pinned. Among the operations carried out over the past few years have been the work relating to the Blaise Diagne international airport, the Sénégambie bridge and the toll motorway.

The economic performance recorded from 2014 to 2019, in a context of political stability, allowed Senegal to become a middle-income country again.

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