Download ACM Country Profile: Senegal

WEST AFRICA
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National Profile
ACM Country Profile: Senegal
Highlighting political, economic and business trends
“Your democracy has been a model for Africa, as
exemplified by the diversity of this parliament.
You are recognized for your education system,
dynamic civil society, and strong civil service.
You have achieved macroeconomic stability and
made inroads against poverty,” International
Monetary Fund (IMF) Director Christine
Lagarde told Senegal’s National Assembly on 30
January 2015. Lagarde said that Senegal is at
a crossroads where a more inclusive economy
benefitting more Senagalese is required, or
stagnation, reversal and conflict will result.
March 2015 Edition
Political Assessment:
60
Dakar
slightly more competitive than non-competitive globally, thanks to its port. Agriculture has not been significantly exploited commercially compared to fishing,
but the thorny issue of land rights must be handled
first. Services are likely to continue as the dominant
economic sector and like other sectors, will be assisted by economic reforms that would enhance a more
business-friendly environment.
Facing a moderate threat from terrorism, Senegal is
slightly less politically stable than stable according to
the World Bank’s Worldwide Governance Indicators.
As might be expected for a government more concerned with political power than service delivery,
poor governance scores are recorded across the
board, including low points for governance effectiveness and for government
Business Assessment:
“...a corrupt and
accountability. Because Senegal’s ports
inept bureaucracy
Senegal’s strong points are its transmust meet international standards,
and
an
arrogant
portation and communications links.
higher scores are awarded for regulagovernment
focused
Dakar is the key West African sea port
tory quality and Rule of Law, although
on
political
power
and the country is the 3rd easiest in
these are still poor grades. On the subject of control of corruption, the survey and largely apathetic Sub-Saharan Africa in which to engage
to business needs
in cross-border trade according to the
found that dealings with government
have
given
Senegal
World Bank. However, a corrupt and
are likely to be more corrupt than honruinous
scores
on
inept bureaucracy and an arrogant
est. Transparency International reports
the World Bank’s
government focused on political power
a similar conclusion. However, none of
Ease
of
Doing
and largely apathetic to business needs
these scores are disastrous and can be
Business
Index.”
have given Senegal ruinous scores
improved upon once the political will
on the World Bank’s Ease of Doing
exists to do so. The Senegalese people
Business Index. Senegal is amongst the
are not sufficiently incensed by poor
bottom
five
countries
when it comes to registering
governance to yet take to the streets in protest.
property, getting electricity, paying taxes and, importantly, safeguarding investments, and is amongst the
Economic Assessment:
bottom ten for dealing with construction permits and
With 54% of its population living below the pov- enforcing contracts. Investors have an easier time
erty line despite the country’s natural resources, starting businesses and liquidating them, but running
Senegal’s per capita GDP of US$ 2,093 is not equitably businesses can be difficult. The mainstays of Senegal’s
enjoyed; hence the warning by IMF Director Lagarde economy remain the same as they have they have for
to Senegalese lawmakers. The politically-connected decades: phosphate mining, commercial fishing and
top 10% of Senegalese control a third of the coun- fertilizer production. The tourism sector has carved
try’s wealth. The Heritage Foundation and Wall Street a niche market by exploiting Senegal’s historic sites
Journal Index of Economic Freedom and the Cato involved in America’s slave trade. Oil exploration and
Institute Economic Freedom of the World Index both exploitation is underway. Agriculture is largely subsistrank Senegal’s economy as “mostly unfree.” The WEF ence farming and contributes only 15% to GDP. With
Global Competitiveness Report 2014 awards Senegal industry contributing 23% of GDP, the majority (68%)
3.7 points out of 7, signalling that the country is is constituted by services.
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