Senegal 

Senegal country policy

Policy established 04 April 2011

• ILC, bank guarantee or central public guarantee (conditional)
• The country ceiling is 1000 mln euro
• Early warning signal 150 mln euro
• - of which was used as at 2012-02-29 0 mln euro
• Public buyers: ORIO facility

Country class: 6

Restrictions

• Extended DAL (Date of Ascertainment of Loss): 6 months
• Special conditions, consult your accountmanager

Senegal country facts

Atradius Dutch State Business Economic Research
Country Report last updated : 2 March 2012
Country :  SENEGAL

Political Situation

Second Round Presidential Elections

Head of state
Abdoulaye Wade (Parti Démocratique Sénégalais, PDS) since 2000. Presidential elections take place.

Form of government
Government is made up of a mix of PDS and technocrats, PM is Souleymane Ndene Ndiaye

Internal Economic Situation
Weak Government Finances

General situation
Economic growth was 4.2% in 2011 and will accelerate to 4.4% due to large investments in infrastructure and energy. Especially power shortages are constraining economic growth. In 2011 inflation of 3.4% and this will decrease to 2.9% as food prices are expected to ease. Despite the high economic growth in recent years poverty is still high. More than half of the population is living under the poverty line. Unemployment is high. Structural problems (infrastructure bottlenecks, energy supply, weak institutions and governance) are constraining a higher economic growth on medium term. The financial sector is rather weak with a large portfolio NPL. In December 2010 NPL was 20.2%.

 
External Economic Situation
Structural High Ca Deficits

Main sources of foreign exchange
Fish, phosphates, ground nuts, petroleum products

Main foreign markets
Mali (25%), India (11%), Switzerland (8%), France (6%),

Main expenses of foreign exchange
food and beverages, capital goods, fuels

Balance of payments 
High import bill due to increasing oil and food prices contributed a high current account deficit. Besides capital imports linked to the investments in infrastructure keep imports high.