Senegal is a pole of stability in the region.
The Senegalese economy has seen high growth in the latest decade. Debt servicing ratio is expected to grow to over 70% of fiscal revenue in 2020 and 2021 as a result of Covid-19. GDP growth contracted to 1.5% in 2020 after rates between 5.5 and 7.4 in the previous five years. Nevertheless, growth is expected to pick up rapidly and reach 5.2% in 2021 (IMF forecast). In spite of high growth rates, private investments have remained below expectations and Senegal remains among the least developed countries. The EU is supporting private investments in particular via the External Investment Plan.
Relations between Senegal and the EU are excellent and dynamic, based on political dialogue, trade and development cooperation. EU intervention is line with the government’s "Plan Sénégal Emergent" and is guided by 3 strategic priorities:
- green and sustainable growth for job creation
- human development
- good governance, including migration
With joint programming, Senegal has been working in a Team Europe configuration with Member States since 2018.
Under the 11th EDF (2014-2020) as well as via the EU emergency Trust Fund for Africa, the EU has achieved the following results:
Green and sustainable growth for job creation
The EU supports rural development and helps to improve natural resources management; transport and energy infrastructure; support to job creation; vocational training and private sector development.
Example: Water and Sanitation Budget Support Programme (€ 40 M) to ensure performance in the country’s water and sanitation strategy. Water planning and management needed to be strengthened in rural and urban areas in view of the demographic growth and strong urbanisation process. Results included:
- constant progresses in urban and rural drinking water supply and access (solid access rates above 95%);
- introduction of the Water Code, strengthening the institutional framework for the water and sanitation sector and development of performance contracts with autonomous water agencies;
- better performance contracts with the different water and sanitation agencies and improved investment planning in the sector.
Through this priority, the EU aims to improve water and sanitation infrastructure; improve the quality of education, higher education and research and strengthen the health and social protection system.
Example: 'Développer l'emploi au Sénégal – Renforcement de la compétitivité des entreprises et de l'employabilité dans les zones de départ' (EU Trust Fund, €40,1 M). It aims at promoting employment, particularly among young people, by improving training and occupational integration and by upgrading enterprises. Some recent results include:
- 4 733 young people supported in entrepreneurship;
- 14 657 people trained;
- 370 “maîtres artisans” trained and equipped;
- 298 migrants returnees accompanied;
- 3 new training centre under construction;
- implementation of a public private partnership initiative in forestry.
Through this priority, the EU aims to improve and consolidate economic governance, public finance management and the fight against corruption; democratic governance and security; management of migration flows.
Budget support - SDG contract (€ 88 M.) to improve the business environment; encourage more efficient management of public finances; strengthen the fight against organised crime, terrorism and trafficking in children; facilitate migration and mobility in an orderly and responsible manner.
Example of activities/results:
- simplification and digitalisation of business procedures, commercial law and contact enforcement;
- formalisation of the economy (banking of low income earners, labeling of SMEs, creation of the General Delegation for Women and Youth Entrepreneurship);
- promotion of entrepreneurship, Communication on the changing business climate is an integral part of the mandate of APIX (Agence pour la Promotion des Investissements et des Grands Travaux);
- EU policy dialogue under the SDG-Contract aims to improve the pace of reforms, which need to progress further in view of the present economic and social challenges that the country is facing.
The 11th European Development Fund (EDF) National Indicative Programme (NIP) allocated €347 million for the 2014-2020 funding period. The 3 priority sectors are:
Democratic governance – key to ensuring the strengthening of the rule of law as well as consolidating political stability, justice and security.
Sustainable agricultural development and food security – contributes to an enhanced prevention and response to food security crises, support sustainable agriculture production as well as access to food for the most vulnerable.
Access to water and sanitation – aims to enhance the living conditions of the most vulnerable through improved access to water and sanitation.
Senegal is one of the major beneficiaries of the EU Emergency Trust Fund for stability and addressing root causes of irregular migration and displaced persons in Africa.