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.
Senegal is a pole of stability and a model of democracy in a region affected by political, security, and humanitarian crises, terrorism, and instability, while it remains one of the poorest countries in the world.
In compliance with the principles of aid effectiveness, considering economic developments and social issues in Senegal, and within the framework of the new budget cycle 2021-2027, and the priorities of the Neighbourhood, Development, and International Cooperation Instrument (NDICI), the joint programming document has now been revised in accordance with the Team Europe approach.
The strategic objectives of the EU-Senegal cooperation for the Multiannual Indicative Plan (MIP) include the following priority areas:
Green and inclusive growth for job creation
Senegal’s geographical position and its seafront make it a strategic territory in West Africa. By continuing to strengthen its infrastructure, the country can integrate the agro-industrial value chains in the region, as is the ambition of the Emerging Senegal Plan.
The response of the EU and its Member States through a Team Europe approach will support the implementation of the TEI in particular.
Development of human capital
In just a few years, Senegal has made considerable progress in terms of access to water and sanitation, with a positive impact on public health and the environment, but also fundamental in the consolidation of a State and its administrations carrying out its public service missions. The solid waste management sub-sector has not experienced a similar growth but is now at the centre of the attention of the authorities and the PADs.
The aim of European action will therefore be to pursue investments already made to establish and strengthen the progress made in terms of access to basic social services.
Institutional development remains a central issue for Senegal, for the implementation of public action, for economic development, private sector investment, and the creation of sustainable jobs, and, more broadly, for democratic consolidation.
European action on economic governance will have a transversal impact on the whole process of socio-economic and political development and thus contributes to the three objectives strategies, including supporting the development of e-government.
The Multiannual Indicative Programme (MIP) for Senegal for 2021-2024 amounts to €222 million.
Priority area 1: ‘’Green and inclusive growth for job creation’’ supports the development of sustainable agro-industrial activities while providing Senegal with sustainable infrastructure. Moreover, it forwards the creation of sustainable and decent jobs by the private sector, entrepreneurship and access to finance, improvement of the investment climate, digitization of the economy, and access to mobile services.
Priority area 2: ‘’Development of human capital’’ improves the living conditions of populations, especially the most vulnerable, and their sanitary and hygienic environment through the improvement of access to water and sanitation within the framework of integrated and sustainable water resources management. Furthermore, it contributes to improving the performance of the Senegalese education system and enhances the population’s access to basic health services and care.
Priority area 3: ‘’Good Governance’’ promotes transparent, fair, and efficient management of public finances contributing to the mobilization of national resources and the strengthening of a stable economy conducive to sustainable, inclusive growth and employment. Additionally, it contributes to the strengthening of democracy and the rule of law, while working to guarantee a sufficient level of security for goods and people as a condition for the country's economic development and social cohesion.