International Trade in Senegal

News Related to International Trade in Senegal

Business outline for Senegal

Main Industry Sectors

The primary sector employs 77% of the active population and contributes about 15% to the GDP. The Senegalese agriculture is characterized by being highly vulnerable to climatic hazards and locust threats. Senegal's main crops are peanuts, black-eyed peas, cassava, watermelons, millet, rice and corn.  The country is relatively poor in natural resources.

The secondary sector contributes approximately a quarter to the GDP. It is based on the production of fertilizers and phosphoric acid to be sent to India and peanut processing (oil and cattle meal) and seafood (despite a growing depletion in the resource).

The tertiary sector contributes 60% to the GDP. It benefits from the excellence of the telecommunications infrastructure, which favors investments in teleservices and the Internet.

Economic Overview

With a GDP per capita of USD 1,066, Senegal has, for a long time, experienced one of the highest growth rates of the UEMOA (West African Economic and Monetary Union).  Structural reforms have created an important change in the economic environment of Senegal, notably thanks to the privatization of a number of public companies in the areas of agriculture and infrastructure. However, Senegal remains an LDC with almost 50% of the population living below the poverty threshold.

In 2009, the effects of the global economic crisis started to touch the Senegalese economy with a decline in the money transfers from emigrant workers (8% of the GDP in 2008), a reduction in exports and in FDI. According to an IMF report, the Senegalese banking sector, which does not have any toxic assets, was not directly affected by the global crisis. Nevertheless, the effects of the crisis can have an indirect effect, namely on the quality of loans. According to an IMF report, the Senegalese authorities have managed to redress the budgetary overflows and to put their economic program back on track in 2010 with a GDP's growth of 4%.  The IMF estimates that the country's growth should speed up in 2011.

FDI in Figures

Senegal has a proactive policy towards FDI.  At the end of the 90s, there was an FDI boom in the direction of Senegal. France is historically one of the countries that invested the most in Senegal.  However, the effects of the crisis have provoked a reduction of about 20% of FDI in 2009.  The economy of Senegal remains largely dependent on the European growth.

FDI Government Measures

The Senegalese government has put into place various incentive measures for investments.  Below are some of these measures:
- Increased protection for investments;
- Defining priority sectors for investment;
- Delivering license certificates in 10 days; and
- Respect of the rules of the Environmental Code (document in French).
For more information, Agency for the promotion of investment in Senegal website.

Country Strong Points

The country's main strong points are:
- A strategic geographical position;
- Competitive production costs;
- A cheap and skilled labor force;
- A healthy and competitive economy;
- A reformed legal and taxation framework; and
- Privileged access to regional and international markets.

Country Weak Points

The country's main weaknesses are:
- The poor and bad condition of the infrastructures;
- A slow and corrupt administration;
- Security;
- Low company productivity; and
- Low diversity of activities.

Foreign Trade Overview

Foreign trade accounts for about 70% of Senegal's GDP. 

Imports account for 47% of the GDP. The country's main suppliers are France, Nigeria, Thailand, China and the United Kingdom. Senegal mainly imports mineral fuels, oil, cereals, machinery and vehicles.

Goods and services exports account for 25% of the GDP. Senegal's main clients are Mali, India, France, Gambia and Guinea. The main export commodities are mineral fuels, oil, sea products, inorganic chemical products, salt, sulfur and vehicles.

For several years now, China has become an increasingly important partner of Senegal as it has been witnessed in the China-Africa summits.  The country's trade balance improved in 2010 and this improvement should continue in 2011.