Senegal’s economy recovered in 2012 with growth estimated at 3.7% of gross domestic product (GDP), up from 2.1% in 2011. Projected growth for 2013 and 2014 is 4.3% and 5.1% respectively. These projections assume that the government’s socio-economic programme will be implemented along with the Policy Support Instrument (PSI-II) 2010-13 agreed upon with the International Monetary Fund (IMF). The main investment programmes are for road infrastructure, with the continuation of a toll motorway and Blaise Diagne International Airport, as well as energy (electricity distribution).
The National Strategy for Economic and Social Development (SNDES) for 2013-2017 was approved in November 2012. It centres on three areas of action: growth, productivity and wealth creation; human capital and sustainable development; and government, institutions, peace and security. The direction taken by the new administration in the area of good governance should lead to better management of public resources. The implementation of necessary reforms to achieve growth objectives may be made easier by the strong legitimacy of the new ruling team that emerged from the presidential and parliamentary elections in early 2012. However, the opening of the Senegalese economy makes it vulnerable to fluctuations in world commodity prices and to the economic crisis in Europe and political crisis in neighbouring Mali. There are also internal risks linked to floods and other climatic shocks and to the slowness of the road infrastructure programme and reforms, especially of the energy sector.
Recent studies indicate that from 1980 to 2009, labour migration was from the primary and secondary sectors to the urban informal sector. But the structural transformation of Senegal’s economy remains slow. About 60% of the working population still depends on agriculture. Senegal has not become mining-oriented, despite the potential offered by phosphate and gold. Mining and quarrying accounted for less than 1.5% of GDP for the period 2002-11. Reforms to improve the business environment and the quality of human resources arare therefore crucial.
( Courtesy African Economic Outlook……Source……New Africa Business News & Our Freelance Economic Contributor )