Economy of Senegal

Senegal
World economic rank	118. (nominal) 110. (PPP)
currency	CFA Franc BCEAO (COF)
Trade organizations	WTO
Key figures
Gross domestic product (GDP)	$ 16.5 billion (nominal) (2017) $ 43.2 billion ( PPP ) (2017)
GDP per capita	$ 1,038 (nominal) (2017) $ 2,727 (PPP) (2017)
GDP by economic sector	Agriculture : 16.9% Industry : 24.3% Services : 58.8% (2017)
growth	▲ 7.2% (2017)
inflation rate	1.4% (2017)
Gini index	40.3 (2011)
Employed	6.97 million (2017)
Employed persons by economic sector	Agriculture : 77.5% Industry and services : 22.5% (2007)
Unemployment rate	48% (2007)
Foreign trade
export	2.55 billion (2017)
Export goods	Fish, peanuts, phosphates, petroleum products
Export partner	Mali : 14.8% Switzerland : 11.4% India : 6.0% Ivory Coast : 5.3% (2017)
import	5.23 billion (2017)
Import goods	Food and beverages, machinery, raw materials
Import partner	France : 16.3% China : 10.4% Nigeria : 8.0% India : 7.2% (2017)
Foreign trade balance	−1.55 billion (2017)
public finances
Public debt	61.2% of GDP (2017)
Government revenue	$ 3.9 billion (2017)
Government spending	$ 4.5 billion (2017)
Budget balance	−3.8% of GDP (2017)

Dakar: Senegals place de l'indépendance (Independence Square); Center of government, banking and commerce

The economy of Senegal is characterized by serious problems, with the climatic conditions in Senegal and the rapid population growth being among the main problems. The population growth was 2.39% in 2017. The consequences of the high population growth are emigration ( rural exodus ) of the rural population due to food shortages. The resulting consequences are problems with the water supply as well as sewage and garbage disposal. In addition, the increasing traffic in the capital leads to increased noise and air pollution.

Investments are mainly deterred by a lack of infrastructure , but the state tries to promote road construction through investments. Senegal ranks 156th out of a total of 177 countries in the Last Development Index. The gross domestic product in 2017 was 16.5 billion US dollars, which means a gross domestic product of 1,038 US dollars per capita. As a result, GDP increased by 6.7% in 2016. In 2007 the GDP increased by 7.2%. The inflation rate rose from 0.9% in 2016 to 1.4% in 2017. This makes the country's economy one of the fastest growing in the world, but the low starting level of the economy and high population growth must be taken into account. The state itself has numerous arrears with some companies. They include the electricity supplier Senelec and the SAR refinery.

In the Global Competitiveness Index , which measures a country's competitiveness, Senegal ranks 106th out of 137 countries (as of 2017-2018). In 2019, the country ranks 117th out of 180 countries in the index for economic freedom .

Well-known companies

Many of Senegal's top-selling companies are based in Dakar.

Agriculture

80% of the population is active in agriculture, although this economic sector only contributes 17.6% to the gross domestic product. Due to progressive desertification , soil erosion , deforestation , overgrazing and, last but not least, the very different productivity of the annual rainy season, there is always the risk of crop failures .

The peanut production in the country's so-called peanut basin is traditionally an important source of foreign currency in the country. After a decade-long decline to a minimum in 2002/2003, an increase in harvest yields has been recorded again, most recently in 2017 with 915,000 tons on 9400 km² of cultivation area. This means that Senegal still ranks 9th among the ten largest peanut producers in the world.

The grain and cotton harvest also suffered setbacks in 2006. The grain harvest fell by 24% and the cotton harvest by 3% to 45,000 tons. Nevertheless, the production of food for the domestic market increased by 12.7% (2,046,300 tons).

The Compagnie Sucrière Sénégalaise of the Groupe Mimran , which is heavily involved in Senegal, has developed a considerable agro-industrial complex in and around Richard Toll and is the market leader in the sugar industry in West Africa.

Mining and industry

With 21.4% of the gross domestic product, the industrial sector is the most important branch of the economy after the service sector, although industrial production fell by 19.2% in 2006. The chemical industry was particularly hard hit by the setback with 69.8%, which is attributed to the crisis in the Senegalese large company ICS. The construction industry continues to benefit from growth almost exclusively. Other areas that benefit from the growth are electricity, water and gas with 1.7%, but this hardly resolves problems such as insufficient energy supply. The Senegalese industrial companies also have a relatively low status overall in contrast to other African companies. Only the companies SAR (105th position), Total Senegal (184th position) and Shell Senegal (220th position) occupy the highest positions for Senegalese standards among a total of 500 African companies analyzed.

Mining also recorded a decrease of 28.7%. In 2006, phosphate mining decreased by 60%, which means a production volume of only 584 tons (before 1451 tons). In addition to phosphate, the country has large iron ore deposits in the east of the country. An agreement signed in February 2007 between ArcelorMittal and Senegal to develop the iron ore deposits of Falémé in the Saraya department in the south-east of the country on the Falémé River has failed.

Services

The service sector is the most important economic sector and contributes 61% to the gross domestic product. This has been rising steadily for several years (2004: 6.3% 2005: 5.5%), and in 2006 it rose again by 4.6%. The main carriers of the service sector are the transport and telecommunications sectors. The expansion of tourism is mainly blocked by a lack of infrastructure and administrative hurdles, although tourism is the country's most important source of foreign currency after peanut cultivation. The number of tourists in 2005 was 770,000. The banking sector is barely diversified and developed, but still profitable. The largest bank in Senegal is SGBS, whose share capital is currently 58% with the French Societe Generale.

Key figures

All values ​​are given in US dollars ( purchasing power parity ).

year	GDP (purchasing power parity)	GDP per capita (purchasing power parity)	GDP growth per year
1980	4.6 billion	816	−0.8%
1985	6.9 billion	1,049	3.7%
1990	9.0 billion	1,184	−0.7%
1995	11.2 billion	1,285	5.4%
2000	14.9 billion	1,512	3.2%
2005	21.1 billion	1,873	5.6%
2006	22.3 billion	1.926	2.5%
2007	24.0 billion	2,020	4.9%
2008	25.4 billion	2,077	3.7%
2009	26.2 billion	2,085	2.4%
2010	27.2 billion	2.138	4.3%
2011	28.7 billion	2.158	1.9%
2012	30.6 billion	2,229	4.5%
2013	32.2 billion	2,277	3.6%
2014	34.0 billion	2,342	4.1%
2015	36.7 billion	2,448	6.5%
2016	39.6 billion	2,572	6.7%
2017	43.2 billion	2,726	7.2%

Individual evidence

1. ↑ Gross domestic product 2016 (PPP) (PDF; 14 kB) In: The World Bank: World Development Indicators database . World Bank. February 3, 2017. Retrieved February 5, 2018.
2. ↑ [1] Retrieved January 29, 2018
3. ↑ [2] Retrieved January 29, 2018
4. ↑ [3] Retrieved January 29, 2018
5. ↑ [4] Retrieved January 29, 2018
6. ↑ [5] Retrieved January 29, 2018
7. ↑ [6] Retrieved January 29, 2018
8. ↑ [7]
9. ↑ [8] Retrieved January 29, 2018
10. ↑ [9] Retrieved January 29, 2018
11. ↑ [10] Retrieved January 29, 2018
12. ↑ At a Glance: Global Competitiveness Index 2017–2018 Rankings . In: Global Competitiveness Index 2017-2018 . ( weforum.org [accessed December 6, 2017]).
13. ↑ Country Rankings 2019 Index of Economic Freedom
14. ↑ Dakaractu of February 4, 2013: Le Magazine "Réussir" dresse la liste des 100 plus grandes entreprises du Sénégal
15. ↑ Afristat Tableau 38: Les grandes entreprises Senegal 1990–1998 (the 10 largest companies by number of employees and by turnover)
16. ↑ izf.net: List complete et adresses des principales entreprises, from September 2018 PDF file 1.25 MB with key data from 373 companies
17. ^ Report for Selected Countries and Subjects. Retrieved August 22, 2018 (American English).