The World Bank in Senegal

Located in the westernmost part of the African continent, Senegal is bordered by Mauritania, Mali, Guinea, The Gambia, and Guinea-Bissau. With a tropical and dry climate, the country has a population of 18,032,473 million people, nearly a quarter of whom live in the Dakar region (which accounts for only 0.3% of the country's territory).

Political Situation

Senegal remains one of the most stable countries in Africa. The country has experienced three peaceful political transitions since gaining independence in 1960. On March 24, 2024, Bassirou Diomaye Diakhar Faye, the opposition candidate, was elected as the country's fifth president, winning the election in the first round.

Economic Situation

Real growth is expected to reach 6.1% in 2024 (3.4% per capita), below the initial forecast of 7.1%, due to weaker-than-expected activity in the construction, mining, and industrial sectors. Agriculture is expected to maintain its growth thanks to favorable rainfall and government support measures (quality inputs, fertilizers, etc.). The services sector should benefit from the indirect effects of oil production, particularly in sub-sectors such as trade, transport, hospitality, catering, and financial services. The transport sub-sector is expected to thrive due to the partial recovery of industries and the commercial launch of the Bus Rapid Transit. Inflationary pressures are expected to gradually ease, with inflation forecasted to fall within the regional central bank’s target range of 1% to 3% this year, down from 5.9% in 2023, as global inflation in commodity and food prices subsides.

Structural vulnerabilities such as low productivity, limited human capital, high levels of informality, and youth emigration persist and are exacerbated by external shocks, such as those from the COVID-19 pandemic and Russia's invasion of Ukraine. The transition to a more diversified economy with a broader industrial base remains limited, with the economy still heavily reliant on agriculture, which remains the main driver of growth, along with services. Hydrocarbon production, delayed due to the health crisis and now scheduled for mid-2024, offers an opportunity to accelerate equitable investments in human capital and the energy transition but is not expected to contribute to revenues and exports before 2035.

Development Challenges

The main development challenge will be to boost economic activity to promote sustainable and inclusive growth while strengthening the resilience of vulnerable populations to shocks.

This will require (i) strengthening resilience to macro-fiscal, environmental, climate, and social risks; (ii) improving human capital to stimulate productivity; (iii) increasing competitiveness and job creation through better digital and physical connectivity, as well as more efficient labor markets; (iv) reducing energy costs, lowering the carbon footprint, and optimizing the energy mix; and (v) promoting the tertiary sector and stimulating the productivity and competitiveness of agriculture and related value chains.

Last Updated: Oct 17, 2024

The World Bank's Action in Senegal

The World Bank is preparing its new Country Partnership Framework (CPF) with Senegal for the period 2025-2030. This new phase of a partnership spanning more than 60 years with the country paves the way for promising opportunities for sustainable and inclusive development in line with the new priorities of the Government of Senegal.

The World Bank's portfolio in Senegal includes 21 national projects totaling $3.07 billion and 11 regional operations amounting to $834.5 million, all financed by the International Development Association (IDA). On the side of the International Finance Corporation (IFC), the portfolio amounts to $387 million, while the Multilateral Investment Guarantee Agency's (MIGA) gross commitments amount to $773 million.

Last Updated: Oct 17, 2024

The World Bank has helped Senegal achieve results in various development sectors:

Climate Change Adaptation, Livestock, and Food Security

With IDA financing of $248 million, the Regional Sahel Pastoralism Support Project (PRAPS) aims to preserve pastoral systems by mitigating conflicts, improving the management of natural resources and animal health, facilitating market access, and promoting income diversification for pastoral households. Between 2015 and 2020, PRAPS helped develop and improve the management of more than six million hectares of pastoral areas, construct or rehabilitate 365 vaccination parks, 307 water points, and 78 livestock markets, and mark 1,414 kilometers of transhumance corridors. It also supported the economic activities of 32,248 people, of whom 28,058 (87%) were women.

Quality Improvement and Equity of Basic Education Project

• 2,134,968 direct beneficiaries of the project;
• Construction of two excellence high schools for integration, equity, and quality (LINEQ) with 600 students enrolled and absolute gender parity between boys and girls;
• Improvement of reading skills for primary school students;
• Increase in the proportion of secondary school students enrolled in mathematics and science tracks (S1, S2) from 32% to 37%, with a target of reaching 45% by the end of 2021.

Transport and Urban Mobility Project

• 726,000 direct beneficiaries of the project;
• 6,650 jobs created through labor-intensive investments;
• Reduction in travel time between Rufisque and Lompoul from 211 to 153 minutes;
• Reduction in travel time between Lompoul and Gandiol from 202 to 100 minutes;
• Training of 600 young people during roadwork activities;
• Paving of 27 kilometers of urban roads;
• Integration of 1,307 minibuses as part of the vehicle fleet renewal program.

Urban Water and Sanitation Project

• 687,980 direct beneficiaries;
• Expansion of access to improved water sources for 180,000 urban residents;
• Expansion of access to improved sanitation facilities for 83,694 people;
• Expansion of access to improved water services for 424,286 people.

Last Updated: Oct 17, 2024

Most bilateral and multilateral development agencies are present in Senegal. Progress has been made toward harmonizing development assistance, in line with the principles set out in the Paris Declaration and the Accra Agenda for Action. All of Senegal’s technical and financial partners are brought together under the G-50 framework and an executive committee of six members, including the World Bank.

Last Updated: Oct 17, 2024