The AfDB is assisting Senegal in its ongoing quest for a healthy, growth-oriented macro-economic framework which will promote good governance and develop the private sector.  From October 10, 1972, the date of its first operation in Senegal to the end of December 2008, the Bank has granted the country some UA 670 million, equivalent to US$1billion. Senegal is an example of a stable African country.

Development Policy

The diagnosis of two recent IMF missions to Senegal shows that economic performance deteriorated in the second half of 2008, with a growth rate that was expected to stabilize at 3.9% in 2008 compared with the originally forecast 4.5%. The inflation rate was expected to attain 6.1% in 2008, above the Community norm. The poor performance is due to exogenous shocks (increases in the prices of food and oil products), budgetary slippage in 2007, as well as unrealistic investment programme and lack of rigour in the management of public funds. With regard to reforms, enormous efforts must still be made in respect of budget and financial management.  Despite these difficulties, Senegal retains the confidence of the donors and the International Community. An economic programme containing major reforms was signed with IMF in July 2007 for the 2007-2010 period. 

Strategy of the bank group

Following consideration of the RBCSP mid-term review report by the Boards of Directors on 16 April 2008, the Bank Group’s assistance strategy for the 2008-2009 period was maintained with the following two pillars:

• improved business climate and promotion of the private sector and
• improved access to basic infrastructure (roads, water and sanitation).

The indicative lending programme for the 2008-2009 period is as follows:

• Budget support of UA 30 million (December 2008);
• The Second DWSS Programme for UA 30 million. (December 2008);
• The Toll Motorway Project, UA 50 million (June 2009);
• The agricultural exports promotion project for UA 20 million will be replaced by a livestock development project for the same amount.

The Bank Group has financed 64 operations for an amount, net of cancellations, of UA 670 million and a disbursement rate of 74.6%. The active portfolio comprises 15 projects for an amount, net of cancellations, of almost UA 172 million and a cumulative disbursement rate of 27.1%. The annual disbursement rate for 2008 was 18% higher than the 11% of 2007.