The World Bank in Senegal

Located in the westernmost part of the African continent, Senegal is bordered by Mauritania, Mali, Guinea, and Guinea-Bissau.  Senegal enjoys a dry tropical climate and has a population of 16.7 million people, a quarter of whom live in the Dakar area (0.3% of the territory).

Political Context

Senegal is one of the most stable countries in Africa, with three peaceful political transitions since independence in 1960. In power since 2012, President Macky Sall was elected to a second five-year term in office in February 2019.

The legislative elections of July 31, 2022 created an unprecedented situation in Senegal with a national assembly without an absolute majority. The ruling coalition, Benno Bokk Yakaar (United in Hope), won 82 out of 165 seats, with the five opposition coalitions sharing the other 83: Yewwi Askan Wi (Liberate the People, 56), Wallu (Rescue Senegal, 24), Bokk Guiss Guiss (Same Vision, 1), Aar Senegal (Protect Senegal, 1) and Les Serviteurs (The Servants, 1). Presidential election is scheduled on February 25, 2024.

While Senegal has so far been spared the violence engulfing the region, terrorist group activities in neighboring countries and cross-border trafficking risk fueling instability.

Economic Overview

The COVID-19 pandemic and ongoing conflict in Ukraine induced sizable terms-of-trade shocks, noticeably reducing growth for 2022 and leading to sustained high fiscal deficits and debt levels, with little room for maneuver. Real GDP growth is estimated to have decelerated to 4.2 percent in 2022, compared to a pre-shock forecast of 5.5 percent, as higher food and energy prices, trade disruptions, and greater uncertainty caused private investment to decline. The same transmission channels added to a surge in average inflation since the beginning of 2022, reaching a muti-decade high level of 14.1 percent y/y in November 2022 and decelerating to 9.4 percent in February 2023. As a result, average inflation is estimated at 9.6 percent in 2022 up from 2.2 percent in 2021 driven by food prices which increased on average by 15 percent in 2022 compared to 2.9 percent in 2021.

The pandemic has significantly altered the country’s economic outlook, affecting services such as tourism and transport, and exports. Senegal has responded with several containment measures and has implemented an Economic and Social Resilience Program (Programme de Résilience Économique et Sociale, PRES). Nevertheless, limited fiscal buffers and safety nets, a vulnerable health care system, and a large informal sector pose challenges.

Economic recovery will likely be gradual. Reforms envisaged under the Emerging Senegal Plan (Plan Sénégal Émergent, PSE) need to be deepened for growth to resume its pre-pandemic trajectory. Services remain the main contributor to GDP, and the primary sector (agriculture, in particular) the most dynamic engine of growth. Oil and gas projects have been delayed because of the health crisis and are not expected to contribute to revenues and exports before 2035.

Development Challenges

Senegal’s key development challenge is to mitigate the socioeconomic impact of the pandemic while enabling sustainable and inclusive growth. This will require:

• Improving resilience to macro-fiscal, environmental, climate change, and social risks to safeguard investments in human capital and household livelihoods.
• Boosting and protecting human capital for productivity growth; Enhancing competitiveness and job creation by improving digital and physical connectivity at the national and regional levels and increasing the efficiency of labor markets.
• Lowering energy costs, reducing the carbon footprint, and optimizing the energy mix.
• Promoting the services economy and boosting the productivity and competitiveness of agriculture and related value chains.

Social Context

The COVID-19 pandemic risks jeopardizing the socioeconomic gains achieved through improved access to key services. This could generate severe losses for households through shortfalls in labor and non-labor income, domestic price inflation, and disruptions in basic services.

Last Updated: Mar 30, 2023

World Bank Group Engagement in Senegal:

Since March 5, 2020, a Country Partnership Framework (CPF) for Senegal has laid out the World Bank Group program for fiscal years 2020 to 2024.  Guided by the second Priority Action Plan (2019–2023) of the government’s Emerging Senegal Plan and the World Bank’s recent Systematic Country Diagnostic, the CPF supports three areas:

• Building human capital to enhance productivity and generate the demographic dividend.
• Boosting competitiveness and job creation through private sector-led growth.
• Increasing resilience and sustainability in the context of growing risks.

The World Bank’s portfolio in Senegal comprises 22 national investment projects totaling $2.71 billion and 9 regional operations totaling $390 million, all financed by the International Development Association (IDA).  IFC commitments in Senegal total $160 million, while MIGA’s gross portfolio is $305 million.

COVID-19 immediate response 

The World Bank Group has employed various mechanisms to provide immediate support to Senegal.

Health: The World Bank is supporting the country’s COVID-19 response plan through three initiatives:  

• The Regional Disease Surveillance Systems Enhancement (REDISSE) project, through which the Bank is supporting the purchase of equipment to protect health workers and meet other critical needs.
• $20 million in Fast Track Covid-19 Facility (FTCF) financing, approved on April 2, 2020, and an Additional Financing amounting to $134 million approved on June 2, 2021;
• The Investing in Maternal, Child and Adolescent Health Project approved for $140 million (including $10 million under the Global Financing Facility).

Flood protection and urban resilience: The Board of Directors approved $155 million in financing in 2021 for the second phase of the Stormwater Management and Climate Change Adaptation Project (PROGEP2).  The project will protect selected flood-prone areas in Dakar with drainage infrastructure and flood risk management.

Social Protection: The existing Social Safety Net project can be used immediately to enhance support to vulnerable populations. A total of $20 million of undisbursed funds can be used to support transfers to the 560,000 households in the Unique National Registry (Registre National Unique, RNU). This project also benefited from an additional financing of $94 million (including $14 million in co-financing) approved on June 15, 2021.

Last Updated: Mar 30, 2023

Here are a few examples of how the World Bank Group has contributed to Senegal’s development performance in various sectors:

Adaptation to climate change, livestock, and food security

With $248 million in IDA financing coordinated by the Permanent Interstate Committee for Drought Control in the Sahel (CILSS), the Regional Sahel Pastoralism Support Project (PRAPS) aims at preserving pastoral systems, by mitigating conflicts, improving natural resource management and animal health, facilitating access to markets, and promoting income diversification among pastoral households.  Between 2015 and 2020, PRAPS helped develop and improve the management of more than six million hectares of pastoral areas, construct/rehabilitate 365 vaccination pens, 307 water points and 78 livestock markets, and mark out 1,414 kilometers of transhumance corridors. It has also supported the economic activities of 32,248 persons, of whom 28,058 (87%) are women.

Quality Improvement and Equity of Basic Education Project

• 2,134,968 persons have benefited directly. 
• Two High Schools of Excellence for Integration, Equity and Quality (Lycée d’Excellence pour l’Intégration, Equité, et la Qualité, LINEQ) have been built and 600 students enrolled, with absolute gender parity.
• Grade-level reading comprehension among primary school students has improved.   
• The percentage of students enrolled in math and science tracks (S1, S2) at the secondary level increased from 32% to 37%, with a target of 45% by end-2021.

Transport and Urban Mobility Project

• 726,000 persons have benefited directly.
• 6,650 jobs were created through labor-intensive investments.
• Travel time between Rufisque and Lompoul has been reduced from 211 to 153 minutes.
• Travel time between Lompoul and Gandiol has been reduced from 202 to 100 minutes.
• 600 young people were trained during road works.
• 27 kilometers of urban roads were paved.
• 1,307 minibuses were brought into operation as part of the fleet renewal process.

Urban Water and Sanitation Project

• 687,980 persons have benefited directly.
• 180,000 urban residents were provided with access to improved water sources.
• 83,694 persons were provided with access to improved sanitation facilities.
• 424,286 persons were provided with access to improved water services.

Social Safety Net Project 

Under the Social Safety Net Project, the government of Senegal has registered 442,000 households in the Unique National Registry (about 32% of the population), and the National Cash Transfer Program (Programme National de Bourses de Sécurité Familiale) has reached its final target of 300,000 beneficiary households (about 20% of the population).

Last Updated: Mar 30, 2023

Most bilateral and multilateral development agencies have an active presence in Senegal. Progress has been made to streamline development assistance, in keeping with the Paris Declaration and the Accra Agenda.

Last Updated: Mar 30, 2023