Senegal Horizons

IMF notes energy improvements

2011-12-19T16:23:00.000-08:00

In its latest report on Senegal, the International Monetary Fund (IMF) notes the following:

"Senegal’s economy has remained resilient to the global economic turmoil. Growth is expected to dip slightly to 4 percent in 2011 because of power outages in the first half of 2011. In 2012, the restoration of sufficient electricity provision, together with large energy and road infrastructure spending, should boost growth to 4.4 percent and help make up for a less favorable international environment. Inflation rose in early 2011 reflecting increasing international food and petroleum prices, but this trend reversed in the second half of the year. Year-on-year inflation is now back below 3 percent, and is expected to remain so next year. The prudent approach to expenditure management has fostered macroeconomic stability and helped keep the authorities’ program on track, with all quantitative targets for end-June and end-September 2011 met. Good progress was made too with structural reforms aimed at strengthening public financial management, tax policy and administration, and debt management."

Government law would set state's telcom cut

2011-10-21T18:03:00.001-07:00

According to Reuters Senegal's government has proposed a law that will ensure that the state has at least a 35 percent share in all telecommunications companies operating in Senegal, the president said on state television on Thursday.

Senegal's APS news agency said that the law had been passed by the cabinet at a meeting on Thursday and might be extended to other sectors, beyond telecommunications.

IMF upgrades economic prospects

2011-10-21T18:00:00.000-07:00

An International Monetary Fund (IMF) mission, led by Mr. Hervé Joly, visited Senegal from October 5-19, 2011 to conduct the second review under the three-year Policy Support Instrument (PSI) arrangement approved in December 2010. The members of the mission met with the ministers of economy and finance, budget, international cooperation, infrastructure, and energy; representatives of the BCEAO; other senior government officials; and representatives of the private sector, civil society and development partners.

At the conclusion of the visit, the mission issued the following statement:

“After recovering in 2010, the Senegalese economy experienced a modest slowdown in early 2011 due to persistent power cuts. Assuming that recent improvements in the electricity sector continue, however, Senegal should post GDP growth of 4 percent in 2011. Inflation rose in early 2011, reflecting increasing international food and petroleum prices, but this trend reversed in the second half of the year and inflation is now expected to average 3.6 percent in 2011.

“Growth in 2012 is expected to be sustained by the significant increase in public investment in 2012, in particular with continued construction work on the toll road and implementation of the Plan Takkal. The restoration of a more reliable supply of electricity should also have a positive impact on other sectors of the economy. These domestic drivers of growth are expected to largely offset the anticipated weakening of external demand and a generally less promising external environment than expected. Overall GDP growth is expected to reach 4.4 percent in 2012 compared to 4 percent in 2011. Inflation should continue to decline, and remain well below 3 percent.

Lukens confirmed as US ambassador

2011-07-01T16:39:00.001-07:00

Lewis Lukens was confirmed yesterday by the U.S. Senate as ambassador to Senegal. Son of a diplomat who was also ambassador to Africa, Lukens had this to say in his confirmation hearing earlier this month:

"The United States and Senegal share a strong bilateral relationship. As a critical partner in Francophone Africa, Senegal is a key ally in the fight against terrorism and narcotics, and has been an important player on regional and international issues.

"Senegal is one of a few African countries to have never experienced a coup, and prides itself as a religiously tolerant nation. However, Senegal does face economic, governance, and press freedom challenges that threaten its democratic and development future. Senegal suffers from a crippling energy crisis that causes frequent power outages and has weakened economic growth. Senegal would like to emerge as a major regional economic hub, and if confirmed, I will work with the government to encourage enactment of economic reforms necessary to attract investment and expand access to markets.

"Senegal will hold presidential and legislative elections in February 2012. These elections are important to the country’s democratic future. Concerns about democratic backsliding and corruption have tarnished Senegal’s longstanding democratic reputation. If confirmed, I will work with President Wade and the Government of Senegal in their efforts to prepare for transparent, fair, and credible elections.

"Senegal is a recipient of many foreign assistance programs, most notably a $540 million Millennium Challenge Corporation (MCC) Compact. I understand that the United States Government must be accountable to American taxpayers and, especially in this difficult economic climate, every dollar must be effectively used. If confirmed, I will work closely with our strong partners in Senegalese civil and religious society and with the government to ensure that Senegal continues to improve on all of its indicators."

Power and politics threaten Senegal financing

2011-06-29T14:02:00.000-07:00

Senegal nurtures its role as a financial hub for West Africa. A smart move, leveraging its stability. Over the past year of so Islamic financial players are also focusing on Senegal, and vice versa. Indicative of the trend was a forum convened last year SYM International Finance Corporation, in partnership with the Government of Senegal, to assist the Government of Senegal to promote the a Financial Services Center and attract more private investments.

But recent unrest--and actual violence--in Senegal over the legislative power play by President Abdoulaye Wade undermine the county's reputation of stablity, and raise investment concerns. Many have wondered whether the civil disturbances will undermine Senegal's reputation of consistent democratic traditions.

Those concerns are also reflected in the $500 million Eurobond placed this year by Senegal's government. Senegal is rated B+ by Standard & Poors and B1 by Moody’s. When the riots earlier this month were occuring, Senegal’s Eurobond yield was up 4 basis points at 8.215 percent and the price was down 1/4 point at 104.5.

The riots reveal two challenges to Senegal's newfound international finance role. The first is the energy crisis. Power outages are at the root of the civil discontent. But politics plays a companion role. The presidential elections next year are roiling right along with the power woes. Both are concerns that will not go away soon.

IMF: Energy crisis saps one percent of GDP

2011-06-16T16:39:00.000-07:00

According to a just-released "county report" by the International Monetary Fund (IMF), Senegal's energy crisis is seriously shorting its economy. According to the report:

"Capacity constraints, frequent electricity outages, high production costs and electricity tariffs, and poor governance of the energy sector have increasingly constrained economic development. The authorities’ analysis suggests that energy supply problems have reduced real GDP growth by more than 1 percent per year during the past two years."

Senegal's government has an active plan to reform the energy sector, according to the report:

"The authorities’ reform plan (TAKKAL), includes (i) short-term emergency measures that complement medium-term investments (including recapitalization of the national electricity company SENELEC and renting of additional generating capacity (partly used to allow for the upgrading of existing power plants)); (ii) increasing the electricity supply by changing the production mix, acquiring mobile power units, and accelerating the construction of a coal power plant; (iii) demand management policies; (iv)structuring of SENELEC to achieve its financial viability; and (v) creating a communication strategy to ensure transparency and good governance of the reform process.

Financing needs: The total cost of energy sector reform for 2011–15 is estimated at some US$ 1.5 billion (more than 10 percent of 2011 GDP). Financing needs in 2011 alone amount to more than 3 percent of GDP. The analysis of a reputable private sector consultancy shows that the investment package is highly profitable."

An American company, APR Energy Ltd., is one of the key players in this program. After significant investment by former Secretary of State Madeleine Albright and capitalist George Soros, the company was purchased this week by U.K. financier Hugh Osmond's listed cash shell Horizon Acquisition Co. PLC. The company supplies "rental power."

IMF cites energy and debt, but generally good health of Senegal's economy

2011-06-06T13:01:00.000-07:00

The International Monetary Fund's recent review of Senegal's economy has some interesting observations. Following the Executive Board’s discussion on Senegal, Ms. Nemat Shafik, Deputy Managing Director and Acting Chair, stated:

“Senegal’s economic recovery continues, and performance under its PSI-supported program is satisfactory. There are however downside risks stemming mainly from continued electricity supply problems and increasing food and fuel prices, which pose some inflationary risks.

“With the emergence of critical investment needs in the energy sector, fiscal policy faces the challenge of accommodating additional priority expenditure while maintaining debt sustainability. Although there is some space for temporarily higher fiscal deficits, a substantial contribution will need to come from additional revenue measures and reprioritizing expenditure. In the medium term, fiscal consolidation, supported by a prudent approach to borrowing, will be critical to bring down the deficit to levels consistent with preserving debt sustainability. The recent issuance of the Eurobond to finance infrastructure projects should be accompanied by strengthening investment planning and debt management.

“To sustain the growth momentum and increase Senegal’s growth potential, the pace of structural reforms should be accelerated. This includes tax policy reforms aimed at broadening the tax base and increasing the revenue effort, energy sector reforms, financial sector reforms, and other reforms geared towards removing bottlenecks to growth and promoting an improved business climate and governance,” she added.

Peanuts crop best in decades

2011-04-18T07:57:00.001-07:00

Senegal’s peanut production is expected to top last year’s total of 1.07 million metric tons as more land is cultivated amid good weather conditions, according to the agricultural ministry. The country has reaped 246,419 tons since the start of the season in December, 18 percent more than the same period of last year. Senegal may have the biggest crop since it produced 1.2 million tons of peanuts in 1975.

Peanuts account for 60 percent of Senegal’s agricultural exports, according to the U.S. Department of Agriculture. Shipments by Suneor, the country’s biggest peanut-oil processing company, account for as much as 50 percent of the world market, according to a 2007 USDA country report.

Energy crisis may get worse with higher oil prices

2011-01-22T22:16:00.000-08:00

World Bank economists predict Senegal’s economic growth may be cut by as many as 1.5 percentage points this year and next because of rising crude prices as Senegal remains reliant on oil-fired power stations. The World Bank earlier forecast that Senegal’s gross domestic product would expand 4.2 percent this year and 4.4 percent in 2012.

Oil-powered plants supply 78 percent of Senegal’s generating capacity of 635 megawatts, according to World Bank statistics.

Iran emissary sent to meet on weapons discord

2011-01-22T21:57:00.000-08:00

It's hard to be friends when your friend is selling guns to those who would hurt you. And sore feelings apparently persist between Iran and Senegal over the arms shipment on its way to Gambia, where it might logically be feared they might wind up in the hands of anti-Dakar Casamance insurgents.

Senegal and Iran enjoyed strong diplomatic ties until the 13 containers loaded with arms and munitions were found in October aboard a ship in Nigeria.

Iran's foreign minister arrived in Senegal this last week to try to smooth things over with Senegal, once close diplomatically. Acting Foreign Minister Ali Akbar Salehi was to meet Senegal President Abdoulaye Wade during the two-day trip. Salehi took over as Iran's caretaker foreign minister after President Mahmoud Ahmadinejad fired his predecessor Manouchehr Mottaki on December 13 as he was on an official visit to Senegal, after the weapons were found.

Senegal recalled its ambassador to Tehran mid-December after Iran failed to provide a "satisfactory" explanation for the weapons.

Among the Senegal-Iran co-ventures we have been following are the Theis "SenIran" Khodros auto manufacturing facility. Other economic cooperation has started or been discussed between the two countries. We will wait to see if any fallout results from the arms controversy.

2010-12-14T22:51:00.000-08:00

This according to Al Jazeera:

Senegal has recalled its ambassador to Iran over an arms scandal in which military-grade weapons were shipped into the region allegedly bound for neighbouring Gambia.

Madicke Niang, the Senegalese foreign minister, made the announcement in a statement on Tuesday, saying the explanations Iran had given for the affair were "not satisfactory".

"True to the need for peace and security which should guide ties between states, and deeming unsatisfactory the explanations provided by the Iranian side in this affair, Senegal has decided to recall its ambassador to Iran for consultations as of today," the statement said.

Senegalese analysts have said the arms may have been bound for Senegal's restive southern Casamance region, where rebels have waged a low-level uprising against the government since 1983.

The Senegalese move comes just one day after Manouchehr Mottaki, the Iranian foreign minister, was sacked while on a two-day visit to the West African state, partly to explain the affair.

IMF gives mildly positive report

2010-12-03T15:30:00.000-08:00

The International Monetary Fund is advising Senegal's government on a volunary basis. It had this report today:

"Economic growth in Senegal was slowed in recent years by the food and fuel price shocks and the global financial crisis. Indicators point to an ongoing economic recovery, which appears to be strengthening.

"Real GDP growth is projected to increase to 4 percent in 2010 and 4.4 percent in 2011 after averaging 2.7 percent in 2008 and 2009. Inflation turned positive in June 2010 for the first time in more than a year, and has picked up mainly because of higher food prices. The overall fiscal deficit is expected to reach 4.8 percent of GDP in 2010, broadly in line with the budget target.

"The impact of the global financial crisis on workers’ remittances and foreign direct investment (FDI) has been smaller than originally expected. The current account deficit is projected to change little in 2010 and remain at about 8 percent of GDP.

"Following progress in macroeconomic and social outcomes since the mid-1990s, going forward the main challenge for Senegal will be to achieve higher growth in order to further reduce poverty and make progress toward the Millennium Development Goals. During the past 15 years, real per capita GDP growth in Senegal was more than 2 percent lower a year than in the best-performing, non-oil exporting countries in Sub-Saharan Africa. Senegal lags these countries in a number of areas including infrastructure, non-price competitiveness, and strength of fiscal institutions, as well as factors such as governance, the quality of institutions, and financial market development."

Chinese work stalled in Touba

2010-11-07T18:07:00.001-08:00

The planned makeover of the Holy City of Touba taken on by the Chinese development compny Henan has slowed, according to a recent report. We've followed the Chinese work there in previous posts. The on-and-off history of the five-year project hints much of the experience of the Chinese in Senegal, if not of the Chinese in broader Africa.

A recent news report of the visit of President Wade to meet the new Khalif in Touba mentions that work by the Chinese is nowhere to be seen, other than the building of some sidewalks. According to the news story the slowdown may be due to the government not paying fast enough, a tardiness that has occurred before with the Touba work. More recent IMF reports had the Dakar government catching up on its contract payments. But maybe not in Touba.

Touba is a high-profile project and the Chinese involvement is watched by us and likely by others. If the Chinese aren't being paid, one wonders about the sovereign solvency. It could be just another "negotiation" standoff, or it could indicate a broader discord between the Senegalese, or the Mourides, with the Chinese.

We'll continue to watch.

Iran Khodro to open second Senegal plant

2010-10-12T14:12:00.000-07:00

According to Bloomberg, Iran Khodro, the country’s largest automaker, plans to open a second assembly facility in Senegal in November, part of a broader push into Africa's emerging markets.

The new operation in Senegal will be “complete and comprehensive,” said Mir Javad Soleimani, Iran Khodro’s deputy chief executive officer for quality and product development. “We will be able to produce all the vehicles that can be supplied to central African states,” he said.

Iran Khodro has invested $60 million in the facility, which will be able to produce as many as 15,000 vehicles a year. Nigeria, Africa’s biggest country by population, is a potential market for vehicles assembled there, said the company’s export deputy, Yaser Seifvand.

Soleimani said Iran Khodro’s second Senegalese plant will assemble the company’s Samand and Suren models, and also tractors, under a contract with another company. The facility’s location outside Dakar must rely on electric generators because local power supplies are inadequate, Soleimani said.

“We hope electricity shortages can be overcome so the plant gets started according to plans,” he said.

Dakar garbage collection nationalized

2010-10-03T16:30:00.000-07:00

A political struggle over control of Dakar's waste management has resulted in the Wade administration's removal of waste management from the mayor of Dakar to the national department for health. That department's chief, Madani Sy, takes over the blame for mountains of garbage continuing to grow in Dakar (as throughout Senegal). The Wade administration also takes control of the massive (if seemingly useless) waste management expenditures from opposition party Mayor Khalifa Sall.

But still pivotal will be the Dakar garbage workers union, which has struck long and often, but which apparently see better benefits from Mayor Sall, who they claim was making progress in cleaning up the Dakar's garbage. Union leader Dakar Yenne vows to fight the shift in the General Assembly.

Delta flights from Atlanta resume

2010-09-30T16:56:00.001-07:00

Starting January, Delta airlines will resumes it popular direct flight from Atlanta to Dakar, Senegal and Luanda, Angola.

The flight will operate three times a week, making a stop in Dakar before going on to Luanda. Delta currently flies to Dakar from New York, but Angola is a new market for the airline, its eighth in Africa.

Senegal last year moved its U.S. tourism office from New York to Atlanta. Its director, Aziz Gueye, was disappointed to learn upon arriving here that Delta had suspended its Atlanta-Dakar flight.

He welcomed the news that the airline will resume the direct flights.

Good news from IMF, with a caution

2010-09-30T15:30:00.001-07:00

According to a mission report from the IMF released today, regarding Senegal's economy: “Economic performance through September 2010 has been broadly satisfactory. Monthly indicators point to an ongoing economic recovery, which appears somewhat stronger than anticipated at the last review. Growth is currently projected at 4 percent in 2010 and 4.4 percent in 2011. But risks remain and include a weak global recovery, higher oil prices, and persistent electricity supply problems. On the upside, a faster global recovery and continued structural reforms could support growth. Inflation is expected to remain below 2 percent."

Sharia banking may be coming

2010-09-22T17:37:00.000-07:00

Senegal is reviewing legislation that would allow lenders to set up Islamic units in a nation where 94 percent of people don’t have savings accounts, Birahim Seck, chief executive officer of SYM International Finance Corp. in Dakar, told Bloomberg in a Sept. 14 interview. Shariah banks boost financing to small- and medium-sized businesses, according to report.

Outstanding domestic bank lending accounted for 25 percent of Senegal's gross domestic product in 2008, according to data compiled by the World Bank. The rates compare with 224 percent in the U.S. and 115 percent in Malaysia, a global hub for finance that conforms with Shariah principles.

Senegal would lure funds from the Middle East with a system to facilitate Islamic financing, said Seck at SYM International. A lack of regulation and sufficient knowledge are hampering growth, said Seck, whose company helps bring investment from members of the Organization of the Islamic Conference into West Africa.

Senegal falling apart?

2010-08-05T15:45:00.000-07:00

Frustration with Senegal's deteriorating infrastructure and public services is growing. Most recently workers at Senegalese telecoms company Sonatel shut off Internet and long distance telecoms services to protest state efforts to monitor call volumes. Bloomberg reports the rice harvest may suffer as power failures hamper irrigation, even as Senegal's rice agriculture benefitted last season from government fertilizer and other supports. A food crisis on top of the rainy season will surely result in greater discontent and suffering.

Infrastructure outlay equals economic boom

2010-08-01T17:12:00.000-07:00

Senegal needs a massive investment in infrastructure, according to a World Bank official. Doubling the country's investment to improve power and transportation would allow private industry to untap an "enormous" economic potential, said Clemencia de Mastle, the bank’s coordinator for infrastructure diagnosis.

Poor infrastructure costs Senegal per capita GDP growth of 1.3 percentage points each year, with average transport speeds of less than 6 kilometers (3.7 miles) an hour, de Mastle said, citing an Africa-wide investigation of public services.

“This has an immense impact on Senegal’s competitiveness,” she said. “The energy situation is catastrophic.”

Senegal needs to add generating capacity of at least 258 megawatts, with consumers currently relying on private generators for 25 percent of their power needs, up from 7 percent at the beginning of the decade, the study found.

The country is currently investing $911 million in public works projects a year, including power plants and a system of highways around the capital, an amount that is just 55 percent of the World Bank’s suggested infrastructure spending, according to the report.

Meanwhile, the government banned a Dakar demonstration protesting the lack of power. The government recently said that state-controlled energy provider was facing technical and financial problems and that the more than usual power outages were due to the "accidental use" of contaminated fuel which had damaged engines that run power plants.

As Senegal's ageing power plants are unable to keep up with rising demand, a 125 megawatt coal-fired plant is scheduled to be built and will only be ready by the end of 2012.

"There is one God, not two"

2010-07-02T13:50:00.000-07:00

I met the Khalif, Serigne Bara, two years ago in Touba and now he is gone to meet our maker. He gave me one of the most straightforward lessons in ecumenicism I have ever received. I was a Catholic in Touba, the holy city of the Mouride Islamic brotherhood. When I left California my children were terrified that I would be beheaded because I was going to an Islamic country. I didn't have quite that impression, but I was unprepared for just how opposite the reality is from that notion in Senegal, one of the safest, most tolerant places I have ever been (far more than America in some ways)... And it was the Khalif, at that time not long in his position as the leader of the large and powerful Mouride sect, who epitomized that tolerance. I will never forget his blessing to me: "May you find God in Touba; there is only one God and not two." His blessing was realized because I found myself that much closer to a God that is the same God for me and my Muslim brothers and sisters. My hopes go out to the Mourides that Serigne Bara's successor is as holy and astute as his predecessor, who I expect to meet in the one heaven that awaits us.

Zain cellular sell awaits "due diligence"

2010-02-22T08:34:00.000-08:00

According to Dakar Times, Bharti Airtel, the largest Indian mobile phone company by subscribers, is in talks to buy the African assets of the Kuwaiti telecom company Zain for about $10.7 billion.

The two companies said in separate statements recently that they are in exclusive talks until March 25 about the transaction. The potential deal does not include Zain’s assets in Morocco and Sudan, and is subject to due diligence and regulatory approval, they said. (Editor's note: "Due diligence and regulatory approval" seem to be terms of art in Africa. See previous post.)

Meanwhile, Abdourahim Agne, Senegal's telecommunications minister, has confirmed that the Seventh Annual West & Central Africa Com Congress will take place in Dakar on June 16 and 17, 2010.

West & Central Africa Com offers operators (fixed, mobile, wireless), ISPs, regulators, investors and vendors from the region to debate the future of telecommunications in their markets and to meet their peers. After two years during which the congress was held in Abuja, Nigeria, it is coming back to Senegal.

Millicom: Good for the Wades or good for Senegal?

2010-02-11T14:56:00.000-08:00

Senegal's infrastructure minister Karim Wade was reportedly shaking down the American cell phone company Millicom International Cellular, to the tune of $200 million--no small change anywhere and especially Senegal.

But that was according to the Business Insider website (www.businessinsider.com). Titled "The Joy Of Doing Business In Africa: How Senegalese Politicians Tried To Shake Down Millicom For $200 Million," the article seemed to rely largely upon the accounts of Millicom's executives, especialy CEO Mark Beuls, who met with Karim Wade and another time with Thierno Ousmane Sy, advisor to president Abdoulaye Wade, father of Karim Wade.

The Senegalese administration's response, which has some resonance with our Senegalese contacts, is that Senegal's officials were simply grinding for a better deal. The original Millicom license was given in 1998 at a cost of only $100,000. Even at that time, before the allure of the African market, licenses were fetching much more in Africa... The matter is now in arbitration brought by Millcom.

Would the Wades have pocketed some or all of the money? Who know: but $200 million is a lot to hide. If it was intended for the treasury it is a different matter. Government officials have a duty to get the best deal for their people.

The Business Insider story was heavy on the angle of corruption in Africa making business difficult. But if Americans can't dig in and work the deals there, well, somebody else certainly will...

Iran promises big petroleum storage project.

2010-02-05T09:10:00.000-08:00

Iran's economic relations with Senegal will now include an announced 40 million cubic meter petroleum storage effort. The effort, projected to create 500 Senegalese jobs, was announced by Iran's ambassador to Senegal yesterday.

According to the announcement, the capacity of the storage will exceed Senegal's petroleum storage needs, allowing it to broker the surplus to surrounding countries.

The promised effort builds on the SenIran motor vehicle factory in Thiès. Actual results of that joint effort so far have been less than impressive, with few cars and public transit vehicles actually coming off line... Big announcements are the easy part. We will be watching for actual results.

Karim pledges Touba development plan

2010-01-11T09:16:00.000-08:00

Senegal's infrastructure czar, Karim Wade, son of President Abdoulaye Wade, yesterday told Touba leaders that the government would assist in developing a master plan for the Holy City of the Mourides.

Infrastructure development in and around the fastest growing area of Senegal is already underway, largely done by Chinese construction firms.

The current development work includes developing and maintaining roads and the construction of several water towers and reservoirs.

M. Wade pledged further improvements pursuant to a general plan. "We will initiate a major development plan to Touba to think of tomorrow, the problems of urban development, sanitation and access," he said in Touba.

Update on road bonds

2010-01-04T15:00:00.000-08:00

Earlier we posted reports of Senegal government bond sale on the international market. Here is the publicly released letter of Finance Minister Abdoulaye Diop to the IMF seeking an increased debt ceiling:

"To supplement resources from donors and the private sector, the government is mobilizing external funds for the Dakar-Diamniadio toll highway. To this end, the government requests to raise the ceiling for non-concessional borrowing for this project by CFAF 10 billion (less than 0.2 percent of GDP) to CFAF 90 billion. The higher ceiling would allow the government to accommodate possibly higher costs and issue a bond in international markets of $200 million, typically seen as a minimum size for this type of transaction. The small increase would have no negative impact on debt sustainability."

Projected growth down for 2010

2009-12-30T11:47:00.000-08:00

A bad start for the New Year: Senegal’s economic growth projection for 2010 was lowered by government analysts. Senegal should achieve 3.4 percent economic growth in 2010, down from an earlier official forecast of 4.6 percent, according to the DPEE.

The agency also revised down slightly its 2009 growth target to 1.2 percent from 1.5 percent, after the global economic slowdown hit demand for exports, along with remittances from abroad and foreign direct investment.

"In 2010, growth is projected at 3.4 percent on the assumption of a continued relatively high level of prices for oil products, and the primary sector holding up well thanks to strength in the agricultural sector," DPEE said in a statement. The global slowdown has been worse than expected for Senegal, according to its officials.

Consumer prices, which DPEE estimated dipped 0.4 percent during the course of 2009, should head upwards again in 2010 with inflation of 2.2 percent.

Senegal's first sale of public bonds.

2009-12-14T09:32:00.001-08:00

With its fiscal affairs improved by government belt-tightening, Senegal will offer $200 million of five-year bonds yielding about 8.75 percent to finance road building in the West African nation, its first international bond offering. That report is from Bloomberg, which got the news from investors approached to buy the securities.

The relatively small offering is reportedly arranged by Citigroup Inc. With a rally of emerging-market debt since the financial collapse of September 2008, the dollar-denominated debt of developing nations included in JPMorgan Chase & Co.’s EMBI+ Index is trading at 6.595 percent.

Senegal's $13.6 billion economy is rated B+ by Standard & Poor’s, four levels below investment grade.

Did Dakar help evacuate Camara?

2009-12-05T18:23:00.000-08:00

The Times of India reported that wounded Captain Moussa Dadis Camara, head of the military junta ruling neighboring Guinea, was evacuated by Senegalese aircraft. Other news reports have filled in some details of the assasination attempt on Camara. Apparently the chief of his presidential guard insisted on the release of his troops, jailed by Camara as a result of the September massacre of democracy protesters in Conakry. He shot Camara, according to current report, when the matter got heated between them... It gets personal in Guinea.

Thiès: Iran's Detroit? Or Detroit's future?

2009-11-29T14:24:00.000-08:00

In a swing through Dakar on his five-county friendship tour, Iran's President Ahmadinejad reiterated his country's support for Senegal's nascent auto industry in Thiès. The Iranians now promise to set up a tractor production factory in Senegal in the near future. Iran's automobile manufacturer, Iran Khodro Company, is partner in the SenIran factory, making the Samand sedan designed by Khodro. "With completion of the factory in Senegal, this country can export its cars to other regional countries," Ahmadinejad said.

I thought the Thiès plant was fully operational. Maybe not. The Wall Street Journal's recent article reported that the Iranian-Senegal joint venture was having trouble getting cars built. But maybe manufacturing still needs to be constructed.

According to Fars News Agency, Iran Khodro is the largest carmaker in the Middle East, Central Asia and North Africa regions with annual production of more than one million various vehicles including cars, trucks and buses.

Meanwhile... Apparently the Chinese will see if they can do better than the Indians when it comes to making Senbuses. Remember that Tata, the Indian manufacturing giant, also set up a factory in Thiès to build 500 "Senbuses," public conveyance intended to replace the colorful vehicles that served Dakar for so long, and are sure to be missed.

So now King Long, a Chinese outfit, subsidized with a $25 million loan from the Chinese government, has taken over the Tata operation, still in "partnership" with the Senegalese.

"I want to make Thiès the industrial capital of Senegal,” Senegal's President Wade decreed recently during a ceremony there for the new partnership.

Alas, an industrial infrastructure takes more than a government decree. And Senegal has not shown that it has whatever it takes yet. We'll see if the new Chinese-Senegal venture does better than the Iranian-Senegal venture or the Indian-Senegal venture... Maybe what it takes is the entrepreneurial, techno-savy capitalistic hussle that can only be found, where else: Detroit where are you? It's not like you have anything better going on back home.

Big order for Senegal Airlines

2009-11-18T17:02:00.000-08:00

Airbus said Wednesday that Senegal Airlines, the new national carrier of the Republic of Senegal, has signed a letter of intent for four A320 aircraft and two A330 aircraft.
Airbus, a wholly owned unit of European Aeronautic Defence & Space Co., didn't give a value for the deal, but it is worth approximately $700 million, according to list prices.
Senegal Airlines will start operating early next year from its hub in Dakar to destinations in Africa. It will replace Air Senegal International, according to a statement released at the Dubai Airshow.

IMF praises governance, bemoans economy

2009-11-18T16:50:00.000-08:00

The International Monetary Fund just released its most recent (November 4-18) report on Senegal. Its assessment of the overall economy is gloomy, reflecting the world's economic doldrums. According to the IMF news release on the assessment:

“The global financial crisis and domestic shocks are affecting Senegal’s economy. Growth is expected to slow to 1¼ percent in 2009 from an already depressed 2½ percent in 2008. Business activity has been weak, remittances have been under pressure, and tax revenues are lower than expected. In the second half of this year the economy has also been undercut by electricity shortages and urban flooding."

The report has hopes for a turnaround in 2010, with growth of 3.5 percent. But its most positive comments were reserved for the Senegal government's fiscal discipline of late:

"All quantitative assessment criteria were met and key structural benchmarks have been completed. The stock of the government’s unpaid bills within the regular expenditure chain has been normalized. The mission welcomed progress with reforms to improve public financial management."

In other words, the public sector is continuing to pay its bills despite tough times. Real improvements will await economic recovery. Preparing fertile ground now would help.

"Measures to improve the business climate could include reducing delays in transferring property rights, better contract enforcement, and the simplification of customs procedures."

Wall Street Journal on the "Segura Affair"

2009-10-28T14:00:00.000-07:00

The most widely read newspaper in the United State, The Wall Street Journal, has an article today on the highly controversial "going away present" to departing IMF country representative Alex Segura... The top-of-the-fold article in the Journal's "World News"section is titled "Gift from Senegal President Spurs IMF Inquiry," and features a picture of President Abdoulaye Wade. The Wade government is sticking to its characterization of the $200,000 cash given Sequra at his going away party as just an example of traditional Senegalese "terranga." An anti-corruption source in the article calls it "outright bribery." Still, we wonder, what is the quid pro quo? Without expecting something in return, it's simply a gift. Presumably that's one of the questions that the investigation by the International Monetary Fund will seek to answer.

The Segura Affair: "reverse Teranga"?

2009-10-26T13:00:00.001-07:00

The Senegalese government in statements today seemed to acknowledge giving a pile of cash to outgoing IMF country representative Alex Segura. But it was not a bribe, they say. According to the prime minister Souleymane Ndéné Ndiaye, the cash was simply a (very sizable) going away gift to Segura, in the hospitable tradition of the Senegalese people. He notes that Segura never did any favors for the Senegal government while he was stationed at Dakar, and he was on his way out, unable to do any future favors, so it couldn't be a bribe.

L'affaire Segura: it's classic Senegal

2009-10-24T10:39:00.000-07:00

It has been called bribery, but the real story behind "the Segura Affair" may be more interesting than that. Wittingly or not, the Senegal representative for the International Monetary Fund (IMF) seems to have been what we call in California politics a "bag man," carrying 65 million CFA (about $150,000).

The hapless bagman, Alex Segura, was ending his third tour in Senegal for the IMF. I had spoken to him a couple times by phone (or was it email) in Spring 2008, but was unable to meet him personally because of his travels. It can safely be said that no other foreigner in Senegal was better known--or at least in the media--than Segura (yes, even more than Obama). He was the point man steering the Senegalese economy for the international community.

Segura's role/complicity/whatever is pretty vague. At least that seems to be the picture in the Senegalese press. Some of those reports are supposedly based upon statements from the IMF. But I can't find anything about it on the IMF website and there is virtually no media reports on the "Segura Affair" outside Senegal.

The "real" story, augmented by my informal sources, is that Segura was delivering the money to the Senegalese embassy in Barcelona. He found that he had the money (delivered to him by means uncertain) and let his superiors know. My Senegalese contacts are convinced that he was being used--again wittingly or not--to deliver the money for Senegalese government higher ups. Since the Wade administration does a lot of "cash transactions" their conclusion is that hanky-panky was involved. Maybe it was a bribe. But to who? Segura was exiting his post in Dakar. It doesn't seem to make sense that he was being paid off retrospectively or prospectively.

The IMF is reportedly (by Dakar press) investigating the "Segura Affair." Meanwhile, Senegalese in the U.S. have announced a protest gathering at the IMF headquarters in Washington D.C. to voice their indignation with the Senegalese government and the perception of its corruption galvanized by the "Segura Affair," set for October 31.

Slow start for SenIran

2009-09-28T06:33:00.001-07:00

The Wall Street Journal today says the joint Senegal-Iran auto venture, SenIran, has fallen far short of it production goals. Last year Dakar decreed the phase out the 25,000-or-so colorful taxi/buses that have been one of Dakar's best known international symbols. They were to be replaced by the shiny new cabs produced by the joint Iranian factory. In today's front-page Journal article, plans to have 2,000 of the SenIran cabs resulted in only 500 on the street... And the $75 millon Theis SenIran factory that opened last year has only produced 20 of the 10,000 cars it had planned to produce this year... Parts, labor and construction delays (the usual) caused the problems according to the Journal's report, which states that sources acknowledge the venture, one of others around the world, has other goals besides profit... The article also mentions that it was Iranians who ran the power lines to Touba recently, including probably those who I met during my Spring, 2008 visit to the Holy City.

Dakar port gets new cranes

2009-08-27T13:17:00.000-07:00

The remodeling of the Dakar port is moving forward. In late August, the installation of several new cranes was finalized. They include two Panamax gantry cranes and Reggian cranes. Two gates to the port were finished also. The improvements come as Dubai World assumed operations of the port in May 2008. Further improvements are planned for the rail and road corridor to Mali.

Dakar port improvements touted

2009-07-14T10:55:00.000-07:00

Progress on improvements to the Port of Dakar is being made according to its Director General, Bara Sady. Security in particular has improved, he says. Navigation has improved at the entrance, exit and through a functional lighting system. Procedures for access to the port are better controlled. Tariffs and connections with the inland hinterland have been improved, he says. Dakar is a favored port for Mali and other inland areas. The Autonomous Port of Dakar has been modernizing since early 2006 and intends to become "a first-class hub of the maritime routes," according to Mr. Sady.

Positive projections from the IMF

2009-07-13T17:49:00.000-07:00

Senegal’s economy will grow about 3.1 percent this year, up from 2.5 percent in 2008, as government management of the economy improves, the International Monetary Fund said.

“Budgetary slippages, which had seriously affected the economy” and put IMF support for Senegal at risk, have been successfully addressed, the Washington-based lender said in an e-mailed statement today. “The government’s unpaid bills have been substantially reduced and far-reaching public financial management reforms launched.”

The IMF expects growth in the west African nation to accelerate to 3.4 percent next year and 4.3 percent in 2011.

Consumer inflation was projected to slow to 3.3 percent this year from 5.8 percent last year, and to 0.8 percent in 2010, as food and fuel price increases slow, the IMF said.

The Wade administration should be credited with helping to effect the fiscal discipline that has got the country straightened out.

Americafrique?

2009-07-13T17:24:00.001-07:00

So which is it? Americafrica? Chinafrica? Francoafrique? France has been the old-school colonial influence over Africa's economy. China has poured billions into its Africa economic stake, with special avarice for its resources. Is America now in the game?

U.S. President Obama's recent visit to Ghana cemented widely held warm feelings toward America held by Africans. Many Africans have long seething resentments toward the French. New found resentments toward the Chinese are growing. Witness recently the backlash of the Mourides to the French television's prejudiced portrayal of Senegalese merchants as akin to black gypsies, worse (to the French), black gypsies with religious faith.

Obama's good will is but a further step in the vigorous march of American presidents to Africa. Clinton's drum performance at the Meridian in Dakar was followed by President Bush's successes against AIDS and malaria, as well as aggressive trade initiatives.

But for all that, America's trade with Africa still pales compared to that of France and China. The United State is making no strong plays for natural resources there. We send some Caterpillar tractors, maybe export a few cars, import some clothes. But that's it.

Nor was Obama's visit a foundation for deeper economic connections. Continued foreign aid perhaps. Continued good will for diplomatic partnership. But why, with all the good will, can't the U.S. turn the Africans into Chevy-driving, Ipod-listening Mac users? Lord knows the Africans would want to. Why can't American oil interests build a refinery in Dakar, or craft mining deals?

Iron ore mining setback

2009-07-03T11:45:00.000-07:00

ArcelorMittal, the world largest steel producer, has suspended development of its iron ore project in Faleme, Senegal, due to the global economic recession, according to news reports from company sources.

The proposed $2.2 billion (1.6 billion euros) project in the south-east of the country was to start producing iron ore for the steel industry in 2011 and ultimately reach a production capacity estimated at 25 million tonnes per year. The project, with a new port and railway line, would create 10,000 jobs in Senegal.

IMF boosts aid by $186 million, longer terms

2009-06-19T17:04:00.000-07:00

The International Monetary Fund (IMF) boosted financial support for Senegal under the Exogenous Shocks Facility (ESF) by $186 million today and extended the ESF arrangement by six months, to 18 months to help finance the balance-of-payments impact of the global economic crisis. Senegal can draw $50 million immediately.

"Exogenous shocks" are the food prices and other impacts of the high oil prices that buffetted Senegal in the last year. Some questionable government budgeting resulted including failure to pay private contractors for infrastructure. The IMF says those practices have been reformed, but wants to make sure they stay that way.

The IMF says the financial and budget reforms will help gain investment for Senegal while it weathers the international economic slowdown that has started to hit the country.

Chinese knockoffs hurting Senegal's merchants

2009-06-12T14:20:00.000-07:00

Flooded with cheap Chinese clothes and other consumer goods, Senegal's merchants say that even quality goods are taking a hit from cheap imitation Chinese products. Chinese goods have been flooding Senegal in recent years, pushing out locally produced products. Chinese merchants have also displaced Senegalese merchants, according to Senegalese shopkeepers.

Now Chinese products are imitating higher quality imports and local craft goods, causing buyers to dispute whether goods are genuine, or refusing to pay higher prices. The market in general is becoming saturated due to the Chinese floods of imports.

Senegalese peddlers, also known for their international presence, are calling for import embargoes and tariffs; others want the Chinese deported. They say that Senegalese manufacture is too fragile and will be crushed by the cheap imported Chinese goods.

Air Phoenix for Senegal?

2009-05-30T11:01:00.000-07:00

The fate of Air Senegal is still up in the air according to new sources. After the withdrawal of Royal Moroccan from the airline, Karim Wade, the new infrastructure minister, says that a deal has been struck where Royal Moroccan will provide "operational support" while Senegal's government goes it alone.

But despite the optimism expressed by Karim Wade after the deal, the news reports say that major obstacles stand in the way of any liftoff for Air Senegal, including payments for two airplanes and the approval of the new operations by international air regulators.

More roads but less maintenance

2009-05-29T09:52:00.000-07:00

Transportation spending in Senegal has increased much in recent years with road projects like the Cornice and toll roads around Dakar. But keeping up roads across Senegal is underfunded by 50 percent, according to a recent meeting of Senegal business school and government leaders.

Transportation is a key economic development infrastructure. Administrative chief of the Directorate of Land Transport, Papa Souleymane Faye, one of the organizers of the conference, fears new road construction comes at the cost of overall system maintenance. Aging roads and bottlenecks are a growing feature.

One wonders whether Senegal has a capital maintenance program for its roads, adopted by most municipalities in the United States. Many American cities and counties have sophisticated computerized road maintenance programs. But regardless of the sophistication, it ultimately takes money to get it done...

Senegal's fiscal discipline paying off

2009-05-26T17:12:00.000-07:00

Senegal's government is starting to see some real benefits for the reforms it has made over the last year to its fiscal policies. Now, Standard & Poor's ratings have improved for Senegal's debt rating, now "B+" in the short-term and "B" for long-term notes. The outlook for government notes changed from "negative" from "stable".

According to the rating agency, the revision reflects "improving the management of public finances," such as progress made in establishing procedures for expenditures, more rigorous budget execution and the ban on cash advances. These improvements are added by statutory payment of arrears (3 percent of GDP in 2008) to suppliers and reducing the budget deficit on the basis of a target of 4 percent in 2009 (including grants) against 7 percent in 2008 (including arrears ). These two measures will help to maintain debt at sustainable levels.

Such discipline now will put Senegal in a strong position when the world economy revives.

Karim Wade takes critical infrastructure ministry

2009-05-01T18:05:00.000-07:00

Karim Wade has been appointed the "go to" guy for infrastructure in the Wade government. With the appointment by President Wade, he and his son appear to have shaken off the defeats of last month's local elections.

The junior Wade takes the title of Minister for Transportation and Infrastructure. The appointment is a natural fit for the front man of Senegal's "Concrete Generation" movement. The eager-beaver apparatchiks of the Generation de concrete have pushed modern world infrastructure in Senegal.

The newly minted minister's top priority is sure to be the flightless Air Senegal, its crumbled partnership with Royal Air Morac threatening to ground the national airline permanently, even as the new Dakar airport gets going.

Karim's new job is arguably the most significant in Senegal government. Karim Wade's success or failure will impact on Senegal's quest to be the capital of West Africa.

Air Senegal grounded

2009-04-25T14:54:00.000-07:00

Air Senegal International (ASI) has stopped operations as a row between the Senegalese state and majority shareholder Royal Air Maroc (RAM) has grounded all remaining flights, the Moroccan airline said on Friday.

RAM, which owns 51 percent of ASI and had provided several aircraft, recalled its last plane from the airline's fleet earlier this month, leaving ASI, one of West Africa's few reliable carriers, with just two operating planes.

RAM criticised Senegal for the country's unilateral decision in 2007 to take majority control of the airline, a move that has not yet materialised. RAM also says Senegal owes the company about 4 million euros.

RAM has taken a "you want it, you can have it" posture lately, adopting an orderly but insistent withdrawal from the company.

Iran and Senegal agree to expanded ties

2009-04-19T21:51:00.000-07:00

Iran continues to expand its economic links with Senegal. A memorandum of understanding was reportedly executed today obliging the Islamic Republic of Iran to cooperate with Senegal in producing auto diesel, undertaking mine exploration, producing machinery and constructing power plants.

Iran has made good on its intentions to expand economic and cultural ties with Senegal. Trade ministers inking todays agreement pointed to the construction of the giant auto manufacturer Iran Khodro's assembly plant in Senegal. The agreement appears to build on that venture.

Offshore oil exploration not the first time for Senegal

2009-04-19T15:02:00.000-07:00

The recent spike in oil prices has revived interest in exploration off the Senegal's coast. Here's a good overview of past exploration activities:

In the last 48 years, more than 144 hydrocarbon exploration wells have been drilled in Senegalese territory. At least 49 of these drilled offshore, with 23 of these being located in the Casamance Offshore. The other area of interest that has been drilled is onshore in the vicinity of the Cape Vert Peninsula. The rest of the Senegal Basin outside these areas remains under-explored.

In addition, modern analysis indicates that many of the boreholes drilled, particularly those based on seismic information acquired before 1962, were poorly located in prospects and many were limited to exploration of the Tertiary to Senonian intervals.

The upstream oil industry is becoming increasingly important to the Senegalese economy. In 1981, PETROSEN, the national oil company, was created by the government of Senegal and is responsible for all hydrocarbon exploration activities.

During the 1950s petroleum prospecting started and in the 1960s and 1970s a number of small fields were discovered, but found uneconomical not exploited. In the late 1970s, offshore exploration started again and a field of heavy crude oil of 1 billion barrels was discovered. So far only one gas field (Diam Niadio 14) has been discovered. The gas is exported by pipeline to the Societe Nationale d'Electricite for its gas power stations. Current gas reserves are estimated to be 3 billion cubic metres. According to the US Department of Energy, Senegal produced and consumed 1.4 billion barrels of dry gas.

The offshore border area containing the Dome Flore and Gea fields became the subject of dispute between Senegal and Guinea-Bissau. In 1993, the Agence de Gestion et de Cooperation entre la Guinea-Bissau et le Senegal (AGC) was established as a joint commission to oversee oil and gas exploration and fishing in the disputed area between the Senegal and Guinea-Bissau.

In July 2004 Hunt Oil Company, through its wholly owned subsidiary Senegal Hunt Oil Company, signed an agreement with Petrosen (Petroleum Company of Senegal), giving Hunt the exclusive right to carry out petroleum exploration and production operations in Sangomar-Rufisque Offshore Area of Senegal (approximately 3,701,805 square acres).

Energy Africa acquired the St. Louis exploration licence with Petrosen in late 2003. Tullow operates the licence with a 60 percent interest. Dana acquired a 30 percent interest from Tullow in the fourth quarter of 2004. Petrosen holds the remaining 10 percent.

In March 2005 Sterling signed a farm-out deal with Markmore Energy (L) Ltd, a private oil and gas company wholly owned by investor Tan Sri Halim Saad for the Dome Flore offshore petroleum license held by Sterling. The Dome Flore block offshore Senegal and Guinea Bissau, contains an estimated 800 million barrels of heavy oil in place. The discoveries lie in 50 metres of water, approximately 70 km offshore.

A new Senegal energy source: openness

2009-04-17T20:21:00.000-07:00

A unique solution to Senegal's energy dilemma was recommended recently by Alex Segura, the IMF's resident representative. The solution is two part: cash and transparency. And the two go together. Senegal's utilities are stuck in a spot market rut: they buy fuel oil one tanker at a time, in cash, frequently borrowed cash, from who-knows-where... Instead Segura urges transparent bidding. International finance experts have always pushed open bidding in African economies, with little progress. In the energy sector it makes sense, but is no easier than other sectors such as infrastructure. Oil powers Senegal's feeble generation capacity. That's imported, refined oil--especially subject to the world extaction, refining and transportation market, and its very evident vagaries, especially recently... It will take some real arm twisting for Senegal's utility sector (hardly deserving the name) to institute the discipline, and smarts, necessary for a successful open bidding program. But the payoffs would seem great: the consequent tools of hedge and option trading of supplies could create a buffer in hard economic times as these... Segura's recent comments were larded with praise for the progress being made by Senegal's establishment in the area of budget reform and accountability, setting the foundation for sophistication in its energy policies and practices...

IMF: backpayments being squared, but tough times ahead

2009-04-10T20:58:00.000-07:00

The International Monetary Fund (IMF) concluded recent reviews of Senegal's finances with (for Senegal) high marks for catching up with payments to private contractors. But the April 2 report stressed tough times ahead as the world economy comes to bear.

“Senegal is beginning to experience the effects of the global economic crisis. Main channels of transmission are declining remittances, commodity prices, external demand, and foreign direct investment," according to a statement by Johannes Mueller, IMF Mission Chief for Senegal. He notes positive signs on the horizon: "Declining fuel and food prices are projected to lower inflation to about 1 percent in 2009 and limit Senegal’s import bill, thereby helping contain the external current account deficit."

Despite budget and accounting reforms, falling tax revenues will require deficit spending to continue infrastructure improvments and private contracting, according to the IMF report.

No mention is made of the recent local elections and whether they would chill President Abdoulaye Wade's promotion of intrastructure and private projects. Recently the president reportedly stated his pleas to God that he be allowed to complete infrastucture such as the coastal highway...

France gains Senegal's telecommunications

2009-04-10T20:19:00.000-07:00

According to news reports, the government of Senegal has sold its interest in the national telecommunications company Sonatel to France Telecom, making it the majority shareholder with 52.2 percent of Sonatel shares.

The government says it makes Sonatel a better value, but its workers don't think so. They've promised to strike.

Senegal will remain the second largest shareholder in Sonatel with 17.28 percent of the capital. Current Sonatel shareholders gain a premium of 32 percent over the stock price as of April 7, 2009. Thus the government gains 200 billion CFA francs (305 million Euros) without cutting Sonatel's budget.

How to do it right: German solar engineering in Casamance

2009-04-02T14:14:00.000-07:00

In May 2007, the German Ministry of Economics and Technology (BMWi) offered German companies an opportunity to exchange thoughts and ideas with Senegalese partners and institutions. In addition to establishing contacts there, they were also encouraged to present initial business ideas and to develop them further with their partners.

In October 2008, Schott Solar in co-operation with its partners officially began the operation of a solar emergency power system installed with the village inhabitants for a hospital clinic in Baïla, located in Casamance province in southern Senegal.

The clinic in Baïla has an emergency room, a delivery room, 10 beds, a pharmacy and accommodation for family members. Previously, during power outages (not uncommon in Senegal), the staff had to make do with petroleum lamps and candles and, if there was any extra diesel available, the clinic was sometimes able to run a power generator until they were back on the grid.

In this first project, Schott Solar and SMA joined forces with Kaito Energie AG, which had been developing and investing in business-oriented projects in Casamance for several years.

The local electricity network is often overloaded and can sometimes cut off its service several times a day. A five-kilowatt solar power system was installed to supply the clinic with power when the regular network is down. The power from the solar modules is initially stored in batteries. If there is a power outage, the system switches over to a so-called mini-grid with virtually no interruption to maintain stable power, vital to the clinic.

To guarantee the energy supply, Schott Solar donated photovoltaic modules and inverter company SMA donated a ‘Sunny’ back-up system to the clinic in Baïla.

In addition to the solar modules, Schott Solar also provided the system technology and supported the assembly. The installation was completed by the company and its employees. Meanwhile, Kaito Energie AG took responsibility for project management on location and dealt with the local authorities. The village community built the building extension on which the system was installed.

On the roof of the clinic, 102 Schott Solar modules produce approximately eight kilowatt a year--any surplus is stored in batteries.

The modules were transported by ship via Dakar to the regional harbour in Ziguinchor in Casamance, and then taken overland to Baïla. In Casamance, located on the edge of the topical rainforest, climatic conditions are extreme with a great deal of rain.

Following the dry season from November to June, hot monsoon winds herald the rainy season and humid weather from the south. In order to maintain performance, special double-glazed modules were used, based on stainless steel frames which have stood up in Indonesia and Thailand since the late 1980s.

Schott Solar claims its modules meet standards twice that of the IEC 61215 standard: the modules are subjected to temperatures of +85°C and a humidity of 85 percent. During the so-called temperature change test, they have to hold their own against temperature cycles ranging from -40°C up to +85°C. In addition to the solar modules themselves, the power inverter also plays a major role for the operating efficiency and the performance of a solar energy system.

People living in Baïla were also directly involved in the installation of the system. The village community built the extension on which the employees of the project partners mounted the system in May. Trainees from the neighbouring technical college worked with experts from Germany and helped to install the modules on the roof.

German engineering, always awesome to see...

U.S. provides Senegal food assistance

2009-03-27T20:58:00.001-07:00

The U.S. Agency for International Development's (USAID) Office of U.S. Foreign Disaster Assistance (OFDA) is providing more than $3.7 million in assistance to lower rates of malnutrition and increase food security of families in Senegal.

Of this $3.7 million, USAID is providing $2.7 million to improve community-based nutrition efforts and agriculture production in the regions of Ziguinchor, Sedhiou and Kolda in Senegal. The program, implemented by USAID partners Catholic Relief Services and Christian Children's Fund, will provide community-based nutrition programs for malnourished children; build community awareness for the importance of good nutrition and how to prevent malnutrition; educate farmers on the benefits of improved seed varieties; organize seed fairs that will make improved seed varieties available; and provide microloans to community-based groups.

Shell advances Senegal offshore oil exploration

2009-03-25T13:13:00.000-07:00

First Australian Resources (FAR) has signed an agreement with Shell Exploration Company to conduct petroleum exploration of Sangomar Offshore, Rufisque Offshore and Sangomar Deep Offshore blocks off the coast of Senegal,where a number of drilling prospects have already been identified by FAR and its Senegalese partner Petrosen.

The objective of the program is designed to enable Shell to determine whether or not to exercise an option to acquire greater interest in the block and enter the second renewal period that includes a well commitment.

Shell will fund a controlled source electro magnetic (CSEM) data acquisition and geophysical evaluation programme over part of the licence area where a number of drilling prospects have already been identified by FAR. The work gets underway soon.

A more industrious Senegal of late

2009-03-25T11:13:00.000-07:00

Senegal produced more finished goods last month over a year ago, according to a recent government report. Construction material production grew, but also textiles and leather.

The National Agency of Statistics and Demography (ANSD) index of industrial production was 105.3 after 101.5 in December 2008, an increase of 3.8 percent, largely upon a surge of industrial production of textiles and leather.

The agency said that production of textiles and leather grew considerably in January2009, a result attributable to an upturn in cotton ginning, in conjunction with the production cycle of the sub-sector.

Post-election: Whither Wades' world view?

2009-03-22T20:50:00.000-07:00

In America the saying is: "all politics are local." But Senegal's elections today, should early results bear out, could also alter the international connections fostered by the damaged President Abdoulaye Wade.

President Wade invested greatly in recent years to make Senegal a player on the world scene, fostering the image of Senegal as the Athens of West Africa, gateway to the region, and a favorite investment of international development. Vis the shine the president put to Dakar for the 2007 conference of the Organization of Islamic States, the port and coastal highway developments, the image of rational African governance as coups and assassinations toppled nearby African governments.

Were today's local election result--largely a drubbing for the Wade SOPI coalition--a repudiation of the president's international marketing efforts? Opposition criticisms focused more on Wade's heavy-handed political tactics, such as the impeachment of legislative leader Macky Sall. His intimidation of journalists could only bring backlash from that estate. (The administration's barely disguised election-day threat to shut down broadcast stations doesn't help there.) Graft, corruption and a bad economy are always a receipe for polling booth rejection.

But other than affront taken in some quarters over the austentious roads and statutes pressed by the Wade regime, the organized opposition hasn't made an issue of Wade's internationalism.

Let's hope that any changing of Senegal's poltiical guard doesn't reverse the world ties that Wade and the country have forged. Senegal's people will benefit through tourism, economic guidance (yes, the IMF does some good), promotion of exports and other international exchange.

In the end, today's election may have little impact on the country's growing world ties. Once again, Senegal's greatest natural resource was displayed by democratic elections with a decent turnout. A people and a government that handle change peaceably, fairly and openly will always find friends and partners around the world.

Election eve: the Wades "double down."

2009-03-21T09:03:00.000-07:00

Now it's a sporting game. Thanks to the Wade father-son team, tomorrow's local elections in Senegal take on a transcendent importance. After spending the last two weeks on separate electioneering tours of the county, President Abdoulaye Wade and son, Karim, have turned the election into a referendum for their party, their coalition and their own political futures. They have bet, double-down, on a popular endorsement to obtain a legitimate mandate.

President Wade's full ahead infrastructure agenda is given a populist gestalt by his son's "Concrete Generation" movement. They have met their political opponents head-on during the last weeks. The president toured the high road, focused on economic issues. Karim hit the ground with "mobilizations" of the Génération du Concret, clad in blue jeans and baseball cap, pushing support for the SOPI coalition forged by the Wades' PDS party.

The stops on their journeys met with a tough, organized opposition, deriding the perceived autocratic tendancies of the Wades. The president was greeted at times by rocks and jeers from those in opposition red armbands, and chased out of some parts of the country according to reports.

Various media have called the election crutial for the political future of Karim Wade, seen as promoted to succeed his father.

Controversy regarding the legitimacy of the elections was heightened by the disqualifation of SOPI's slate in the Djiorbel area and subsequent court challenges to that process. Opponents will be keenly on the lookout for election fraud, having sat out the last local election because of its perception.

Tourism prospects dim near term.

2009-03-12T17:30:00.000-07:00

Senegal's tourist industry is suffering even as West Africa has worked so hard to build its visitor industry, according to a pessimistic BBC World News report.

According to BBC, bad press in French newspapers over a reported increase in child prostitution at the country's most popular beach resort, the Petit Cote, has not helped but the real hammer blow has been the global recession.

Luxury holidays are one of the first things cut when money is tight and, though the decline this year has been gentle, the figures for next year look dire.

Salif Badiane is the executive director of Africa Connection Tours says: "At this time of the year we should have had orders for 30 to 35 percent of our turnover. Now we are under 5 percent of our turnover and that's why we are so concerned."

Looking at the positive, however, we would note that the hard work of building service infrastructure--everything from good roads to reliable internet-- and buffing up the outstanding natural attractions of Senegal will create long-term opportunities, as the economy revives and news scandals fade...

How bad is it? Senegal's building blues.

2009-03-12T17:21:00.001-07:00

The world financial crunch hit Senegal's building industry hard in January. Senegal's Directorate of Forecasting and Economic Studies (Dpee), in its latest monthly economic note reveals that "the level of buildings and public works, half of the companies interviewed leaders discussed the issue of collection of receivables that still weighed on their activities in January 2009. The same source believes that acute financing difficulties are felt by 33.3 percent of respondents. The Dpee also reveals that 16.7 percent of managers say the business environment has deteriorated due to the lengthening of procedures for public procurement and the lack of markets, resulting in a decrease of profitability.

For services, the Dpee notes that the business environment remains a major concern for 46.2 percent of business leaders surveyed. According to them, the same source continues, "the length of procedures for procurement and land issues have been detrimental to businesses."

The survey concludes that many Senegalese business owners are being hit by cash flow problems that would continue through February.

The Economist's mixed view of today's Senegal

2009-03-08T14:08:00.001-07:00

A recent Economist article gives a snapshot of Senegal's political scene with a focus on President Wade... Objectively Senegal is doing pretty good, with credit going to President Wade for positive economic signs such as the Corniche expressway from the airport to downtown and decent communications infrastructure, according to the February 26 article, datelined Dakar without byline.

But the article points to troubling signs from Senegal's political society, much of which it also attributes to the President. Last year's food riots (see our previous posts), and allegations of corruption have generated "rage and frustration" among many Senegalese, according to the article.

The Economist's short article injects some heavy hyperbole: the teaser cites "authoritarian" President Wade and the article's subhead states ominously that: "President Wade will ignore domestic discontent at his peril." This should hardly be news to any politician.

And the article's "taxi-driver" level of analysis misses relevant developments: fortuitous rains and consequent good harvests combined with easing import costs (lower fuel costs) and pending IMF aid will help the country's economic discontent.

Better to sort out the political grumbling after the local elections on March 22. Institutional politics take a backseat in Senegal where personal political ties are more pronounced. That level of political dynamic is beyond the grasp of most observers (including us). And local political elections, as these upcoming, are even more parochial. The losers and disaffected factions from the local elections will make their views known sooner or later. It will take a while to sort out. We intend to be there to get a first hand sense...

Garbage strike hits Dakar

2009-02-21T16:36:00.000-08:00

Garbage workers--les ramasseurs d'ordure--in Dakar are on strike, and according to one news source, facing arrests. The workers, employed by the community association of CADAKAR and the French multinational firm Viola, want more pay and better health conditions. Apparently tuberculosis is widespread among the workers and the vaccinations that they receive have not been effective... We noted last year that the demise of the large-scale AMA waste management contract may have been doomed by labor unrest. Since the Italian AMA left town, the French Viola has moved in, at least to the central parts of Dakar. Now apparently it is also running into trouble... Do the garbage workers have a valid grievance? We're told that pay runs only around a couple (U.S.) dollars a day. Of course,the work is hard around the world, good pay or bad... Our sources also tell us that the Dakar labor force is subject to manipulation by political power brokers. The current strike is organized by Le Front unitaire des syndicats du nettoiement. They promise that garbage will pile in the streets if their demands are not met. They want to meet with President Wade to voice their complaints... Senegal's garbage problems have many causes...

Senegal economy dropped big in 2008; better this year?

2009-02-18T17:47:00.000-08:00

The growth of gross domestic product (GDP) of Senegal in 2008 registered a sharp drop, from 4.7 percent in 2007 to only 2.5 percent, according to the Senegal representative of the International Monetary Fund (IMF), Alex Segura. (Who recently had his Dakar apartment burlarized, by the way.)

"Between 1995 and 2005, Senegal has had a growth rate around 5 percent. In 2007 it was 4.7 percent," Segura told Radio France Internationale (RFI).

But "the effect of domestic debt on economic activity was very negative and led to a slowdown in activity in 2008 with a growth rate estimated at 2.5 percent, which is a sharp drop," he said. In 2006, the GDP of Senegal had already been a bad year with 2.4 percent.

In 2008, the secondary sector was severely affected, providers of the state have not been paid on time. Many companies were forced to reduce their activities," he added. According to Segura, the growth of non-agricultural GDP was only 1.5 percent in 2008.

For 2009, the IMF's estimated growth for Senegal is 4 percent.

Regarding the heavy domestic debt, "a third had been paid a week ago. The stock of 225 billion CFA francs (342 million) registered with the authorities, there were still around 150 billion CFA francs," Segura said.

"The Minister of Finance (Abdoulaye Diop) is working to find resources to pay the rest. In the coming weeks, if not all, much will be paid," said the IMF representative.

Good credit means paying your debts. The slow pay policy of Senegal's central government could continue to drag down the economy.

China and Senegal: sweethearts hook up

2009-02-14T15:10:00.000-08:00

They've known each other for about three years. "Mais c’est le grand amour" between China and Senegal. Thus on Saint Valentine's Day it is appropriate that the president of the Republic of China, Hu Jintao, rendezvoused with Abdoulaye Wade, the president of Senegal. According to the L'Observateur the visit marked the growing relationship between the two since Senegal recognized communist China only three years ago. China suspended diplomatic relations with Senegal in 1996 when Senegal had the audacity to formally recognize the democratic Chinese government of Taiwan. Then in 2005, under Wade, Senegal switched to recognizing the communist regime over the democratic, furthering the communists' efforts to freeze the democratic Chinese out of international, and United Nations, recognition... Now the relationship has flowered into "a great love" according to the news reports of Hu's Valentine's Day visit to Dakar... That great love was testified according to sources from both countries by the extensive couplings expected in areas such as the development of Senegal's airlines and other transportation systems, as well as exploitation of hard-to-develop oil reserves in Casamance... The Chinese are already involved in major infrastructure projects in Senegal, particularly in Touba, as we have posted here often. The oil exploitation move is interesting, but not surprising considering China's clear program of developing its own oil sources... Will this "great love" last? One wonders, considering the cultural differences of the pair, especially the religious. Senegal is a land of great faith and the Muslim morality of its people is one of its greatest strengths. China is atheist. One wonders if the relationship is really just one of convenience, or even meretricious...

Iran to open Dakar trade center

2009-01-28T12:24:00.000-08:00

Iran's presence in Senegal is growing, following on the SenIran plant. This in Tehran Times:

"SHIRAZ – The governor general of Iran’s Fars Province, Mohammadreza Rezazadeh and Senegalese Commerce Minister Mamadou Diop signed a memorandum of understanding on late Monday in which Iran agreed to build a trade center in Dakar.

"According to Mehr News Agency, Rezazadeh called Senegal an entrance gate to Africa’s markets.

"He added that during his last visit to Senegal, Shiraz’s private sector successfully formed a trade consortium in the African country that would help promote trade between Senegal and the Iranian province.

"Diop welcomed the promotion of bilateral trade ties, saying that Senegal lacks modern industries and is in need of the latest technology."

Tough love: IMF spanks Dakar budgeting but promises "exogenous shocks" relief

2009-01-14T12:10:00.000-08:00

In a report issued yesterday, the International Monetary Fund revealed much about Senegal's fiscal problems over the last year. But, after hard work over the last six months or so, the IMF concludes that Senegal has tackled "extrabudgetary expendi-tures" and nonpayment of its bills, so much so that the IMF approved relief from the IMF's "Exogenous Shocks Fund." Indeed "exogenous shocks"-- the high oil prices and food shortages-- were evidently a big reason for the government's "off-budget" spending, to the detriment of contractors, such as those in Touba that we have posted about before.

The actual report is titled:

"Senegal: Second Review Under the Policy Support Instrument, Request for a Twelve-Month Arrangement Under the Exogenous Shocks Facility, and Request for Waivers and Modification of Assessment Criteria—Staff Report; Staff Statement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Senegal" and dated January 2009.

Nestled in the economists' jargon are many revelations of what has been happening with Senegal's budget. We'll try to post further, but meanwhile here is one of the conditions the IMF is putting on "exogenous shock" relief, pertaining to an audit of the government's actual indebtedness to its private contractors:

“No payments will be made to the private sector for any extrabudgetary expenditure before the audit has established the nature of claims and specified the goods and services that were provided and their unit cost. To prevent a recurrence of such spending, the government will impose sanctions on employees found to be at fault and apply a discount factor to the claims of private firms that agreed to provide goods or services on unlawful terms. The government will pay claims recognized on the basis of the audit only after authorization by a budget law providing for simultaneous reductions of appropriations for other expenditure items.” (IMF report, page 46, item 26.)

In other words: contractors who do work on the promise of money that hasn't been legally authorized will take their chances.

President Wade: "Happy economic new year!!"

2009-01-01T13:20:00.000-08:00

Senegal's President Abdoulaye Wade used his New Year's Eve message to the county to highlight bold economic initiatives out of the daunting climate of the last year. Noting the "off budget" expenditures that the World Bank found fault with, President Wade still claimed that Senegal was the World Bank's highest rated economy.

The president pointed to the launching of Air Teranga, a Senegalese airline, new universities at St. Louis and Kedougou, and the regional port facilities with free market zones and surface connections to Mali and elsewhere in the region. Other infrastructure lurches fitfully ahead at the turn of the year. "If I were to list these projects, it would take much time, I gave instructions to ministers to publish a table with a list of infrastructure to be carried out in 2009" he said. Of course, the World Bank in its requirements to put Senegal back on its approved list required that the country list all such major projects--necessary to get a grip on the off-budget spending and commitments...

It was a detailed speech with a certain Senegalese optimism throughout. The president didn't shy from most of the nation's problems: high gas prices, energy outages, food insecurity. But he was able to point to activities to deal with the problems, especially in the area of agriculture. Fortuitous good harvests help, too. But so do tractors from India and increasing sophistication in the country's animal husbandry... Recent riots in the hinterlands were largely ignored however...

Public concern raised regarding "pots of wine" (bribes) in Senegal

2008-12-15T05:23:00.000-08:00

An article in today's SudQuotidien expressed public concern over Senegal's drop on the 2008 "corruption index" produced by Transparency International. Although Senegal is not among the most corrupt on the index, its position fell considerably on the 2008 index...

Construction companies and public works of major exporting countries in Senegal "are identified as most likely to pay bribes to the authorities of host countries," according to the 2008 corruption index. One way to understand the increase in "pots-de-vin" (bribes) is the source of bribes. Transparency International also indexed the countries with the companies most likely to offer bribes. The worst, in order, were Russia, China, Mexico and India.

Senegal does significant business with both China and India. China is engaged in major infrastructure projects, especially around Touba. As we have noted before, India's trade with Senegal has skyrocked in the last five years to lead all others.

The solution Transparency International recommends is, naturally, transparency. Major bidding processes and results should be made public. It cited recent mining deals as an example.

The SudQuotidien article calls increasing corruption a "trap." Rightly so. The well known corrolary to the corruption index is the poverty index--the more corruption, the less likely that a country will develop economically.

Groundnut harvest way up; a welcome relief for Senegal farmers

2008-12-08T20:37:00.000-08:00

Dec. 8 (Bloomberg) -- Peanut production in Senegal will probably increase 66 percent to 550,000 metric tons in the 2008-09 season after plantings increased, according to the U.S. Department of Agriculture.

Output fell 28 percent to 331,200 tons in the 2007-08 season, from the previous year, because of poor rainfall, the department’s Foreign Agricultural Service said on its Web site.

Peanuts are the primary cash crop and source of income for most Senegalese farmers, according to the FAS.

Iran and Senegal launch SENIRAN auto assembly plant in Senegal

2008-12-08T20:34:00.000-08:00

Iran Khodro, the biggest automobile producer in the Middle East has inaugurated a new assembly plant in the African country of Senegal.

Senegalese president, Abdoulaye Wade, asked for Iran Khodro cars, Bardo pick-up and Peugeot Roa besides Samand passenger car to be produced in SENIRAN AUTO and be exported to the West African countries, said IKCO CEO and president, Manouchehr Manteghi.

During the inauguration ceremony of SENIRAN AUTO in Senegal Manteghi emphasized: Considering Iran Khodro’s strategic plans for its global sales, Central Asian, Middle Eastern and North and West African countries are our points of interest. Senegal’s special position in the region, neighboring seven countries with political an economical ties helped us to make up our mind for establishing a site in this country.

Mentioning that this production line is not a uni-functional one, he added: Right now, Samand passenger car under the name of "Mandory" is produced in this site; however Bardo pick-up, Peugeot Roa, and Pars can also be produced by this assembly line if needed.

Referring to IKCO's car making site in Senegal, Manteghi claimed that foreign companies have already announced their willingness for manufacturing their products in this site.

Renewing public transportation in Senegal has been one of the sources of interest for Senegal's government based on which 2000 Samand made their way to this country, he added. According to Manteghi, around $60 million have been invested on Samand assembly site in Senegal with Iran Khodro and Senegalese government and private sector together putting in 60 and 40 percent respectively.

It's noteworthy that Iran Khodro has established one of the biggest after-sale service centers in Senegal.

The Khalife guarantees that Touba work continues

2008-12-08T20:14:00.000-08:00

The massive intrastructure and public improvements underway in Touba continue, according to the Khalife of the Mourides, by way of a news report. He assures that the water system infrastructure and other projects were never stalled.

The Khalife, Serigne Mouhamadou Lamine Bara Mbacké, took efforts to emphasize the cooperation of the Holy City with the President of Senegal, Abdoulaye Wade:

"The water project has started. Again, we are in step with the president because he had given the sum of seven billion CFA francs. Then he comes back three and a half billion for drilling, pipes, fountains throughout the city."

Addressing reports that the work had been stopped for lack of funding, the Khalife was reported to state: "The work has never been suspended. Those who say they do not know anything."

Since President Wade showed up with the payments in his recent visit to Touba, relations with the Holy City appear to have warmed up considerably. This at a time when the president is facing political opposition.

Senegal congress environmental department budget misses chance to pick up the garbage

2008-11-22T16:05:00.000-08:00

Senegal's government cut the budget slightly this year to the Environment Ministry, but not before representatives deplored the state of garbage in the country. The $67.7 million (U.S.) environmental budget approved is down several million from the last adopted budget. Deputies in the National Assembly voiced their concerns that the garbage ringing Senegal's cities is creating a health hazard. The town of Kaolack, in the heart of the country's groundnut crop region voiced special concerns. The government responded that APIX, the foreign investment agency, and the city of Dakar are working on addressing the growing garbage problem as well as the closure of Mbeubeubus, the nation's sole actual landfill... Other environmental concerns such as fisheries and wildfires were noted as affected by the lowered environmental budget. But it is the garbage problem which Senegalese are most concerned about, according to the article Le Quotidien.

IMF criticises Dakar for its "slow pay" history on infrastructure work

2008-11-15T16:05:00.000-08:00

Previous posts have highlighted the Dakar central govern-ment's "slow pay" history on the Touba infrastructure projects. In the euphemistic terminology of the IMF, a statement following last September's report indicates it is aware of the problem:

"The mission evaluated the serious budgetary slippages that were uncovered in early August 2008. They comprise a large stock of unpaid bills to the private sector within the normal budgetary framework that have accumulated over the last few years, as well as past extrabudgetary spending, which, taken together, were inconsistent with the availability of financing and Senegal's macroeconomic circumstances. While a full assessment of the stock of unpaid bills is ongoing, their extent and lack of consis-tency with the budgetary framework warrant strong actions."

More recent posts here note that President Wade's visit to Touba this week was accompanied by some major payment installments on the Chinese infrastructure work there. One wonders however what result will come of the IMF's "full assessment" of the unpaid bills.

Power du jour: solar (yesterday, nuclear, tomorrow...)

2008-11-15T12:17:00.000-08:00

There appears to be growing enthusiasm lately for solar energy by the Senegalese authorities. At last spring's UNIDO renewable energy conference at the President Meridian (which I attended ex-officio), nuclear power was touted by the Wade administration. I don't know if the security and other concerns with nuclear have dampened that enthusiasm (which non-U.S. developed countries were frowning upon). But solar does have advantages of decentralized, scalable features. Here's the top of today's Reuters story:

"DAKAR (Reuters) - Senegal hopes to rein in surging electricity prices, reduce frequent blackouts and power most of its street lighting through an energy policy using solar panels, the government said Friday.

"Located on Africa's west coast at one end of the arid Sahel belt south of the Sahara, Senegal has huge solar potential but has so far lacked the expertise and investments to harness it."

"President Abdoulaye Wade, 82, instructed his energy minister to extend the national electricity grid over the entire country and build a factory making low-energy light bulbs, a government statement summing up Thursday's cabinet meeting said.

"U.S. space agency NASA scientists have identified a location in nearby Niger as the sunniest piece of land on earth, and renewable energy campaigners say the region has huge solar generating potential.

"'He (Wade) has also decided to put in place an energy-saving and management policy to lower prices for electricity consumers and reduce the negative effects of costs on our nation's economic development,' the government statement said.

"Like many African countries, Senegal has suffered long-term underinvestment and neglect of its power network. This has hampered economic development despite it being one of the region's most stable democracies since independence from France in 1960.

"Last month, crowds of youths smashed up offices of the state power utility Senelec in the capital Dakar to protest against frequent power cuts due to load-shedding.

Government money appears in Touba in advance of President Wade's visit

2008-11-11T11:27:00.001-08:00

President Abdoulaye's visit tomorrow to the Mourides' holy city of Touba has been greased by finally funding Touba infrastructure projects. The President needs to spread the goodwill, according to today's article in L'Observateur. The sacking of Macky Sall, leader of the Senegalese parliament is apparently fomenting ill feeling toward the president and the Mourides are backing off from their support for the President... Those sore feelings may be assauged somewhat by the reported payment this month to Chinese contractors working in Touba of 3.6 billion CFA francs. According to L'Observateur sources, 2 billion CFA francs were received by Hénan China and 1.6 billion by another company. Work on Touba infrastructure has been restarted, although Chinese and local employment on the projects is still far below the scheduled need... L'Observateur sources with the Khalife say they'll push for more funding for the projects from the President's central government. As we noted here earlier, Touba sent billions of francs (much of it raised abroad) to the central government, where it disappeared for quite awhile. The Khalife took up the matter in a visit to Dakar earlier this year. Only 30 percent of the contract Touba infrastructure has been completed.

President Wade looks for better GOANA harvest

2008-11-01T16:57:00.000-07:00

Six months after President Abdoulaye Wade launched his agricultural growth initiative, Senegal is predicting record harvests for 2008. Good news for Senegal and its president, both of which were battered by food shortages over the last year.

“The Grand Agricultural Offensive for Food Security” or GOANA, was launched by President Wade in May 2008. It aims for Senegal’s self-sufficiency in food production by 2015. Goals include doubling rice production, and increasing maize and manioc yields.

According to IRIN, Senegal imports 600,000 tons of rice a year, or three-quarters of the country’s food consumption, making its people vulnerable to high global rice prices, especially when energy costs boost transportation costs.

Six months into GOANA, the Ministry of Agriculture predicts a harvest of 1.8 million tons of cereal—a 136 percent increase over last year’s yields—700,000 tons of millet, 500,000 tons of maize and 380,000 tons of non-irrigated rice in 2008.

Thousands of supporters, farmers and members of agricultural organizations gathered opposite the presidential palace in Dakar October 27 to showcase harvests of peanuts, fonio, rice, millet, bananas and vegetables.

But according to the IRIN report, good rains may have had more to do with the higher yields than the government subsidized seeds or farm equipment that some farmers say didn’t reach them until past the planting season.

Still, it is a good start to the President’s worthy effort.

Report: Chinese will stay to work in Touba

2008-10-21T20:53:00.000-07:00

"L'observateur" is reporting today that the Mourides leadership in Touba has smoothed over relations with the Chinese firm Henan, after the Chinese were reported to have stopped work for nonpayment. The multi-million dollar road and infrastructure work to be done by the Chinese in and around Touba will continue... El Hadji Ndiaye, the "right arm" of the Khalif General of the Mourides, is quoted as saying that the Chinese will continue the work although behind in payments to the tune of 9 billion CFA franc ($20.3 million)... The "L'observateur" report also indicates that 60 of the 80 Chinese who were working on the Touba projects are no longer there... About half the 115 kilometers of roadwork committed to the Chinese has been done, according to the report. Meanwhile, the balance of the five-year project, at about 20 billion CFA franc per year, will continue, insists the Khalif. The work includes sanitation and other infrastructure, besides the road work.

Toward a solar powered Senegal?

2008-10-09T15:39:00.000-07:00

This from the U.N., seeking to promote solar energy:

DAKAR, 8 October 2008 (IRIN) - Investing in solar energy could bring electricity to millions of Senegalese, significantly reduce electricity bills in the long term, and attract millions of dollars in development funding under the UN-brokered Clean Development Mechanism, says the UN, but only if investors step in.

Spiralling fuel costs, with oil prices at US$90 a barrel increase the urgency to go solar. “If you reduce these [fuel] oil import costs,” said Nick Nuttall, spokesperson for the UN Environment Programme in Nairobi, “it will do a tremendous amount to save money for government investment in schools, hospitals and other development activities to help the poor.”

Just one in four Senegalese has access to mains electricity, according to the UN, and the national electricity company, Senelec, struggles to meet even this demand.

Faced with a five-fold increase in its fuel bill between 2005 and 2008, Louis Seck, head of Senegal’s Renewable Energy Department, said Senegal not only wants to, but must now invest in renewables.

Senegal, like many of its Sahelian neighbours, gets 3,000 hours of sunshine a year at an intensity of 5.8 Watt hours per square metre (Wh/m2) per day. Solar power stations can be set up on uncultivable land, making Senegal “an ideal location for solar energy development”, said Nuttall.

Abdoulaye Fall, head of environmental quality and safety at the National Confederation of Employers in Senegal (CNES), said solar power could save money in the long term. While it currently costs about US$18.40 to produce one kilowatt hour of electricity using diesel, according to Seck, energy created at giant solar power plants could cost as little as half of this.

There are environmental and health benefits to solar energy, according to German aid agency GTZ. On top of reducing global greenhouse gas emissions it would make rural Senegalese, almost all of whom use firewood or charcoal for cooking, less dependent on these “dirty fuels” which can lead to respiratory diseases, a cause of infant mortality.

Moreover, the carbon emissions market makes investing in solar power a draw for wider sustainable development projects. Senegal hosted Africa’s first carbon forum in September 2008 hoping to attract investors seeking a higher greenhouse emission allowance than permitted by the Kyoto Protocol to fund renewable energy projects in Senegal as part of the Clean Development Mechanism. At the end of the week-long forum, 25 projects had found funders.

GTZ is working with the Senegalese Agency for Rural Electrification (ASER) to provide villages with photovoltaic panels, aiming to bring electricity to 60 percent of the targeted populations within three years.

But only one renewable energy scheme of any size exists in Senegal: an HEP station at the Manantali dam on the River Senegal, which has been supplying power to Senegal, Mali and Mauritania since 2002.

To set up more schemes of this size the government needs more cash. It has not been easy to attract private investors at anywhere near a large enough scale, according to the CNES’s Fall, because Senegal is still seen to be a risky place to invest, and the government provides little to no information for investors on risks and opportunities, he said.

GTZ coordinator Mansour Assani Dahouenon agreed. “The challenges for investors in renewable energies are the lack of a regulatory framework, and of incentives to investors,” he said.

Legislators from across West Africa came together in Ghana in late September 2008 to urge regional leaders to form a West African Renewable Energy Community to promote renewable energy projects. They also agreed to push leaders across the Economic Community of West African States (ECOWAS) to pass stronger laws to protect investors in renewable energy schemes.

Fall suggests in the meantime the Senegalese government should form a public-private partnership agency to regulate the renewable energies market, and should agree to back up big financing projects to reassure investors. Only then, he says, will solar power be affordable on a mass scale.

Chinese leaving Touba?

2008-10-05T20:17:00.000-07:00

Chinese contractors in Touba may be poised to exit. According to news reports today Henan China is due 12 billion CFA francs in receipts, wages are not being paid and Touba workers--about 250--are set to strike, and even to ransack the Chinese offices.

As noted here before, millions of dollars sent to the central government in Dakar from Touba went missing over the last year. This apparently in some significant part precipitated the Khalif of the Mourides to visit President Wade a couple months back.

The troubles of the Chinese may be elicting delight in some quarters, and moves to assume their work. But the situation does not reflect well on the ability of Touba and Senegal to utilize the capital and technical assistance of other countries. The political problems, murky finances and labor turmoil could thwart Touba's need to obtain modern infrastructure. Still, some are doubtless aware of the irony that the Chinese may be reaping what they sowed.

Touba tax base could support infrastructure

2008-08-30T16:58:00.000-07:00

I'm wondering whether Touba organized a tax base. It will be difficult for the Holy City of the Mourides to have infrastructure and services such as garbage collection without means to identify and administer a revenue system.

In 2005, the Arizon company STC created a land management and tax support system, SIGGIL, for Touba. The system created the ability (with GIS) to create and distribute land ownership titles to over 100,000 citizens. SIGGIL enabled the local government to levy the first taxation in Touba. According to the company website (www.stchome.com):

"Scientific Technologies Corporation (STC), an Arizona corporation established in 1988, provides domain expertise and information technology solutions to address complex real world problems in community, regional, state/provincial, and national public health programs... "

According to internet reports the software was delivered. I'll follow up to see if it was implemented... Senegal sources report that the Khalif has succeeded in generating tax revenue. (See previous posts about some of those funds disappearing in Dakar)...

No wonder the Chinese aren't getting paid

2008-08-09T09:07:00.000-07:00

The Khalif was in Dakar recently wondering where all the money from Touba disappeared to. Chinese contractors aren't going to get paid if revenues disappear after being sent to Dakar and the President Wade's central government. So now there is this revelation, from today on Independent Online:

"Dakar - Senegalese President Abdoulaye Wade has sacked Budget Minister Ibrahima Sarr for allowing government departments to overspend by 109-billion CFA francs ($252-million), a Finance Ministry official said late on Friday.

Wade sacked a quarter of his ministers last year in a bid to cut costs in the face of a ballooning food import bill, but has been criticised by opponents for funding prestige projects such as a planned 50-metre bronze "African Renaissance" statue.

The octogenarian president signed a decree sacking Sarr late on Thursday.

The decree gave no reason for Sarr's sacking, which came just hours after Wade met resident International Monetary Fund representative Alex Segura. Details of their discussions were not made public."

Meanwhile people are going hungry

2008-05-17T19:00:00.000-07:00

Saturday, May 17, 2008

This from Reuters:

"ROME (Reuters) - The head of the U.N. food agency hit back on Thursday at criticism from the president of his home country Senegal, who has called the organisation "a bottomless pit of money largely spent on its own functioning."

Jacques Diouf, director-general of the Rome-based U.N. Food and Agriculture Organisation since 1993, said the broadside from President Abdoulaye Wade was politically motivated and factually incorrect."

Diouf is actually a former Senegalese minister himself. President Wade has pushed a Senegalese agricultural self-sufficiency program, something that doesn't look to put food on Senegalese plates right away.

The Reuters story states that Senegal has one of the largest per capita food import figures. It stands to reason that skyrocking fuel prices would hit Senegal harder than most.

Between the lines we read that Wade wants food programs based in Africa where he has more control over them.

If Wade's agricultural self-sufficiency program starts to show success, maybe closer integration with world support is justified. But the UN is addressing an immediate food crisis that is giving President Wade his one of his biggest political liabilities. Not only is picking a fight to divert attention short sighted--it is below the statemanship that Wade has shown up to now.

Of crop exports and American commerce

2008-04-23T11:26:00.000-07:00

Wednesday, April 23, 2008

Talked agricultural exports this morning at length with Professor Abdoulaya Sanokho this morning. Among the products discussed were the massive mangos grown here, baobab powder—the stuff of the delicious baobab drink I had earlier in Mbacke—and tamarind. I suggested strongly to the professor that he work to make contacts with American organic certification companies to certify Senegalese crops for export…

In the afternoon, I met with the representative of the U.S. Department of Commerce here, Steven Morrison, and his staff people, Youhanidou Wane Ba and Alosa Diop, commercial specialists. Over my lunch of grilled cheese sandwich and French fries in the U.S. embassy cafeteria, they listened patiently to my accounts of exploits in Dakar, Touba and lands beyond uncharted, while I benefited greatly from their insights into the scene here and in particular waste management. Alosa told me of an interesting Peace Corps project south of Dakar which pulls out the wastestream organics and composts them at a yard next to the centralized dump that they use. The fact that the dump is centralized may seem insignificant, but it represents a big step away from everybody dumping willy nilly at the edge of town. Tomorrow is my last full day here before returning home (sorely missed) on an early Friday a.m. flight. I will check with the Peace Corps project when I get home.

Dakar's mysterious disappearing waste management

2008-04-23T11:11:00.000-07:00

Tuesday, April 22, 2008

I came here interested in ventures/collaborations/projects involving solid waste management in Senegal. From my advance research on the subject, a mystery remained about the fate of the AMA project here. The multi-million dollar, 25-year AMA project, the World Bank’s most significant waste management project in Africa, started with competitive bidding four or five years ago. The Italian company AMA won the contract to collect the entire Dakar region, build a transfer station and develop a landfill to replace the out-of-control, polluting Mbeubeus dump. But suddenly after the contract had been implemented for a couple year, the project simply ended. The government stopped payments on its contract, and presumably the bank loan. It was never clear why. Today I spoke with Christian Diou, the World Bank’s infrastructure manager for Dakar. He gave the bank’s understanding of the project breakdown—they don’t know either. Not much more than a year ago, he says, the government simply pulled its payments and terminated the contract. The garbage trucks and facility plans were stopped in their tracks. There was no explanation given by the Ministry of Environment which handled the contract. However, my Senegalese sources, and hints from the internet, indicate that the problem had something to do with labor; that unions formed of the waste workers hired by AMA made unmet demands. Nor should it go unnoticed that once the AMA contract was breached, the French firm, Veolia, moved in to manage the easy collection in downtown Dakar… Perhaps here as in California garbage, like politics, is always local. (Or maybe that French sense of the colonial “droit de seigneur” asserting itself under the table.) Since the AMA meltdown, the central government, says Mr. Diou, has enacted the devolution of waste management authority to the local “commune” governments of Dakar and nearby Rufisque. Those two communes are working together loosely to handle or contract waste collection and management. The result is apparently a patchwork of waste management that the central government has left (perhaps consciously) little understood or known…

Earlier in the day we met with the Ministry of Environment. After first greeting the minister himself, he passed us off to his sub-minister with the garbage portfolio. The one clear message I got from the minister himself was that Mbeubeus must close. Later today I learned from Mr. Diou why the government is so decided to get rid of Mbeubeus—the huge dump is smack in the way of the showcase coastal highway that is the Wade administration’s highest priority public project. The Mbeubeus closure is one waste project that the World Bank and the Senegal government can both get behind, says M. Diou, and the bank will help fund those efforts. But I got the strong impression that further World Bank involvement in waste collection and management here is unlikely—once burned as they were.

U.S.-Iran: Let's be friends!

2008-04-21T03:04:00.000-07:00

Initiative and help from the Ultimate Inertia

2008-04-21T03:01:00.000-07:00

Saturday, April 19, 2008

Hanging around Le Baol this morning, I met an Iranian engineer. He is one of seven working on electrical projects in Theis, Koacola and Touba. Nice fellow. He wanted to get a picture, just as I did. So we exchanged shots and handshakes. It would be interesting to try to put together a U.S.-Iranian project in Senegal…

When Mamemor finally sent a taxi for lunch, I started meeting more of his relatives at Soda’s. “Roots,” in French, was on the television while we talked. Mamemor harangued his young nephews Mustapha and Abdul about how they were dictators and how they just wanted to use other people, while unwilling to work themselves. They had long discussions about self-reliance and the original Mourides values of work, equality and solidarity. Mamemor is very anti-clerical, anti-marabout. He feels many Mourides have strayed far from Bamba’s original teachings. When we went to the market, he complained about all the men sitting around “in their pajamas” all day.

…With all the free time I’ve been having it feels like I’m going native myself. I’m forced to spend time just sitting and looking around. It makes me realize the degree of inertia we Americans push against every day. We cut through it so naturally, most of us don’t even realize we are doing it… Here in Senegal you feel the weight of a motionless force. There is no plan that can be laid, no foundation placed, nothing that can be done about anything outside you—except to pay a constant fealty to the Ultimate Inertia. That seems to be much of the worship here; they praise with a concession to hopelessness… Americans pray with a belief in the Great Plan; faith that we can strive to the image of perfection. One God certainly; but two fashions of devotion…

My "Visit Senegal" recommendations

2008-04-20T02:55:00.000-07:00

Friday, April 18, 2008

We sat tonight under a full moon in the courtyard of Mamemor’s mother’s compound. Later we walked by the Mbacke family mosque, the towers glowing under the moonlight. A side street along the way was filled with drum-driven singing, and I could see the people filling the street dancing in the Senegalese fashion, wide aggressive stepping punctuated with wild rhythmic arm waving and body movements. At one point much of the group danced in loose unison in a single direction to the beat… It’s Friday and drumming, loudspeakers and crowds were fairly commonplace, although I have avoided the gatherings. But when Mamemor mentioned that the group dancing in the street was Baye Fall, I asked excitedly about going over to watch. “No, you don’t want to do that,” he said. “Those kids can get crazy.”

With our plans for Saint Louis abandoned due to delays leaving, I settled back comfortably in Le Baol, attended to very well by the hotel manager “C.D.”. The baol are fashioned after the thatch bungalows inhabited by the rural, pastoral Senegalese…

Tourism came up repeatedly today. The hotel’s owner, M. Mbaye, is a friend of Mamemor’s. I was introduced and caught pieces of their conversation about M. Mbaye’s efforts to promote Senegal tourism. Mamemor’s concerns about the conflicts between the religious population here and the values of tourists came up. Later, this evening, while sitting with Mamemor’s family under the moon, with a perfect cooling breeze keeping away the mosquitoes, while drinking the delicious, milkshake-like juice of the baobab tree, the conversation turned to what-should-be Senegal’s appeal to tourists—the beaches, the welcoming, smiling people, the culture. The main obstacles, I commented, seem to be two: promotion and garbage. Some Americans, well-traveled or curious like my friend Ron, know of Senegal and its culture, usually through the music. But a mass-media Senegal tourism promotion campaign in the States is needed to change the common American misperceptions of Africa, especially of Muslim Africa. I think African-Americans would especially enjoy Senegal. Mamemor doesn’t think so; he thinks they are even more wary of Africa than most Americans—“they want to go to Europe like everybody else.” Maybe, maybe not…

The garbage is another matter. The beauty of the beaches is utterly ruined by the garbage. A person’s first impression of the town of Diourbel is the sea of garbage strewn at its gateway. The Dakar golf course at Technopol will never be what it could when ringed by a wall of garbage. If American tourists came here, the garbage would unfortunately confirm the pre-impressions of backwardness and poor services.

So—a “visit Senegal” ad campaign, clean up the garbage—viola, a multi-million-dollar tourism industry. And one more thing: wireless modems. The tourism ministry would do well to ship in a few containers of Linksys wireless modems to distribute and install in all the hotels. And keep the DSL up!

The Khalif of the Mourides reviews our information.

2008-04-18T03:31:00.000-07:00

I meet the Khalif

2008-04-18T03:26:00.000-07:00

Thursday, April 17, 2008

We saw the Khalif today—what an intense experience! …For the second day, there has been no ADSL to connect to the internet throughout the area. Apparently the problem is with the phone system Sonatel—not a good reflection on the infrastructure. While going into town to check the connection at the cybercafé I had the good luck to find one of the commune’s garbage trucks and to speak with its crew. I found out that the commune operates four trucks, one of them apparently a packer. The small donkey carts bring much of the waste to the trucks. They then go to a dump. Mustafa found out from them where the dump is and we will go there another time… But first we had to get to Touba because, as I found, seeing the Khalif is not just making an appointment… I had thought to wear the grand bou-bou that I had purchased from Soda’s nephew yesterday. But Mamemor said that I might look too much like one of the hippies that hang out around the Grand Mosque smoking pot, and often wearing Baye Fall bou-bous. His general thought was that if I was there as an American businessman, I should look like one. Thus attired, we headed for Touba…

Touba is much as I expected—sprawling with many newer improvements, as much of the growth of the city has occurred in recent years. The City Hall looked new and modern. There is plenty of capital sent here from abroad, both from ex-patriot Mourides and foreign governments, especially the Chinese. There are a noticeably higher proportion of Mercedes cars in Touba… We only had time to drive around the Grand Mosque before heading to the Khalif’s compound.

Once at the Khalif’s compound it was apparent that I wasn’t the only one wanting to see the Khalif… The Khalif is like the Pope to the Mourides, and so, like Saint Peter’s Square in Rome, you will find crowds of the faithful there to see the Khalif, staged in various rooms, with the place permeated by the constant sing-shouting of Islamic praying. One of the main rooms was full of women and children. There was a courtyard with classes of schoolchildren. At one point we were staged in a room full of men of some apparent significance sitting around on the floor. As we wound our way here and there, various people would come to bring us another step closer. Mamemor’s friend the albino seemed to have quite a bit of pull, and he had others working the system to advance me. The maneuvering became much more intense once we got in the room where the Khalif was sitting. I moved seat-by-seat closer to the end of the room where he sat. The closer I got, the more intense was the jostling. The room was not large, maybe 20 feet by 40 feet, if that. The seats were along one side. As a Westerner I think it was expected that I sat in the seats. I was waved to one of the seats closest to those pushing and shoving to see the Khalif. I had to be careful; one man stumbling back clipped me in the throat with his hand. I started to worry about banging my still-vulnerable jaw. A noisy anxious babble was constant. I couldn’t see the Khalif from where I was sitting… This was actually a quiet day; the weekends are much worse… Soon we got the wave from somebody up by the Khalif. As I now know there are plenty of plain-clothes soldiers, government informants and watchful, if not envious, eyes around always. A little more jostling and I was put in the one chair next to the Khalif. He gave some recognition that I was there but still had to heed those others in front of him clawing for blessing and recognition. Every so often he would give a blessing, writing something with his finger in the palms placed up before him, and (as I found out later) spraying a little spittle which the believers immediately wiped on their forehead. This went on for awhile and then Mamemor got his attention. The Khalif is elderly, wearing a blue knit hat. We had a pleasant exchange with the Khalif about what I could do for Senegal and what he could do to help. I remember at one point it got very quiet—the whole place. I’m not sure why; the discussion wasn’t especially significant at that point. It was sort of eerie. The commotion renewed shortly… The Khalif will review my information and indicated that we would talk again soon, with less distraction…

At the conclusion of our talk, I asked for the Khalif’s blessing. He gave the very slightest smile of surprise, but readily wrote on my palm with his finger; Mamemor quickly translated: “May you find God in Touba. There is only one God, not two.” I felt the faint spray of the spittle and wiped it on my forehead…

It looks like I am at the hotel here in Mbacke again tonight. The toilet in the other room didn’t work, so I have another room. The toilet works fine. We had lunch at Mamemor’s mom’s. Café Touba at Soda’s and I will go back to mom’s for dinner soon… I am somewhat homesick; halfway through my trip. I think it best to hang out here for tomorrow. Maybe head back to Dakar via Petit Cote Saturday to get ready for the business week next…

Inland via the massive Mbeubeus dump

2008-04-18T03:24:00.000-07:00

Wednesday, April 16, 2008

Early start to beat the traffic out of Dakar; headed straight for the Mbeubeus (“m-boob-us”) dump/landfill, we decided to skip Saint Louis and head for Touba direct therefrom…

Mbeubeus was all that I had heard—a smoking hell hole, with those making a hellish existence from its dregs. The fellow working his smouldering hole to screen out the metal was a disturbing image, then again maybe it’s just a black-and-white version of Voltaire’s garden. Maybe that’s why they have resisted the government’s attempts to relocate their livelihood. But the reasons why it just can’t work are growing all around the dump. We cruised the area a little and I saw gardeners carrying their metal watering cans up from the groundwater springs to water beautifully green gardens. Maybe the gardens will need to be closed instead of the dump?

I still have quite a few questions about the dump that will require follow up. I didn’t get any means to conduct even an eyeball survey of what was coming in and where it came from. The only trucks I saw on the road in or out were a couple very, very full top load trucks, a hundred or more cubic yards each. I had understood that Canadian or some other researchers were at the landfill but we didn’t try any advance contact and couldn’t find visual directions once there.

The road to Touba was nice. I loved the rural sights, such as the thatched compounds. But there is garbage dumping in large areas blighting that view. Goats can always been seen grazing on a field of garbage. It occurred to me at a point: what would happen if they didn’t have the garbage? Would their livelihood be threatened just like the Mbeubeus scavengers? Almost half of the goats, sheep, and other livestock in Senegal already starve to death.

Theis and Diourbel were nice towns. Diourbel is pretty sleepy; evidently being overshadowed by Mbacke and Touba. Actually Touba is apparently drawing the attention and activity from Mbacke, too… We got to Mbacke about 12:30—it really didn’t take long from Dakar; the road is good. I settled in to a great hotel here with stucco bungalows that look like the circular thatched homes of the rural dwellers. The personnel here are very nice and real. Then we hung out with Mamemor’s extended family. His mom and aunt made lunch. I bought a Baye Fall bou-bou that his nephew made. I met others while we drank lots of café Touba, the strong, sweet dark roast coffee, spiced with diar (“jar”). Before that, while napping at Mamemor’s mom’s place, I caught the Pope’s arrival in the U.S. on CNN; I tried to ignore the silly tired comments that American Catholics are “diverse.” If they were so diverse they wouldn’t be Catholics; nobody is forcing them…

Mustafa and Mamemor’s nephew Mustafa drove me around Mbacke looking at all the garbage around the town… Then back to the hotel. Mamemor brought a fantastic salad, chicken and rice dinner made by his folks before bed. Tomorrow we go into Touba and hopefully meet the Halif (religious leader of the Mourides)…

Mbeubeus Landfill, Senegal's Only

2008-04-18T02:49:00.000-07:00

The cost of Senegal's garbage

2008-04-15T16:18:00.000-07:00

I saw firsthand today how the garbage problem is undermining Senegal’s economic prosperity. Piles of garbage have been thrown over the ridge above the Technopol development area, which is also a very beautiful wetland preserve of hundreds of acres, also the site of the new but sorely undeveloped Dakar golf course…

I left the President Meridian this morning after a brief but fascinating talk with Heinz about nuclear power—just recently pushed by both America’s and Senegal’s presidents—as a solution to global warming, with the probably insurmountable concerns which would have to be addressed by global cooperation: safe operation, political questions of stability and terrorism threat, fuel for arms, nuclear waste management, etc… I left the President to begin our travels through the Senegalese hinterlands—to Touba and land beyond uncharted. I will miss the cosmopolitan excitement there. But before heading out tomorrow, we saw the city water treatment facility near the Technopol site, surrounded by lush plant nurseries. Then we drove above the palm trees and wetlands to see children playing in garbage covering, almost entirely, the ridges around the site. We saw further health concerns at the nearby street food market where reeking garbage piles sit uncollected next to the food vendors. Tomorrow we will stop at the country’s one landfill which, as I understand, is surrounded by choleric vegetable gardens… M. Libasse dreams of cleaning up the hillside around Technopol and using the treated water to finish the golf grass. Something has to start somewhere…

Dr. Cheikh Tidiane Gadio, Senegal's Minister of Foreign Affairs

2008-04-14T16:48:00.000-07:00

A busy day of business

2008-04-14T16:44:00.000-07:00

Monday, April 14, 2008
Started with coffee in the shop downstairs at the President. Had the luck to be invited to sit with Heinz Leuenberger, director of the environmental management branch of the United Nations Industrial Development Organization, based now in Vienna. We had, for me, a very fascinating discussion of international developments, from the changes in Vienna since the opening of East Europe (and the amazing speed with which it has reassumed its role as a cultural capital—Hapsburgs redux), to the looming clash between Russia and China over Eastern Russia, where energy resources, space and cultural affinities may be too great for China to resist. Heinz is here for the big renewable energy conference being held at the hotel all this week…

Mustafa, our driver, was there to take me just as I finished coffee. I made the mistake of leaving my jacket which made Mamemor very unhappy with me, because we were going to meet bankers with some other prospective Senegalese associates. Specifically we met with the charming Oumy Bar Diouf, a “chef d’agence” of Ecobank. The bank, active throughout West Africa, is very interested in expanding its portfolio in the works that we are planning. I believe that I effectively conveyed the applicable principles of non-recourse project financing and available American guarantees. I think she was jazzed. We discussed their loan approval process and possible strategic alliance; I promised to get back to speak with her after doing my informal field analysis and before returning home… We then visited the factory of our associate Mr. Ndiaye, near the oil refinery. I was somewhat disturbed by the lack of worker safety assurance. Mamemor and I later talked at length about how to assure improvements in that aspect for our projects…

Afterwards we met with M. Libasse Niang at his bureau to prepare for our meeting with the minister of agricultural development downtown. The government has an aggressive policy to expand agriculture, recognizing the opportunity to relieve urban overcrowding and promote the economy and welfare of the people at the same time. The downtown this afternoon was busy and active, but we had to cool our heels for a good couple hours before the minister and two of his staff could see us. The minister himself had to beg off early for a meeting with an important Saudi… We all agreed that in the end the meeting was productive; the staff people promising full support for the Cap International project. But it took them a while to understand that this was a private project (which they say they never see) which would ultimately get private, albeit guaranteed, financing—not a handout, not a “gift” from the Saudis or any others, rather a plan to put agriculture in place. Fortunately we had the redoubtable M. Libasse to convey our plans. I have seen many a smooth lobbyist in my day—they are born not made: an engineering contractor by training, M. Libasse is a born lobbyist…

After dropping everybody back at M. Libasse’s bureau, Mamemor and I headed back toward the hotel. We stopped on the way to the restaurant we had been to on Saturday for breakfast; they wouldn’t let Mamemor bring in his own bottled water, so he insisting on leaving. On the way out there were soldiers along the road by the car and the road, usually crowded, was suddenly deserted. Mamemor called it: “the President is probably coming.” And indeed he did with motorcycle cops, sirens, SUVs and limos screaming by. Maybe going to the airport I said. Maybe the President was going to the President hotel, said Mamemor and again he called it exactly. By the time we got to the hotel they were all there, with the presidential guard. I got myself in a picture with one of them—very good uniforms. President Wade ducked out very shortly before we could see him, but Mamemor spotted Dr. Cheikh Tidiane Gadio, the minister of foreign affairs (our Secretary of State). He is very important—Mamemor and I had just been speaking on the way to the hotel of the Senegalese government’s growing importance on the world stage, as not just the broker of West African development (witness the assumption of the trial of the ex-Congo president), but even in matters as paramount as Iranian-American relations (vis President Wade’s meeting with Ahmadinejad this weekend. That said, Dr. Gadio was very accessible and friendly; he had studied in America and spoke English fluently, and as clear evidence of his civility—he let me have a picture with him. Afterwards with Mamemor, I found the restaurant down by the waterfront that I didn’t know about—incredible setting, pricey but worth-it buffet. In the elevator up to the room, I saw Heinz again; he says the President and Senegalese top officials will be speaking at the conference this week… All-in-all a fantastic day and productive day…

Australians see pot of gold

2008-04-13T17:31:00.000-07:00

MELBOURNE, AUSTRALIA -- 04/13/08 -- Mineral Deposits Limited (TSX: MDM)(ASX: MDL) is pleased to announce that it has executed documentation and commenced drawdown of the first component of a debt financing package for the further construction and development of the Sabodala Gold Project ("Sabodala") located in the Republic of Senegal, west Africa. The US$35 million Revolving Working Capital Facility has been provided by RMB Australia Holdings Limited and Macquarie Bank Limited.

Sabodala is situated some 650 kilometres east of the capital Dakar and within the Birimian belt and about 90 kilometres from major gold discoveries in Mali. MDL and the Government of the Republic of Senegal ("GRS") have established an operating company to complete the project and then mine the deposit under the terms of the Mining Convention between them. MDL has a 90% holding and GRS a 10% free-carried interest in the new company (Sabodala Gold Operations SA).

The project has proven and probable reserves totalling 1.4 million tonnes of gold within a global gold resource of 2.74 million ounces. Sabodala is now 45% complete and remains on schedule to commission the two million tonne treatment plant in late September 2008. The company anticipates an initial gold pour in late October 2008.

President Wade on Senegal-India trade

2008-04-13T17:17:00.001-07:00

Some important excerpts from the speech of President Wade in India, April 8, 2008

"It is much significant to note that trade between India and West Africa have tripled in the 2002-2007 period. That makes India the first partner of Senegal in our exports."

"The bilateral cooperation between India and Senegal is certainly among others an example of what we can achieve based on our complementarities. The Senegalese – Indian partnership covers in fact areas as various as agriculture with our national program of self sufficiency in rice, chemical industries from Senegal’s phosphates, vehicle assembly and the exploitation of iron ore."

"Furthermore the Export Import Bank of India just opened a 2nd office in Dakar after the one in Johannesburg. An institutional frame work like TEAM 9 and its credit line also shows through its concrete achievements the innovating South-south cooperation model India and Africa can develop durably by creating a "value added" compared to classical forms of cooperation."

Senegal's president Wade, head of OIC, meets Ahmadinejad

2008-04-12T16:28:00.000-07:00

ISNA - Tehran Service: Foreign Policy
TEHRAN, April. 11 (ISNA) - In his meeting with Senegal's president, presently the head of the Organization of Islamic Conference (OIC), in Mashhad, Mahmoud Ahmadinejad said the only solution to the Palestine crisis was respecting its people's opinion.

Ahmadinejad called Israeli acts in Palestine the greatest violation of human rights, saying, "The Palestine issue is a criterion for the nations and governments' loyalty to democracy, human rights and freedom."

Regarding the positive and constructive relations between Iran and Senegal, Ahmadinejad said that Iran would recognize no limitation for conveying its valuable experience to the countries having friendly ties with Iran.

Expressing his gratitude for Iran's support for Islamic nations, Senegal's President Abdoulaye Wade said after being elected for the presidency of the Organization of Islamic Conference (OIC), he had regarded Iran as his first choice for consultation.

Senegal growth to grow

2008-04-10T22:06:00.000-07:00

April 10 (Bloomberg) -- Senegal's economy will probably expand an average of more than 5.5 percent over the ``medium term'' as investment increases and exports of chemicals, such as phosphates, recover, the International Monetary Fund said.
Growth will likely accelerate from an estimated 4.8 percent in 2007, the Washington-based lender said in a statement on its Web site yesterday. The government needs to ``anticipate and limit'' the impact on the economy of a slowdown in global economic growth, the IMF also said.

Massive foreign investment ahead for Senegal?

2008-03-23T22:05:00.001-07:00

From the pages of the OTAL shipping line we have this:

"An eight-fold increase in foreign direct investment in Senegal by 2010 through major infrastructure and mining projects could help lift economic growth over 7% a year, according to the IMF. With steel giant Arcelor Mittal planning a $2.2 billion iron ore mine investment and Dubai entrepreneurs pouring money into a new port and economic free zone, the IMF expected foreign investment to rise from 47 billion CFA francs [$106 million] in 2006 to at least 367 billion CFA in 2010.

Alex Segura, IMF representative in Senegal, said the multilateral agency forecast a medium-term growth rate for the poor West African country of 5.5 percent a year, but this could be sharply higher if proposed foreign investments went ahead.
Economic growth dipped to 2% in 2006 due in part to a long break in production at Senegal's struggling state-run phosphates producer ICS -- the country's largest exporter. In a strong endorsement of President Abdoulaye Wade's economic management, the IMF board officially agreed with Senegal a Policy Support Instrument [PSI] with the IMF at the start of this month. It was the first francophone country in Africa to reach such a deal. "