Country Report Senegal April 2009

Outlook for 2009-10

• The political scene in 2009-10 will be dominated by rivalries over who will succeed the elderly president, Abdoulaye Wade, when his term expires in 2012 (or earlier, in the event of his death or sudden illness).
• The victory of the opposition in local elections held in March 2009 suggests that it is in a strong position to challenge for power at the national level at the next presidential and legislative elections, due in 2012.
• In view of the severe global economic slowdown, real GDP growth is forecast to slow in tandem with foreign investment for infrastructure development, to 3.5% in 2009 and 3.6% in 2010.
• Consumer price inflation, forecast at 2% in 2009 and 3.1% in 2010, will continue to be heavily influenced by world prices and domestic production of food.
• The current-account deficit is expected to narrow from an equivalent of 11.7% of GDP in 2008 to 9.5% of GDP in 2009 and 8.1% of GDP in 2010 as growth in exports outstrips that in imports.

Monthly review

• On balance, the opposition coalition, Benno Siggil Senegaal, was the winner of local polls held in March. The elections were conducted in a generally calm atmosphere and few of the results were disputed.
• Khalifa Sall of the Parti socialiste emerged as the main winner in the capital, Dakar, and may become the city's next mayor. Cheikh Bamba Dieye, also of the opposition coalition, is expected to become mayor of Saint Louis.
• The defeat in the polls of Parti democratique senegalais, which dominates the governing coalition, has led to a round of recriminations within the party, with Mr Wade's son, Karim, coming in for particular criticism.
• Debate has intensified over the merits of developing biofuels in Senegal to reduce the country's dependence on imported fuel and to create employment opportunities in the country.
• A private Moroccan utility, Office national de l'electricite du Maroc (ONE), has won a 25-year contract to expand rural electrification in the northern departments of Saint Louis, Dagana and Podor.
• On March 19th the first gold bar was produced at Sabodala, an open mine and processing plant in the south-east of the country, which is operated by an Australian company, Mineral Deposits.

This report covers the following industry codes:
SIC Code: 60;10
NAICS Code: 52;212