Country Report Senegal June 2009

Summary

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 and recent disappointing industrial production data, real GDP growth is now forecast to slow to 3.3% in 2009 and 3.5% 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.
In view of recent trade data and our forecast for global demand, the current-account deficit is expected to narrow from an equivalent of 9.8%% of GDP in 2008 to 7.4% in 2009 and 7.6% in 2010.

In a major cabinet reshuffle on May 1st, a total of 15 new ministers were appointed and 13 left their posts. Most of the key ministers kept their portfolios, but Souleymane Ndene Ndiaye was appointed prime minister.
Despite losing in local polls in March, the president's son, Karim, has been appointed as the head of a new super-ministry responsible for international co-operation, territorial development, infrastructure and air transport.
In mid-May attacks on military convoys were reported in the southern province of Casamance. A local separatist group, the Mouvement des forces democratiques de Casamance, is widely believed to be responsible.
Following pressure from local businesses and opposition groups, the government has reversed its decision to let France Telecom acquire a majority stake in a local telecommunications provider, Sonatel.
In a review of US aid to Senegal held in early May it was announced that grants would increase by 69% in 2009. Agricultural development is set to become a priority of US aid spending in Senegal.
Industrial production picked up by an impressive 13.5% in March on a month-on-month basis and by 6.6% year on year. The pick-up was broad-based, with nearly all subsectors recording rises.
The total recorded fish catch by artisanal fishermen in 2008 was 363,001tonnes, up by 5.2% on 2007.

Source: Country Report

This report covers the following industry codes:
SIC Code: 48;1
NAICS Code: 517;11