Country Report Senegal May 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 3.4% 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 the services surplus increases.

Khalifa Sall of the opposition Parti socialiste (PS) was confirmed as mayor of the capital, Dakar, on April 18th. Mr Sall was elected by an overwhelming majority of councillors, winning 81 of 94 votes.
The foreign affairs minister, Cheikh Tidiane Gadio, has met leaders of Mauritania's main opposition parties and tried to persuade them to participate in the presidential poll there scheduled for June 6th.
The government has agreed to sell a 9.9% stake in a local telecommunications firm, Sonatel, to France Telecom. The sale gives the French firm a majority stake of 52%, which has angered the unions.
Air Senegal International (ASI) had its planes grounded in late April following months of clashes between the majority stakeholder, Royal Air Maroc (RAM), and the government over operations and investment.
A World Bank delegation came to Senegal in early April to discuss social welfare provision. Bank staff set out a number of options, including direct money transfers, public works programmes and food distribution.
Industrial production was down in February, largely owing to a poor performance in the chemicals sub-sector.
A Nigerian group, Dangote, has announced plans to establish a new sugar plantation and processing factory near Richard Toll, in the north of the country.

This report covers the following industry codes:
SIC Code: 60;39;1
NAICS Code: 52;31;11