Economy
GDP (2006): $10.7 billion.
Real annual growth rate (2006): 3.0%.
Per capita GDP (2005): $709. In terms of purchasing power parity (PPP) $1,758 (2005).
Natural resources: Fish, peanuts, phosphate, iron ore, gold, titanium, oil and gas, cotton.
Primary sector: Agriculture represents 17% of GDP. Products--peanuts, millet, sorghum, manioc, rice, cotton, vegetables and flowers, fruit.
Secondary sector: Industry and mining represent 19.7% of GDP. Types--fishing; agricultural product processing; light manufacturing; mining including energy, oil mining, and construction.
Tertiary sector: 63.3% of GDP of which services represent 39.7% of GDP and trade 21.2% of GDP.
Trade (2006): Exports--$1.62 million (fish products, peanut products, phosphate products). Major markets--France, other European Union, West African CFA zone. Imports--$3.028 million (food, consumer goods, petroleum, machinery, transport equipment, petroleum products, computer equipment). Major suppliers--France, Nigeria, Cameroon, United States.
Exchange rate: Fixed to the euro. African Financial Community (CFA) 656 CFA =1 euro.
Economic aid received (2005): $757 million from all sources, $51 million from the U.S.
GEOGRAPHY
Senegal is bounded by the Atlantic Ocean, Mauritania, Mali, Guinea, and Guinea-Bissau. The Gambia penetrates more than 320 kilometers (200 mi.) into Senegal. Well-defined dry and humid seasons result from northeast winter winds and southwest summer winds. Dakar's annual rainfall of about 61 centimeters (24 in.) occurs between June and October when maximum temperatures average 27oC (82oF); December to February minimum temperatures are about 17oC (63oF). Interior temperatures are higher than along the coast, and rainfall increases substantially farther south, exceeding 150 centimeters (60 in.) annually in some areas. SENEGAL ECONOMY
The former capital of French West Africa, Senegal is a semi-arid country located on the westernmost point of Africa. Predominantly rural and with limited natural resources, the country earns foreign exchange from fish, phosphates, peanuts, tourism, and services. Its economy is highly vulnerable to variations in rainfall and changes in world commodity prices. Senegal depends heavily on foreign assistance, which in 2005 represented about 27% of overall government spending (including both current expenditures and capital investment), or $572 million. Since the January 1994 CFA franc devaluation, the International Monetary Fund (IMF), the World Bank, and other multilateral and bilateral creditors have been supporting the Government of Senegal's structural and sectoral adjustment programs. The broad objectives of the program have been to facilitate growth and development by reducing the role of government in the economy, improving public sector management, enhancing incentives for the private sector, and reducing poverty. With an external debt of $4 billion (2005), and with its economic reform program on track, Senegal reached its Heavily Indebted Poor Countries (HIPC) debt relief completion point in April 2004. In 2006, Senegal received $86.2 million (CFA 43.1 billion) in debt relief from HIPC and other multilateral debt forgiveness initiatives. Progress on structural reforms is on track, but the pace of reforms remains slow, as delays occur in implementing a number of measures on the privatization program, good governance issues, and the promotion of private sector activity. For 2006, inflation was at 2.1%. In 2005, tax revenue to gross domestic product (GDP) ratio was 11.1%, and a current account deficit at 7.5%.
Currently, the manufacturing sector is the leading export sector in Senegal with $333 million worth of exports in 2005. The phosphates sector is the second-largest export sector with $193 million in exports, followed by the groundnut sector with $80 million in exports. Senegal has had moderate success in attracting foreign investment, mostly from France, India, and Morocco. Currently, there are no restrictions on the transfer or repatriation of capital and income earned, or investment financed with convertible foreign exchange. However, the government does limit the amount of foreign exchange individuals may obtain for trips outside Senegal. Outgoing travelers may obtain a maximum of CFA 6 million in euro or foreign currency. Direct U.S. investment in Senegal remains about $100 million, mainly in petroleum marketing, pharmaceuticals manufacturing, chemicals, and banking. Economic assistance, about $700 million a year, comes largely from France, the IMF, the World Bank, and the United States. Canada, Italy, Japan, and Germany also provide assistance. Senegal has well-developed though costly port facilities, an international airport serving 28 international airlines that serves as a regional hub, and advanced telecommunications infrastructure, including a fiber optics backbone and cellular phone penetration approaching 10% of the population. DEFENSE
Senegal has well-trained and disciplined armed forces consisting of about 17,000 personnel in the army, air force, navy, and gendarmerie. The Senegalese military force receives most of its training, equipment, and support from France and the United States. Germany also provides support but on a smaller scale. Military noninterference in political affairs has contributed to Senegal's stability since independence. In August 1981, the Senegalese military was invited into The Gambia by President Dawda Kairaba Jawara to put down a coup attempt. In August 1989, Senegalese-Gambian military cooperation, which began with the joint Senegalese-Gambian efforts during the 1981 coup attempt, ceased with the dissolution of the Senegambian Confederation. Senegal intervened in the Guinea-Bissau civil war in 1998 at the request of former President Vieira.
Senegal has participated in many international and regional peacekeeping missions. Its history of participation in peacekeeping is impressive. Senegal provided peacekeeping forces for the African Union (AU) mission in Darfur, Sudan (AMIS), the UN mission in Liberia (UNIMIL), and the UN mission in Cote d'Ivoire (UNOMCI), with General P.K. Fall, Chief of Defense of the Senegalese Armed Forces, acting as overall Force Commander. In 2000, Senegal sent a battalion to the Democratic Republic of the Congo to participate in MONUC, the UN peacekeeping mission, and agreed to deploy a U.S.-trained battalion to Sierra Leone to participate in UNAMSIL, another UN peacekeeping mission. A Senegalese contingent was deployed on a peacekeeping mission to the Central African Republic in 1997, and in 1994, Senegal sent a battalion-sized force to Rwanda to participate in the UN peacekeeping mission there. In 1992 Senegal sent 1,500 men to the ECOMOG peacekeeping group in Liberia, and in 1991, it was the only Sub-Saharan nation to send a contingent to participate in Operation Desert Storm in the Middle East. Senegal currently has approximately 2,000 soldiers serving in peacekeeping or peace support missions. This includes approximately 840 troops in Darfur and the remainder in Cote d'Ivoire, Liberia, and the Democratic Republic of the Congo. Senegal also has gendarmes serving in Haiti and Bosnia-Herzegovina. |
