Country Information - Senegal

ECONOMIC BACKGROUND In January 1994, Senegal undertook a bold and ambitious economic reform program with the support of the international donor community. This reform began with a 50% devaluation of Senegal's currency, the CFA franc, which is linked at a fixed rate to the French franc. Government price controls and subsidies have been steadily dismantled. After seeing its economy contract by 2.1% in 1993, Senegal made an important turnaround, thanks to the reform program, with real growth in GDP averaging 5% annually during 1995-2001. Annual inflation had been pushed down to less than 1%, but rose to an estimated 3.3% in 2001. Investment rose steadily from 13.8% of GDP in 1993 to 16.5% in 1997. As a member of the West African Economic and Monetary Union (WAEMU), Senegal is working toward greater regional integration with a unified external tariff. Senegal also realized full Internet connectivity in 1996, creating a miniboom in information technology-based services. Private activity now accounts for 82% of GDP. On the negative side, Senegal faces deep-seated urban problems of chronic unemployment, trade union militancy, juvenile delinquency, and drug addiction. (Source: World Factbook) Click here for Country Map [23kB]

BI-LATERAL TRADE OVERVIEW Trade between Senegal and the United States has been increasing steadily over the past few years, with (until 2000) Senegal recording a significant trade deficit with the U.S. However, the situation in 2001 is in stark contrast to previous periods, with Senegal recording a trade surplus of $ 24 million with the U.S. Provisional 2002 trade data indicate that the reversal of the trade deficit is likely to have been temporary, and will be reversed in 2002. Senegal's exports to the U.S. consist predominately of 'agricultural products', as well as 'miscellaneous manufactures'. In 2001, a sudden increase in exports within the 'special provisions' category occurred, increasing to $ 91 million from a mere $ 0.5 million the year before. Senegal does not have a major textile and clothing industry to speak of, and as such is a net-importer in this category from the U.S. However, having qualified for the 'Wearing Apparel' provisions on 23 April 2002 may provide an incentive for the development of especially the garment-manufacturing sector. Click here for Detailed Trade Profile