2023-07-12

One of the most dynamic economies

Sengegal is one of the shining lights in West Africa and one of Germanys “reform partners”. The capital Dakar, in particular, is booming, not least because the infrastructure is currently being strongly expanded – among other things with a new port. In addition, the start of natural gas production and progress in agriculture are boosting growth hopes. Let’s take a closer look at the figures:

Economy. Senegals gross domestic product per capita rose from the equivalent of 655 to 1637 dollars over the last 20 years. Economic growth recently stood at 6.1 (2021) and 4.7 percent (2022) and is expected to reach 8.1 percent this year. According to experts, the economy could even grow in double digits in 2024. This makes the country one of the most dynamic economies in the world.

Inflation is currently moderate at 3.1 percent. Entrepreneurial opportunities arise, for example, from the growing demand for machinery for the consumer goods and construction industries, raw materials extraction and agriculture. Obstacles to growth are bureaucracy, high budget deficits and the shortage of skilled workers.

Population. Senegal has around 17,3 million inhabitants. Annual population growth rate has been realtively stable in the last 20 years and reached 2.5 percent in 2022. Over the same period, the birth rate has fallen from 5.4 to 4.3. Life expectancy reached 67 years recently (2001: 58 percent). 70 percent of the inhabitants have access to electricity (twenty years ago, it was 38 percent).

Governance. On Transparency International’s latest Corruption Perceptions Index, Senegal ranks 72th out of 180. With a score of 43 points the country has, according to TI, made significant progress in the last years (for comparison: in 2015 Senegal scored 25 points). The score puts Senegal on the same level as Benin, Ghana, South Africa – and EU member Bulgaria. The country thus scores better than countries such as Hungary, Vietnam or India.

Facts against prejudices: Would you have known? #Senegal does better on @Transparency International’s #Corruption Perceptions Index than countries like India, Vietnam or EU member Hungary. Our current overview of short- and long-term developments and business opportunities. #Africa #Economy #Governance

Sources and further information: World Bank: https://data.worldbank.org/country/senegal Africa Business Guide: https://www.africa-business-guide.de/de/maerkte/senegal Germany Trade & Invest: https://www.gtai.de/de/trade/senegal/wirtschaftsumfeld/boomland-vor-politischem-lackmustest-526324 Transparency International: https://www.transparency.org/en/cpi/2022/index/nga