(Ecofin Agency) - For years now, Senegal has been implementing the Plan for an Emerging Senegal (PES) to accelerate industrialization, improve human capital, and good governance and establish the rule of law. This bid is supported by technical and financial partners.
The International Islamic Trade Finance Corporation (ITFC) and Senegal recently signed an over US$435 million financing agreement, the ITFC announced last Monday.
The envelope will support the implementation of ITFC's 2023 annual plan in key sectors, including agriculture, energy, and health, as well as the private sector, in Senegal. In addition to the agreement, the two parties also agreed on a two-year (2023-2024) Arab-African Trade Bridges (AATB) country program to promote trade in various sectors such as agribusiness, pharmaceuticals, and e-commerce.
"The AATB Program strengthens the government’s effort to enhance trade between Senegal and its African counterparts as well as diversify and grow its trade volume with the Arab region. The AATB country program covers the rolling out of trade projects and supports high-potential sectors in line with the implementation of the African Continental Free Trade Area (AfCFTA) Agreement," the corporation indicates.
The new agreements between the Senegalese government and ITFC are part of a revised US$1.5 billion five-year framework agreement signed in 2021. The framework agreement is aligned with the Plan for an Emerging Senegal (PES) initiated by Senegal to strengthen several strategic sectors, including the agricultural value chain, food and energy security, and small and medium-sized businesses.
Last December, Senegal announced more than US$806/3 million in investments over 2023-2025 as part of the regional Priority Investment Program (PIP). This project will promote the development of sectors such as security, education training, health, culture, infrastructure, agriculture, mining, etc.
In the long run, the Plan for an Emerging Senegal (PES) aims to structurally transform the economy promote the development of human capital, and good governance, and establish the rule of law.