UNIDO Experience: Industrial upgrading and modernization of SMEs in Senegal
The Senegalese project is the first industrial upgrading and modernization programme for African companies in the Sub-Saharan region. The project is carried out in cooperation with the private sector, the Senegalese government and the French Development Agency (within the framework of the support and reorganization programme concerning the competitiveness of enterprises in Senegal (PAPES)).
This pilot project aims at industrial upgrading and modernization of 60 companies (Budget provided: 1.3 million USD). The Tunisian model and UNIDO’s experience in enhancing industrial competitiveness inspired the Senegalese upgrading and modernization programme.
Therefore, the Industrial Upgrading and Modernization Office (BMN) benefits in its start-up phase from the UNIDO technical support. The assistance is of vital importance and highly appreciated by the Senegalese counterpart and the private sector, the main beneficiary of the project.
The project’s approach and administration achieved tangible and significant results:
- Eligibility of 195 companies:
- Generating 12% of Senegalese exports
- 18,000 staff members (permanently and temporarily employed)
- Companies operating in the following sectors: agro-food industry, chemical industry, textile and clothing industry, construction industry (BTP), New Information and Communication Technologies (NTIC), hotel business and many others business categories
- Approval of 25 industrial upgrading and modernization plans for enterprises:
- Total investment: 35 million EUR
- 50% of anticipated investments were provided by 9 companies
- Fully operational National Industrial Upgrading and Modernization Office
- Control committee, based on the principals of public-private partnership:
- 3 representatives of the banking sector, the private sector, as well as the public sector
- Follow-up actions on investment subsidy payments
- Know-how in guidance and control of industrial upgrading and modernization processes and of the improvement framework to achieve higher competitiveness levels
- Adoption of the National Industrial Upgrading and Modernization Programme based on a national fund for industrial upgrading and modernization. It assures the achievements’ continuity and extension of the pilot programme.
The Industrial Upgrading and Modernization Office and Programme are the key support elements as far as the reinforcement of a national competitive economic network is concerned. The aim is to increase its productive and commercial capacity. In sum, the project contributes to operationalize the goals of the Accelerated Growth Strategy.
The West African Economic and Monetary Union (UEMOA) launched the regional industrial upgrading and modernization programme in February 2007 in favor of its 8 member states.