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PROGRAMME FOR COUNTRY PARTNERSHIP

SENEGAL

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TIMELINE

  • Preparations for field missions by the Agro-Pole National Working Group to the northern and central regions for the establishment of respective Regional Task Forces.

    Sectoral Joint Annual Review meetings of various ministerial departments discuss, inter alia, progress in implementation of PCP focus areas.

  • Field mission by the Agro-Pole National Working Group to the southern region to establish a Regional Task Force for the agro-pole. Mission supported by a World Bank project in the southern region.

    Discussions on collaboration between ILO and UNIDO for implementation of the vocational and technical training and employability component of the 4th Indicative Cooperation Programme between the GoS and the Grand-Duchy of Luxembourg (2018-2022).

    UNIDO and UNFPA start the development of an integrated LED initiative in the Dakar local community of Fass.

  • Government of Senegal confirms intent to fund feasibility study for the establishment of the southern region agro-pole (through IDF agreement) and its decision to carry out simultaneous feasibility studies for all three agro-poles part of PCP Senegal (North, Center and South).

  • Official launch of the “Agricultural Value Chain Resilience Support Project”, jointly implemented by IFAD and UNIDO in the framework of the GEF Integrated Approach Pilot on food security.

    World Bank participates in meeting of the Agro-Pole National Working Group and expresses interest in supporting agro-pole implementation.

  • GoS sends official request to the AfDB for funding of agro-pole feasibility studies.

    Joint Annual Review meeting of economic and social policy: GoS and development partners review, inter alia, implementation of PCP Senegal.

    UNIDO submits project proposal on greening of agro-business value chains to several donors including China, Japan and Switzerland.

  • AfDB formulation mission to Senegal for the development of an agro-pole project.

    UNIDO finalizes a global project proposal for the economic empowerment of women in green industry for submission to donors, including Nordic countries (Norway/NORAD, Sweden and Finland), EU, Switzerland, Germany and Canada.

  • UNIDO project proposal submitted to the Green Climate Fund: Eco-Industrial Parks Initiative for Sustainable Industrial Zones in Senegal.

    Proposal for the location of the first agro-pole submitted to the GoS by National Steering Committee.

    First meeting of the joint public-private committee for SEZ governance.

    UNIDO continues to provide support for the operationalization of SEZ governance in line with the SEZ and incentives package reform.

  • UNIDO and the Islamic Development Bank discuss collaboration as part of the next cycle of the Bank’s cooperation framework with the Government of Senegal (2018-2022). PCP Senegal priority areas are aligned with planned interventions.

    Independent evaluation team in Senegal as part of in the independent PCP mid-term evaluation.

    UNIDO promotes the PCP model at the 3rd Investing in Africa Forum held in Dakar, Senegal.

  • MoU for the management and development of the Diamniadio integrated industrial park signed. MoU involves three national institutions – the Senegalese Sovereign Strategic Investment Fund (FONSIS), the Industrial Sites Promotion Agency (APROSI) and the Investment Promotion Agency (APIX) − and the Mauritius African Fund.

    Atlantic Business Infrastructure Company (SIAA) is entrusted with the management and development of Phase II of the Diamniadio park (40 hectares).

  • PCP National Steering Committee holds its second bi-annual meeting.

    Official launch and implementation start of the Sustainable Cities Initiative, jointly implemented by the World Bank and UNIDO in the context of the GEF Integrated Approach Pilot on Sustainable Cities.

    AfDB formulates a concept note for the financing of an agro-pole (agro-industrial processing zone) in Senegal, building on UNIDO prefeasibility studies.

  • First instalment of the Government of Senegal’s financial contribution to the PCP is transferred to UNIDO (IDF agreement, October 2016).

    AfDB and UNIDO discuss collaboration opportunities within PCP Senegal, with an emphasis on the development of agro-poles

  • Joint Annual Review Meeting of the Ministry of Investment and Partnership Promotion highlights UNIDO’s support for SEZs and investment package reform.

    High-level Round Table on Green Industry co-organized by the African Institute for Economic Development and Planning (UNIDEP/UNECA), the GoS and UNIDO.

    UNIDO and GGGI (Global Green Growth Initiative) discuss partnership opportunities in Senegal through PCP and the GGGI-Senegal Cooperation framework 2016-2020. 

    UNIDO becomes member of Steering Committee for new initiative entitled “Zero faim au Sénégal”. This is an initiative of the GoS, in cooperation with World Food Programme and the Alliance for Migration, Leadership and Development.

    UNIDO attends first Steering Committee meeting for the Labs Xallat Defar project, which aims to promote 3D printing in Senegal including for industrial applications, co-chaired by Minister of Higher Education and the Ambassador of France to Senegal (innovation, science and technology for industry component of the PCP).

  • The President of the Republic signs decree on application of SEZ reform and executive decree relating to the setting up and operations of the joint public-private committee (SEZ and investment package reform component of the PCP).

    National working group set up for the establishment of a regional mining.

    Agro-pole  NWG presents the agro-pole project at the Northern Senegal Economic Days organized by the National Confederation of Employers (agro-pole component).

    The Joint Annual Review meeting of industry and mining sectors, chaired by the Minister of Industry and Mining, discusses PCP achievements in 2016.

    UNIDO organizes, in collaboration with UNWOMEN, a workshop on the economic empowerment of women in green industry in view of the formulation of a global project

  • The National Steering Committee approves 2017 Priority Action Plan.

    The Council of Ministers, chaired by the President of the Republic, approves draft decrees regulating implementation of the SEZ law and terms of reference for the related public-private joint committee.

    The Government of Senegal adopts by Presidential Decree a new National Quality Policy, including a costed Action Plan. Start of implementation of the Agricultural Value Chain Resilience Support Project, jointly implemented by UNIDO and IFAD within the context of the GEF Integrated Approach Pilot on food security.

    Workshop held with staff of the Department of Economic and Financial Cooperation of the Ministry of Economy, Finance and Planning, to discuss PCP progress and explore further partnership and resource mobilization.

    Workshop presents results of a study on the status of Senegal’s industrial sector, including its competitiveness. The study was undertaken by the national agency of statistics, with capacity-building support from UNIDO (PCP component on industrial policy).

    Workshop presents preliminary results of the implementation of two CTCN (Climate Technology Centre and Network) interventions related to green technology and energy efficiency in industries (PCP component on environment and energy).

  • United Nations Development Programme confirms financial contribution for capacity-building activities to support industrial policy development within the framework of the Plan Senegal Emergent (industrial policy component of PCP).

  • President Macky Sall signs decrees enacting the SEZ reform and incentive package as laws.

  • National Assembly adopts two draft laws on special economic zones (SEZs) and an incentive/investment package applicable to SEZs, developed within the framework of the PCP.

  • Fifth ISID Forum held in Dakar from 14 to 15 November.

  • The Government of Senegal and UNIDO sign an Industrial Development Funding Agreement securing a financial contribution of USD 4.5 million from the GoS for PCP implementation over 4 years (2015-2018).

  • The Grand-Duchy of Luxembourg confirms approval of EUR 355,000 additional funding for implementation of vocational training and local economic development initiatives in Senegal (PCP component on private sector development).

  • Ministry of Investment and Partnership Promotion requests UNIDO technical assistance for the establishment of a regional mining hub (business plan elaboration, definition of investment package and operational modalities).

  • A national working group (NWG) is established to guide implementation of PCP agro-pole component. The NWG is chaired by the PSE Operational Monitoring Office (BOS) attached to the President of the Republic’s Office.

    The Government of Senegal formally announces hosting of 5th ISID Forum.

  • Launch of the South-South and triangular industrial cooperation component of the PCP.
    National Steering Committee meeting discusses 2016 Priority Action Plan.
    Workshop on private sector engagement.

  • Launch of the investment monitoring programme.
    Validation of programmes funded by the Global Environment Facility: Agricultural Value Chains Resilience Support project and the pilot Sustainable Cities programme.

  • First PCP monitoring and evaluation report submitted to the Government and partners.

    Fourth ISID Forum titled "Partnerships: Moving Sustainable Development Goal 9 into action" held in Vienna.

  • Validation workshop: opportunity studies for the establishment of agro-poles.

    South-South and triangular industrial cooperation scoping mission for rice production and processing.

    Validation workshop: technical report on Senegal's industrial performance and competitiveness (TBC).

  • Validation workshop: cost-benefit analysis of Diamniadio industrial park.

    Incentive package for integrated industrial parks operationalized.

    Action plan for policy reforms on special economic zones operationalized.

    Business plan for Diamniadio industrial park developed.

    Recommendation report on growth identification and facilitation for industrial upgrading and diversification submitted to the Government of Senegal for review and validation.

  • Local task forces set-up to facilitate the establishment of agro-poles.

  • Technical mission to Senegal for the adoption of a road map for PCP implementation up to the end of 2015.

    Validation workshops for: 1) Benchmark report for special economic zones; 2) Action plan for the operationalization of integrated industrial parks; 3) On-site technical investigation/data collection for establishment of agro-poles; and 4) Concept and composition of the three agro-poles.

    Adoption of an action plan for the industrial policy component. Adoption of a road map for partner and fund mobilization in cooperation with the Ministry of Economy and Finance.

  • Third International Conference on Financing for Development held in Addis Ababa, Ethiopia, 14 July 2015.

    Third ISID Forum held in Addis Ababa, Ethiopia, 14 July 2015.

  • Incentive regime for the Diamniadio industrial platform operationalized.

    UNIDO-GEF mission for the formulation and the validation of the industrial e-waste management project.

    Climate Technology Centre & Network (CTCN) Regional Forum.

    First meeting of the National Steering Committee, chaired by the Prime Minister.

    Validation mission for the national programme for local cluster development.

    Enhanced cooperation between UNIDO and China Eximbank.

  • Official launch of PCP Senegal, chaired by the Prime Minister.

  • Technical mission and technical workshop on implementation modalities.

  • UNIDO EB approves PCP Senegal.

  • Second ISID Forum: PCP Senegal presented to Member States.

  • First technical mission to Senegal for development of the PCP.

  • PCP sensitization mission to Senegal: consultation with Government and partners for PCP formulation.

  • First ISID Forum: PCP Senegal announced as one of the PCP pilot countries.

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INTRODUCING SENEGAL

Senegal is one of the most industrialized countries in West Africa and currently has the fourth largest economy in the region. The agriculture, industry and service sectors account for 18 per cent, 24 per cent and 58 per cent of the gross domestic product respectively. Senegal is also recognized as a key player within the Economic Community of West African States and its solid democratic institutions have made the country a role model for political stability in Africa.

NATIONAL DEVELOPMENT GOALS

PCP Senegal supports the following national targets from the Plan Sénégal Emergent, inter alia:

nat_targets_En_Senegal

PCP SENEGAL

A unique opportunity to boost the economy

In February 2014, Senegal launched a new national development strategy entitled the Plan Sénégal Emergent (PSE) to guide the country’s transformation towards "an emerging country in 2035, with social solidarity and the rule of law". The PSE promotes a holistic development model based on economic, social and environmental pillars and seeks to unlock Senegal's industrial potential to generate inclusive and sustainable economic growth.

UNIDO's long-standing technical cooperation with Senegal, combined with its potential for building partnerships with other development actors, provide the Organization with a unique opportunity to offer an integrated package to help the country achieve its national industrial development goals.

The Programme for Country Partnership (PCP) for Senegal mobilizes development partners, UN agencies, financial institutions and the business sector ─ under the leadership and ownership of the national government ─ to advance inclusive and sustainable industrial development, within the framework of the PSE.

PCP Senegal focuses on five main areas: i) industrial policy development; ii) the establishment of agro-poles; iii) the operationalization of a new generation of integrated industrial parks; iv) the development of a regional mining hub; and v) special economic zones and investment package reform.

The Programme also integrates complementary cross-cutting interventions according to government-defined priorities. These include: i) private sector development; ii) investment promotion; iii) environment; iv) energy; v) trade facilitation; vi) South-South and triangular industrial cooperation; as well as vii) innovation, science and technology for industry.

UNIDO has a multidisciplinary technical team dedicated to implementing the PCP at its Vienna headquarters.

Senegal: moving towards inclusive and sustainable industrial development (2014)      Play video

PRIORITY AREAS

Today's landscape

Between 2010 and 2013, the industrial sector recorded an average annual growth rate of four per cent, with significant growth in industries such as construction, agro-food and fish processing, canning, leather and energy.

Nonetheless, industrial production is constrained by its strong concentration in the Dakar area, hampering the potential of provincial economic zones. It is also restricted by the absence of a policy framework conducive to private sector development and a lack of diversification. Integrating the industrial projects of the Plan Senegal Emergent (PSE) into a clear and coherent industrial policy framework is therefore necessary to achieve inclusive and sustainable industrial development.

Outlook

The PCP aims to to enhance the technical capacities of the Government of Senegal in designing, implementing and monitoring industrial policy. The PCP will support the establishment of a strategic unit within the Ministry of Industry, dedicated to the development of a strategy and an action plan for the implementation of Senegal's industrial policy.

Sensitization and training workshops will be delivered to government officials on conducting industrial diagnosis, selecting priority industrial sectors and assessing the social and environmental impacts of industrialization.

The Growth Identification and Facilitation for Industrial Upgrading and Diversification (GIFIUD) programme will set up an analytical framework and provide a set of recommendations for the promotion of labour-intensive industrial sectors with comparative advantages. The recommendations of the GIFIUD will contribute to development of a manufacturing pole within the framework of the PARI Industriel Intégré Initiative.

Targets

Industrial Policy Targets

Today's landscape

The agricultural sector employs 50 per cent of the workforce and is mainly driven by the cultivation of rice, corn, manioc and peanuts. Livestock, fruits and vegetables, as well as fishery products, are also considered to have high export potential.

However, the lack of access to quality inputs and land, particularly in remote rural areas, limits the development of agricultural cooperatives and processing companies, and undermines food production. Horticulture and other agricultural value chains also suffer from poor coordination and limited access to external markets, leaving them unable to reach their full potential.

Outlook

The PCP will support Senegal’s efforts in the development of agribusiness and agro-industries through the operationalization of competitive and integrated Agro-poles, as highlighted in the Plan Senegal Emergent (PSE).

Specifically, the PCP will support the establishment of three Agro-poles for high-potential value chains: fruits and vegetables, and cashew nuts; aquaculture and fisheries; and livestock and other agro-value chains. Each Agro-pole will operate as a private-public entity linking rural enterprises to the market. It will provide the appropriate infrastructure, technologies and services to support the development of small and medium-sized enterprises (SMEs).

Surrounding Rural Transformation Centres (RTCs) will provide community infrastructure and services for food processing, collection and storage facilities, in addition to offering training and advisory support to farmers.

A preparatory phase for each Agro-pole will be conducted within the framework of the PCP. Pre-feasibility and feasibility studies will produce an agro-industrial analysis and present investment models. Investment forums and workshops will introduce institutional set-up models to be endorsed by public and private stakeholders, as well as local and international investors.

Targets

Agro-poles targets

Today's landscape

The agro-food processing, textiles, and minerals sectors have high-potential sectors in terms of industrial capacity, value addition and job creation. However, the small size of production units and economic actors, high input costs, underutilized production capacity, and limited access to finance are major impediments to the country's industrialization.

The Government has designed an industrial modernization package with the objective of transforming Senegal into a regional industrial hub. The country’s industrial potential is therefore closely linked to flagship industrial projects such as the Diamniadio industrial platform, a major industrial public-private partnership project currently under development.

Prime Minister Mahammed Dionne visits the construction zone of the Diamniadio industrial park (video in French, 2015)    Play video

Outlook

The PCP will support the operationalization of existing industrial parks, such as Diamniadio. It will strengthen national capacities for industrial park management through institutional capacity-building, integrated management and investment promotion. The legal and institutional framework for industrial park management is currently under review.

Once operationalized, Diamniado will serve as one-stop service centre, providing maintenance, logistics and security services for local companies. It will integrate ten specialized labour-intensive poles in textiles, agro-food products, household goods, electronics, aeronautics and services, and offer trade and tax incentives to attract investors.

The PCP will also conduct feasibility studies and select sites for the development of new industrial parks, and elaborate business plans for their implementation. Industrial parks will also integrate a programme for the upgrading of small and medium-sized enterprises (SMEs) with the overall aim of improving productivity and market access. This will be achieved through sub-contracting, cluster development and enhanced access to finance.

Targets

industrial park targets

Endowed with significant mining potential, Senegal aspires to position itself as a mining hub for the West Africa region. The development of a regional mining hub is another priority project of the national development strategy as it holds considerable promise for attracting foreign direct investment, creating jobs, boosting exports and therefore contributing to overall economic growth.

The mining hub will incorporate: i) services, for instance to facilitate hiring of subcontractors for the management of mining-related facilities; ii) logistics, such as distribution centres for equipment; and iii) specialized technical training for mining operators and engineers, among others.

Through the PCP, UNIDO technical assistance will help develop a business model for the hub’s management and operations, as well as an incentive package. The PCP will also help to identify and mobilize technical and financial partners for its establishment.

Based on UNIDO’s experience in developing the legal, regulatory and institutional framework for the Diamniadio integrated industrial platform (IIP), the Government of Senegal − through the Ministry of Investment Promotion, Partnerships and Development of State Teleservices − requested UNIDO’s technical support for the development of a reform regarding special economic zones (SEZs) and the related incentive package. Within the framework of the PCP, UNIDO provided technical assistance to the drafting of the reform, subsequently adopted as law by the Government of Senegal.

The Diamniadio IIP and the Sandiara industrial park have acquired SEZ status. The PCP is further supporting the development of a regulatory framework for the implementation of the new reform, the setting up of a dedicated public-private joint committee and the implementation of SEZ-related decrees.

CROSS-CUTTING INTERVENTIONS

The PCP will integrate technical assistance interventions that foster private sector growth, especially of SMEs. These interventions will focus on clustering, sub-contracting and value chain development to accompany the development of the industrial parks and agro-poles. The ultimate objective is to improve the productivity, market access, and the research and development capacities of enterprises in high value added sectors, such as agro-industry, tourism, fisheries and aquaculture.

The PCP will develop a survey to collect qualitative and quantitative data on the impact of investors in Senegal. The data collected will be integrated in the Investment Monitoring Platform (IMP), accessible to private and public institutions across the country. The IMP will gather comprehensive information not only on how investors respond to the Senegalese business environment, but also on how they impact employment, skills development and technology diffusion. The results of the survey will help strengthen the institutional capacities of relevant stakeholders and promote investment for ISID.

The PCP will also integrate interventions aimed at increasing sustainable production and industrial resource efficiency within the industrial parks and agro-poles. These interventions will address the environmental upgrading of SMEs, help with the establishment of eco-industrial parks, support the Sustainable Cities Programme in Senegal, and promote the “greening” of value chains. The interventions will remain consistent with UNIDO’s Green Industry Initiative and will focus on pollution prevention, pollution abatement and resource management. 

Climate Technology Centre & Network (CTCN) collaboration with Senegal (2016)  Play video

The PCP will promote the integration of renewable energy and energy efficiency technologies in industrial parks and agro-poles. For most industrial parks and agro-poles in Senegal, energy access is constrained by limited infrastructure services and an unreliable power supply. It is therefore necessary for industrial parks and agro-poles to harness locally available renewable energy resources, such as production waste and solar energy, to power their operations. A systematic approach to energy efficiency will result in significant energy savings and increase the overall productivity and competitiveness of industries. 

Climate Technology Centre & Network (CTCN) collaboration with Senegal (2016)  Play video

In order to orientate trade facilitation services towards PSE targets and priorities, quality-support services will be provided within the agro-poles and industrial parks to ensure compliance with international food safety and quality requirements. The national quality infrastructure (NQI) will be strengthened by improving the policy framework for food safety and hygiene, and by upgrading institutions involved in standards and metrology.

The PCP will help the Government of Senegal to institutionalize South-South and Triangular Industrial Cooperation (SSTIC), in an effort to complement traditional “North-South” Cooperation. Interventions will address low levels of investment, trade, technology and knowledge flows between Senegal and southern countries. Improved SSTIC will contribute to an overall increase in trade of value added products, increased and improved manufacturing, and lower production costs for southern manufacturing companies active in the country.

This PCP component aims to increase the productivity and competitiveness of the industrial sector through innovation. Two comprehensive surveys will be conducted: one on the Senegal National System of Innovation (SNSI) and the other on the innovation capabilities of firms across the country. The surveys will help develop tailored capacity-building and upgrading programmes aimed at strengthening the innovative capacities of institutional actors and firms. The PCP will also create and embed the surveys in a National Observatory on Innovation and Productivity to improve the evaluation, monitoring and management of the national innovation framework.

COORDINATION STRUCTURE

  1. National Steering Committee: Chaired by the Prime Minister’s Office, the National Steering Committee is the core body responsible for monitoring and coordinating PCP implementation. It is composed of high-level representatives from the Plan Senegal Emergent, all ministries involved in industrialization, the Chamber of Commerce, private sector associations, development partners and UNIDO.

  2. Several national working groups or technical coordination committees support the National Steering Committee and assure day-to-day operations related to the development and implementation of projects.

PARTNERS

The African Development Bank (AfDB), Agence Française de Développement (AFD), European Union (EU), Food and Agriculture Organization of the United Nations (FAO), Global Environment Facility (GEF), Islamic Development Bank (IDB), International Fund for Agricultural Development (IFAD), World Bank (WB), as well as China, Japan and Italy are among the key development partners operating in Senegal. Development partners provide support through short- and medium-term interventions to upgrade infrastructure, increase agricultural productivity, generate youth employment, and develop the financial services sector. The various programmes and projects are aligned with the Government’s Plan Senegal Emergent.