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.

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.

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.

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.