Africa Region VP Ezekwesili warned the Senegalese government that delaying payment of its domestic debt may slow the economy
So far, the World Bank has disbursed $56 million to help Senegal’s energy sector
The World Bank’s portfolio in Senegal may be realigned to provide optimal support to agriculture
DAKAR, November 13, 2008 – In a recent visit to Senegal, World Bank Africa Region Vice President Obiageli Ezekwesili met with key stakeholders – including President Abdoulaye Wade, his cabinet, representatives of other development partners, and members of Senegal’s civil society and the private sector – over the country’s macroeconomic stability.
From October 27-29, Ezekwesili held talks on a wide range of issues of importance to Senegal, including domestic debt, good governance, women's access to opportunities, and dialogue between political actors. She also took the opportunity to assess the Bank’s operations in the country and officially open its new office in Dakar.
The Vice President noted that Senegal, which once showed sound macroeconomic management, is now on the verge of stalling its economic growth by not honoring its commitments to domestic lenders. Senegal’s finance minister, Abdoulaye Diop, said that the country was doing its best to cope with the effects of the international financial crisis. He added that an agreement was being worked out with the International Monetary Fund and other partners on the critical issues that required immediate attention.
The situation, according to Diop, has been exacerbated by a lower inflow of remittances from Senegalese expatriates, and a decline in tax revenue brought about by the lifting of duties and taxes on imported foods, which was necessary to lower the impact of the food and fuel crisis.
While in Senegal, Ezekwesili raised the issue of energy, calling on the government to find a lasting solution to shortages and the frequent disruption of electricity supply. Such disruptions, she said, have a costly impact on the Senegalese economy, particularly on small and medium-size businesses that play a key role in the fight against poverty. She recalled that the World Bank had already disbursed US$56 million of the $80 million pledged to support the sector. The government needs to do its part, she added, through vigorous structural reforms of the sector in order to make electricity available.
Touching upon the issue of Bank-funded projects, Ezekwesili reminded the Senegalese government that failure to provide matching funds where needed may have an adverse impact on the successful completion of certain projects. She expressed her strong commitment to Senegalese projects, stressing in particular the Dakar-Diamniadio Toll Highway Project.
Ezekwesili also expressed a desire to review the Bank’s portfolio in Senegal and restructure where necessary, so as to provide better support for agriculture. Several months ago, the government announced a major initiative in favor of agriculture (Grande offensive agricole pour la nourriture et l’abondance or GOANA), with the intended aim of achieving food sufficiency in a country that relies heavily on imports of rice, a commodity that is widely consumed across Senegal.
The Vice President was briefed on “les assises nationales”, broad consultations on politics, development, and other issues of importance to Senegalese citizens, initiated by opposition parties and civil society organizations. Ezekwesili praised the virtue of dialogue, stressing that transparency implies inclusiveness.
RSS