A New Model
Senegal decided to adopt a new development model to accelerate progress towards emergence. This strategy, named Plan for an Emerging Senegal (PES), establishes the framework for the country’s economic and social policy over the mid- and long-term.
This aspiration is represented by one vision: “An emerging Senegal in 2035, providing a cohesive society under the rule of law“. The Government’s Strategic Guidelines direct the initiatives needed for translating this vision into concrete actions and results for the benefit of population, are based on three priorities aimed at:
1. Bringing a structural transformation of the economy by strengthening current drivers of growth and developing new sectors with a strong export and investment attraction capacity that can create wealth, jobs, and social inclusion. This aim is enshrined in the goal of more balanced development, better utilization of territory, and a viable economic hub to boost Senegal’s development potential throughout the national territory.
2. Promoting human capital through a significant improvement of people’s living conditions and a more sustained fight against social inequalities, while preserving the resource base and fostering the emergence of viable territories.
3. Enabling good governance to strengthen security and stability, protect rights and liberties, consolidate the rule of law and create a better setting for social peace.
Through their synergies as well as their converging and cumulative effects, those three priorities will allow the Government to establish the conditions needed for the emergence of a new Senegal.
To make a success of the PES, a strong effort from the State and clear leadership is required. To this end, the Government has advanced an accelerated its reform agenda designed to modernize public administration in order to meet the performance requirements of the PES.
Towards a Structural Transformation of the Economy
As a matter of urgency, some key reforms have been carried out since 2012 to substantially improve business environment. They concern, in particular:
- the automation of administrative procedures;
- setting up of incentive and simplified tax and legal devices;
- improving production factors’ competitiveness;
- and promoting high impact investments.
These reforms were also accompanied by a proactive economic diplomacy, and higher integration to strengthen regional stability and seize opportunities offered by foreign markets. The Government works in favor of a better engagement of foreign Senegalese into national development efforts.
Public administration now adopts a culture of transparency at all levels, as well as the duty to submit results-based management to policy adoption among all layers of society, and exercise of citizen control.
The PES is carried out through a five-year Priority Action Plan (PAP) leaning on strategic pillars, sectorial objectives, and the Strategy's lines of action. The PAP comes in various development projects and programs that are part of a budgetary framework for the 2014–2018 period.
The PAP is building on the optimistic scenario of the PES, which is evaluated at 9,685.7 billions of CFA francs. Its financing is acquired for 5,737.6 billions of CFA francs, that is 59.2%, whereas the funding gap to fill for the 2014–2018 period accounts for 2,964 billions of CFA francs (30.6%), and the one to be covered by additional revenues and costs savings reaches 984 billions of CFA francs (10.2%).
The diligent implementation of key reforms and PAP projects will allow Senegal to reach an annual growth rate of 7% for the 2014–2018 period, and to reduce the budget deficit from 5.4% in 2013 to 3.9% in 2018. The current account deficit will be brought below 6% in 2018, and the inflation rate, measured by the GDP deflator, should remain under the Community threshold set at 3%.
The institutional framework enabling the PES implementation comprises of: a Strategic Orientation Committee (SOC) placed under the President’s authority, a Steering Committee (SC) chaired by the Prime Minister, and an Operational Office of the Plan for an Emerging Senegal Monitoring (OOM)