Plane at the Leopold Sedar Senghor airport in Dakar, Senegal, with the African Renaissance monument in the background

Senegal Dynamic economy and stable democracy

Located in the extreme west of Africa, Senegal has a long democratic tradition and is politically largely stable. Since the country's independence in 1960 it has enjoyed uninterrupted civilian rule and has a constitution enshrining the rule of law. Senegal pursues active peace efforts and pan-African efforts, which makes the country an important stabilising force in the region and for the entire continent.

Fish market in Saint Louis, Senegal — Straight to

Senegal's economy has grown continuously in the last few years. However, the development of the country is being hampered by food crises, strong population growth and a high rate of unemployment. Senegal managed to weather the COVID-19 pandemic rather well, yet its economic fallout is still being felt very clearly. In Senegal, the impact of Russia's attack on Ukraine has caused disruption of supply chains, sharp rises in the cost of living, high inflation and growing sovereign debt.

Following a severe domestic political crisis, Senegal saw a change of leadership in the first half of 2024. Opposition candidate Bassirou Diomaye Faye was elected president. His close political ally Ousmane Sonko became the country's new prime minister. They both have voiced sharp criticism of the elites that have ruled the country so far, and of Senegal's relations with the West, which have been characterised by dependency. This criticism has led Senegal's people, especially the young generation, to pin high political hopes on the new leaders.

On the current United Nations Human Development Index (HDI (External link)), Senegal is ranked 169th out of 193 countries.

German development cooperation with Senegal

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Germany and Senegal can look back on a long tradition of development cooperation. Germany is one of Senegal's main bilateral donors.

In 2019, Germany and Senegal agreed a reform partnership under the G20 Compact with Africa initiative. It was intended to improve the environment for private investment and thus create more employment. In June 2023, Germany, France and other international donors agreed a Just Energy Transition Partnership (JETP) with Senegal. In that context, Germany and Senegal transformed their programme of development cooperation into a Climate and Development Partnership. This Partnership focuses on the following core areas:

Peaceful and inclusive societies
Area of intervention: good governance
Sustainable economic development, training and employment
Areas of intervention: technical and vocational education and training, private sector and financial sector development
Climate and energy, just transition
Areas of intervention: renewable energy and energy efficiency; sustainable urban development
Health, social protection and population dynamics
Area of intervention: health, pandemics and One Health

In 2023, the German Development Ministry (BMZ) approved funding totalling 170.35 million euros for cooperation with Senegal. This comprises 132 million euros in Financial Cooperation funding and 38.35 million euros in Technical Cooperation funding.

The BMZ is also involved in various Team Europe Initiatives of the European Union that are active in Senegal.

Close partnership Budget support

A total of 118 million euros has been committed for budget support. This funding flows directly into the country's budget and can be used by the partner government with complete autonomy – in compliance with pre-defined rules.

It was agreed that 68 million euros should be used to increase Senegal's crisis resilience in the areas of public financial management, economic affairs, and climate change. 50 million euros is to be used for targeted support for the development of the pharmaceutical sector and vaccine manufacturing.

The disbursement of the committed funding is contingent on specific structural reforms, based on the achievement of certain indicators to show that the reforms are being implemented. With regard to crisis resilience support, these indicators relate to governance, public financial systems, energy transition, and feminist development policy. In the field of vaccine manufacturing, indicators focus, for example, on the establishment of an independent regulatory authority, improved training, and better interministerial cooperation.

Postcolonial architecture in Dakar, Senegal

The earlier Senegalese government under President Macky Sall had launched a reform and investment programme and set the goal for Senegal to become an emerging economy by 2035. However, the administration is not yet strong enough to successfully implement reforms and deliver the policies needed to foster economic development. This is an aspect which Senegalese-German development cooperation seeks to address.

It is Senegal's micro, small and medium-sized enterprises (MSMEs) that are the backbone of the economy. Yet so far, they can hardly access loans and can therefore not make any investments, expand their business or create new jobs. Through its activities in Senegal Germany wants to contribute to giving MSMEs better access to financial services.

Street lighting through a solar-powered mini power grid in a village in Senegal

A shortage of energy is one of the main constraints to development in Senegal. Not quite half of the rural population has access to electricity. Germany is contributing to expanding energy supply in a climate-friendly way. Germany's support is part of the Just Energy Transition Partnership (JETP) which the International Partners Group (IPG) agreed with Senegal in June 2023.

Production of antigen tests at the Institut Pasteur in Dakar, Senegal

Africa's dependence on vaccine and drug imports from abroad was thrown into sharp focus by the COVID-19 pandemic. In order to improve the supply of pharmaceutical products, Africa needs production facilities of its own. Germany has been supporting the Senegalese government since 2021 in its efforts to comprehensively develop the country's pharmaceutical sector.