Senegal’s Agricultural and Economic Outlook
Africa is one of the last frontiers when it comes to investments into emerging markets. With booming demographic growth and countless natural resources, the potential of well-targeted investments in Africa is enormous. Furthermore, given that most of the continent is still considered a developing region, economic ventures represent a true win-win opportunity for both local populations and investors. Nevertheless, a good knowledge of the conditions of the terrain and the specificities of each country is essential to the success of any new project. This article explores the challenges and opportunities of Senegal in West Africa.
Senegal’s Agricultural and Economic Outlook
Senegal is one of the most stable democracies in sub-Saharan Africa, with a population of over 14 million citizens. The West African nation has a gross domestic product of more than US$30 billion and its capital, Dakar, serves as one of the major ports in the region. Due to its political stability and history of cordial relations with western nations, Senegal has become an attractive destination for foreign direct investment. Furthermore, the country has boasted significant economic growth of over 3% for the last several years and, recently, scientific explorations discovered significant fossil fuel reserves within the national territory. With a total surface area of almost 200.000 square kilometers, Senegal’s economy is divided into 16% agriculture, 24% manufacturing industry, and 60% services. However, the agriculture industry employs over three-fourths of the national labor force. In fact, approximately half of the country’s population still lives in a rural setting and, therefore, many within these areas of the country make a living off subsistence farming.
Similarly, many coastal communities devote themselves to fishing, given that fish represents a major Senegalese export as well as a staple item of the local diet. Another significant sector within traditional Senegalese agriculture is cattle raising, particularly Brahman or Zebu cattle, which predominates in the central and eastern regions of the country. Amongst the most cultivated crops in Senegal are peanuts, millet, corn, rice, and cotton. In fact, Senegal is an important provider of grain and vegetable goods to EU markets, particularly France, during the winter season when these products cannot be cultivated in Europe. Other major trade partners to Senegal include neighboring West African nations, such as Mali and Nigeria, as well as China.
Two worrisome developments for the Senegalese economy are the depletion of fisheries along the national coastline and, most importantly, the southward advance of the Sahara desert, which has led and still leads to drought throughout the country. Several crops cultivated in Senegal are not water intensive. However, rice cultivation, for instance, takes place in the northern region of the country along the banks of the Senegal River because of its need for significant irrigation. Throughout the last decade, African nations in general and the governments throughout the Sahel region in particular have set up several initiatives to defend their agriculture industries against the threat of climate variations and water shortages. In fact, one of the main topics of discussion during the recent UN Climate Conference (COP 22) in Morocco was the development of a more resilient and resistant agriculture industry looking forward.