Friday, March 27, 2009

U.S. provides Senegal food assistance

The U.S. Agency for International Development's (USAID) Office of U.S. Foreign Disaster Assistance (OFDA) is providing more than $3.7 million in assistance to lower rates of malnutrition and increase food security of families in Senegal.

Of this $3.7 million, USAID is providing $2.7 million to improve community-based nutrition efforts and agriculture production in the regions of Ziguinchor, Sedhiou and Kolda in Senegal. The program, implemented by USAID partners Catholic Relief Services and Christian Children's Fund, will provide community-based nutrition programs for malnourished children; build community awareness for the importance of good nutrition and how to prevent malnutrition; educate farmers on the benefits of improved seed varieties; organize seed fairs that will make improved seed varieties available; and provide microloans to community-based groups.

Wednesday, March 25, 2009

Shell advances Senegal offshore oil exploration

First Australian Resources (FAR) has signed an agreement with Shell Exploration Company to conduct petroleum exploration of Sangomar Offshore, Rufisque Offshore and Sangomar Deep Offshore blocks off the coast of Senegal,where a number of drilling prospects have already been identified by FAR and its Senegalese partner Petrosen.

The objective of the program is designed to enable Shell to determine whether or not to exercise an option to acquire greater interest in the block and enter the second renewal period that includes a well commitment.

Shell will fund a controlled source electro magnetic (CSEM) data acquisition and geophysical evaluation programme over part of the licence area where a number of drilling prospects have already been identified by FAR. The work gets underway soon.

A more industrious Senegal of late

Senegal produced more finished goods last month over a year ago, according to a recent government report. Construction material production grew, but also textiles and leather.

The National Agency of Statistics and Demography (ANSD) index of industrial production was 105.3 after 101.5 in December 2008, an increase of 3.8 percent, largely upon a surge of industrial production of textiles and leather.

The agency said that production of textiles and leather grew considerably in January2009, a result attributable to an upturn in cotton ginning, in conjunction with the production cycle of the sub-sector.

Sunday, March 22, 2009

Post-election: Whither Wades' world view?

In America the saying is: "all politics are local." But Senegal's elections today, should early results bear out, could also alter the international connections fostered by the damaged President Abdoulaye Wade.

President Wade invested greatly in recent years to make Senegal a player on the world scene, fostering the image of Senegal as the Athens of West Africa, gateway to the region, and a favorite investment of international development. Vis the shine the president put to Dakar for the 2007 conference of the Organization of Islamic States, the port and coastal highway developments, the image of rational African governance as coups and assassinations toppled nearby African governments.

Were today's local election result--largely a drubbing for the Wade SOPI coalition--a repudiation of the president's international marketing efforts? Opposition criticisms focused more on Wade's heavy-handed political tactics, such as the impeachment of legislative leader Macky Sall. His intimidation of journalists could only bring backlash from that estate. (The administration's barely disguised election-day threat to shut down broadcast stations doesn't help there.) Graft, corruption and a bad economy are always a receipe for polling booth rejection.

But other than affront taken in some quarters over the austentious roads and statutes pressed by the Wade regime, the organized opposition hasn't made an issue of Wade's internationalism.

Let's hope that any changing of Senegal's poltiical guard doesn't reverse the world ties that Wade and the country have forged. Senegal's people will benefit through tourism, economic guidance (yes, the IMF does some good), promotion of exports and other international exchange.

In the end, today's election may have little impact on the country's growing world ties. Once again, Senegal's greatest natural resource was displayed by democratic elections with a decent turnout. A people and a government that handle change peaceably, fairly and openly will always find friends and partners around the world.

Saturday, March 21, 2009

Election eve: the Wades "double down."

Now it's a sporting game. Thanks to the Wade father-son team, tomorrow's local elections in Senegal take on a transcendent importance. After spending the last two weeks on separate electioneering tours of the county, President Abdoulaye Wade and son, Karim, have turned the election into a referendum for their party, their coalition and their own political futures. They have bet, double-down, on a popular endorsement to obtain a legitimate mandate.

President Wade's full ahead infrastructure agenda is given a populist gestalt by his son's "Concrete Generation" movement. They have met their political opponents head-on during the last weeks. The president toured the high road, focused on economic issues. Karim hit the ground with "mobilizations" of the Génération du Concret, clad in blue jeans and baseball cap, pushing support for the SOPI coalition forged by the Wades' PDS party.

The stops on their journeys met with a tough, organized opposition, deriding the perceived autocratic tendancies of the Wades. The president was greeted at times by rocks and jeers from those in opposition red armbands, and chased out of some parts of the country according to reports.

Various media have called the election crutial for the political future of Karim Wade, seen as promoted to succeed his father.

Controversy regarding the legitimacy of the elections was heightened by the disqualifation of SOPI's slate in the Djiorbel area and subsequent court challenges to that process. Opponents will be keenly on the lookout for election fraud, having sat out the last local election because of its perception.

Thursday, March 12, 2009

Tourism prospects dim near term.

Senegal's tourist industry is suffering even as West Africa has worked so hard to build its visitor industry, according to a pessimistic BBC World News report.

According to BBC, bad press in French newspapers over a reported increase in child prostitution at the country's most popular beach resort, the Petit Cote, has not helped but the real hammer blow has been the global recession.

Luxury holidays are one of the first things cut when money is tight and, though the decline this year has been gentle, the figures for next year look dire.

Salif Badiane is the executive director of Africa Connection Tours says: "At this time of the year we should have had orders for 30 to 35 percent of our turnover. Now we are under 5 percent of our turnover and that's why we are so concerned."

Looking at the positive, however, we would note that the hard work of building service infrastructure--everything from good roads to reliable internet-- and buffing up the outstanding natural attractions of Senegal will create long-term opportunities, as the economy revives and news scandals fade...

How bad is it? Senegal's building blues.

The world financial crunch hit Senegal's building industry hard in January. Senegal's Directorate of Forecasting and Economic Studies (Dpee), in its latest monthly economic note reveals that "the level of buildings and public works, half of the companies interviewed leaders discussed the issue of collection of receivables that still weighed on their activities in January 2009. The same source believes that acute financing difficulties are felt by 33.3 percent of respondents. The Dpee also reveals that 16.7 percent of managers say the business environment has deteriorated due to the lengthening of procedures for public procurement and the lack of markets, resulting in a decrease of profitability.

For services, the Dpee notes that the business environment remains a major concern for 46.2 percent of business leaders surveyed. According to them, the same source continues, "the length of procedures for procurement and land issues have been detrimental to businesses."

The survey concludes that many Senegalese business owners are being hit by cash flow problems that would continue through February.

Sunday, March 8, 2009

The Economist's mixed view of today's Senegal

A recent Economist article gives a snapshot of Senegal's political scene with a focus on President Wade... Objectively Senegal is doing pretty good, with credit going to President Wade for positive economic signs such as the Corniche expressway from the airport to downtown and decent communications infrastructure, according to the February 26 article, datelined Dakar without byline.

But the article points to troubling signs from Senegal's political society, much of which it also attributes to the President. Last year's food riots (see our previous posts), and allegations of corruption have generated "rage and frustration" among many Senegalese, according to the article.

The Economist's short article injects some heavy hyperbole: the teaser cites "authoritarian" President Wade and the article's subhead states ominously that: "President Wade will ignore domestic discontent at his peril." This should hardly be news to any politician.

And the article's "taxi-driver" level of analysis misses relevant developments: fortuitous rains and consequent good harvests combined with easing import costs (lower fuel costs) and pending IMF aid will help the country's economic discontent.

Better to sort out the political grumbling after the local elections on March 22. Institutional politics take a backseat in Senegal where personal political ties are more pronounced. That level of political dynamic is beyond the grasp of most observers (including us). And local political elections, as these upcoming, are even more parochial. The losers and disaffected factions from the local elections will make their views known sooner or later. It will take a while to sort out. We intend to be there to get a first hand sense...