IMF boosts aid by $186 million, longer terms

The International Monetary Fund (IMF) boosted financial support for Senegal under the Exogenous Shocks Facility (ESF) by $186 million today and extended the ESF arrangement by six months, to 18 months to help finance the balance-of-payments impact of the global economic crisis. Senegal can draw $50 million immediately.

"Exogenous shocks" are the food prices and other impacts of the high oil prices that buffetted Senegal in the last year. Some questionable government budgeting resulted including failure to pay private contractors for infrastructure. The IMF says those practices have been reformed, but wants to make sure they stay that way.

The IMF says the financial and budget reforms will help gain investment for Senegal while it weathers the international economic slowdown that has started to hit the country.

Chinese knockoffs hurting Senegal's merchants

Flooded with cheap Chinese clothes and other consumer goods, Senegal's merchants say that even quality goods are taking a hit from cheap imitation Chinese products. Chinese goods have been flooding Senegal in recent years, pushing out locally produced products. Chinese merchants have also displaced Senegalese merchants, according to Senegalese shopkeepers.

Now Chinese products are imitating higher quality imports and local craft goods, causing buyers to dispute whether goods are genuine, or refusing to pay higher prices. The market in general is becoming saturated due to the Chinese floods of imports.

Senegalese peddlers, also known for their international presence, are calling for import embargoes and tariffs; others want the Chinese deported. They say that Senegalese manufacture is too fragile and will be crushed by the cheap imported Chinese goods.