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.

Government money appears in Touba in advance of President Wade's visit

President Abdoulaye's visit tomorrow to the Mourides' holy city of Touba has been greased by finally funding Touba infrastructure projects. The President needs to spread the goodwill, according to today's article in L'Observateur. The sacking of Macky Sall, leader of the Senegalese parliament is apparently fomenting ill feeling toward the president and the Mourides are backing off from their support for the President... Those sore feelings may be assauged somewhat by the reported payment this month to Chinese contractors working in Touba of 3.6 billion CFA francs. According to L'Observateur sources, 2 billion CFA francs were received by Hénan China and 1.6 billion by another company. Work on Touba infrastructure has been restarted, although Chinese and local employment on the projects is still far below the scheduled need... L'Observateur sources with the Khalife say they'll push for more funding for the projects from the President's central government. As we noted here earlier, Touba sent billions of francs (much of it raised abroad) to the central government, where it disappeared for quite awhile. The Khalife took up the matter in a visit to Dakar earlier this year. Only 30 percent of the contract Touba infrastructure has been completed.

Report: Chinese will stay to work in Touba

"L'observateur" is reporting today that the Mourides leadership in Touba has smoothed over relations with the Chinese firm Henan, after the Chinese were reported to have stopped work for nonpayment. The multi-million dollar road and infrastructure work to be done by the Chinese in and around Touba will continue... El Hadji Ndiaye, the "right arm" of the Khalif General of the Mourides, is quoted as saying that the Chinese will continue the work although behind in payments to the tune of 9 billion CFA franc ($20.3 million)... The "L'observateur" report also indicates that 60 of the 80 Chinese who were working on the Touba projects are no longer there... About half the 115 kilometers of roadwork committed to the Chinese has been done, according to the report. Meanwhile, the balance of the five-year project, at about 20 billion CFA franc per year, will continue, insists the Khalif. The work includes sanitation and other infrastructure, besides the road work.

Chinese leaving Touba?

Chinese contractors in Touba may be poised to exit. According to news reports today Henan China is due 12 billion CFA francs in receipts, wages are not being paid and Touba workers--about 250--are set to strike, and even to ransack the Chinese offices.

As noted here before, millions of dollars sent to the central government in Dakar from Touba went missing over the last year. This apparently in some significant part precipitated the Khalif of the Mourides to visit President Wade a couple months back.

The troubles of the Chinese may be elicting delight in some quarters, and moves to assume their work. But the situation does not reflect well on the ability of Touba and Senegal to utilize the capital and technical assistance of other countries. The political problems, murky finances and labor turmoil could thwart Touba's need to obtain modern infrastructure. Still, some are doubtless aware of the irony that the Chinese may be reaping what they sowed.

No wonder the Chinese aren't getting paid

The Khalif was in Dakar recently wondering where all the money from Touba disappeared to. Chinese contractors aren't going to get paid if revenues disappear after being sent to Dakar and the President Wade's central government. So now there is this revelation, from today on Independent Online:

"Dakar - Senegalese President Abdoulaye Wade has sacked Budget Minister Ibrahima Sarr for allowing government departments to overspend by 109-billion CFA francs ($252-million), a Finance Ministry official said late on Friday.

Wade sacked a quarter of his ministers last year in a bid to cut costs in the face of a ballooning food import bill, but has been criticised by opponents for funding prestige projects such as a planned 50-metre bronze "African Renaissance" statue.

The octogenarian president signed a decree sacking Sarr late on Thursday.

The decree gave no reason for Sarr's sacking, which came just hours after Wade met resident International Monetary Fund representative Alex Segura. Details of their discussions were not made public."