Airbus said Wednesday that Senegal Airlines, the new national carrier of the Republic of Senegal, has signed a letter of intent for four A320 aircraft and two A330 aircraft.
Airbus, a wholly owned unit of European Aeronautic Defence & Space Co., didn't give a value for the deal, but it is worth approximately $700 million, according to list prices.
Senegal Airlines will start operating early next year from its hub in Dakar to destinations in Africa. It will replace Air Senegal International, according to a statement released at the Dubai Airshow.
Wednesday, November 18, 2009
IMF praises governance, bemoans economy
The International Monetary Fund just released its most recent (November 4-18) report on Senegal. Its assessment of the overall economy is gloomy, reflecting the world's economic doldrums. According to the IMF news release on the assessment:
“The global financial crisis and domestic shocks are affecting Senegal’s economy. Growth is expected to slow to 1¼ percent in 2009 from an already depressed 2½ percent in 2008. Business activity has been weak, remittances have been under pressure, and tax revenues are lower than expected. In the second half of this year the economy has also been undercut by electricity shortages and urban flooding."
The report has hopes for a turnaround in 2010, with growth of 3.5 percent. But its most positive comments were reserved for the Senegal government's fiscal discipline of late:
"All quantitative assessment criteria were met and key structural benchmarks have been completed. The stock of the government’s unpaid bills within the regular expenditure chain has been normalized. The mission welcomed progress with reforms to improve public financial management."
In other words, the public sector is continuing to pay its bills despite tough times. Real improvements will await economic recovery. Preparing fertile ground now would help.
"Measures to improve the business climate could include reducing delays in transferring property rights, better contract enforcement, and the simplification of customs procedures."
“The global financial crisis and domestic shocks are affecting Senegal’s economy. Growth is expected to slow to 1¼ percent in 2009 from an already depressed 2½ percent in 2008. Business activity has been weak, remittances have been under pressure, and tax revenues are lower than expected. In the second half of this year the economy has also been undercut by electricity shortages and urban flooding."
The report has hopes for a turnaround in 2010, with growth of 3.5 percent. But its most positive comments were reserved for the Senegal government's fiscal discipline of late:
"All quantitative assessment criteria were met and key structural benchmarks have been completed. The stock of the government’s unpaid bills within the regular expenditure chain has been normalized. The mission welcomed progress with reforms to improve public financial management."
In other words, the public sector is continuing to pay its bills despite tough times. Real improvements will await economic recovery. Preparing fertile ground now would help.
"Measures to improve the business climate could include reducing delays in transferring property rights, better contract enforcement, and the simplification of customs procedures."
Wednesday, October 28, 2009
Wall Street Journal on the "Segura Affair"
The most widely read newspaper in the United State, The Wall Street Journal, has an article today on the highly controversial "going away present" to departing IMF country representative Alex Segura... The top-of-the-fold article in the Journal's "World News"section is titled "Gift from Senegal President Spurs IMF Inquiry," and features a picture of President Abdoulaye Wade. The Wade government is sticking to its characterization of the $200,000 cash given Sequra at his going away party as just an example of traditional Senegalese "terranga." An anti-corruption source in the article calls it "outright bribery." Still, we wonder, what is the quid pro quo? Without expecting something in return, it's simply a gift. Presumably that's one of the questions that the investigation by the International Monetary Fund will seek to answer.
Monday, October 26, 2009
The Segura Affair: "reverse Teranga"?
The Senegalese government in statements today seemed to acknowledge giving a pile of cash to outgoing IMF country representative Alex Segura. But it was not a bribe, they say. According to the prime minister Souleymane Ndéné Ndiaye, the cash was simply a (very sizable) going away gift to Segura, in the hospitable tradition of the Senegalese people. He notes that Segura never did any favors for the Senegal government while he was stationed at Dakar, and he was on his way out, unable to do any future favors, so it couldn't be a bribe.
Saturday, October 24, 2009
L'affaire Segura: it's classic Senegal
It has been called bribery, but the real story behind "the Segura Affair" may be more interesting than that. Wittingly or not, the Senegal representative for the International Monetary Fund (IMF) seems to have been what we call in California politics a "bag man," carrying 65 million CFA (about $150,000).
The hapless bagman, Alex Segura, was ending his third tour in Senegal for the IMF. I had spoken to him a couple times by phone (or was it email) in Spring 2008, but was unable to meet him personally because of his travels. It can safely be said that no other foreigner in Senegal was better known--or at least in the media--than Segura (yes, even more than Obama). He was the point man steering the Senegalese economy for the international community.
Segura's role/complicity/whatever is pretty vague. At least that seems to be the picture in the Senegalese press. Some of those reports are supposedly based upon statements from the IMF. But I can't find anything about it on the IMF website and there is virtually no media reports on the "Segura Affair" outside Senegal.
The "real" story, augmented by my informal sources, is that Segura was delivering the money to the Senegalese embassy in Barcelona. He found that he had the money (delivered to him by means uncertain) and let his superiors know. My Senegalese contacts are convinced that he was being used--again wittingly or not--to deliver the money for Senegalese government higher ups. Since the Wade administration does a lot of "cash transactions" their conclusion is that hanky-panky was involved. Maybe it was a bribe. But to who? Segura was exiting his post in Dakar. It doesn't seem to make sense that he was being paid off retrospectively or prospectively.
The IMF is reportedly (by Dakar press) investigating the "Segura Affair." Meanwhile, Senegalese in the U.S. have announced a protest gathering at the IMF headquarters in Washington D.C. to voice their indignation with the Senegalese government and the perception of its corruption galvanized by the "Segura Affair," set for October 31.
The hapless bagman, Alex Segura, was ending his third tour in Senegal for the IMF. I had spoken to him a couple times by phone (or was it email) in Spring 2008, but was unable to meet him personally because of his travels. It can safely be said that no other foreigner in Senegal was better known--or at least in the media--than Segura (yes, even more than Obama). He was the point man steering the Senegalese economy for the international community.
Segura's role/complicity/whatever is pretty vague. At least that seems to be the picture in the Senegalese press. Some of those reports are supposedly based upon statements from the IMF. But I can't find anything about it on the IMF website and there is virtually no media reports on the "Segura Affair" outside Senegal.
The "real" story, augmented by my informal sources, is that Segura was delivering the money to the Senegalese embassy in Barcelona. He found that he had the money (delivered to him by means uncertain) and let his superiors know. My Senegalese contacts are convinced that he was being used--again wittingly or not--to deliver the money for Senegalese government higher ups. Since the Wade administration does a lot of "cash transactions" their conclusion is that hanky-panky was involved. Maybe it was a bribe. But to who? Segura was exiting his post in Dakar. It doesn't seem to make sense that he was being paid off retrospectively or prospectively.
The IMF is reportedly (by Dakar press) investigating the "Segura Affair." Meanwhile, Senegalese in the U.S. have announced a protest gathering at the IMF headquarters in Washington D.C. to voice their indignation with the Senegalese government and the perception of its corruption galvanized by the "Segura Affair," set for October 31.
Monday, September 28, 2009
Slow start for SenIran
The Wall Street Journal today says the joint Senegal-Iran auto venture, SenIran, has fallen far short of it production goals. Last year Dakar decreed the phase out the 25,000-or-so colorful taxi/buses that have been one of Dakar's best known international symbols. They were to be replaced by the shiny new cabs produced by the joint Iranian factory. In today's front-page Journal article, plans to have 2,000 of the SenIran cabs resulted in only 500 on the street... And the $75 millon Theis SenIran factory that opened last year has only produced 20 of the 10,000 cars it had planned to produce this year... Parts, labor and construction delays (the usual) caused the problems according to the Journal's report, which states that sources acknowledge the venture, one of others around the world, has other goals besides profit... The article also mentions that it was Iranians who ran the power lines to Touba recently, including probably those who I met during my Spring, 2008 visit to the Holy City.
Thursday, August 27, 2009
Dakar port gets new cranes
The remodeling of the Dakar port is moving forward. In late August, the installation of several new cranes was finalized. They include two Panamax gantry cranes and Reggian cranes. Two gates to the port were finished also. The improvements come as Dubai World assumed operations of the port in May 2008. Further improvements are planned for the rail and road corridor to Mali.
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