Senegal: A service economy in need of an export boost

Abstract

Senegal is one of the most stable and democratic countries in Africa. It has enjoyed multi-party rule for decades. There is substantial freedom of the press, and Dakar is one of the safest large cities in Africa. The economy has done less well. The oil shock of 1975 and the subsequent debt crisis led to a steady decline. The economy grew strongly for some years around the turn of the millennium. However there was little structural change, and the rural economy remained dependent on vulnerable rain-fed crops. While many African countries experienced a commodity-driven boom, the Senegalese economy slowed down. Today Senegal has adiversified economy driven by services—led by telecommunications and finance. In the secondary sector, construction has been the most dynamic, and the mining sector has gradually expanded.