Factories in Senegal

Senegal has an established industrial sector producing a range of goods from handmade crafts, textiles and shoes, to trucks and cement.

However, many of the country’s factories are involved with the processing and refining of agricultural products.  Agriculture still employs around three-quarters of people in Senegal.

In the past, the most important product was groundnut/peanut oil.  But while Senegal is still one of the top ten producers of peanut oil, other exports bring in more revenue.  Pre-prepared food products (including sauces, soups and condiments) are currently the country’s top earning agricultural-based exports.  And thanks to tobacco factories, cigarettes and tobacco products are the next highest earners.  Cotton lint is also one of the top five exports.

Fish are also an important source of revenue for Senegal.  However, stocks are under increasing pressure due to over-fishing.

Modern sectors

Economic reform and privatisation programs (along with significant debt relief), saw Senegal achieving an average growth of five per cent annually.  But as the global recession hit, growth dropped in 2008 and 2009.  The tourism industry was particularly affected as foreigners cut back on luxury holidays.  However in 2010, the economy grew over four per cent, boosted in part by large public infrastructure projects, such as the construction of new roads in Dakar.

Senegal’s tourism and communications sectors have also brought new investment.  And with unrest in Ivory Coast, many French-speaking international organisations and banks have moved to Senegal.  Along with investment from Arab countries, this has led to a construction boom which helped buoy the economy through the global recession.

Vital investment in key areas

However, Senegal is facing an energy crisis as demand for electricity rises. Power cuts lasting many hours are common and shortages are hindering economic progress.  Following protests on the streets, the government has promised to increase capacity by 2012.

The mining sector is looking to private investment in order to expand.  Senegal is already one of the leading suppliers of phosphate rock, but has large enough deposits to become one of the top ten producers worldwide.

The country also has a variety of other mineral resources, including precious metals (e.g. gold and platinum), base metals (e.g. iron, copper and chromium), industrial minerals (e.g. limestone and salts), heavy minerals (e.g. zircon and titanium) and building materials (e.g. marble).  Private investment in the mining sector since the start of this millennium is set to reach five billion dollars by 2013.