Privatization in Senegal
Country Fact Sheet

Produced by MIGA and the Africa Region of the World Bank – June 2001

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For Further Information Contact

Agence Nationale Chargee de la Promotion de l'Investissement

52-54, rue Mohamed V, Immeuble Alwar - Dakar - SENEGAL.
Téléphone : (221) 849 0555
Fax : : (221) 823 9489
Email : apix@sentoo.sn
URL : www.apix.sn

Source Documents

Privatization Background

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In 1994, following the devaluation of the Franc Cfa, a privatization program including 20 companies was elaborated. This was in a context of weak economic performance where the need to create sound macro economic and fiscal conditions was a matter of concern. Developing the private sector while privatizing inefficient public enterprises was seen as a good policy option.

Institutional Framework for Privatization

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Law No.23/1987, which regulates privatization is the core element of the legal environment. It also established the committee which supervises the privatization program, the Cellule de Gestion et de controle du Portefeuille de l’Etat (CGCPE).

Also, to encourage private sector development, several projects were created with the support of the International development Association. Among them: the legal reform committee (Comité de Réformes Juridiques, CRJ) in 1994 and an advisory group, (le Groupe de réflexion sur la compétitivité et la croissance, GRCC) in 1995. Both projects were closed at the end of 2000. The Private Sector Foundation (Fondation du Secteur Privé, FSP) created in 1995 for a period of five years, is still operating.

Recently, in July 2000, to face the defailance of the previous entities and to promote private national and foreign participation in major infrastructure projects, the Agence Nationale chargee de la Promotion de l’Investissement et des Grands Travaux (APIX) has been created in collaboration with MIGA and FIAS.

The World Bank has assisted in private sector development and privatization in Senegal through a US $40 million Private Sector Adjustment and Competitiveness Credit Project approved in February 1995. The Bank is currently maintaining assistance through the Private Sector Capacity Building Project which provided US$12.5 million. This project, approved in June 1995, will close in October 2001..

Privatization Program Status

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In June 2001, out of 20 companies that initially constituted the privatization portfolio defined in the 1994 privatization program, 7 are still not privatized. Among them, SONACOS (groundnut oil refinery) and SODEFITEX (cotton). In 2000, the only privatization transaction that has been recorded is the Société Nationale des Transports Aériens (SONATRA, International air transport), bought by Royal Air Maroc.

Outlook

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In December 2000, Standard & Poor’s (S&P) assigned a B+ to Senegalese long-term and short-term loans in local as well as foreign currency. S&P also considered the economic and political outlook as stable. Being the first West African country to be rated, Senegal will certainly have, not only more opportunities to tap the international capital market, especially if the economic performance remains satisfactory, but will also regain international investors’ confidence.

Also, we can expect that the new political situation coupled with a government committed to foster growth and reduce poverty, will facilitate the implementation of the privatization program.

Below, a list of major companies to be privatized:

1. The Société Nationale d’Electricite (SENELEC, electricity)

2. The Société d’Exploitation du Trafic International (SETI, international railway transport)

3. Aéroport International de Dakar (Airport)

4. Port de Dakar (Port)

5. Société des Transports en Commun du Cap Vert (SOTRAC, urban transport)

6. Hotel Meridien Président (Complexe King Fahd, Hotel)

7. Société Immobilière du Cap Vert (SICAP, Real estate)

8. Société du Domaine Industriel de Dakar (SODIDA, industry)

9. Sté d'Importation et de Distribution Cinématographique (SIDEC, Cinema)

10. Sté d'aménagement de la petite côte (SAPCO, tourism)

11. Société Nationale d'Etudes et de Promotion industrielle (SONEPI, research)

Sources

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Private Sector Capacity Building Project, Project, Staff Appraisal report, 1995, the World Bank.

Ministry of Economy, Finance and Planning, Cellule de Gestion et de controle du Portefeuille de l’Etat (CGCPE).