Senegal consolidates its growth in 2020 – economy

This is good news for the Senegalese but also for all investors who would like to get into the country: Senegal is consolidating its growth despite the global health crisis. The country is confirmed as one of the most favorable countries for investment and entrepreneurship.

Senegalese economy remains green in 2020

While Western countries post negative growth at a record level in 2020, the Covid-19 pandemic will have relatively spared Senegal, which is doing much better than what the IMF had forecast in September 2020. The International Monetary Fund predicted an economy in the red for the Central African country … but the latter has shown resilience with a good response to the crisis.

This is what allowed him, according to the World Bank, to post growth in 2020 of 1.2% which consolidates the previous years when growth was a record: 5.3% in 2019, 6.3% in 2017, one of the strongest in Africa.

As exports represent 7.2% of the country’s growth, it seems logical that the health crisis has slowed down. But once the latter is resolved, Senegal should return to growth levels similar to those experienced before the crisis.

Investment: a real engine of Senegalese growth

But the World Bank also stresses that with a weight greater than one tenth of the country’s total growth (12.5%), it is investments that are the engine of the Senegalese economy. Foreign investments, of course, but also local ones.

It is in this context that Locafrique launched their new website to offer financing for individuals but, above all, for companies that need money to develop in good conditions. Founded in 1977, Locafrique quickly established itself as a financing specialist in Senegal with, moreover, 100% Senegalese shareholders since 2010, synonymous with the company’s commitment to the country’s economic development.

Growing SMEs in the country

Locafrique has, over time, specialized in helping SMEs (Small and Medium-Sized Enterprises) which, like in France, represent the vast majority of companies in the country and are the real locomotive of record Senegalese growth in recent years. . On their own, SMEs in Senegal represent more than 90% of businesses.

Proof that the Senegalese show a real desire for entrepreneurship, According to official data in February 2020, the number of creations of companies and associations in the country has doubled compared to the previous month, to reach 9,459. So nearly 10,000 new businesses are created in the country every month.

But Locafrique does not only finance SMEs: the agricultural sector is also at the center of its action, which has also earned it recognition, in 2017, among the “Inspiring Companies of Africa.” No less than 40% of its commitments are therefore addressed to the agricultural sector. This is invaluable help in a country where more than 50% of the population is said to be “rural”, where the agricultural sector employs more than 60% of the working population and where agricultural activity is highly seasonal.

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