International Trading Supplement--West Africa Unplugged

Africa, the second largest continent in the world, is an area of great contrasts. The scope of African linguistic and cultural diversity is impressive. Several thousand distinct ethnic groups weave cultural tapestries of old-world traditions with modernity. Bustling cities and traditional villages can be found only a few miles apart. "Tradition" permeates all levels of African life and includes a love of family, respect for the aged and shared responsibility.

The world’s largest desert, the Sahara, stretches across North Africa. This desert, which is nearly as large as the United States, reaches from the Atlantic Ocean to the Red Sea. The Nile, which flows north 4,160 miles, is the longest river in Africa and in the world. Victoria Falls in Zimbabwe, Africa, is twice as wide and nearly twice as high as Niagara Falls in North America.

COSMOPOLITAN FLAIR

African sovereign states share a history of foreign oppression, underdevelopment and a desire for economic autonomy driven by sustainable development. The slave trade served as a primary form of European intervention in Africa from the 16th to 18th centuries, with as many as 12 million Africans forcibly brought to the Western Hemisphere. In l885, European colonial powers defined African national boundaries. As a result, economic infrastructure and production patterns were shaped by the interests of the French, Portuguese, British, German, Belgian, Italian and Spanish colonial powers.

Senegal is the former capital of Colonial French West Africa. It is the continent’s westernmost nation with a territory roughly equivalent to the state of South Dakota. Senegal is part of Sub-Saharan Africa, which means it is located south of the Sahara Desert. The Sahel is the broad strip of land that serves as a transition zone between the Sahara and the rest of the country. Senegal is nearly intersected by the Gambia; it is bordered on the north by Mauritania, on the east by Mali and on the south by Guinea and Guinea-Bissau. Like most African countries, Senegal is characterized by diverse ethnic groups. The Wolof represent between 42 percent and 45 percent of the Senegalese population. The topography of Senegal varies from dry and arid to the north to lush vegetation in the southern region of Casamance. Senegal enjoys a good transportation infrastructure, and the country’s telecommunications sector has experienced significant improvement in recent years. Dakar, Senegal’s capital, has long been considered the "Paris" of West Africa. The city is a bustling, cosmopolitan blend of both African and European influences.

Although Senegal is neither large geographically nor rich in mineral wealth, it has long played a key role in West African politics. Senegal is a predominantly Muslim country, with more than 90 percent of the Senegalese population practicing Islam. Senegalese Islam is characterized by associations called brotherhoods, or "confreries," that are led by local religious leaders known as marabouts. The marabouts organize economic activities and wield considerable influence in Senegalese social, religious and economic life. Yet, Senegal is a truly open and tolerant society. Senegalese ethnic groups coexist peacefully, and there is a genuine interest in and openness to the West, particularly the United States. Because it fosters political, ethnic, religious and cultural tolerance, Senegal serves as a strategic center and moderating voice in the Islamic and African worlds.

THROUGH THE GATEWAY

Companies might consider Senegal as a foreign investment of choice for many reasons. Since independence from the French in l960, Senegal has enjoyed peaceful transfers of state political power, a stable multiparty democracy and a free media. All of these attributes are rather rare on the war-torn continent. Senegal has also made economic progress throughout the past decade, investing in human capital, promoting economic freedom and the rule of law. Historical, ideological and geographical reasons contribute to this fertility, including a historical tie to trade and the Western Hemisphere, an openness to political ideological pluralism and the geographical proximity and accessibility to the West and world ports.

Although Senegal maintains close cultural and economic links with France, many Senegalese businesses increasingly look to the United States as a partner in economic development and trade. American businesses are gaining a foothold in West Africa’s emerging markets as evidenced by the recent establishment of the American Chamber of Commerce in Dakar and the opening of U.S. commercial services in five other West African nations.

Furthermore, according to the U.S. Department of State, Senegal enjoys excellent relations with the United States, giving the country favorable conditions for U.S.-Senegalese trade as well as foreign investment.

In fiscal year 2005, The U.S. Agency for International Development (USAID) assisted Senegal in the amount of $30.3 million, $13 million of which was earmarked for development assistance. For the current FY 2006, the projected number is $37.4 million and $19.6 million, respectively, according to USAID.

Senegal serves as a model that Washington hopes to nurture for its religious and ethnic tolerance. In addition, Senegal enjoys the best macroeconomic profile among eight Western African Economic and Monetary Union member countries as reflected by a zero inflation rate in 2003. Nevertheless, as is the case in all developing nations, poverty and corruption continue to be problematic. Nearly 10 percent of the Senegalese population of approximately 12 million lives in expatriate communities across the globe, and the per capita income remains around $1,800 per year. Among African nations, Senegal is defined as a country in progress where investment in education continues to be cultivated by non-government organizations and by government and international institutions.

ENVIRONMENTAL INITIATIVES

African environments are being challenged by rapid urban migrations, and Senegal is no exception to this phenomenon. The migration of rural Senegalese populations into urban areas gives rise to waste management crises as urban infrastructures struggle to absorb successive waves of new inhabitants. Currently, waste generation in major urban centers throughout Africa is growing at an annual average of 4 percent to 6 percent.

To address these emerging solid waste management challenges, Senegal has embarked upon, in consultation with the European Union, new and more efficient solid waste collection, treatment and disposal methods. Furthermore, Senegalese state and local governments are funding the promotion and education of composting and recycling among the general public. Neighboring African nations, such as Mauritania and Gambia, are studying Senegalese waste management approaches, which include privatized residential collection, treatment and disposal, as well as recycling. In addition to these efforts, the European Union is providing financial assistance to acquire technology (collection, processing and disposal equipment), as well as environmental education for its citizens.

Senegalese political leaders realize the need to expand a growing tourism industry and attract foreign investment. They are also keenly aware of the attraction of a democratic nation—one that boasts both a culturally and religiously tolerant society and a clean environment.

To that end, a presidential decree was issued in 2000 for the city of Dakar to overhaul the municipal solid waste management system. All city waste management efforts are now organized under the umbrella of the APRODAK agency, the Autonomous Agency for City Cleanliness. APRODAK provides for the evaluation of equipment and human resource needs, agreements with local waste management providers and public education campaigns in collaboration with public and private sectors.

AREA OF INTEREST

Developing an early business prototype should be the No. 1 goal of a company that desires to do business in West Africa. We have noticed an increased presence of Chinese and Indian businesspeople in Senegalese cities such as Dakar and St. Louis during recent trips to Senegal, all of whom are aggressively seeking to gain a foothold in the market.

In today’s global economy, the African market can no longer be ignored. For information on how to proceed, consult the U.S Department of Commerce Export Advisory Web site at www.export.gov.