While the International Monetary Fund (IMF) is making Senegal wait – at least until June – to hope to obtain a resolution of its loan program, the new authorities were able to obtain an envelope of 96.5 billion CFA francs from the Federal Republic of Germany. This financial commitment is the result of negotiations (November 5 and 6, 2024) between the Ministry of Economy, Planning and Cooperation (MEPC) of Senegal and the Ministry of Economic Cooperation and Development (BMZ) of the Federal Republic of Germany.
The meeting co-chaired by the Secretary General of the Ministry of Economy Mouhamadou Bamba Diop and the Director General Africa at BMZ, Birgit Pickel, which focused on essential themes for the development of Senegal, was quite fruitful. According to a joint press release, “the discussions focused on several priority sectors, including: economic development and professional training, good governance, climate and just energy transition as well as the pharmaceutical sector”.
Thus, at the end of these intergovernmental negotiations, the Federal Republic of Germany committed new funds in the form of subsidies to the tune of 147.47 million Euros (or 96.5 billion FCFA). This envelope includes new budget support of 55 million euros (more than 35 billion CFA francs) for “the implementation of structural reforms”. “Beyond this, the new funds will support Senegal in strengthening the rule of law, transparency, digital transformation as well as energy network infrastructure. They will also contribute to improving the sustainable investment climate as well as the economic prospects of young people and women,” underlines the same source.
Between 2019 and 2022, the total volume of commitments between Germany and Senegal amounted to 286.9 billion CFA Francs with 65.6 billion FCFA in 2020 in support of the Economic and Social Resilience Program (PRES) and 44.6 billion FCFA in 2022 in favor of the Budget Support Program for strengthening state, economic and climate resilience in Senegal.
Thus, these new intergovernmental negotiations strengthen the high-trust partnership between Senegal and Germany. They also pave the way for “new initiatives aimed at meeting the challenges of sustainable development”.
Auteur: Thiebeu NDIAYE – Seneweb.com
Senegal
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