Senegal: supportive policies and opportunities in the agricultural sector
The horticulture sector in Senegal offers promising investment opportunities for both domestic and international investors. With its favorable climate, fertile land, and growing demand for horticultural products, Senegal generally provides a conducive environment for agricultural ventures. Investing in the horticulture sector allows for the cultivation and export of a wide range of crops, including fruits, vegetables, flowers, and ornamental plants.
Close to Europe
The country’s proximity to European markets offers a strategic advantage for investors looking to tap into international markets. Additionally, the Senegalese government has implemented supportive policies and incentives to attract investment in the agricultural sector, including tax breaks, access to financing, and infrastructure development. With a focus on sustainable farming practices and modern technologies, there is ample scope for investors to contribute to the sector’s growth while promoting economic development, job creation, and food security in Senegal.
One long-term economic plan
The Senegal Emerging Plan (PSE) is the key document for the Senegalese government's economic, social and environmental development policy. As its name suggests, it aims to create the conditions for Senegal's development by 2035.
The PSE is implemented through a five-year Priority Action Plan (PAP) based on strategic axes and objectives, as well as expected outcomes. The PAP is implemented through development projects, programs and reforms over a five-year period, which are then rolled out as part of a three-year public investment program.
Two PAPs were implemented during the 2014-2023 period:
- PAP 1 (2014-2018), which generated an average growth of 6.6% over the period;
- PAP 2 (2019-2023), which was reorganized in 2020 as PAP2A to adapt to the new realities due to Covid-19.
The third Priority Action Plan (PAP 3) covers the next 5 years (2024-2028) and marks the entry of the PSE into its second decade of implementation. Its objective is to drive inclusive and sustainable growth to transform Senegal, by accelerating industrialization and promoting a resilient and competitive economy.
In line with the Senegalese government's ambition to be auto-sufficient , agriculture in general and horticulture in particular feature prominently among the themes addressed by PAP 3.
In this article, we will essentially present the agricultural sector policy as defined in PAP3, with a particular emphasis on horticulture.
The general objective of PAP 3 up to 2028
In operational terms, PAP 3 is structured around a set of twenty-four (24) growth sectors, grouped around nine (9) key areas including Food Sovereignty.
Strengthening food sovereignty is one of the strategic objectives set out in Axis 1 of the PSE, entitled "Structural transformation of the economy and growth". Hence the adoption in 2024 of Senegal's Food Sovereignty Strategy (SAS), which aims to ensure sustainable food and nutritional security for the population, develop greater resilience in the face of various hazards, and drive economic and social development by 2035.
Senegal's food sovereignty strategy
The context marked by the succession of crises resulting from COVID-19 and the war in Ukraine has demonstrated the urgency of implementing the agricultural self-sufficiency policy pursued by the Senegalese government.
Indeed, the question of dependence on the outside world has become extremely acute, highlighting the need to strengthen food systems as quickly as possible by increasing production.
In addition to defining policies for the primary sectors of agriculture, fisheries and livestock, Senegal’s Food Sovereignty Strategy (SAS) sets out a number of strategic orientations, as follows:
- Increase the availability of food in sufficient quantity and quality in the long term (SO1)
- Promote the physical and economic accessibility of a diversified and nutritious diet to the population (SO2)
- Strengthen funding, Research & Development and advisory services (SO3)
- Strengthen the institutional framework (SO4)
As far as horticulture is concerned, the priority sectors defined by the SAS are: onions, carrots, potatoes, manioc, sweet potatoes and bananas.
It should be noted that despite a production surplus, the national needs for onions and potatoes are only covered for 7 to 9 months.
In order to help achieve the objectives set by the SAS, a series of priority programs have been established. These are as follows :
- Promoting the availability of a varied and nutritious diet at an affordable price;
- Promoting "local consumption" and supporting the marketing of local products;
- Increasing Research & Development funding and services;
- Improving agricultural mechanization;
- Strengthening and optimizing agricultural facilities;
- Connecting commercial ports, marinas, fishing ports and logistics zones;
- Strengthening national market regulation.
Implementation of PAP 3 in the agricultural sector
Agriculture accounts for almost 6% of the total PAP 3 budget, which will include the following projects:
- A 25,400 ha development fertile land project;
- An agricultural mechanization project;
- Project to reconstitute horticultural seed capital;
- Project to exploit water for the development of value chains;
- Project to develop integrated farms using renewable energies and to develop horticultural sectors.
However, the implementation of these projects requires reforms that have been identified in the National Strategy for Food Sovereignty. These include in-depth reform of the method of subsidizing agricultural inputs, setting up an information platform to create a secondary market, introducing a seed control and certification system, and enhancing access to land.
PAP 3 has developed its activities, programs and projects by capitalizing on the many achievements and lessons learned during the first decade of PSE implementation.
In turn, the programs and projects of the Dutch embassy in the Senegalese horticultural sector are fully in line with PAP 3. The Netherlands is focusing on horticultural training, advisory support for horticulture – agroecology in particular - and sustainable poultry farming, the introduction of new technologies, and the development and modernization of research in order to strengthen public-private partnerships.
Do you want to know more about the opportunities – and potential pitfalls – of working in and with Senegal on agriculture? Please let us know via DAK-LNV@minbuza.nl / ABI-LNV@minbuza.nl