Dakar and Berlin signed, on Friday, through the KFW ( Kreditanstalt für Wiederaufbau ), the German development bank, and the Senegalese Ministry of Economy, Planning and Cooperation, three financing agreements for an amount of 26 billions of CFA francs. This non-reimbursable aid will make it possible to "encourage reforms" in Senegal, according to the two parties.

The three financial aid agreements signed on Friday between Senegal and Germany and Senegal constitute a donation for a total amount of 26 billion CFA francs to support vocational training and employment for 12.3 billion CFA francs, support the reform of land administration for 10.3 billion CFA francs, support small and medium-sized enterprises for 3.4 billion CFA francs. This partnership aimed at "encouraging reforms" confirms, according to the Minister for the Economy, Planning and Cooperation, Amadou Hott, the manifest will of the Federal Republic of Germany to participate actively in the implementation of the adjusted and accelerated priority actions (PAP2A).

“The government of Senegal is aware that the structural transformation of the economy cannot be achieved without a sustained momentum of reforms. Under this register, we have already obtained appreciable results within the framework of the reform program of the business environment and competitiveness”, he recalled in particular during the signing ceremony of these framework agreements.

As such, notes the Minister of Economy, Planning and Cooperation, this partnership is perfectly aligned with the strategic orientations of the PAP2A by emphasizing the levers of competitiveness and inclusion that are labor legislation. , land reform, access to financing, development of SMEs/SMIs as well as vocational training. “Through this signature, says Amadou Hott, we ratify a mutual commitment in favor of an endogenous development to be carried by a sector by a dynamic and competitive private sector thanks to a business environment in continuous improvement”.

A contribution of 68 billion CFA francs to the "Force-Covid-19" fund

Furthermore, he announced the prospect of “expanding” this partnership to other areas such as good governance, social protection of informal workers and the formalization of the economy. “The partnership adapts to the context and to the realities of the moment by drawing lessons from the crisis which reminded us of the need to establish good social protection for vulnerable groups”, insists Mr. Hott. The latter is of the opinion that the ties of fraternal friendship and solidarity between the two countries are materialized by quality technical and financial cooperation. Moreover, according to him, during the Covid-19 crisis, Germany showed "unprecedented generosity" towards Senegal.

"Our country has benefited from record financial support to the tune of 68 billion CFA francs in support of the Senegalese government's efforts in the fight against the pandemic", he recalled, indicating, in the process, that this support was added to the commitments already made in 2019 for an envelope of 70.8 billion CFA francs. And during the intergovernmental negotiations of December 2, 2020, this envelope was revised upwards with the financing of additional programs for a total amount of 48.5 billion CFA francs, according to the Minister of Economy, Planning. and Cooperation.

For the German ambassador in Dakar, Stephan Roeken, these new agreements bear witness to the new dynamic of German-Senegalese cooperation which has developed “significantly” over the past two years. “The Covid-19 crisis has shown that our areas of cooperation such as job creation, improving financing offers, formalizing informal sector enterprises and improving the qualification of the workforce are of the utmost importance,” he said.

For his part, the director of the office of the Kreditanstalt für Wiederaufbau (FFW) in Senegal indicated that this donation aims to "improve the business climate and attract private investment to promote job creation in Senegal".

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