The Road to the SDGs

X Special attention will be paid to the formulation of fertilisers and detergents for petrochemicals, and agriculture food products such as rice, malt extract, groundnuts, fruits and vegetables and fishing products for agri-foods. X The country will be encouraged to pursue more inclusive development goals such as the creation of high- quality jobs and the promotion of sustainable export competitiveness. X IsDB used a RCA index to determine the products in which Senegal has a comparative advantage. X The PCI was used to gauge the export potential of manufactured products. X Manufacture of agri-foods, petroleum, basic chemicals and related products industries were compared with the average growth of world demand for all products and the average growth of Senegalese exports over the same period. The same analysis was completed for all five champion industries. X The value-add of the overall exports was broken down across all industries, then divided into the domestic value-add, foreign value-add and indirect value-add contributions of each industry. X The highest value-add was recorded for agri-foods, dwarfing the value-add of the other industries. The domestic value-add was particularly high, which suggests very low GVC participation and position. POTENTIAL IMPACTS X The main preliminary recommendations of the agri-food GVC analysis includes the following: – To further grow the agri-foods industry in Senegal, there needs to be an increase in productivity and scale of agricultural output – The country should further integrate its processing value chain to capture larger shares of the market value – Productivity and scale should be increased by supporting smallholder farmers to form cooperatives, as these will enable them to achieve economies of scale through knowledge and technology transfer and gain better access to financing for agricultural equipment – The Government can support the establishment of cooperatives by providing platforms as well as guidelines and educational support – The effects of climate change in Senegal are expected to severely harm the agri-foods industry due to extreme weather such as drought, as well as increased temperatures. Therefore, mitigation measures must be implemented to prevent these adverse effects. X The findings of a preliminary study on the petrochemical industry reveal that: – The petrochemical industry is a capital and asset-intensive one, requiring economies of scale to justify the huge investments required, especially upstream activities of base-chemical formulation – The same oil and gas lead firms or their subsidiaries are usually responsible for the first few activities (upstream) of the petrochemical GVC, with upstream integration into base chemical production and plastics manufacturing – Although Senegal is not a historical petrochemical player, its existing refining capacity can allow it to upgrade its position by helping local firms formulate base chemicals and ammonia, especially considering the future natural gas production in the country – Senegal can look at the African market to increase demand from end-industries (mainly fertiliser and detergent) to stimulate demand for petrochemical formulation in the country. This is aligned with the new AfCFTA. INVESTMENT X Overall, the preliminary GVC analysis completed by IsDB in Senegal concluded that: – Productivity should be increased through the introduction of new machinery and further mechanisation and automation – Additional investments are needed, through loans as well as foreign direct investments – Investment should be evaluated in terms of its environmental impacts to make sure it is not doing more harm than good – Senegal needs to improve its transport infrastructure and services to speed up export processes and facilitate cross- border trade. G R O W I N G P O P U L A T I O N Senegal has a young and growing population of 16 million but expected to expand to over 21 million by 2030 [ 243 ] T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S