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Comprehensive Commitment
Chinese companies are active participants in various sectors of Senegalese economy
By Aly Diouf | VOL.11 July ·2019-07-15


The Museum of Black Civilizations in Senegal (COURTESY PHOTO)

Fishing, agriculture, infrastructure, energy, information and communications technology – Chinese companies are actively engaged in different fields of the Senegalese economy. Chinese Ambassador to Senegal Zhang Xun claimed that more than 40 Chinese companies in Senegal have created over 3,000 jobs while addressing a seminar on Sino-Senegalese cooperation in Saly Portudal in December 2016. These numbers have naturally grown. The Economic and Commercial Counsellor's Office of the Chinese Embassy in Senegal told ChinAfrica at the beginning of April that there are about 50 Chinese companies in Senegal, in addition to the large number of small private entities whose exact number was not known to the embassy.

In any case, Chinese companies have carried out many important projects with funding from China, leading to significant job creation in Senegal. According to insiders, China is also a key contributor to the Plan for an Emerging Senegal (PES), the framework for the country's economic and social policy, which aims to turn Senegal into an emerging country by 2035.

Among the investments and achievements of the Chinese companies in Senegal in recent years, the toll highway linking the country's third largest city Thies and the second-most populated city Touba is of special significance. This highway, also called Ila Touba, has received 416 billion CFA francs ($800 million) in financing from China. The 113-km long highway passes through the cities of Khombole, Bambey and Diourbel. Ila Touba was termed as one of the most important projects of independent Senegal by Senegalese President Macky Sall at its inauguration on December 20, 2018. Built by China Road and Bridge Corp. (CRBC), the project has led to the creation of 500 to 600 permanent jobs and 7,000 to 8,000 non-permanent jobs.

"This cross-country highway will help develop this potentially rich area, and facilitate connectivity between areas like Matam, Gossas and Kaolack. From now on, it will be possible to reach Touba from the Blaise Diagne International Airport in one and a half hours," explained Minister of Economy, Finance and Planning Amadou Bâ.

Another Chinese company, China International Water and Electric Corp. (CWE) has also distinguished itself in the construction of highways in Senegal. CWE has built the highway that connects the new international airport Blaise Diagne of Diass to Mbour, a city located on the Petite Côte, which is the tourist capital of Senegal.

Industrial development

Under the framework of the PES, Senegal is keen to boost its industrial sector. For this purpose, it has established an international industrial park in Diamniadio, which also benefits from Chinese investments and presence of Chinese companies. The second phase of the infrastructure construction of the industrial park will be financed by China with 60 billion CFA francs ($105.26 million). Among the 15 companies that are already active, two of them are Chinese: the textile company C&H Garment, which has invested $25 million to create a Senegalese subsidiary, and CGCOP, a company specializing in the manufacturing of PVC pipes. Information and communications technology is an important sector for development in Senegal. China, a leader in this field, has been present in Senegal since the early 2000s through Huawei, the world leading provider of information and communications technology infrastructure and smart devices. The company is not only present in the cell phone market but is also involved in the construction of telecommunications infrastructure.

On the cultural front, Chinese investments and enterprises are also playing an important role in Senegal. Inaugurated in April 2011, the Grand Theater was built by a Chinese company with the financing of 13.8 billion CFA francs ($24.21 million) from China. Senegal also contributed 2.9 billion CFA francs ($5.08 million) of funds for the project. The Museum of Black Civilizations was built by the Chinese company Shanghai Construction Group with a 20 billion CFA francs ($35.08 million) funding from China. Senegal is a country with a rich culture, and these two projects are part of a cultural park ambition of the nation.

Vital partnership

At a press conference in Dakar in 2018, Ambassador Zhang announced that his country is the largest contributor to PES funding launched in Paris in 2014 to turn Senegal into an emerging country by 2035. "For five years, the contribution of China to the financing of the PES amounted to 884 billion CFA francs ($1.7 billion)," revealed the diplomat. Senegal was one of the three countries that Chinese President Xi Jinping visited during his African tour in July 2018. He signed several bilateral agreements with his counterpart Sall. In the same year, Chinese Foreign Minister Wang Yi also visited Senegal. During the visit, Wang announced three important projects in Senegal - the Smart Senegal project, the construction of the Mbour-Fatick-Kaolack toll highway, and the construction of a new building for the Ministry of Foreign Affairs. Projects will be funded by China and carried out by Chinese companies.

Economic cooperation between Senegal and China has burgeoned since the resumption of diplomatic relations in 2005, and China has become Senegal's second-largest trading partner in a short time. In 2017, trade between the two countries reached $2.19 billion, an increase of 158 percent over 2012. Notable, among the projects financed by China, include an assembling project of 456 King Long minibuses and 235 buses for Dakar-Dem-Dikk, the public transport company, the realization of the first phase of the 90 kv loop in Dakar, the rehabilitation and extension of the electricity network, the renovation of 11 regional stadiums, the construction of a national arena and the construction of a hospital for mothers and children in Diamniadio.

Chinese companies have set up several wholly owned subsidiaries in the field of import and export in Senegal. According to Sheikh Ndiaye, Director General of the International Trade Center of Senegal, 150 Chinese companies took part in the 25th Dakar International Fair. Ndiaye noted that these companies are mainly from the automotive, large hardware, tableware and agribusiness sectors.

(Reporting from Senegal)

(Comments to niyanshuo@chinafrica.cn)

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