Mr Amadou HOTT, Minister of the Economy, Planning and Cooperation and his counterpart Gerd MÜLLER, German Federal Minister for Cooperation and Development, signed a partnership on Tuesday 19 November in Berlin to encourage reforms in Senegal in order to promote private investment.
The ceremony took place on the sidelines of the conference on the G20 « Compact with Africa » initiative to promote private investment in Africa in cooperation with African partners, international financial institutions such as the African Development Bank, the World Bank and the International Monetary Fund.
The commitment of the German Federal Government is to make available to Senegal a donation of 108 million euros, about 70.8 billion CFA francs, in financial and technical assistance for 2019.
This amount will be distributed as follows: € 31 million in Technical Cooperation and € 77 million in Financial Cooperation (including € 14 million to € 39 million in Trust Funds).
By signing this partnership, MM. HOTT and MÜLLER emphasized the general objectives of the reforms envisaged. Namely, create jobs, promote the formalization of informal sector enterprises, remove barriers to sustainable development of the private sector, especially for micro, small and medium enterprises (MSMEs), improve the skills of the workforce by investing in vocational and technical training, promote good economic governance.
The German Federal Government has also indicated its availability to allocate additional amounts under this partnership with Senegal, depending on the progress made.
Senegal’s commitments in this direction, and more generally to ensure the success of this partnership, are to complete the evaluation of the Labor Code, develop reform approaches for a more efficient labor administration, adapted labor law for MSMEs, to facilitate the acquisition, regularization and transmission of land, to strengthen the legal, regulatory and institutional framework for SMEs and to improve their access to finance through the establishment of additional investment funds, among others.