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 Senegal is on track to see growth of around four percent next year, but power outages and concerns over governance risk could hold back the speed of recovery, according to a Reuters’ survey.
One of West Africa's more stable countries, Senegal late last year successfully launched a US$200 million Eurobond and its corporates include investor-favourite Sonatel SNTS.CI, the incumbent telecoms company.
But it has yet to shake off the impact of the global economic slowdown of 2008/9 and start achieving the growth needed to change the fortunes of an aid-reliant economy where formal employment is scarce.
"The outlook remains uncertain, with risks that the global recovery will be more hesitant than expected, the threat of renewed problems in the energy sector, and financing constraints that limit the government's fiscal room for manoeuvre," the International Monetary Fund said after a staff visit last month.
Economists polled by Reuters forecast a median growth rate of 3.4 percent this year, rising slightly to 4 percent in 2011 - just over double the rate for 2009.
But while the 2011 figure should be boosted by some 500 billion CFA francs (US$970 million) of remittances from Senegalese working abroad, power cuts of up to 10 hours a day in the capital Dakar are a major drag on business activity.
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