Senegal
Green shoots threatened by black gold
Lacking the natural resources or ready exports that have both catalysed and destabilised many of its African neighbours, Senegal’s economic development has been solid, if unspectacular, in recent years. Consistent economic growth, mainly powered by agriculture, tourism and development aid, has helped bolster spending on infrastructure and education, and this small West African nation hopes to graduate from Least Developed Country status by 2035.
But Senegal has a long way to go. The number of Senegalese classified as ‘poor’ continues to rise, from 5.7 million in 2015 to 6.3 million today, and around a third of the country still experience severe deprivation. Food insecurity is widespread, a lack of infrastructure slows development, and the economy remains highly vulnerable to variations in weather and climate.2 And now COVID-19 threatens the fragile progress Senegal has been able to make in recent years.
Although the challenges are considerable, Senegal has a long-standing commitment to sustainable development. A dynamic government Commission for Sustainable Development has helped guide policy for almost a quarter of a century, and the government’s flagship development programme, the Emerging Senegal Plan Phase 2 recognises social and environmental protection as vital goals, including an ambitious $5 million plan to create 100,000 new green jobs.
In response to COVID-19, the government has published a revised national development strategy “Plan Senegal Emergent” (PSE) and action plan (PAP2A) which emphasises self-sufficiency and long-term stability, perhaps providing an opportunity for the government to strengthen existing green measures and commit to social protection as a key plank of post-COVID growth.
A National Green Growth Strategy is also currently under consultation, and Senegal’s existing poverty and regional development programmes explicitly recognise linkages between poverty and environmental risks. The country is also emerging as something of a regional leader on renewable energy, with both West Africa’s biggest wind farm and its largest solar power plant currently under construction.
There are some significant weak spots in Senegal’s green transition, especially around natural capital, sustainable finance, and carbon pricing – unsurprisingly perhaps, given the country’s LDC status. But perhaps the most worrying development for Senegal’s future is the 2017 discovery of vast and previously untapped off-shore oil and gas reserves: 50 trillion cubic feet of natural gas and a billion barrels of oil.
Few governments in Senegal’s position could refuse the promise of huge external investment and export earnings. But the risk of acute environmental damage, corruption, speculation, and eventual stranded assets means that this windfall arrives at a critical time – and in direct conflict with Senegal’s emerging green economy.
Policy Scores
Last updated 1 Dec 2020
Green COVID-19 Recovery
Senegal has announced economic stimulus totalling approximately 7% of GDP, established as a national solidarity fund part-financed by development assistance and the private sector. The resilience package aims to support the health system, strengthen social protection, stabilise the economy and secure supplies of food, medicines and energy products. Measures include providing general tax relief, as well as credit guarantees and targeted support to the tourism, culture and transport sectors. The majority of stimulus provides general support to households and businesses, and lacks a focus on green measures overall. The exception is the Ministry of Oil and Energy’s exemption of renewable energy equipment from VAT - with the aim of accelerating the electrification of rural areas. The recent release the revised national development strategy “Plan Senegal Emergent” (PSE) and action plan (PAP2A) emphasising self-sufficiency, coincide with a shift in focus from resilience to recovery planning. Implementation of PSE provides an opportunity for the government to strengthen existing green measures focused on managing natural capital, providing green jobs, and renewable energy as part of a green recovery over the medium to long term.
Senegal has announced economic stimulus totalling approximately 7% of GDP, established as a national solidarity fund part-financed by development assistance and the private sector. The resilience package aims to support the health system, strengthen social protection, stabilise the economy and secure supplies of food, medicines and energy products. Measures include providing general tax relief, as well as credit guarantees and targeted support to the tourism, culture and transport sectors. The majority of stimulus provides general support to households and businesses, and lacks a focus on green measures overall. The exception is the Ministry of Oil and Energy’s exemption of renewable energy equipment from VAT - with the aim of accelerating the electrification of rural areas. The recent release the revised national development strategy “Plan Senegal Emergent” (PSE) and action plan (PAP2A) emphasising self-sufficiency, coincide with a shift in focus from resilience to recovery planning. Implementation of PSE provides an opportunity for the government to strengthen existing green measures focused on managing natural capital, providing green jobs, and renewable energy as part of a green recovery over the medium to long term.
Governance
National green economy plan
Strong ambition marred by lack of detail on implementation and budgeting. The Emerging Senegal Plan Phase 2 (PSE II, 2018) is Senegal’s overall development strategy; the government has also drafted a National Green Growth Strategy (NGGS) but this is yet to be published, subject to stakeholder consultation.
Strong ambition marred by lack of detail on implementation and budgeting. The Emerging Senegal Plan Phase 2 (PSE II, 2018) is Senegal’s overall development strategy; the government has also drafted a National Green Growth Strategy (NGGS) but this is yet to be published, subject to stakeholder consultation.
Inclusive governance
Civil society consultation (including women’s groups) is a regular part of policy development, including the NGGS and PSE II. Gender inclusivity is a key target of the PSE II strategy, including promoting the involvement of women within corporate governance. However, overall policies on private sector governance are fairly minimal.
Civil society consultation (including women’s groups) is a regular part of policy development, including the NGGS and PSE II. Gender inclusivity is a key target of the PSE II strategy, including promoting the involvement of women within corporate governance. However, overall policies on private sector governance are fairly minimal.
SDG business strategy
No clear policies promoting business involvement in SDG implementation, although SDG planning includes policies targeting the private sector.
No clear policies promoting business involvement in SDG implementation, although SDG planning includes policies targeting the private sector.
Wealth accounting
No wealth accounting work is currently planned, and no indication that natural, social or human capitals are considered a priority by government. The National Agency for Statistics and Demography used to publish annual financial accounts for environmental assets, but more recent research could not be found.
No wealth accounting work is currently planned, and no indication that natural, social or human capitals are considered a priority by government. The National Agency for Statistics and Demography used to publish annual financial accounts for environmental assets, but more recent research could not be found.
Finance
Green finance plan
No information on sustainable finance or reform within Senegal; nor evidence that it is a high priority for the national government.
No information on sustainable finance or reform within Senegal; nor evidence that it is a high priority for the national government.
Green fiscal & monetary policy
A commission established to research specific fiscal reforms for sustainability, the Conseil économique, social et environnemental (CESE), gave some vague recommendations towards improving the legal framework for green government spending and changing tax incentives for clean energy in rural areas.
A commission established to research specific fiscal reforms for sustainability, the Conseil économique, social et environnemental (CESE), gave some vague recommendations towards improving the legal framework for green government spending and changing tax incentives for clean energy in rural areas.
Safe & accountable banks
Financial stress tests undertaken by the Banque Centrale des Etats de l'Afrique de l'Ouest (Central Bank of West African States), but the scope of these tests is unclear and does not yet include specifically environmental or social risks alongside financial ones.
Financial stress tests undertaken by the Banque Centrale des Etats de l'Afrique de l'Ouest (Central Bank of West African States), but the scope of these tests is unclear and does not yet include specifically environmental or social risks alongside financial ones.
Pricing carbon
Some discussions on carbon pricing have taken place within the agencies that manage the government’s strategic sovereign investment fund, but these remain in the very early stages and no official guidance has been published.
Some discussions on carbon pricing have taken place within the agencies that manage the government’s strategic sovereign investment fund, but these remain in the very early stages and no official guidance has been published.
Sectors
Green sectoral policy plan
A standing national commission for sustainable development was established in 1995 and is relatively dynamic, driving national policy debates and publishing regular reports on relevant issues, but lacks a specific sectoral focus. The Ministry of Environment and Sustainable Development is now leading an inter-sectoral committee charged with preparing and publishing the National Green Growth Strategy of Senegal.
A standing national commission for sustainable development was established in 1995 and is relatively dynamic, driving national policy debates and publishing regular reports on relevant issues, but lacks a specific sectoral focus. The Ministry of Environment and Sustainable Development is now leading an inter-sectoral committee charged with preparing and publishing the National Green Growth Strategy of Senegal.
Small business support
Only minimal legal recognition for social enterprises at the SME level, without supporting financial, environmental or social policies. Government plans to develop “financial, technological and legal support mechanisms for businesses to ensure the transition to a green economy” yet to be implemented.
Only minimal legal recognition for social enterprises at the SME level, without supporting financial, environmental or social policies. Government plans to develop “financial, technological and legal support mechanisms for businesses to ensure the transition to a green economy” yet to be implemented.
Carbon budgeting
Some exploratory carbon budgeting workshops have been held at the Ministry of Environment and Sustainable Development, but no concrete steps towards developing a Paris-compatible carbon budget as of yet.
Some exploratory carbon budgeting workshops have been held at the Ministry of Environment and Sustainable Development, but no concrete steps towards developing a Paris-compatible carbon budget as of yet.
Clean energy policy
Target of 20% renewables by 2017 was achieved despite not being prioritised by government. The Renewable and Efficient Energy Fund (REEF) was created in 2017 to boost financing for renewable energy, and several clean energy projects are currently underway – including West Africa’s largest wind farm at Lekela. Whether a new oil and gas sector will disrupt domestic clean energy progress remains to be seen.
Target of 20% renewables by 2017 was achieved despite not being prioritised by government. The Renewable and Efficient Energy Fund (REEF) was created in 2017 to boost financing for renewable energy, and several clean energy projects are currently underway – including West Africa’s largest wind farm at Lekela. Whether a new oil and gas sector will disrupt domestic clean energy progress remains to be seen.
People
Green jobs
2015’s Support Program for the creation of green job opportunities (PACEV) laid out an ambitious national strategy, and a green jobs programme is under preparation at the environment ministry. Implementation and resourcing currently do not match up with original aspirations, but the programme has successfully supported projects creating 2000 green jobs, focused especially on youth.
2015’s Support Program for the creation of green job opportunities (PACEV) laid out an ambitious national strategy, and a green jobs programme is under preparation at the environment ministry. Implementation and resourcing currently do not match up with original aspirations, but the programme has successfully supported projects creating 2000 green jobs, focused especially on youth.
Pro-poor policy
Overall poverty policy is strong and reasonably effective. Two of Senegal’s cross-cutting poverty policies (the Programme d'urgence de développement Communautaire and the Programme national de développement local) do include environmental aspects, including managing climate risks, increasing resilience and improving resource use efficiency.
Overall poverty policy is strong and reasonably effective. Two of Senegal’s cross-cutting poverty policies (the Programme d'urgence de développement Communautaire and the Programme national de développement local) do include environmental aspects, including managing climate risks, increasing resilience and improving resource use efficiency.
Participatory policymaking
The central sustainable development plan does make some commitments to consultation and review, and a specific impact assessment on gender, disability and marginalised groups is elaborated under the National Strategy for Equity and Gender Equality. Impact assessment is unclear.
The central sustainable development plan does make some commitments to consultation and review, and a specific impact assessment on gender, disability and marginalised groups is elaborated under the National Strategy for Equity and Gender Equality. Impact assessment is unclear.
Innovative social protection
Some pilot schemes on social protection and green jobs under the Support Program for the creation of green job opportunities (PACEV, 2015), and the environment ministry has a green financing partnership scheme.
Some pilot schemes on social protection and green jobs under the Support Program for the creation of green job opportunities (PACEV, 2015), and the environment ministry has a green financing partnership scheme.
Nature
Ocean & land conservation
Multiple existing and forthcoming adaptation plans focused on SDG 14, oceans, fishing and aquaculture, but significantly less emphasis given to SDG 15 and land. Current plans concentrate mainly on strengthening the resilience of people and ecosystems to climate change effects.
Multiple existing and forthcoming adaptation plans focused on SDG 14, oceans, fishing and aquaculture, but significantly less emphasis given to SDG 15 and land. Current plans concentrate mainly on strengthening the resilience of people and ecosystems to climate change effects.
Natural capital accounts
No recent work on natural capital assessments or accounting in Senegal.
No recent work on natural capital assessments or accounting in Senegal.
Natural capital committee
No natural capital commission or similar governance structure is currently envisioned, although there is a national climate change committee.
No natural capital commission or similar governance structure is currently envisioned, although there is a national climate change committee.
Nature-based fiscal reform
Some proposals for pricing of environmental externalities through permits or taxes, but no commitments to implement, and the emerging oil and gas sector has placed a significant disincentive for the government to legislate on pollution or resource protection.
Some proposals for pricing of environmental externalities through permits or taxes, but no commitments to implement, and the emerging oil and gas sector has placed a significant disincentive for the government to legislate on pollution or resource protection.