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Senegal: Diomaye Faye's economic challenges [Business Africa]

Business Africa

Business Africa

The economic consequences of the political crisis in Senegal have been felt throughout the country. Among the major economic sectors affected is tourism. Some 25% to 30% of tourist bookings have been cancelled since the start of the crisis.

Key projects for the country, particularly in the hydrocarbons sector, have been affected. There is also the question of international aid. The IMF recently approved a 1.8 billion dollar aid programme, based on growth of 8.8% in 2024. However there is a risk that future investments will be postponed, which could jeopardise the expected economic growth.

The new president, Bassirou Diomaye Faye, who promises to promote economic patriotism and renegotiate foreign contracts, will face many challenges in restoring investor confidence, stabilising the economy and keeping growth on track.

Africa's favourite investors

According to the "Africa 2050" survey recently conducted by the Institut Choiseul, Europe remains Africa's favourite investor.

The survey polled the opinions of 300 leaders across 34 countries on the continent. Some 53% of these leaders ranked the European Union at the top of their trade preferences. Europe retained its crown, thanks in particular to Germany and France, which were favoured by 69% and 61% of respondents respectively.

However, China, as the leading investor in Africa, remains in the race, despite an adjusted perception of its influence. Only 16% of respondents see China as a key partner, followed by the United States and Russia with 11% and 3% respectively.

The EU, which intends to strengthen its presence in Africa with its ambitious €150 billion "Global Gateway" programme, is positioning itself as a serious counterweight to China's "New Silk Roads".

Zimbabwe: recycling banana peels

Located around 300 km from the Zimbabwean capital, a young entrepreneur in Wonder Valley has found an innovative way of using banana peels to produce flour, wine and oil. These peels, often regarded as useless waste, are now a source of income.

The entrepreneur follows a simple procedure: collecting, cleaning and cutting the bananas in the field, then drying them in the sun, and finally shipping them to the factories for packaging. As the majority of his customers are international, this initiative helps to bring foreign currency into the community and the country.

Southern Africa is facing a food crisis due to El Nino. Entrepreneurs like Brightener Zomba hope that initiatives like this will help to alleviate this potential crisis.