27 January 2016

Senegal: About 200 Billion CFA F Received from the Kuwait Fund Since the 1970s

Photo: Kuwait Fund
This Loan Agreement was signed on behalf of the Republic of Senegal by H.E. Mouhamadu Ba, Minister of Finance and Mr. Thamer Al-Failakawi, Regional Manager for West African countries .

Senegal is the first recipient of the Kuwait Fund for Arab Economic Development (KFAED) in West Africa. From the 1970s to the present day, Kuwait grant to Senegal is estimated at about 200 Billion CFA F. A critical source of funding that has been used for the funding of projects in the agricultural, livestock, infrastructure, hydraulic, industry, transport, health, education, civil protection sectors…

The cooperation between Senegal and Kuwait is one that has not been altered by time. In terms of public aid for development, Kuwait granted Senegal significant amounts of funding through the Kuwait Fund for Arab Economic Development (KFAED). The funding has made it possible to carry out many projects in various areas (agriculture, livestock, hydraulic, industry, transport, health, education, civil protection, etc.)

Thus, since the beginning of the bilateral cooperation in the 1970s, Kuwait has funded about thirty projects in Senegal, estimated at more than 200 Million Dollars, which is more than 156 Billion CFA F. This amount of money makes Senegal the first partner country of the FKAED ahead of others in the sub-region such as Benin which received 96.139 Million Dollars, Burkina Faso (170 Millions), Cote d'Ivoire (41.582 Millions), Guinea (165 Millions), Mali (153 Millions) and the Gambia (91 Millions).

In recent years, the cooperation between the two countries has intensified under the impetus of His Royal Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, Emir of the State of Kuwait and Macky Sall, President of the Republic of Senegal.

Projects funded by the FKAED recently received

A current status on the completed projects that have been supported by the Kuwait Fund in Senegal depicts the predominance of the road infrastructure projects. The Kuwait Fund has been part of many projects for the widening and planning of Dakar’s West Corniche (28 275 720 481 CFA F).

To that one, we must add the planning and asphalting works of the road section between Medina Gounass and the Guinean border (70 km), co-funded by the FKAED, the Saudi Fund for Development and the Senegalese government at a total amount of 14 645 511 830 CFA F. There is also the construction of the road between Mamelle and the Airport (5 750 000 000 CFA F), the Matam-Linguere road (about four Billion CFA F).

Still as a result of the cooperation between Senegal and Kuwait, FKAED has provided assistance for the construction and the upgrading of the road section between Patte d’Oie and the Airport, including the interchange near the International Center of Foreign Trade of Senegal (CICES), at a cost of 14 582 621 159 CFA F.
Apart from road projects, the Kuwait Fund has also provided a five hundred (500) millions CFA F-support to combat floods in 2011.
Current commitment of the FKAED in Senegal

The exemplary nature of the cooperation between Kuwait and Senegal did not end there. Many projects funded by the Kuwait Fund are now being implemented. These involve the construction project of the Voie de Dégagement Nord (VDN section 3) and Golf-Malika roads; the construction project of the VDN section 3 and Malika-Tivaouane Peulh roads.

The batch of the infrastructure projects includes the upgrading of the Touba-Dahra-Linguere road section, funded by the FKAED amounting to fifteen (15) millions Kuwaiti dinars, representing approximately twenty seven (27) billion CFA F.

Furthermore, Senegal is receiving a contribution of the Fund for the implementation of the food security support project (GOOD WILL). The Kuwaiti financial support, amounting to 2.5 Billion CFA F, allows the funding of agricultural production and/or transformation projects thanks to a revolving financing system (loans to young people and women).

Bright prospects

The Kuwait Fund for Arab Economic Development (KFAED) is a partner that has earned high marks from the Senegalese authorities and people. It is a partner whose level of commitment is demonstrated by the qualitative leap of its contribution. From a 2 Billion CFA F loan aimed at a livestock development project in the 1970s, the support of KFAED will soon reach the 200 Billion CFA F level, an exponential growth that portends a bright future for this vital unparallel cooperation.

The Directorate of Economic and Financial Cooperation of the Senegalese Ministry of Economy, Finance and Planning (MEFP) confesses that during the second session of the Great Joint Commission between the two countries, held in Dakar on February 2, 2015, Kuwait announced its intention to fund the project of the Ndioum-Ourossogui-Bakel road. However, the authorities in charge of the project point out with a great deal of pride that “The finance plan of the project has just been completed”.
In this way, the same source says, the Agency for Construction and Management (AGEROUTE) has proposed to the MEFP, under the impetus of Amadou Ba, to submit, in the place of this project, the renovation of the Tamba-Kidira-Bakel road. This road project of about 250 km will cost 60 Billion CFA F (more than 120 Million Dollars).

In view of its high cost, the said project might be submitted to the Kuwait Fund in co-funding with other funders, notably the Arab Bank for Economic Development in Africa (BADEA).

Furthermore, the Senegalese side thinks that it would be appropriate to remind that on the sidelines of the Arab-African Summit held in Kuwait city in November 2013, His Royal Highness the Emir of Kuwait had taken the decision to provide African countries with a concessional line of credit amounting to one Billion dollars.

In order to qualify for this financial support, Senegal submitted to the Kuwait Fund many funding applications related to some significant projects of the Plan Sénégal Emergent/Emerging Senegal Plan (PSE). These include the project to upgrade Hopital principal in Dakar; the implementation and rehabilitation of rural tracks; the youth employment programme through agriculture; and an automated exchange system matching employment demand and supply.

The Directorate of Economic and Financial Cooperation reiterates that the project His Royal Highness Sheikh Sabah Al-Ahmad al-Jabar Al-Sabah, Emir of Kuwait, is particularly interested in, was subject to an agreement between the National Agency of the Organisation of the Islamic Conference (ANOCI) and the Kuwait Fund. However, the same source states that it could not be implemented in the context of the works of ANOCI, the agency which was entrusted with the responsibility to organise this event that gathered all the entities of the Islamic Ummah in Dakar.

Thus, taking into consideration the long-lasting cooperation between Senegal and Kuwait and the interest the Kuwaiti side has shown for this symbolic project, the MEFP considers that it would be appropriate for the Senegalese government to make the necessary arrangements in view of its realization.

Senegal

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