Senegal is often described as an open economy since foreign trade accounts for 57.9% of its GDP. However, despite the country’s steady growth in export trade, recent research has revealed how certain hindrances have been holding back industries where the country has a comparative advantage. In return, its trade deficit has worsened over the years, and its exports have grown much slower than global trade and have become increasingly capital-intensive, making it vital for Senegal to explore these sectors. Let’s take a look at what they are:

Fishing
According to Comtrade, in 2018, frozen fish accounted for 6.8% of Senegal’s export. The country has some of the richest fishing grounds in the world. The sector generates many direct jobs and indirect opportunities in processing and distribution. So, to encourage this sector, the government must restrict overfishing and push fish-processing firms to meet European markets' quality and sanitary norms.

Fruits and Vegetables
Senegal has a favorable climate that allows the growing of fruits and vegetables all year round. However, it is important to improve infrastructure and access to land and water to increase output and export volume.

Groundnuts
Also referred to as peanuts, groundnuts are major agricultural commodities grown in Senegal. However, they have been forbidden from foreign markets because of contamination with aflatoxin, which is a cancer-causing mold that grows on peanuts when it is not properly stored, cultivated, and transported under the right climate-controlled conditions. Their failure to meet Europe’s sanitary and phytosanitary standards have further limited their potential. But this problem can still be resolved with investments in storage and transport infrastructure and better technology.

Textile
Senegal has huge potential in the textile industry as well, but the unfavorable business environment and weaknesses in the investment climate continue to hinder its success. Thus, Senegal must improve the business environment, not rely on discretionary tax and customs exemptions, fix its poor infrastructure, and deliver incentives on time.

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