Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
SENEGAL
FY 1997 FY 1998 FY 1999 Actuals Estimate Request Child Survival and Disease.......... 2,300,000 $2,100,000 $5,935,000 Development Assistance.............. $18,900,000 $15,200,000 $18,591,000 P.L. 480 Title II........................... $72,000 --- ---
Introduction
Senegal is one of America's most important francophone partners in sub-Saharan Africa. Largely Moslem, politically stable, and a multiparty democracy, it is a moderate secular nation. A voice of moderation on peace in the Middle East and conflict resolution in Africa, Senegal has demonstrated commitment and professionalism in peace keeping operations in, among other places, Bosnia, Liberia, Rwanda, the Sinai, and Lebanon. Senegal was the first sub-Saharan country to volunteer forces for Operation Desert Storm. Senegal is also a charter member of the U.S.-proposed African Crisis Response Initiative. Senegal's 35 years of political stability, its increasing political pluralism, and good record on human rights buttress partnership with the United States.
Development Challenge.
Long recognized as a "democratic model" in Africa, Senegal is still among the world's least developed countries. Despite its political stability and relatively modern capital city, Senegal's economic growth has only recently improved, and it has virtually been negated by high population growth -- currently 2.7% or doubling every 26 years. Per capita gross domestic product (GDP), $534 in 1997, has stagnated since independence. Sustainable economic growth is essential for Senegal to maintain its stability and to continue its democratic evolution. Strong structural adjustments, including a 50% devaluation of currency in 1994 and recent efforts to privatize and liberalize the economy, have shown Senegal's resolve. Inflation is about 3%, and Senegal's external debt has decreased in recent years to approximately $3.1 billion (66% of GDP) as of December 1997. While economic growth is now positive, it is not yet strong enough at 5% to have a substantial impact on per capita incomes. Senegal needs to create an environment conducive to generating additional employment and higher incomes.
Senegal's deteriorating natural resource base continues to be a major concern. The Sahelian ecosystem is vulnerable to erosion, droughts, deforestation and locusts. In spite of its relatively small share of GDP (20%), agriculture is still the principal source of income for about 60% of the population. Yet annually, one-third of Senegal's cereal needs must be met by imports. Improvements in crop yields have kept up with the population growth rate, but not closed the gap in food grain needs. Only 19% of Senegal's land is suitable for agriculture, and only 1.5% is currently irrigated. In addition, an overall decline in rainfall over the past 30 years, as well as the fact that 57% of energy needs is supplied by fuelwood and charcoal, translate into extreme pressure on natural resources.
Social services in Senegal remain extremely limited, especially for women and children. Maternal mortality is high (510 per 100,000 live births), and many infants die of preventable diseases. The country suffers from relatively high childhood mortality rates (139 per 1,000), and women still bear on average 5.7 children each. Life expectancy is 50 years, with half the population under 18 years old.
Senegal's Socialist Party has been continuously in power since before Independence, and the Presidency has not changed in 18 years. The disorderliness of local and regional elections in November 1996 cast a shadow over democratic procedures and has heightened awareness of the need to assure a more transparent process in the future. The 1996 Decentralization Law was a major step toward
democratization by creating regional and local elected bodies to decentralize political decisions. Success of this ground-breaking experiment will depend on how well the new political institutions can mobilize local revenues and manage their natural resources.
USAID experience in Senegal has yielded a number of successes. While graduation from USAID assistance is not anticipated within the next ten years, our successes demonstrate that we are moving toward that end. USAID has been and will remain the preeminent donor in the family planning sector. Declines in infant mortality and the low incidence of Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome (HIV/AIDS) are largely attributed to USAID assistance. USAID also can be credited with an increased emphasis on preventive as opposed to curative health care. USAID also played a major part in increasing the private sector's role in the economy. As an example, the private sector, not the government-owned corporations, now controls the supply and pricing of rice, which is Senegal's largest grain import. When prices start to rise, the private sector responds with additional imports to assure a regular supply of rice. Privatization of the Senegalese national airlines, vegetable oil processing, and a hotel are planned for 1998.
In the management of natural resources, USAID efforts have helped formulate a National Environmental Action Plan, and put in place local natural resource management (NRM) committees. Those who use the land are now in a position to make sure that it is sustainably maintained. In the area of democracy and good governance, USAID assisted with voter education for the first-ever election of the newly created local and regional positions. Many problems were avoided and others identified, which led to the creation of the National Observation of Elections, a neutral body charged with monitoring the next elections.
1998 will be a crucial year for Senegal. Senegal needs another International Monetary Fund stand-by agreement conditioned upon tight fiscal policies, yet there will be great pressures to increase public spending prior to the May 1998 national legislative elections.
Other Donors
The donor community is large and pledges about $500 million per year, which funds 60% of Senegal's investment budget. The next Consultative Group meeting is slated for March 1998, at which further debt relief, among other topics, will be discussed. USAID provided approximately 4% of total external financing assistance to Senegal in 1997, placing the United States as the sixth largest bilateral donor (behind France, Germany, Japan, Taiwan and Saudi Arabia) and the ninth largest donor overall. Other major funders are the World Bank, European Union, and the International Monetary Fund. These donors are active in sectors assisted by USAID, but they also cover those that USAID does not, such as education and physical infrastructure. USAID is at the forefront of donor coordination, particularly in the areas of economic liberalization, family planning and HIV/AIDS, good governance, and natural resource management.
FY 1999 Program
Senegal's new 1998-2006 strategy will take effect. Its focus is on the opportunities created by Senegal's recent macro-economic reforms and passage of the 1996 Decentralization Law. During FY1999, USAID will focus on resolving three problems critical to Senegal's future: 1) USAID will increase sustainable private sector income-generating activities. 2) USAID will foster more effective, democratic, and accountable local management of services and resources. 3) USAID will increase sustainable use of reproductive health services (child survival, maternal health, family planning, and prevention of sexually transmitted diseases (STD/AIDS)) in the context of decentralization in targeted areas.
SENEGAL
FY 1999 PROGRAM SUMMARY
(in thousands of dollars)
USAID
Strategic and Special
ObjectivesEconomic
Growth &
Agriculture
Population
& Health
Environment
DemocracyHuman
Capacity
Development
Humanitarian
Assistance
TOTALS
S.O. 1. Sustainable Increases in Private Sector Income Generating Activities in Selected Sectors.
- DA
4,900
---
1,620
200
---
---
6,720
S.O. 2.
More Effective, Democratic & Accountable Local Management of Services & Resources in Targeted Areas.
- DA
1,500
---
1,620
1,700
---
---
4,820
S.O. 3. Increased and Sustainable Use of Reproductive Health (Child Survival, Maternal Health, Family Planning, and STD/AIDS) Services in the Context of Decentralization in Targeted Areas.
- CSD
- DA
---
---
5,935
6,951
---
---
---
100
---
---
---
---
5,935
7,051Totals
-CSD
- DA
---
6,400
5,935
6,951
---
3,240
---
2,000
---
---
---
---
5,935
18,591
USAID Mission Director, Anne M. Williams
ACTIVITY DATA SHEET
PROGRAM: SENEGAL
TITLE & NUMBER: Sustainable Increases in Private Sector Income Generating Activities in Selected Sectors, 685-SO01.
STATUS: New
PROPOSED OBLIGATION & SOURCE OF FUNDING: FY 1999: $6,720,000 DA
INITIAL OBLIGATION: FY 1998; ESTIMATED COMPLETION DATE: FY 2006
Purpose: To achieve sustainable increases in private sector income-generating activities in selected sectors.
USAID's Role and Achievements to Date: In October 1998, USAID will begin implementing its new strategy building on the successes of past USAID-funded activities. These include, inter alia: (a) pursuing a policy dialogue with the Government of Senegal (GOS) which has already significantly liberalized the marketing of rice, ending government controls and artificial shortages or surpluses; (b) financing micro- and small businesses through building sustainable savings and credit systems, as successfully completed in Kaolack, Senegal; (c) institutionalizing village banks with a focus on financial services for women as begun under USAID's non-governmental organization support activity; and d) providing credit, technical assistance and business, entrepreneurial, literacy, and numeracy training to farmers for the development of natural resource management (NRM) based enterprises as a way of stimulating incomes as initiated in various USAID training activities.
Description: Not only is USAID embarking on new activities under its new strategy, but it will also use a new mode of implementation. In addition to traditional detailed assessments of the private sector environment to define specific activities, USAID will emphasize soliciting the needs and participation of Senegalese organizations (thus creating ownership and increasing the likelihood of sustainable development). USAID's new Strategic Plan has already identified three major groups of results that will be attained during the next eight years.
First, the legal, regulatory and policy environment will be improved to promote income-generating activities by:
* Enhance the policy and regulatory framework based on an "Investment Barrier/Road Map Survey" that USAID is completing in collaboration with other donors ; and
* Adapting judicial process to business needs, e.g. promoting private arbitration centers.
A proposed activity for achieving these results is the completion of an Investment Barrier/Investment Road Map Survey, which would document bureaucratic red tape that should be reduced. Other activities under consideration include training judges in commercial law and supporting private Arbitration Centers.
Second, access to financial services will be improved by:
* Expanding and strengthening the Decentralized Financial System (DFS); * Increasing client awareness of financial instruments; * Reducing financial risk; and * Mobilizing more savings.
Proposed activities include: (1) expanding village banks with a focus on financial services for women; (2) technical assistance to train managers of financial services, expand savings services, and enforce regulation; and (3) implementing a loan guarantee mechanism to increase access to formal bank services by lowering banks' perceived risk in lending small amounts to new clients.
Third, the use of improved technical and managerial practices will be increased, with a focus on:
* Increasing access to information; * Increasing use of appropriate technologies for Small and Medium Enterprise (SME) development and NRM practices; and
* Strengthening private businesses, associations, and groups.
Proposed activities include: (1) training in entrepreneurship, management, and business plan development; (2) training to improve professional associations; (3) public education campaigns on the benefits of free markets and the appropriate role for government. In the Natural Resource Management (NRM) sector, activities will continue to focus on dissemination of improved NRM technologies and the translation of NRM-based initiatives into viable profit-making enterprises.
Host Country and Other Donors: The GOS has demonstrated its commitment to private sector development through a comprehensive package of policy reforms. These have included a 50% CFAFr (West African Monetary Union Franc) devaluation, price and trade liberalization, reform of the labor code, and the abolition or renegotiation of special agreements under which the GOS conferred special protection, subsidies and tax exemptions to certain enterprises. A special provision in the tax code has also encouraged groups of entrepreneurs to form Economic Interest Groups, which essentially are micro-enterprises or cooperatives.
The World Bank, the International Monetary Fund (IMF), and France are the leading donors for Senegal's private sector. The World Bank-supported programs aim at encouraging competition, liberalizing the sector, and reducing energy costs, major obstacles to the sector's growth. In 1997, the International Finance Corporation opened an office in Dakar to respond to financial needs of SMEs.
After successfully completing its 1994-1997 Enhanced Structural Adjustment Facility (ESAF), the IMF is considering in early 1998 a new program that centers on a "new generation of reforms" with a declared objective of promoting the private sector, alleviating poverty, and strengthening governance.
Other key donors include the African Development Bank, the European Union, the International Fund for Agricultural Development, the United Nations Development Program, the West African Development Bank, Canada, Germany, and Italy. USAID will take a lead role in donor coordination over the next few years.
Beneficiaries: This strategic objective will support promising income-generating activities that will target youth and women in rural, urban, and peri-urban areas. Primary beneficiaries include: (1) individuals and community groups engaged in private enterprise activities; (2) NRM-based enterprises; (3) micro-enterprises (employing up to ten people with modest investment); and (4) SMEs employing 5 to 100 employees with under $800,000 in equity.
Principal Contractors, Grantees or Agencies: Development Alternatives, Inc. has been instrumental in policy reform in the rice sector. Africare's current grant ends in September 1998, but USAID will encourage Historically Black Colleges and Universities (HBCUs) and other disadvantaged organizations to join in partnership with USAID to achieve some of the results mentioned above. Awards will be also made to Senegalese organizations in order to develop local capacities.
Major Results Indicators:
Sustainable increases in private sector income generating activities in selected sectors measured by:
The amount of income distributed through activities targeted and/or supported; The number of newly established businesses/SMEs; The number of businesses/SMEs remaining in business at least (a) one, and (b) two years.
Baseline data and the exact magnitude of results will be determined in 1998 after the Mission has selected specific locations for its work.
ACTIVITY DATA SHEET
PROGRAM: SENEGAL
TITLE & NUMBER: More Effective, Democratic, and Accountable Local Management of Services and Resources in Target Areas, 685-SO02
STATUS: New
PROPOSED OBLIGATION & SOURCE OF FUNDING: FY 1999: $4,820,000 DA
INITIAL OBLIGATION: FY 1998; ESTIMATED COMPLETION DATE: FY 2006
Purpose: To achieve more effective, democratic, and accountable local management of services and resources in targeted geographic areas.
USAID's Role and Achievements to Date: USAID's new strategy (to begin in October 1998) builds upon the success of the current program. The Community-Based Natural Resources Management program is working in 15 communities to help villagers develop land use management plans. The Kaolack Agriculture Enterprise Development project has aided organizations in 56 villages to create new income generating activities. The Southern Zone Water Management Project has established over 70 village water committees that equitably and profitably control water allocation from newly built dikes. USAID also helped establish the National Environmental Action Plan and a national committee that coordinates actions to sustainably manage Senegal's natural resources. Two multi-country seminars held in Senegal recently with USAID assistance focused on the nature and extent of corruption. USAID also helped to improve the management of local and regional elections by providing voter education materials.
Description: USAID's new Strategic Plan has identified four major groups of results that will be attained during the next eight years.
First, the capacity of local institutions will be increased, with a focus on:
* Improving managerial, leadership, planning, and analytical skills;
* increasing access to good information through as many media as possible; and
* Improving systems for transfer of information and human resources from national to local levels.
Second, access to financial resources will be increased. This is essential because the demand for resources at the local level far exceeds the amount that the central government can provide. Activities will focus on:
* Improving systems for the transfer of funds from national to local levels; * Improving management and enforcement of tax collection procedures; and * Improving implementation of a policy and legal framework for local government authority to raise revenues.
Third, popular participation in the management and oversight of local affairs will be increased by:
* Establishing multiple and regular channels for citizen access to information; and * Informing and strengthening local development groups including local media concerned with good governance.
Fourth, implementation of policies and regulations related to decentralization will be made more effective by:
* Improving coordination systems among levels of local government; and * Increasing knowledge of decentralization texts and related legislation through various channels including local media.
Host Country and Other Donors: The GOS passed a landmark decentralization law in 1996, marking a turning point in Senegal's devolution of authority and transfer of technical competence to local governments and new regional councils. In 1996, a donor coordination committee on decentralization was established under the leadership of the Canadian International Development Agency. Canada's assistance focuses initially on fiscal discipline and financial transfers among levels of government, and training for the national association of newly elected regional officials. The European Union is providing equipment to the new local governing bodies as well as helping with information systems. The French, upon whose governing system the decentralization law was modeled, are providing training and equipment. The United Nations Development Program, the World Bank, the Netherlands, and the German Friedrich Ebert Foundation are also providing training to newly elected officials, while Germany's technical assistance agency, GTZ, is conducting literacy programs.
Beneficiaries: This strategic objective will essentially benefit: (1) local government institutions and other groups in Senegal's 10 regions, 60 urban communes, and 320 rural communities; (2) youth associations; (3) women's groups; (4) expatriate Senegalese associations who send money back to their Senegalese families and communities; (5) Senegal's journalists and local media; and (6) local and regional unions and federations.
Principal Contractors, Grantees or Agencies: Through the end of October 1998, Africare, the South-East Consortium for International Development (SECID), the Earth Research Observation System (EROS), and the International Foundation for Election Systems (IFES) will continue to provide assistance. Under the new strategy, new contracts/grants will be competed and awards will also be made to Senegalese organizations in order to develop local capacities.
Major Results Indicators:
* Proportion of citizens who benefit from programs provided by local governments;
* Proportion of local governments implementing land use management plans;
* Proportion of local governments implementing 90% of their planned budgets; and
* Proportion of local governments in which 60% of eligible voters participate in local elections.
Baseline data and the exact magnitude of results will be determined in 1998 after the Mission has selected specific locations for its work.
ACTIVITY DATA SHEET
PROGRAM: SENEGAL
TITLE & NUMBER: Increased and Sustainable Use of Reproductive Health (Child Survival, Maternal Health, Family Planning, and Sexually Transmitted Diseases (STD)/AIDS) Services in the Context of Decentralization in Targeted Areas, 685-SO03.
STATUS: New
PROPOSED OBLIGATION & SOURCE OF FUNDING: FY 1999: $5,935,000 CSD; $7,051,000 DA
INITIAL OBLIGATION: FY 1998; ESTIMATED COMPLETION DATE: FY 2006
Purpose: To increase use and sustainability of selected primary health care services to decrease infant and child mortality, reduce fertility, and stabilize STD/AIDS prevalence rates, working in both public and private sectors.
USAID's Role and Achievements to Date : Past USAID investments in the population and health sector in Senegal have contributed to some remarkably good results. A leading donor in the population and family planning sector, USAID has provided improved service delivery and information. As result, Senegal's total fertility rate declined from 6.6 to 5.7 between 1986 and 1997. USAID's Child Survival activities have helped significantly to decrease the child mortality rate from over 250 to 139 per 1,000 between the 1960s and 1996.
Since 1980, USAID has been instrumental in assisting the Government of Senegal (GOS) to contain the expansion of HIV/AIDS through a combination of early and aggressive control efforts, including the involvement of religious, political and traditional leaders; intensive information campaigns for greater condom use among young adults; and an effective epidemiologic surveillance system for high-risk groups. Senegal presently has one of the lowest levels of prevalence (about 1.4%) and incidence of HIV infection in Africa.
Description: To combat Senegal's high maternal and child mortality rates, USAID interventions will focus on selected services that reflect priorities established by the GOS in its 1998-2002 national plan. The program will emphasize reproductive health and safe motherhood services as summarized below:
Child Survival activities will include: vaccination, control of diarrheal diseases, nutrition, exclusive breastfeeding, acute respiratory infection, and malaria.
Maternal Health activities will include: family planning, prenatal visits, assisted deliveries, and post-natal services.
STD/AIDS activities will include: treatment of sexually transmitted infections, epidemiologic surveillance of HIV and STDs, and Information, Education and Communication activities.
It is anticipated that the program will result in a doubling of levels of use for these key services by improving the access to, the demand for and the quality of the services. For long-term sustainability of the service system, USAID will improve the effective mobilization and use of internal resources for a better balance between external funds, the GOS central health budget, and local-level tax and consumer cost-recovery sources.
In addition, USAID will reinforce its emphasis in recent years on stimulating private and voluntary-sector initiatives (e.g. social marketing of condoms) to enhance Senegal's political and administrative decentralization.
Host Country and Other Donors: At least 16 donors including the World Bank, Japan, France, the European Union currently contribute in the sector. Under the GOS national health plan for the period 1998-2002, it is estimated that the GOS will cover about 60% of the planned health budget by providing human and material resources, while donors will fund about 30% of the budget mostly for preventive health and family planning. Cost-recovery systems will contribute the remaining 10%.
The national health plan provides an assessment of needs, the duration of interventions and results expected, and the location and costs of interventions so that donors can select their areas of assistance based on their comparative advantages. A formal institution is being developed to monitor and coordinate assistance, serving as the liaison between donors and the Ministry of Health on a daily basis.
Beneficiaries: The program will benefit three (3) categories of the Senegalese population: (1) 1.6 million children under five will be the primary beneficiaries of the child survival activities; (2) couples and individuals, specifically women of reproductive age, will be targeted as main beneficiaries of the family planning and maternal health activities; and (3) 1.5 million sexually active persons at high risk of contracting HIV/AIDS in urban and peri-urban areas will be targeted as direct beneficiaries of the STD/AIDS component of the program.
Principal Contractors, Grantees or Agencies: Contracts and grants under the current strategy end September 30, 1998. New ones will be issued in early FY 1999. USAID anticipates awarding contracts and grants to U.S.-based organizations, including an emphasis on Historically Black Colleges and Universities and disadvantaged firms.
Major Results Indicators: While a firm estimate of the magnitude of impact in the targeted areas of intervention can only be made after USAID has selected these areas on a demand-driven basis, it is expected that the USAID program will contribute to the achievement of the following nationwide results:
Baseline Target Target (1996) (2000) (2006) Prevalence (%) of use of modern contraceptives 8 9 15 Percentage of population reporting condom use with non-regular 29 33 51 partner Percentage of pregnancies receiving at least one prenatal visit 82 85 98 Percentage of children fully vaccinated by age one 39 45 65 Rate (%) of use of oral rehydration therapy 33 35 60 Rate (%) of exclusive breastfeeding 14 15 30
![[USAID Home]](/images/usaid.gif)
[USAID Home]
[CP 99 Home]