The World Bank has approved a US $46 million soft loan to help the Senegal stimulate private investment by improving the investment climate and promoting greater private sector participation in economic activities.
The investment climate is to be improved by reforming the legal, judicial and tax system, eliminating administrative and trade barriers, improving infrastructure regulation, as well as facilitating private-public consultations, the Bank said in a statement on Wednesday.
It has identified the tourism, information technology and music industries as key areas where Senegal has untapped potential
According to World Bank Senegal Country Director, John McIntire, the Bank will provide essential financing and technical support to help the government implement reforms aimed at moving the country towards a higher and sustainable growth path.
Senegal's economy has been stable since 1994 and for the last five years, it has achieved steady Gross Domestic Product (GDP) growth of five percent. "This project is expected to make important incremental contributions towards Senegal attaining the eight percent GDP growth called for in the government's poverty alleviation programme," the release said.
The credit is on standard International Development Association (IDA) terms with a maturity of 40 years, including a 10-year grace period.