Industry and Mining:

Industry and mining: the resources of renewal

The industrial mapping drawn by President Macky Sall in 2012 reveals a productive renewal at all levels. The economic performance that ranks Senegal in the emergence posture bears the imprint of a rapidly changing secondary sector. The reforms undertaken and driven by the new mining code adopted in 2016 have introduced a new partnership dynamic with private investors and a strengthening of the intervention potential of the small local industry. In addition, there is the option of the generalization of industrial parks of which Diamniadio is the prototype; the rehabilitation and extension of existing industrial domains to create the conditions for industrial competitiveness; and the creation of new regional domains.

Today, with the realization of the Diamniadio Industrial Park and subsequently the two (2) other parks planned by the PES, the implementation of the Agropoles, the consolidation of the ICS, the revival of certain Industries of the textile sector like that carried out with the NSTS, the Industry sector should consolidate its contribution to the formation of GDP with positive repercussions on employment, for the coming years. Better, in the mining subsector, the gradual strengthening of the production of Sabodala Gold Operations (SGO) and the upcoming operation of WATIC, MAKO and SORED MINES projects should make it possible to gradually achieve the 17-ton target set by the PES by 2020. The same applies to phosphates whose target of 2.5 million tons should be achieved with in particular the full capacity of the ICS (1800,000 t) and the rise in power of SOMIVA (1200,000 t).

Diamniadio platform: integrated industrialization

This project, which is among the priority projects of the Senegal Emerging Plan (PSE), is the responsibility of the Ministry of Industry and Mines and is on the 1st wave of projects. APROSI, as Deputy Project Owner, has started since May 2015, the construction of the first phase of the Diamniadio integrated industrial platform (P2ID) on 13 hectares. To date, the infrastructure of the 1st phase is already built with four (4) industrial hangars of 3658 m2 and three of 7920 m2, an administrative building of five (05) floors on 4910 m2 of right-of-way, as well as the various roads and various networks.

Today, with the draft decree admosting P2ID to the regime of ZES laws, all the conditions for the establishment of P2ID companies are now met. To this end, the second phase of the work on an area of 60ha will soon have to be launched as part of a Public-Private Partnership after the signing of a Joint Development Agreement between FONSIS, APROSI and MAF (Mauritius Africa FUND). The estimated cost of phase 2 is 60 billion CFA. It will be effective in 2017 and the work will focus on:

• 9 type A buildings of 7,920 m2;
• 8 intermediate buildings of 6,000 m2;
• 2 type B buildings of 3,000 m2;
• residential and office buildings
• road infrastructure and various networks;
• sports infrastructure;
• the construction of a 15MW power plant.

In addition, Chinese funding is expected for the realization of the PSE Industrial Parks project.

Chemical Industries of Senegal (ICS): the properties of recovery

In 2012, President Macky Sall found the ICS in a quasi-stop situation with a sharp deceleration in activity, dilapidated facilities, a deterioration in the financial situation that led to cumulative losses that absorbed the entire capital of FCFA 94 billion. Faced with this situation, important actions have been taken to relaunch this flagship of Industry.

Thus, an agreement was reached on August 19, 2014 with the INDORAMA group, which committed to a $225 million rehabilitation program with an immediate payment of CFA francs 50 billion as capital. To date, the recovery bet has been won.

In addition to the complete rehabilitation of facilities including the railway line and wagons, the Company has made major investments with the construction of a 20 MW coal-fired power plant largely covering its needs (12 MW). The new power plant was inaugurated by President Macky Sall on January 16, 2017. The company is considering the construction of a new 250,000-ton fertilizer plant, a doubling of its capacity.

The profit for the year, a profit in 2015 of 3.5 billion, recorded a clear improvement in 2016 by consolidating to 7.1 billion with better prospects for 2017. At the end of 2016, the ICS passed the milestone of 1,500,000 T of phosphate production and 361,000 T of phosphoric acid. At this rate, 2017 should dedicate the return to the full capacity of 1,800,000 T of phosphate and 600,000 tons of phosphoric acid. Jobs have been consolidated with 1950 agents.

New Thiès Textile Company (NST): the restart

Thanks to the support of the State, FONSIS and the BNDE for an amount of 594,000,000 FCFA, the activity has restarted. To date, 350 tons of cotton have been processed with a target of 2,000 tons in 2017 by the company that employs 160 people. This recovery phase will be consolidated by a second phase with the objective of a sustainable recovery of the Company.

Industrial estate of Diamniadio

• 110 companies have already made an expression of interest;
• 16 companies in production,
• 11 companies under construction as well as more than 100 requests waiting for land for 116 ha.

This consolidation has allowed the creation of more than 2,000 permanent jobs.

Kaolack industrial domain: the new beginning

It is a partnership of actions aimed at the popularization and promotion of SMEs/SMIs at the level of the Kaolack region that was initiated through the establishment of a Provisional Management Committee responsible for the implementation of the objectives pursued by their collaboration. Co-chaired by the President of the Kaolack Chamber of Commerce, Industry and Agriculture (CCIAK) and the Director General of the Industrial Site Planning and Promotion Agency (APROSI), this management committee is responsible for defining the strategic axes. To this end, a technical committee for implementation and technical control has been created.

Industrial estate of Sédhiou: An innovation in the South

Following the Interministerial Council of Sédhiou, at the instigation of the Ministry of Industry and Mines, APROSI committed to the establishment of an industrial zone in the municipality of Sédhiou. Already, a 500 m2 industrial hangar that can accommodate micro-enterprises is functional. It is one of the first acts of the future industrial zone that APROSI and the municipality will plan soon.

Agri-food processing: 500 units planned

Under the aegis of the Ministry of Industry and Mines, an interministerial working group developed a mapping of the location of the 500 agri-food processing units spread throughout the national territory. An innovative financing mechanism was set up thanks to a MIM/FONGIP/FONSIS/BNDE partnership that made it possible to provide a program guarantee fund with a credit line at a subsidized rate of FCFA 2.5 billion to the BNDE, a 70% guarantee offer by the FONGIP, an interest rate of 6.5% for a period of 5 years. The Ministry of Industry and Mines contributed FCFA 500 million as well as the FONGIP. To date, seven (7) projects have been approved for a funding volume of about CFA francs of about 350 million.

Industrial field of Sandiara: 10,000 jobs expected

This park is an illustration of the benefits of Act 3 of Decentralization, which aims to organize Senegal into viable, competitive and sustainable development territories. The Sandiara Industrial Park was awarded by the municipality a plot of land of 50 hectares.

At the request of the Municipality of Sandiara, a partnership agreement has been signed with APROSI, which will bring its experience to the creation, and implementation of this industrial zone.

This park will be managed by a management company where the various stakeholders will be represented: APROSI, the Municipality of Sandiara and other actors. An investment volume of 60 billion is expected, the creation of 10,000 jobs. Already, a few companies are already established and have started their activities.

Earthworks on the Sandiara industrial estate began on November 22, 2016.

• Area:50 ha
• Cost of development: 10 billion FCFA;
• Amount of expected investments: 60 billion;
• Number of companies planned: 30;
• Number of planned jobs: 10,000;
• 4 companies installed;
• 3 companies being installed;
• 9 reserved.
• Realization of GOXXU MBATH’s fish processing plant

In support of the actions undertaken by the Government in the field of fisheries, the Ministry has financed the work to build the Goxxu Mbath plant. In addition to the reduction in the hardship of women’s work in this locality, this factory offers the opportunity for modern and industrial management of the activities of these processors.

• Cost of the investment: 349 million FCFA;
• Production capacity: 97000t/year;
• Annual turnover: 11 mds;
• Permanent jobs: 600

The expectations of the SENEGAL – UNIDO Country Partnership Program (PCP-SEN)

The Country Partnership Program signed with UNIDO was launched in April 2015 and Senegal was chosen as a pilot country with Ethiopia as part of the new approach of this Institution called Inclusive and Sustainable Industrial Development (DIID). The PCP offers an effective framework for the implementation of the industrial component of the PES, articulated around its flagship projects accompanied by their essential complementary components.

• Integrated industrial platforms that aim at industrial acceleration through 2 or 3 industrial platforms of significant sizes in the agri-food, textile or building materials subsectors. The first park is being finished in Diamniadio;
• Integrated industrial park that aims to create a manufacturing center with high added value. It would be a demonstration of the country’s ability to move up, an important long-term factor in attracting foreign investors and retaining talent; (the sector of activity chosen will be the subject of a decision soon);
• agropolises designed as platforms for the agri-food industry;
• industrial fishing platforms, areas for processing fishery products.

Development of the Industry Development Sector Policy Letter (LPSD):

In view of the development of the LPSD of the industry sector, the Ministry had commissioned from the National Agency of Statistics and Demography (ANSD) a study on the state of play of the industrial sector and on the competitiveness of the industrial sector. The results of this study were the subject of two validation workshops on August 15, 2016 and March 10, 2017. The conclusions have, to a large part, fed the LPSD of the Industry sector that has just been finalized.

Senegalese Agency for Industrial Property and Technological Innovation (ASPIT): The agency’s actions mainly focus on:

• the organization of the Grand Prize of the Head of State in 2015 for the Promotion of Innovation and Technology,
• the establishment of the National Commission for the Coordination and Development of Intellectual Property,
• the Ministerial Conference of the World Intellectual Property Organization held in Dakar,
• the signing of the OAPI Headquarters Agreement,
• the launch of a relay center at Assane SECK University in Ziguinchor,
• the distribution to women’s groups in Casamance of two prototypes
• of biogas fuel furnace.
• the acquisition of the OAPI building in 2015 to house the Headquarters of the Centre for Documentation on Intellectual Property (CDPI) on funding from the African Organization for a total cost of Fcfa 470 million; received in 2016;
• the distribution on a wide scale of prototypes for furnaces, mills and seeders, among others;
• the continuation of actions to support inventors
• the organization of five (5) training workshops on the importance of Geographical Indications in the natural region of Casamance (Oussouye, Ziguinchor, Sédhiou and Kolda) the organization of awareness and training workshops on the importance and opportunities related to Intellectual Property;
• the installation of technology and innovation support centers in universities, research institutes and technical training schools;
• the project of “valorization of mining and quarry discharges; characterization, formulation of new materials for construction”, funded by the African Organization for Intellectual Property (OAPI) and conducted by the Institute of Earth Sciences (IST) of Cheikh Anta DIOP University for an amount of 25 million CFA francs;
• the two research projects of the ESP/UCAD INODEV Incubator on the “establillment of a serial production unit of small-power wind turbines for decentralized and water-depletching rural electrification” for an amount of 24 million three hundred and sixty thousand; and the development of a fertilizer for an amount of more than 20 million CFA francs.

Senegalese Association for Standardization (ASN)

From 2012 to the present day, 216 standards have been developed and published – all sectors combined, including a dozen mandatory applications relating to edible oils, low-energy lamps and concrete iron. In addition, there is the establishment of a certification system for compliance with product standards; the establishment of a technical committee on traditional medicine and the launch of the 3rd phase of the WEST AFRICA QUALITY SYSTEM program funded by the European Union to the tune of €12 million. In addition, a reflection is underway for the creation of a national metrology structure.

Strategic Development Plan (PSD): four priority axes

Covering the period 2017–2021, this plan is declined around four major strategic axes: the Improvement of the Agency’s institutional framework; the Improvement of the Agency’s Governance and management; the Development of the Portfolio of Activities and Intervention Areas and the establishment of a window in the form of revolving funds. Following the Strategic Development Plan, a 2017 – 2019 performance contract has been developed.

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