Announcement of World Bank, IDA and, IFC to Join in Investment Promotion in Senegal on May 14, 1981

FOR IMMEDIATE RELEASE .world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/93 May 14, 1981 IDA NEWS RELEASE NO. 81/80 WORLD BANK, IDA AND, IFC TO JOIN IN INVESTMENT PROMOTION IN SENEGAL Senegal's efforts to promote productive investments in export-oriented indus- tries will be assisted by the World Bank, the International Development Association (IDA), and the International Finance Corporation (IFC). IDA is the Worid Bank's soft-loan affiliate, and IFC its affiliate for investment in private enterprises. The investment promotion project will be supported by a combination of World Bank and IDA resources ($6.5 million and SDR 2.1 million, equivalent to $2.5 million, respectively). These funds will supply technical assistance to the Societe Financiere Senegalaise pour le Developpement de 1' lndustrie et du Tourisme (SOFISEDIT), as well as a line of credit for investments in small- and medium- scale enterprises, fisheries, and the tourism sector. IFC will participate in a capital increase for SOFISEDIT, which was established in 1974 with World Bank assistance. • In addition, the Societe Nationale d'Etudes et de Promotion lndustrielle (SONEPI) will be assisted in developing a program of project preparation and assistance to sma11 enterprises. Studies to help elaborate government policies to promote investments, as well as a training component for the Ministry of Indus- trial Development and Artisans, are also called for under this project. It is expected that the project will help increase the participation of local entrepreneurs in the country's industrial sector, and enhance the capability of SOFISEDIT and SO~~PI to identify and promote sound investment projects. SOFISEDIT, SONEPl,and the Ministry of Industrial Development and Artisans will implement their respective project components. The World Bank loan is for 18 years including 3 years of grace, with interest at 9.6% per annum. The IDA credit is for 50 years, including 10 years of grace and bears no interest, except for a service charge of 3/4 of 1% per annum to cover the Association's administrative costs. The !FC contribution is in the form of an equity participation in SOFISEDIT. The credit will be committed when funds are available. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights)j which are valued on the basis of a "basket" of currencies. The U.S. dollar equiv- alent of the SDR amount of the IDA credit reflects the exchange rates • existing at the time of negotiation of the credit .