Senegal - Investment Promotion (Third SOFISEDIT) Project

Document of The World Bank FOR OFFICIAL USE ONLY FILE tt tt Report No. 3179a-SE SENEGAL INVESTMENT PROMOTION PROJECT STAFF APPRAISAL REPORT March 26, 1981 Industrial Development and Finance Division Western Africa Project Department This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENT Currency Unit = CFA Franc (CFAF) US$1 = CFAF 235 CFAF 1 million = US$4,255 The CFA Franc is pegged to the French Franc at the fixed rate of CFAF1 = FFO.02 and floats vis-a-vis the US dollar. FISCAL YEAR Government and SONEPI = July 1 - June 30 SOFISEDIT = October 1 - September 30 ABBREVIATIONS BADEA Banque Arabe pour le Developpement Economique de l'Afrique BCEAO Banque Centrale des Etats de l'Afrique de l'Ouest BHS Banque de l'Habitat du Senegal BIAO Banque Internationale pour l'Afrique de l'Ouest BICIS Banque Internationale pour le Commerce et l'lndustrie - Senegal BNDS Banque Nationale de Developpement du Senegal BOAD Banque Ouest Africaine de Developpement CCCE Caisse Centrale de Cooperation Economique CEAO Communaute Economique de l'Afrique de l'Ouest CII Comite Interministeriel des Investissements CSCE Centre Senegalais du Commerce Exterieur CVCCEP Commission de Verification des Comptes et de Controle des Etablissements Publics DEG Deutsche Entwicklungsgesellschaft EEC European Economic Community KfW Kreditanstalt fur Wiederaufbau ONCAD Office National de Cooperation et d-Assistance au Developpement SGBS Societe Generale de Banque au Senegal SME Small- and Medium-Scale Enterprises SOFISEDIT Societe Financiere Senegalaise pour le Developpement de l'Industrie et du Tourisme SONAGA Societe Nationale d'Assistance et de Garantie SONEPI Societe Nationale d'Etude et de Promotion Industrielle SOSEPRA Societe Senegalaise pour la Promotion de l'Artisanat TCR Taxe de Cooperation Regionale TPS Taxe sur les Prestations de Service USB Union Senegalaise de Banque  FOR OFFICIAL USE ONLY SENEGAL INVESTMENT PROMOTION PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. I. THE SETTING ................................................ 1 A. The Economy ............................................ 1 B. The Industrial Sector .................................. 2 C. The Fishing Industry ................................... 6 D. The Tourism Sector ..................................... 7 E. The Financial Sector ................................... 8 II. THE INSTITUTIONS ........................................... 10 A. SOFISEDIT .............................................. 10 The Institution ...................................... 10 Operations and Finance ............................... 13 Past Performance and Prospects ....................... 15 B. SONEPI ................................................. 16 III. THE PROJECT ................................................ 18 A. Origin and Objectives .................................. 18 B. Project Description .................................... 19 C. Project Costs and Financing ............................ 23 D. Project Implementation ................................. 25 E. Benefits and Risks ..................................... 26 IV. RECOMMENDATIONS ............................................ 27 This report is based on the findings of a mission to Senegal by Patrice J. Dufour and Robert E. Hindle in April-May 1980. L This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.   LIST OF ANNEXES ANNEX 1 - SENEGAL: Gross Domestic Product by Sector of Origin (1972-76) ANNEX 2 - SENEGAL: Distribution of Medium- and Long-term Loans Outstanding (1975-79) ANNEX 3 - SOFISEDIT: Actual Operations (1975-79) ANNEX 4 - SOFISEDIT: Analysis of Lending Operations (1975-79) ANNEX 5 - SENEGAL: Interest Rate Structure (April 1980) ANNEX 6 - SOFISEDIT: Forecast of Loan and Equity Approvals ANNEX 7 - SOFISEDIT: Historical and Projected Income Statement ANNEX 8 - SOFISEDIT: Historical and Projected Balance Sheets ANNEX 9 - SOFISEDIT: Past and Projected Financial Ratios ANNEX 10 - SONEPI: Financial Statements (1978-79) ANNEX 11 - SONEPI: Organization Chart ANNEX 12 - PROJECT: Estimated Disbursement Schedule ANNEX 13 - PROJECr: Selected Documents in Project File   SENEGAL SOFISEDIT Basic Data Cumu- Year Ending September 30: 1975 1976 1977 1978 1979 lative ---