Announcement of Three Million US Dollars Loan to Societe Financiere Senegalaise pour le Developpement Industriel et Touristique on May 23, 1974

INTERNATIONAL BAl'.lK FOR • RECONSTRUCTION Af'\JD [)E\/ELJ f , 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Press Release No. 74/36 Subject: $3e0 million loan to Societe May 23, 1974 Financiere Senegalaise pour le Developpement Industriel et Touristique. The World Bank has approved a $3.0 million loan to the Societe Financiere Senegalaise pour le Developpement Industriel et Touristique (SOFISEDIT) to help finance industrial and tourism projects. The loan is guaranteed by the Republic of Senegal. Although the Senegal economy is dominated by the agricultural sectors, the main possibilities for development are fisheries, tourism and manufacturing. Thanks to rich resources of the coast, fish production has been growing rapidly. Internati.onal tourism to Senegal has started to develop only in recent years, but prospects for further expansion of this sector are promissing. S~negal developed its industry earlier than other West African countries and its industrial labor force is one of the best in Africa. In 1972, the industrial sector, with an • annual growth rate of 6-7 per cent accounted for about 15 per cent of GDP, as compared to 8 per cent in 1960 and employed 20,000 persons or 14 per cent of the country labor force. The present loan will help the newly created SOFISEDIT to fulfill its objectives which are to promote Senegal's growing group of local entrepreneurs by promoting and financing the establishment, expansion and modernization of enterprises in the industrial and tourism sectors. To this end SOFISEDIT will collaborate closely with SONEPI which was established in 1969 for the purpose of developing small to medium scale Senegalese controlled industrial enterprises through its participation and guarantee funds. The present loan is made directly to SOFISEDIT at 7-l/4'per cent interest per annum and repayable in substantial conformity with the aggregate of the amortization schedules for sub-loans for which withdrawals from the loan are requested and approved. The International Finance Corporation, an affiliate of the World Bank is participating in the share capital of the new company for up to $200,000. -0-· • Note: Money figures are e.xpressed in US dollars equivalents.