India - Senegal Economic and Commercial Relations

Bilateral Economic and Trade Relations

The highlight of 2003-04 was the State visit of President Abdoulaye Wade to India from 12th-15th October 2003. President Wade was accompanied by Senior Minister for Industries & Handicrafts; Senior Minister in the Presidency; Minister for Finance & Economy; Minister for Agriculture; Minister for Infrastructure, Transport & Equipment among other senior officials. The delegation also included leading businessmen. In Delhi, besides the call on the Hon'ble President , Hon'ble Vice-President, the Minister for Agriculture and the Minister for Chemicals and Fertilizers called on President Wade and discussed issues of common interest. There was one-to-one meeting with Hon'ble Prime Minister followed by delegation level talks.

The economic component of the visit included visit to Indian Agricultural Research Institute (IARI), New Delhi, Tata and Bajaj factories in Pune and the Infosys headquarters in Bangalore. President Wade interacted with the Captains of the Indian industry at an event organized jointly by Federation of Indian Chamber of Commerce and Industry (FICCI) and Confederation of Indian Industry (CII).

During the visit the Government of India announced the offer of $15 million concessional line of credit for small-scale industries and agricultural equipment. GOI also offered to conduct feasibility study and detailed project report for the 882 kilometers Dakar-Tambconda-Ziguinchor railway line on grant basis. Besides the Joint statement during the visit, Agreement on Cultural Exchange Programme, Agreement on cooperation between Press Trust of India (PTI) and Senegalese Press Agency (APS), Agreements related to economic cooperation between National Small Industries Cooperation (NSIC) and Senegalese Agency for Development of Small and Medium Enterprises (ADEPME) and National Institute for Entrepreneurship and Small Business Development (NIESBUD) and ADEPME were signed during the visit.

Other Bilateral visits

2003- 04

Mr. Digvijay Singh, Hon'ble Minister of State for External Affairs (MOS) visited Senegal from 16-20 September,2003 and participated at the inauguration of Indo-Senegalese joint venture SENBUS Industries.

Mr. Sanjay Singhal, an expert from RITES India Ltd. visited Senegal in May,2003 on a month long consultancy regarding the traffic problems of Dakar.

Dr. D.K. Bhardwaj, Group General Manager, NRDC was invited by the Government of Senegal on a one-month consultancy regarding cooperation in the agriculture sector during March-April,2003. A National Task Force for cooperation with India in the agriculture sector was set up by President Wade. Subsequently, a three-member Senegalese delegation has visited India to look at maize processing equipment in Bangalore, Mysore and Hyderabad.

An Indian Agricultural Expert Dr. S.D. Deshpande visited Dakar from 12-22 Januray,04 to assist Senegal in maize conservation and processing.

2002-03

In 2002, there has been visit of several Senegalese delegations to India. Mr. Pierre Goudiaby Atepa, Special Advisor to the President visited India from 6-13 July,2002 to explore possibilities for cooperation in the transportation sector. A three member Senegalese Delegation led by Mr. Assane Ba, Special Assistant to the President visited India from 25th July-1st August,2002 in connection with the Conference on " India and NEPAD: Furthering Africa-India Economic Cooperation". The delegation also had discussions with different Ministries of the Government of India for exploring specific areas for technical cooperation including sectors like information technology, textiles, food processing and small & medium enterprises. As a followup to that visit, a National Task Force on India-Senegal cooperation has been setup under the Presidency to strengthen economic cooperation between the two countries. A five member Senegalese Delegation led by Mr. Youssuf Sakho, Minister for Transport and Equipment visited India from 11-14 August,2002. The visit was a followup to the Gudiaby visit and formalised cooperation in the public transport sector with Indian private sector parties.

Bilateral Trade

India is among the top two trading partner of Senegal, the other being France. India i.e. IFFCO, GOI & SPIC, holds equity share in the Industries Chimiques du Senegal (ICS) which is the phosphate mining and processing company. After the completion of the current expansion programme of the ICS, the equity participation of India has gone up to nearly 30%. India was the largest importer of Senegalese goods in 2000-01 with Indian imports valued at USD 44.34 mn, which comprised mainly of rock phosphate and phosphoric acid. Total value of Indian goods exported during 2000-2001 was USD 23.77 mn . The Indian import and export figures were USD 133.60mn and USD 23.03 mn respectively in 2001-2002. For 2002-03 the import and export figures were USD 172.41 mn and 51.35 mn respectively. India's principal exports to Senegal are cotton yarn & textile, metal manufactures, transport equipment and drugs & pharmaceuticals. The UB Group's local textile factory known as SOTIBA SIMPAFRIC was closed down in late 2001. It also owned a paint-manufacturing unit, which was sold in early 2001.

The Tata Motors have won a $19 million World Bank tender for supply of public transport buses to Senegal as part of the scheme to revamp the local transport system. Furthermore, on 17th September 2003, the Indo-Senegalese joint venture SENBUS Industries, established for assembly of Tata buses with 40% equity from INMA International Ltd. and technology from the Tatas, was inaugurated at Thiès. Hon'ble MOS (DS) represented Government of India at the ceremony to which Senegal had also invited the Presidents of Burkina Faso, Cape Verde, Mauritania, Sudan; the Prime Minister of Togo and the Minister for Private Sector & Investment of Mali. The Thapar Group has invested in one of the largest textile spinning mills in West Africa, INDOSEN, to produce fabric and terry towels for export under AGOA.

In August 2003, Industries Chimiques du Senegal (ICS) invested an additional $10 million towards capacity expansion. ICS is involved in mining and processing of phosphates. India's equity share is around 30% of the total equity of ICS. India imported $140.2 million worth of phosphoric acid during the fiscal year 2002-2003 and expects to import $155 million during the next fiscal year 2003-2004.

Indian companies in Senegal

IFFCO : IFFCO has shareholding in Industrie Chimique du Senegal (ICS) and has recently contributed US$ 10mn towards equity and bridging finance of US $ 10mn for doubling the phosphoric acid production capacity of ICS.

TATA Motors Ltd.: TATA Motors have won the USD 19 mn World Bank tender for renewal of the Senegalese public transport fleet and in this context, are providing technical support and CKD kits to SENBUS Industries.

Thapar Group : Set up a Joint venture "Indo Sen" recently with National Textile Company (NSTS) of Senegal with 60% of equity for renovating the existing spinning and weaving plants at Kaolack and for producing readymade garments for exports at Louga.

INMA International Ltd : Associated with the ETDC Project in Senegal, have shareholding in SENBUS Industries and plans to set up a three wheeler assembly unit.

HMT (I) : Involved in ETDC project and Agricultural Development Project. Have appointed a local sales agent M/s. SICAS for spare parts and Machinery for tractors and other agricultural equipments.

CSL Limited : Projects in construction sector and in drilling of wells.

Pharmaceuticals: Ranbaxy and Micro exports Ltd. have their representatives in Senegal. Serum Institute of India have their active presence in vaccines. Besides, several other pharmaceutical companies have had their products registered in Senegal.

Technical & Economic Cooperation

India has been providing technical assistance, both under G-15 and under ITEC. The following important projects have been executed under Indian assistance in Senegal:

a) Entrepreneurial Training & Development Centre (ETDC): This Centre was built with Indian technical and financial assistance under G-15 rubric at an estimated cost of $4.49 million. It provides technical training in mechanical maintenance, civil engineering, electrical, electronics, metal-plating, refrigeration and air-conditioning. HMT (International) of India was the main contractor and the project was informally handed over to the Senegalese government in July 2000. Classes commenced since January 1999. The alst of the eight Indian experts deputed for a two-year period to impart training to the Senegalese instructors at the Centre left Senegal in July 2001. The ETDC benefits technical students from Senegal and other francophone countries in the region. It was formally inaugurated by Shri Omar Abdullah, Minister of State for External Affairs on 23rd March 2002. Currently around 380 students from 13 countries are undergoing training in ETDC .

b) Solar Energy Project: A village electrification project in Senegal through Solar Energy was implemented under the G-15 Co-operation Programme. Central Electronic Limited (CEL) installed the equipment and one Senegalese technician underwent training in India to operate the system. The project entailed installation of 245 Solar PV Powered Home Lighting Systems and two Medical Refrigeration Systems at villages Soune and Touly. The systems were commissioned in January 2000.

c) Agricultural Development Project: This project , implemented by HMT ,envisaged the setting up of two agricultural centres at St. Louis in the north and Tambakounda in the south for development of rice farming and for growing better variety of cotton respectively supported by equipment including 100 tractors, multi-crop threshers, combined harvesters, maize threshers, rice shellers, seeds, one drilling rig and 200 diesel pumps besides technical assistance. The cost of the project was around US $2 million. The Indian Project Director and other Indian experts have since completed their assignment and returned to India. In view of its success, Government of Senegal extended the project for two years i.e. 2001 and 2002 at their own expense and imported 30 more tractors on commercial terms.

d) Computerisation of Prime Minister's Office: The computerisation of the Prime Minister's office costing around Rs. 36 lakh was undertaken in 1995-96 under the G-15 Coopeartion Programme. Thirty computers with fax and internet facilities were formally handed to the Senegalese PM Mr. Habib Thiam in August1996.

ITEC

Senegal regularly avails of training facilities under the ITEC. Senegal utilised 11 slots in 1999-2000, 8 in 2000-2001, 15 in 2001-02, 8 in 2002-03 and 13 slots so far during 2003-04. A two member Senegalese delegation also visited India on study tour under the ITEC programme in 2002-03 to explore the possibility of cooperation in SMEs sector.

Source : Indian High Commission, Senegal