SUQALI

Since the start of the global COVID 19 pandemic, the Senegalese economy has experienced a sharp slowdown: lower consumption and domestic demand as well as a slowdown in international trade have caused GDP to fall by 0.7% in 2020. Tourism, transportation, and trade have been the most impacted sectors.

While MSMEs play a key role in the country’s growth (contributing up to 40% of GDP and being a major source of employment), they have been particularly affected by the crisis, mainly because of their fragility and limited resources. Indeed, among the obstacles they face are: the lack of support for sustainable business management (administrative, tax, accounting and finance, etc.), limited access to credit and the lack of flexibility and adaptability (lack of cash flow) to enable them to react quickly to market changes and external shocks.

The informal sector must be taken into account in the response to the crisis, as 9 out of 10 workers are informally employed and 97% of businesses are informal. The employment and income crisis is also an issue.

In particular, youth and women (especially in the informal sector and in rural areas) are the most affected by the socio-economic impacts of the crisis and it is therefore essential to focus recovery efforts on MSMEs run by this population.