PROGRAMME FOR COUNTRY PARTNERSHIP: Senegal

1. PROGRAMME FOR COUNTRY PARTNERSHIP:Senegal How does the PCP-SEN operationalize ISID through partnerships? Key results after a year of implementation 14 April 2016

2. Summary • Results: • Coordination and partnerships • Key achievements and leveraging effect • How does the PCP-SEN generate inclusiveness? • How is the issue of sustainability addressed? • 2016 deliverables: • PCP-SEN implementation • Partnerships and investment mobilization 2

3. Results: Coordination and partnerships (1) • UNIDO as the main advisor on ISID to the Government of Senegal • Government ownership and PCP visibility at the highest level • National Steering Committee composed of high-level officials from the President’s Office, the Prime Minister’s Office, Ministry of Industry, BOS and the private sector • Government annual funding secured: USD 1 million per year (total USD 4 million) • A change of mindset towards industrialization now at the centre of the Government’s development agenda • Rationalization of financial resource allocation for industrial component of the Plan Senegal Emergent: Partner and Donor Working Group & mechanisms • Coordinate business and development partners interventions and investments for industrial component of the PSE and promote membership of new partners • Propose financing tools and mechanisms to mobilize additional funding and investment 3

4. Results: Coordination and partnerships (2) • Pledging meetings and 1st Partner and Donor Roundtable in May 2016 • Objective: Financing of PCP SEN through pledging – Result of partner engagement process • Mapping of partner interventions and financial gap analysis • Presentation of PCP-SEN technical assistance and investment project portfolio • Reinforce synergies between PCP-SEN components and partner interventions • PDWG operational and alignment with partner programmes • 28 technical and financial partners mobilized • 16 bilateral donors, 12 multilateral donors • New investment partners identified for Senegal: • Non-traditional donors: Belgium, Canada, Poland, Russian Federation, UK, USA • Multilateral donors: FAO, ITC, UNCDF, UNDP, UNECA • All new UNIDO agreements with AfDB, China Development Bank, EIB and IDB include the PCP • Technical and financial partners recognize UNIDO as a key actor for industrialization in Senegal 4

5. Results: Coordination and partnerships (3) • Strong participation of national private sector • UNIDO organized PCP-SEN awareness workshops for the national private sector, which led to a change of mindset • Growing interest for private investment in the PSE and private funding to UNIDO TA • Growing interest of the international private sector and foreign investors • UNIDO implementation: synergies and better internal coordination • UNIDO to mainstream all its TC programmesin Senegal • Multidisciplinary PCP-SEN technical team established and joint missions organized to Senegal to leverage interest of partners, build team spirit, promote cost-efficiency interventions and rationalize use of resources • Development of an impact-based M&E framework 5

6. Results: Key achievements and leveraging effect (1) • Pre-investment services and recommendations provided for integrated industrial parks (IIPs): • Master plan for the development of IIPs including: • Incentive regime for firms and investors • Benchmarking analysis of Senegal vis-à-vis its competitors • Cost-benefit model & economic and financial analyses transferred to Diamniadio IIP authorities • Review of legal, regulatory and institutional frameworks related to IIPs • Development and design of PPP management structure for Diamniadio and capacity-building of relevant national counterparts • UNIDO interventions triggered: • Mobilization of USD 32 million of public financing for phase 1 of IIP development • Definition of the IIP concept and its positioning in comparison with other countries • Growing interest from partners such as China, AfDB, EIB and IDB • Four private sector FDI delegation visits to Senegal aiming to relocate to Diamiandio • 1st international private sector garments factory to start operations in 2016 6

7. Results: Key achievements and leveraging effect (2) • Industrial policy • Identification of three competitive labour-intensive sectors based on Senegal’s comparative advantage to achieve quick wins, using targeted investment promotion, incentives, and developing sustainable industrial infrastructure (GIFIUD) • Staff of relevant ministries and institutions trained on industrial strategy design and implementation • Agro-poles: A comprehensive value chain analysis of the agro-industrial sector, followed by opportunity studies (collection of baseline data related to the development of agro-poles, including a business plan) • Concept of agro-poles defined (including composition, service provision and stakeholder involvement) • Close collaboration between UNIDO and all donors & non-traditional partners expected to participate in the governance of the agro-poles • Master plan for agro-poles developed and implementation to start as early as 2016 • Partner interest triggered (e.g. IDB) 7

8. Results: How does the PCP-SEN generate inclusiveness? • Agro-poles and rural development • Local governance structures for agro-poles management • Linkages between large-scale companies and rural SMEs • Enhanced capacities of women and youth trough skills training and rural entrepreneurship • SME regional industrial mining hub in Kedougou • Creation of industrial activities in remote areas/decentralization • Local SMEs linked with international supply chains of mining companies • Attracting international private sector and foreign investors • Focus on small and medium-sized industries • Local SME development, taking into account existing enterprises and access to finance • Local cluster development programme & youth and women entrepreneurship and employment • Clustering of local private sector in agro-poles, industrial parks and industrial mining hub • Supplier development with FDI/UNIDO’s SPX and investment monitoring programmes 8

9. Results: How is the issue of sustainability addressed? • All PCP-SEN vertical interventions are supported by environment and energy cross-cutting components • Resource efficiency and cleaner production assessment • Energy efficiency and resource efficiency technologies and services • Greening of targeted value chains • Sustainable Cities Programme in Senegal • Partnership with GEF, WB and GoS • Objective: Senegal as a green cities model for West Africa • Integrated approach: pilot on sustainability and resilience for food security in Senegal • Partnerships with IFAD and GoS • Objective: Increased sustainability and resilience of agricultural value chains for enhanced food security • GEF integrated project on e-waste management • Engagement with Climate Technology Centre and Network (CTCN) and Partnership for Action on Green Economy (PAGE) 9

10. 2016 deliverables: PCP-SEN implementation (1) • Integrated industrial parks • Finalization of incentive package and legal framework for Diamniadio • Establishment of a private-public dialogue platform • Planning and preliminary studies for establishment of additional IIPs • Training on cost-benefit analysis, eventually to be applied to additional IIPs • Technical assistance for the creation of mixed-economy • Investment promotion strategy developed • Competitive and integrated agro-poles • Finalization and validation of feasibility studies by GoS and technical and financial partners • Investment promotion strategy developed • Establishment of the first agro-pole • Industrial mining hub • Technical support to local SMEs through sub-contracting and upgrading • Investment promotion strategy developed 10

11. 2016 deliverables: PCP-SEN implementation (2) • Implementation of South-South and triangular industrial cooperation component (rice production and processing project) • Objective: Support the GoS in achieving rice self-sufficiency by 2018 • Joint mission with CAD Fund to discuss investment opportunities in rice value chain • Implementation of innovation, science and technology component • Launch of the Industrial Development Report (April 2016) • Survey of Senegal’s national system of innovation and national firm-level innovation study & productivity analysis • Establishment of a national innovation and productivity observatory • Continued implementation of cross-cutting components • RE and EE technologies and services • Resource efficient and cleaner production services, and greening of value chains • Quality certification services 11

12. 2016 deliverables: Partnerships and investment mobilization • Funds and partnership mobilization strategy – Phase 2 • TA implementation budget for Phase 1: USD 3 million • PCP project portfolio (TA, investment) development for partnerships • PSE Partnership and Donor Working Group pledging rounds • PCP international road shows in Asia, Europe and US • PSE investment promotion initiatives • ISID Regional Investment Forum 2016 in Dakar, Senegal • Present tangible results of PCP-SEN and PCP-ETH and share experiences and lessons learned with West African countries regarding PCP implementation • Promote the PCPs as operational country programmes for investment promotion and partnership mobilization • Promote PCP investment projects to international and regional key actors (private companies, investors, DFIs, funds, etc.) • Implementation of ISID investment monitoring programme • Consolidate UNIDO investor survey with ISID data through survey implementation, establish investment monitoring platform, and capacity-building of IPA and relevant institutions

13. Thank you! Tidiane BOYE Team Leader PCP-SEN 14 April 2016