Senegal’s government invested CFA12.6 billion in peanut sub-sector between 2010 and 2015. This represents 50% of public investments in agriculture during the period under review. This figure was revealed by World Bank in its –Senegal Groundnut Value Chain Competitiveness and Prospects for Development- report

According to the institution, this amount is double the resource granted to rice sub-sector and seven times that of fish products. It was mainly broken into price subsidies for seed (46%), fertilizer (13%) and support for oil producers (30%).

 Although this enhanced support from government has boosted the sub-sector’s general performance, there is still room for improvement. Indeed, World Bank indicated that in addition to being ineffective, the price subsidy via SONACOS has led to a distortion of competition on the market and slowed the sub-sector’s transition towards modernization. Instead of this financial support, the organization recommends a redirection of investments towards productivity improvement factors such as research and development, advanced irrigation techniques as well as technologies for resilience to climate change.  Let’s recall that in Senegal groundnut sub-sector employs 2/3 of rural population and plays an important role in food security, as the crop is widely consumed in the country (1/3 of total production).

Espoir Olodo