Heads of companies operating in industry in Senegal complained about the difficult supply of raw materials and difficulties in debt collection in April 2021, according to the results of an opinion survey carried out by the Department of Forecasting and Economic Studies (DPEE) based in Dakar.
The DPEE underlines in fact that the business leaders that its teams surveyed mostly mentioned the difficult supply of raw materials (40%) and the difficulties of debt collection (40%) as being the main factors limiting development. of the sector.
Far behind these two factors, the survey of this structure identified supposedly unfair competition (24%) and insufficient demand (20%) as other constraints. << In addition, the business climate deteriorated (-9.3 points) in the sub-sector, on a monthly basis, under the effect of the negative trends of the balances of opinion relating to production, orders and to the prospects of orders >>, indicates the DPEE.
Regarding the buildings and public works (BTP) sub-sector, the constraints most cited by the entrepreneurs interviewed are the difficult recovery of debts (80%) and insufficient demand (60%). Nevertheless, the business climate improved slightly by 0.1 point in the sub-sector, on a monthly basis, in connection with the particularly favorable trend of the balance of opinion relating to public orders.
In the services sub-sector, business leaders interviewed by the DPEE mostly noted the difficulties in debt collection (50%), competition deemed unfair (40%), taxation (30%) and insufficient demand (30%) as the main obstacles to activity in April 2021. “However, the business climate has improved by 10.2 points in the sub-sector, on a monthly basis”, indicates the DPEE which adds that this situation reflects the good orientation of the balances of opinion relating to the turnover and the tariffs practiced. The optimism of respondents about the outlook for pricing services also contributed to the improvement of the sub-sector indicator.
Overall, the business climate in Senegal improved in April 2021. The indicator that synthesizes it, calculated on the basis of the balances of opinion of business leaders, has thus gained 2.5 points above its long-term average which is 100 points. The DPEE notes that this marked improvement reflects the gain in confidence of construction contractors and service providers.