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Senegal Secures $58 Million AfDB Loan to Boost Agriculture

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Senegal has secured a $58 million loan from the African Development Bank (AfDB) to bolster its agricultural sector and enhance water resource management across nine regions of the country. This financing will support the second phase of an ambitious water resources project aimed at improving food security, boosting rural livelihoods, and fostering sustainable economic growth.

The AfDB’s approval underscores the bank’s ongoing commitment to supporting transformative projects that address Africa’s development priorities. Speaking on the announcement, the AfDB’s Senegal country office director emphasized that the initiative would play a pivotal role in expanding arable land, enhancing irrigation infrastructure, and strengthening market access for farmers.

The water resources project, now entering its second phase, represents a strategic intervention to unlock Senegal’s agricultural potential. Agriculture remains the backbone of Senegal’s economy, providing livelihoods to nearly 70% of the population. However, the sector continues to face challenges such as limited access to irrigation, degradation of salt-affected soils, and inadequate infrastructure to support smallholder farmers.

With this funding, the Senegalese government plans to develop 9,000 hectares of farmland, including targeted reclamation of 1,950 hectares of salt-affected land, a major constraint in the country’s coastal agricultural zones. In addition, 450 hectares will be allocated for collective market gardening areas, enabling smallholder farmers, especially women and youth, to engage in profitable horticultural activities.

The project also prioritizes the rehabilitation and modernization of 15 existing irrigation schemes. By upgrading these critical systems, farmers will have more reliable access to water, reducing their dependence on erratic rainfall patterns. This is particularly significant given the increasing threat of climate variability in the Sahel region, where droughts and floods disrupt agricultural productivity.

A key component of the project involves the development of multiple water points to ensure year-round water availability for farming and rural communities. To promote sustainability and reduce reliance on fossil fuels, at least 10 of these water systems will be powered by solar energy. Senegal, which has abundant solar resources, has increasingly turned to renewable energy as part of its national development strategy, aligning with broader continental and global goals of clean energy adoption.

The use of solar-powered water points not only provides affordable and environmentally friendly irrigation solutions but also supports Senegal’s ambition to build climate-resilient infrastructure. The investment will serve as a model for other African countries looking to integrate renewable energy into agricultural development projects.

In addition to enhancing production, the project will focus on strengthening market infrastructure to facilitate access to local and regional markets. Improved marketing facilities will enable farmers to store, process, and sell their produce efficiently, reducing post-harvest losses and increasing income opportunities. The development of these facilities is expected to create significant value for Senegalese farmers, helping them transition from subsistence to commercial agriculture.

By targeting improved productivity and market access, the project will address some of the structural challenges hindering Senegal’s agricultural competitiveness. This aligns with Senegal’s broader ambition to achieve food sovereignty and reduce dependence on food imports, which have grown substantially in recent years.

The AfDB’s $58 million investment is more than just an agricultural intervention; it is a catalyst for economic transformation. Improved irrigation systems, rehabilitated farmland, and sustainable water management solutions will empower rural communities, particularly women who make up a significant proportion of the agricultural workforce.

Moreover, the project is expected to generate employment opportunities throughout its implementation and operational phases. Construction, rehabilitation, and maintenance of infrastructure will create jobs, while improved agricultural productivity will support long-term livelihoods.

The African Development Bank has been a longstanding partner in Senegal’s development journey. This latest financing builds on previous investments in water resources, infrastructure, and agricultural value chains, demonstrating the bank’s confidence in Senegal’s economic strategy. The AfDB’s support aligns with its High 5 priorities, particularly “Feed Africa” and “Improve the Quality of Life for the People of Africa,” both of which are essential to addressing food insecurity and poverty on the continent.

As Senegal moves forward with this transformative project, the government and the AfDB will focus on ensuring effective implementation and delivering measurable outcomes. The combination of reclaimed land, modernized irrigation, and renewable energy solutions has the potential to unlock the full productivity of Senegal’s agriculture sector while building resilience to climate change.

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