The World Bank yesterday published the results of a study on the business environment, in particular the
unfair competition. According to that report, extensive price controls may, in the medium term, lead to
inefficiencies and discourage increased productivity or affect the quality of delivered products.
Worse, these structural constraints compromise the efficiency of investment and the sustained growth of the
country.
For several years now, the national private sector has complained of being excluded from the large state contracts, but
also of the unfair competition which reigns around this public order. And so far no measure
has been taken to involve it in the execution of certain public projects. Yesterday the World Bank made
public its report on public procurement, which also denounces unfair competition. Indeed, according to
the Bretton Woods institution, the presence of public companies on markets that are otherwise
questionable, such as the production of fertilizers, the processing of groundnuts and in the sectors
of networks, combined with restrictive state regulation, seems to hinder the entry of the private sector
in the markets. The document reveals that at least one public company is present in 13 sectors.
Indeed, she argues that despite recent positive trends, growth in agriculture has been slow
and volatile, and productivity gains have become scarce, despite the sector's high potential and its share
significant number of jobs. Moreover, it notes that the country does not take full advantage of the infrastructure
existing. "Although this is in line with the OECD average, it may be worth reconsidering
the direct involvement of the State through national companies in several Senegalese markets. The
groundnut processing or fertilizer production, for example, involve industry players
private sector and are traditionally economic activities that can be better carried out by the private sector.
private than by national companies. Competitive neutrality in these markets is therefore crucial for
these value chains," noted the World Bank.
Eliminate constraints on competition
Continuing, the international financial institution points out that the State intervenes in the economy by
regulation of end consumer prices. According to World Bank economists,
even if States pursue different objectives in controlling prices, such as protecting consumers against
price increases or protect the incomes of small producers, price administration can distort
multi-player markets, for example by facilitating secret agreements or by reducing the incentives to
invest. "In Senegal, the state regulates the prices of at least 15 goods and services, including rice and bread,
other food products such as soybean oil, sugar and wheat flour, agricultural inputs such as
fertilizers, seeds and machinery, electricity, gas (where the sectors present
natural monopoly characteristics) and a variety of other products, including freight, fuels and
pharmaceuticals,” the report points out. Not without specifying that the methodology for selecting these
products and establishing or evaluating the level of prices is unclear. Because, it is explained, the prices
are set by a commission made up of representatives of different ministries, producers,
private sector associations and consumer associations. Thus, the World Bank denounces the
fact that the regional commissions of the Ministry of Commerce are responsible for monitoring these prices. "By
example, in freight transport, the State provides and monitors price bands and sets price ceilings
retail for gasoline and heating oil. In the medium term, extensive price controls can lead to
inefficiencies and discourage increased productivity or affect the quality of delivered products",
complete the document.
Faced with its many shortcomings in the business environment, the World Bank ensures that a
more effective competition policy would strengthen Senegal's ability to fight against
anti-competitive behavior and promote pro-competitive policies.

As a recommendation, the World Bank is convinced that the search for solutions to eliminate
constraints on competition can have a positive impact. This, not only on the diversification
economy and growth, but also on poverty reduction. For her, the elimination of
constraints on market competition is not only important for the development of the
private sector, but also for households in Senegal.