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Embargo against Mali: Senegal, a big loser!

20/08/2020
Source : seneweb.com
Categories: Economy/Forex

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An economic and commercial embargo against Bamako risks suffocating the Malian population. But Senegal, too, will be one of the big losers, because of the weight that Mali represents on the activities of the port of Dakar.


As soon as the coup d'état in Mali took place, ECOWAS decided on firm sanctions against Bamako. In addition to a possible military intervention to restore constitutional order, the regional organization intends to embargo Mali. No more economic or commercial exchanges with the country, as long as the putschists do not return power.

An inopportune reaction, in the eyes of Mamadou Abdoulaye Mbengue, ECOWAS expert on migration issues, also Executive Secretary of Enda Diapol. "The decision was taken in haste and emotion. ECOWAS has gone too fast in its work. Such a measure risks suffocating Mali and adding to the difficulties of the population," he said.  

According to Mbengue, an economic crisis that would be added to the political one is likely to be fatal to the population. It therefore calls on the sub-regional organization to take into account the development of Malians.

Moreover, Mali may not be the only one to suffer. Senegal, too, should feel the repercussions of such a measure harshly.

Indeed, the flow of Malian goods through Senegal is enormous. Bamako is a strategic partner of the Autonomous Port of Dakar (Pad). "Mali's traffic represents 17 to 18% of the traffic of the port of Dakar," reveals the director general of Pad Aboubacar Sadikh Bèye, in issue 23 (Nov-dec 2018) of "Tam-Tam du Docker", bimonthly of the port.

According to statistics from the Autonomous Port of Dakar, traffic with Mali has increased 10-fold in the space of 10 years. "When you take the statistics for 2002, we were at 500,000 tonnes. Today, we are at 3,500,000 tons, "says the director general of Malian warehouses in Senegal, Fousseynou Soumano, in the same company newspaper.

In fact, Senegal accounts for 65 to 70% of Malian imports and exports. This gives a traffic between 400 to 500 trucks per day.

Increase in growth over the past 10 years

This strategic importance means that this neighbouring country is entitled to many advantages at the port of Dakar. "An area dedicated especially to Mali at pier 3 with an area of 2,350 m2 of covered shops, 17,000 m2 of medians and 50,000 m2 in Bel Air housing the Malian warehouses in Senegal", recalled, in 2014, the former CEO of Pad Cheikh Kanté. There are also exceptional rates such as the 10% discount for hangar rentals and 50% on marine charges.

Despite everything, Malian operators still feel cramped. In recent years, they have been asking for an extension. "Today, with the peaks we have, it is practically impossible to continue Mali's activities at the level of the active area of the port. On this, we proposed that there be a neutral zone outside Dakar, by mutual agreement with the port and customs authorities, "said Soumano.

This shows the importance of Senegal in relation to Mali's imports-exports. According to economist Malick Sané, there are two reasons for this. First, the privileged position of Dakar. "Senegal is a country that is largely open to the global economy; this is reflected in the importance of its international commercial transactions, both from the point of view of exports and from the point of view of its imports".

Secondly, the isolation of which Bamako is a victim. "Mali, Senegal's immediate neighbour, has no maritime border and receives a good share of Senegalese exports," he said.

Thus, the port of Dakar could suffer from an embargo against Mali. The question then arises as to whether Dakar has an interest in letting ECOWAS decide on economic sanctions against Bamako.

Obliged to comply with ECOWAS decisions

According to Malick Sané, Senegal must do everything possible to ensure that Mali is not destabilised because of interconnections. "Given the importance of trade relations between the two countries, any protracted crisis in one of the two countries will have damaging repercussions in the neighbouring country, both in the formal and informal sectors, with cross-border trade," warns Sané.

Indeed, as much as Mali imports cement, finished petroleum products, food products, chemicals and manufactured products, Senegal imports from Bamako livestock, fabrics and other agricultural products, recalls the economist.

Only, he adds, Dakar being in a regional organization, it cannot ignore the measures taken. "It must implement the decisions of ECOWAS so as not to weaken a flagship institution of the region," he recommends.

The same point of view was expressed by Mamadou Abdoulaye Mbengue, according to which the State of Senegal is obliged to accommodate the decisions taken, even if it is contrary to its immediate interests. He suggests that Senegal talk to the regional entity in order to avoid the economic blockade being maintained.

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