The business climate in Senegal was in a positive direction at the end of June 2020 compared to the previous month, according to the opinion survey carried out by the Department of Forecasting and Economic Studies (DPEE) among heads of business.
The synthetic indicator of this business climate has in fact gained 5.7 points, going from 95.3 points in May 2020 to 101 points during the period under review, i.e. slightly above its long-term average which is 100 dots. "This situation reflects the favorable orientations of the opinions of industrialists, building and public works contractors (BTP), service providers and traders".

The DPEE survey revealed that in industry, the difficult supply of raw materials (44%), insufficient demand (40%), difficulties in collecting debts (36%) and competition supposedly unfair (28%) were mainly the main constraints to activity. "However, underlines the DPEE, the business climate has strengthened by 6.0 points in the sub-sector, on a monthly basis, under the effect of the positive trends in the balances of opinion relating to production and the outlook for production and orders. For its part, the balance of opinion relating to inventories of finished products remained almost stable.

Regarding the construction sub-sector, the constraints most cited by the entrepreneurs questioned are difficult access to land (50%), difficulties in recovering debts (50%) and difficult access to credit (50%). . Nevertheless, the climate
business was brighter (+20.2 points) in the sub-sector, on a monthly basis, in line with the favorable trends in the balances of opinion relating to general activity and orders (public and private) .

The optimism of business leaders surveyed regarding the outlook for activity and orders (public and private) also contributed to the progress of the indicator in the sub-sector.

With regard to the services sub-sector, the business leaders surveyed mainly mentioned competition deemed unfair (67%), difficulties in recovering debts (56%), taxation (44%) and the insufficiency of demand (33%) as the main obstacles to activity, in June 2020. However, the business climate improved by 3.7 points in the sub-sector, on a monthly basis. "This situation reflects the good performance of the balances of opinion relating to orders and turnover", explains the DPEE, which adds that the optimism of business leaders in relation to the prospects for orders and turnover has, also contributed to the increase in the services indicator.

Regarding trade, the survey highlights the difficulties of recovering debts (100%), the lack of demand (100%), the difficulties of supplying goods (67%) and taxation (67%) as being the constraints to the activity most mentioned by the interviewees. Nevertheless, the business climate strengthened by 8.3 points on a monthly basis, under the effect of the favorable trends in the balance of opinion relating to turnover, the improvement in the situation of inventories of finished products and orders received.

On an annual basis, the business climate in Senegal strengthened by 1.3 points, with a synthetic indicator rising from 99.7 points in June 2019 to 101 points in June 2020.