SENEGAL

The Republic of Senegal is a unitary country with a multiparty presidential system. Its current Constitution was adopted in 2001. Amendments were made in 2016, including the reduction of the president's term of office from seven to five years and the creation of the High Council of Local and Regional Authorities (HCCT or Haut conseil des collectivités territoriales), which replaced the Senate. Legislative power is exercised by the National Assembly, the only chamber of the Senegalese parliament, created by Law 60-44 of 1960. Members of parliament are elected for five years by mixed member proportional representation in 53 constituencies corresponding to the 45 departments of Senegal and eight constituencies abroad. The last parliamentary elections took place on 30 July 2017 and the next one is scheduled for July 2022. Local elections are held on a regular basis. The most recent election was held on 23 January 2022, in which local representatives were elected in the municipalities and departments, including the new department (the 46^th, Keur Massar, created by decree on 28 May 2021). Mayors and presidents of departmental councils were elected for the first time by universal suffrage, following changes to the electoral code. Previous elections (regional, municipal and rural) were held in 1996, 2002, 2009 and 2014.

Since its independence in 1960, Senegal has implemented a progressive decentralisation policy in three phases. Initially (Act I of decentralisation), Law 72-25 of 1972 created rural communities. The second phase (Act II) began in 1996 with the passing of the Code of Local and Regional Authorities and Law 96-07, which regulated the transfer of powers to three levels of subnational authorities (regions, communes and rural communities). The 2001 Constitution states that “local authorities shall be autonomously administered by elected assemblies” and that “their organisation, composition and functioning are determined by law”. Local government was strengthened in 2006 by the National Local Authority Development Programme, which incorporates a community-based approach to development (CDD). In the context of the CDD, the central government has updated the legal, regulatory and organisational framework, established an operational system for financing participatory local development and developed guidelines for local and regional authorities and local communities. With the adoption of Law 2013-10 of 28 December 2013 on the General Code of Local Authorities, the country has entered a third decentralisation phase. Act III of decentralisation aims to harmonise decentralisation and local governance efforts. The 2013 General Code of Local Authorities, which replaces the 1996 Code, defines the legal, institutional and financial framework of Act III.

Reflections and initiatives are underway to develop Act III of decentralisation through the revision of the General Code of Local and Regional Authorities (CGCT or Code général des collectivités territoriales); the drafting of a guide on inter-territoriality; the continued drafting of decrees for the application of the CGCT; and the acceleration of the process of reforming local taxation (Local Authority Equipment Fund [FECT or Fonds d'équipement des collectivités territoriales], Decentralisation Endowment Fund [FDD or Fonds de dotation de la décentralisation], and the departmental tax system). Two studies are underway “on the reform of the governance of local and regional authority taxation” and “on the reform of local and regional authority taxation legislation”. Also, under discussion, are (i) the revision of the decree establishing the organisation and functioning of the Regional Development Agencies (RDAs or Agences régionales de développement); (ii) the implementation of the Support Programme for Senegalese Communes and Agglomerations (PACASEN or Programme d'appui aux communes et agglomérations du Sénégal)-Rural, the first program having been limited to communes and urban agglomerations, with an estimated amount of CFAF 352 billion over 5 years, i.e., US 1 455 million PPP 2020), including the departments; and (iii) the preparation of a bill on the status of the local executive.

The Ministry of Local and Regional Authorities, Decentralisation and Land Management (MCTDAT or Ministère des Collectivités Territoriales de la Décentralisation et de l'Aménagement du Territoire) also developed its new Sectoral Development Policy Letter (LPSD or Lettre de Politique Sectorielle de Développement ) for 2020-2024 which aims to further promote equality between local and regional authorities by correcting current imbalances, transferring more powers to local and regional authorities and improving local taxation.

TERRITORIAL ORGANISATION
MUNICIPAL LEVEL	INTERMEDIATE LEVEL	REGIONAL LEVEL	TOTAL NUMBER OF SNGs (2021)
557 communes (Gox), of which 5 cities (Rewu Taax)	-	43 departments
Average municipal size: 30 061 inh.
557	-	43	600

OVERALL DESCRIPTION: Since Act III of decentralisation (law 2013-10 of 28 December 2013), the local and regional authorities in Senegal are the department and the commune, which have legal personality and financial autonomy. The 2013 Code, which replaced the 1996 Code, abolished the regions as local authorities and gave the departments local authority status. There are 557 communes, including 5 cities (Dakar, Pikine, Guédiawaye, Rufisque and Thiès). There are 43 departmental councils, although there are 46 administrative departments. For 3 cities (Dakar, Pikine and Guédiawaye) which are both cities and administrative departments, the State did not set up a departmental council to avoid duplication between two levels of local and regional authorities (city and departmental council). As a result, all the prerogatives of the departmental council are devolved to the city in the cases of Dakar, Pikine and Guédiawaye. This is not the case for the cities of Rufisque and Thiès, whose boundaries do not include all the communes in their department.

In terms of deconcentrated State administration, the country is divided into regions, departments and arrondissements, all of which are headed by officials appointed by the president of the Republic (regional governor, departmental prefect and arrondissement sub-prefect). The country is divided into 14 administrative regions, each subdivided into three or four administrative departments, which are in turn subdivided into a variable number of arrondissements.

REGIONAL LEVEL: The departments are administered by a departmental council, composed of councillors elected by universal suffrage for a five-year term in accordance with the electoral code. Each council is headed by a departmental council president elected by direct universal suffrage. The departmental council is the decision-making body and can propose the promotion of local investment co-ordination and development measures to the communes under its jurisdiction. New departments may only be created by decree, and if existing departments must be geographically extended, this must be done following a consultation process convened by the minister of local government. The consultation must be approved by the departmental council.

MUNICIPAL LEVEL: Communes are local authorities, legal entities under public law. They are created by a decree which establishes the name of the commune, its chief town and the boundaries of the commune. Communes must have a total population of at least one thousand. The neighbourhoods and villages are the basic administrative units of the commune whose status is determined by decree. Communes are administered by a municipal council elected by universal suffrage for a five-year term. The council is headed by a mayor elected by direct universal suffrage. The council of each local authority shall elect an executive body, the composition of which must be in accordance with the provisions of the General Code of 2013.

HORIZONTAL COOPERATION: The General Code of 2013 sets out the rules and procedures for cooperation between local and regional authorities (Articles 16, 17, 19, 279, 283). Local and regional authorities may (i) maintain functional and cooperative relations with each other, (ii) join together to exercise powers of common interest, by creating public cooperation bodies, and (iii) draw up agreements enabling them to pool services and resources to facilitate the exercise of their powers.

Local and regional authorities, on the basis of their own powers, may also sign cooperation agreements with local authorities of foreign countries or international public or private development organisations. The undertaking of cooperation initiatives is based on the willingness to encourage i) the implementation of programmes of common interest, ii) the promotion and co-ordination of development actions. Today, several inter-communal cooperative initiatives led by local and regional authorities with the support of partners are underway. However, these initiatives are hampered by the lack of implementing decrees to standardise the procedures for creating and implementing them. The State encourages the development of these forms of cooperation through MCTDAT, as a means to help the local and regional authorities to take better charge of and respond more coherently and efficiently to the needs of their populations in terms of services and activities within the framework of the transferred powers.

The local authorities are responsible for designing, planning and implementing economic, social and environmental development actions of local interest. Alongside the State, they contribute to the administration and planning of the territory, to economic, educational, social, health, cultural and scientific development, as well as to the protection and enhancement of the environment and the improvement of the living environment.

The 2013 General Code of LRAs, which builds on the 1996 Code and Law 96-07 on the transfer of powers to the regions, communes and rural communities, clarifies the division of responsibilities between central and local governments. Departments and municipalities have clearly defined responsibilities for environmental conservation and natural resource management, health and welfare, youth, sports and recreation, culture, education, planning and urban development. The General Code states that the transfer of responsibilities must be accompanied by the necessary resources to carry out these responsibilities. To ensure community participation, the local executive body is required to establish a framework for community consultation on the planning of local development projects, their implementation arrangements and, in general, on matters affecting local development. At the request of the local and regional authorities, following the recommendations of the National Decentralisation Day in January 2020, the State is now examining how to transfer new powers in the fields of fisheries, agriculture, livestock, tourism, water and sanitation. Most of the powers are shared between the two levels of subnational governments (department and commune) and the State.

Main responsibility sectors and sub-sectors
SECTORS AND SUB-SECTORS	Regional level	Municipal level
1. General public services (administration)	Public buildings and facilities	Administrative services (weddings, births, etc.) Public buildings and facilities
2. Public order and safety	Fire fighting	Municipal police, urban signage
3. Economic affairs/transport	Agriculture and rural development, support for local businesses, departmental tourism	Urban roads, public parks, local tourism
4. Environmental protection	Nature conservation, soil and groundwater protection, climate protection, sanitation	Parks and green spaces
5. Housing and community amenities	Construction/renovation, management	Construction/renovation Street lighting, urban design and planning
6. Health	Hospitals	Primary health care, (health centres) preventive health
7. Culture and leisure	Departmental museums, cultural heritage	Sports, libraries, local museums
8. Education	Secondary and higher education	Pre-primary and primary education
9. Social welfare	Elderly people; disabled people (benefits and services), social development	Social protection for children and young people, support services for families

Scope of fiscal data: Municipalities and departments

SCN 2008

Availability of fiscal data: Medium

Quality/reliability of fiscal data: Medium

GENERAL INTRODUCTION: The provisions relating to local and regional government finances are set out in Title 4 of Law 2013-10 of 28 December 2013 on the General Code for Local Authorities. The implementation of the budgets of the LRAs in 2019 corresponded to the first year in which the Local Economic Contribution (LEC or Contribution économique locale) collected during the 2018 management period was distributed to them. The LEC was instituted by Law No. 2018-10 of 30 March 2018 amending certain provisions of the General Tax Code (CGI or Code général des impôts). Its creation marks the abolition of the previous business tax and the choice of a new tax base, namely the value added, which better reflects the activity of companies. The LEC is a tax consisting of a contribution on the rental value of business premises (LEC/RV or contribution sur la valeur locative), collected for the commune in which the premises are located, and a contribution on the value added by the business (LEC/VA or contribution sur la valeur ajoutée) which is distributed nationally.

At the end of the 2019 fiscal year, the overall financial position of the local and regional authorities shows total annual spending of USD 630 million PPP and revenue of USD 877 million PPP, resulting in a positive balance of USD 247 million PPP.

In 2019, local and regional governments’ revenues increased substantially by 32.5% compared to 2018. Similarly, spending increased by 27.5% between 2018 and 2019. The observed trend is the gradual and continuous increase in revenues and spending as in the previous period between 2016 and 2017, local authorities’ revenues increased by 29% and their spending by 45%.

The strong increase in revenue and spending in 2019, compared to 2018, is mainly due to the effects of the reform of the CGI with the introduction of the LEC. The implementation of the Support Programme for Senegalese Communes and Agglomerations (PACASEN) and the Programme to Open up Production Areas (PDZP or Programme de sésenclavement des zones de production) have also substantially increased their capital investment revenue.

However, the late distribution of transfers (July 2019), decentralisation endowment funds (FDD or Fonds de dotation de la décentralisation), the LEC (August 2019), the Local and Regional Authority Equipment Fund (FECT or Fonds d'équipement des collectivités territoriales) and PACASEN funds received at the end of the year did not allow local and regional authorities to achieve a good rate of absorption of resources This resulted in a significant carry-over of funds at the end of the year, more than 45% higher than the previous year.

Subnational government expenditure by economic classification
2019	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total spending	39	1.1%	3.6%	100.0%
Current spending	29	0.8%	4.1%	75.6%
Staff spending	9	0.3%	4.9%	24.2%
Intermediate consumption	8	0.2%	8.2%	21.0%
Social spending	4	0.1%	-	11.1%
Subsidies and current transfers	2	0.1%	1.3%	6.1%
Financial charges (including interest)	-	-	-	-
Other current spending	5	0.1%	2.2%	13.2%
Capital spending	9	0.3%	2.6%	24.4%
Capital transfers	-	-	-	-
Direct investment (or GFCF)	9	0.3%	4.5%	24.4%

EXPENDITURE: The proportion of local and regional authority spending in total public spending remains low and has remained stable in recent years. As in 2017, local and regional government spending represented 1.1% of GDP and less than 4% of total public spending. In 2019, 75.6% of LRA spending was operating spending, while just under 25% went to capital investment. These percentages are comparable to those for 2017 (74% and 26% respectively).

Staff costs account for almost a third of spending and are the largest component of local and regional governments’ operating expenses. They increased by a quarter compared to 2018. Intermediate consumption expenses doubled compared to 2017 when they accounted for 11.2% of subnational spending. They are followed by social spending, which has also grown strongly, accounting for 11.7% of subnational spending.

DIRECT INVESTMENT: Local and regional authorities’ direct capital investment increased significantly in 2019 compared to 2018, from USD 90 million to USD 154 million PPP, an increase of over 70%. The new revenue obtained from the LEC and the implementation of the Support Programme for Senegalese Communes and Agglomerations (PACASEN) have made it possible to substantially increase revenue and improve the capital investment capacity of local and regional authorities. PACASEN has mainly impacted capital investments in urban communes and agglomerations.

In terms of the distribution of capital investments, the road sector comes first, followed by the education, youth and sport sector and the health, hygiene and social action sector. The emphasis on social investments remains constant. In rural areas, investments are mainly intended to cover basic needs (water, roads, electrification, health, education) and, in urban areas, they are primarily intended to reduce deficits and improve the urban landscape (shopping centres, service buildings, car parks, etc.).

A recent initiative taken by the Municipal Development Agency (MDA or Agence de développement municipal), the "Innovative Financing Project" (PROFIT or "Projet financements innovants"), aims to support local and regional authorities in raising financial resources from private partners, through the financial market, the banking sector and public-private partnerships (PPP).

Subnational government expenditure by functional classification
	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total spending by economic function	39	1.1%	-	100.0%
1. General public services (administration)	2	0.1%	-	4.6%
2. Defence	-	-	-	-
3. Public order and safety	-	-	-	-
4. Economic affairs/transport	0.5	0.0%	-	1.3%
5. Environmental protection	-	-	-	-
6. Housing and community amenities	3	0.1%	-	8.1%
7. Health	1	0.0%	-	2.9%
8. Recreation, culture and religion	-	-	-	-
9. Education	2	0.1%	-	5.4%
10. Social welfare	-	-	-	-

Investment in the roads sector is the main source of spending in the housing and community facilities area, amounting to USD 51.1 million PPP in 2019 compared to USD 31.4 million PPP in 2018. Investment in education, youth and sport reached USD 33.9 million PPP, compared to USD 24.5 million PPP in 2018. Investments in the health, hygiene and social sector also increased by more than 30% compared to 2018 to USD 18.3 million PPP in 2019. This increase in the various spending categories is linked to the improvement in the capacity of local and regional authorities to invest with the LEC and the PACASEN programme, in particular.

Subnational government revenue by category
2019	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total revenue	54	1.5%	5.1%	100.0%
Tax revenue	18	0.5%	3.0%	33.8%
Grants and subsidies	15	0.4%	-	27.7%
Tariffs and fees	-	-	-	-
Income from assets	-	-	-	-
Other revenue	14	0.4%	-	26.4%

OVERALL DESCRIPTION: The revenues of local and regional authorities amount to USD 54 PPP per capita in 2019. They represent 1.5% of GDP and 5.1% of total public revenue. They have increased substantially from 2017 to 2019, as a result of the reforms carried out over the period. Operating revenue accounted for 72% of total revenue and increased by 34% between 2018 and 2019. Investment revenue increased by 42% between 2018 and 2019, partly due to an increase in local and regional authority capital funds under PACASEN.

The State wishes to continue and strengthen the process to make revenue raising more effective and efficient for local and regional authorities through improved mechanisms and interactions between the main stakeholders (State services and local authorities). To this end, the Directorate General of Taxes and Domains (DGID or Direction générale des impôts et domaines) plans to reform the legal and regulatory framework for the generation of the local and regional governments’ tax resources and to restructure the strategic and operational mechanism in charge of managing the local tax chain. The challenges are: (i) to restructure the institutional governance of local taxation, both strategically and operationally; (ii) to pool the efforts of State actors for greater efficiency in interventions (better collaboration between the DGID and the Treasury); (iii) to reconfigure relations between tax administrations and subnational governments on the basis of trust, by setting up local tax commissions (LTC or commissions de la fiscalité locale) and by establishing performance-based contracts This is why the two studies on “Reforming the governance of local and regional government taxation” and “Reforming local and regional government taxation legislation” were launched.

TAX REVENUE: Tax revenues represent 33.8% of total subnational revenues in 2019. They tripled compared to 2018, from USD 100 million to USD 297 million PPP. The proportion of direct local taxes is significant and growing in local finances. The local economic contribution (LEC) represents 48.2% of these revenues.

The DGID notes that the fiscal profile of local and regional authorities varies. The budgets of the five cities (Dakar, Pikine, Guédiawaye, Rufisque and Thèes) are essentially financed by three types of tax revenue: the LEC, the land tax on real estate (CFPB or contribution foncière des propriétés bâties) and the household waste collection tax (TEOM or taxe d'enlèvement des ordures ménagères). The departments do not have any tax revenues, as their budgets are primarily funded by financial transfers from the State, notably the FDD. They do not have access to rebates on state taxes and duties (such as the real estate appreciation tax -TPVM or taxe de plus-value immobilière, the annual tax on vehicles and motor vehicles -TAVEM or taxe annuelle sur les véhicules et engins à moteur), but they may receive income from their assets. The communes, depending on whether they are city communes (those within the city boundaries) or new communes (from the former rural communities), also have different profiles. The city councils mainly receive the distribution of the proceeds of the LEC/VA, the proceeds of the estate and its exploitation, municipal taxes and rebates. They do not receive the same tax revenues from the LEC/RV and CFPB and the TEOM as the cities. The communes of Dakar, Pikine and Rufisque in particular receive substantial revenue from the minimum tax (TRIMF or taxe représentative de l’impôt du minimum fiscal), which is a payroll deduction. The communes of the former rural communities have low tax revenues and are very dependent on financial transfers from the state (FDD, FECT, rebates, decentralised consolidated investment budget - BCI or “budget consolidé d'investissement”, which aims to contribute to local development and to improve access to health and education). These constitute the bulk of their budgetary resources.

Communes levy land taxes that apply to real estate, both developed and undeveloped. The land tax on real estate (CFPB) is the most significant with rates set at 5% of the rental value for buildings other than factories, and 7.5% for factories and similar industrial establishments. The land tax on undeveloped real estate (CFPNB or contribution foncière des propriétés non bâties) is set at 5% of the market value of the land. In addition, there is a surcharge on undeveloped or insufficiently developed land in the communes of the Dakar region and in the regional capitals. The household waste collection tax (TEOM) and the TRIMF represent a significant part of the tax revenue, as do the real estate appreciation tax (TPVM) and the annual tax on vehicles and motor engines (TAVEM), which are subject to a 50% rebate to all municipalities.

GRANTS AND SUBSIDIES: The State of Senegal contributes to the financing of local development projects mainly through two instruments: the Decentralisation Endowment Fund (FDD) and the Local Authority Equipment Fund (FECL or Fonds d’équipement des collectivités locales). In 2019, subnational governments received a total of CFAF 46.4 billion (~USD 194 million PPP) from these two funds: 48% from the FDD and 52% from the FECL. Resources were also allocated to local authorities under (i) the consolidated investment budget (BCI) transferred, in particular in the areas of education and health for an amount of CFAF 452 million (USD 1.9 million PPP), and (ii) rebates (annual tax on vehicles or motor vehicles and real estate appreciation tax) for an amount of CFAF 4.4 billion (USD 18.2 million PPP). Part of the State' s grants (12%) went to supporting certain structures such as local authorities' associations, the ADL and the ARDs.

In total, in 2019, State grants, transfers and subsidies to local and regional authorities amounted to CFAF 58.1 billion, i.e., USD 242.8 million PPP or USD 15 PPP per capita, an increase of almost 20% compared to 2017. These grants, transfers and subsidies are expected to increase by one-third, up to USD 325 million PPP, by 2023.

The allocation modalities and criteria for the distribution of the FECL are established by Decree 2018-1250 of 6 July 2018. As part of the discussions on its reform, the MCTDAT’s Directorate of Local and Regional Authorities (DCT or Direction des collectivités territoriales) has proposed a distribution model based on the principle of territorial equity with a combination of several indicators calculated on the basis of data from the National Agency for Statistics and Demography (ANSD or Agence nationale de la statistique et de la démographie), leading to “annual territorial equity coefficient per capita” for each commune. The annual territorial equity coefficient is determined on the basis of the following weightings: (i) 20% for demography; (ii) 40% for poverty, to prioritise the most deprived local and regional authorities; (iii) 40% for rurality, to favour rural territories with communes of less than 250 inhabitants per km².

The FDD is indexed to the Value Added Tax (VAT) collected each year by the State (3.5% of VAT). It covers two types of grants, an “operating” grant, which is a general financial support from the State, and a “compensation” grant, which aims to finance the implementation of transferred powers in different sectors. Each year, an inter-ministry decree of the ministries in charge of local and regional authorities and of finance, establishes the amount distributed to each type of subnational government that is a beneficiary of the FDD. The reform proposals put forward by the Directorate of Local and Regional Authorities (DCT) aim, among other things, to (i) increase the FDD budget, (ii) create two distinct transfer mechanisms from the FDD, with an operating grant ensuring that the most disadvantaged local and regional authorities have the minimum resources to build up a functional level of decentralised governance and a sectoral grant enabling all subnational governments to play their full role in implementing the transferred powers, and (iii) setting up a permanent and inclusive system for regular monitoring and updating of the powers exercised and the corresponding costs.

OTHER REVENUE: Other revenues represent a significant proportion with 26.4% of total subnational revenues. These include service revenues (fees and charges paid by service users) and revenues from the commune’s property (rent, leases, etc.). Detailed information on the composition of these revenues is not available.

ⓘ No detailed data available for this country

FISCAL RULES: In Senegal, the financial system of local authorities is based on the budgetary principles defined in the WAEMU “Directives on the code of transparency, financial laws and general regulations on public accounting” (“Directives portant code de transparence, lois des finances et règlement général sur comptabilité publique”). The State exerts legality control over all their operations. Because of the principle of unified funds, the authorisation of the minister of finance is required for the opening of private accounts by local authorities outside the State Treasury.

DEBT: Local and regional authorities cannot borrow freely. Law 2013-10 of 28 December 2013 on the General Code of Local and Regional Authorities lists loans and loan guarantees among the acts subject to prior approval by the State representative. For a local authority to borrow, its own-source revenues must cover its current spending (operating expenses and outstanding debt). There are no restrictions on the choice of lenders. Borrowing is done in CFA Francs, and borrowing in foreign currencies is regulated by the WAEMU. Both types of transactions are allowed. Local authorities may also take on debt from the Municipal Development Agency. Borrowing is not yet an instrument used in the financing of Senegalese local and regional authorities. The only known unsuccessful experience is that of the City of Dakar where an attempt to issue municipal bonds in 2015 was finally suspended at the request of the State and a loan from the West African Development Bank (BOAD or Banque ouest africaine de développement) was used. In 2019, no local or regional authorities took out loans according to the DGCPT.

TERRITORIAL MANAGEMENT OF THE CRISIS: At the national level, a response mechanism was established with the Economic and Social Resilience Programme (PRES or Programme de résilience économique et sociale) and the “COVID-19 Force” fund (Decree 2020-884, creating and setting the rules for the organisation and operation of the Response and Solidarity Fund against the Effects of COVID-19, known as “COVID-19 FORCE”). The amount of the Fund is CFAF 1 000 billion (~USD 4.2 billion PPP), or 7% of GDP. By the end of June 2021, USD 3.1 billion PPP had been committed by the Fund - an implementation rate of 74%.

The implementation of the PRES includes an economic recovery component based on four pillars: (i) paying suppliers (USD 1 136 million PPP), (ii) fiscal measures (USD 1 554 million), (iii) supporting affected businesses (USD 296 million) and (iv) funding mechanism (USD 105 million). In comparison, the overall cost of the response and economic recovery plans for the eight WAEMU countries is estimated to be around USD 24.2 billion PPP, for health sector spending (USD 4.8 billion PPP), social assistance interventions (USD 4.4 billion PPP) and, above all, economic recovery (USD 15 billion PPP).

The Ministry of Local and Regional Authorities issued an ordinance (Ordinance 0005-2020 establishing derogations to the functioning of departmental, municipal and city councils) to allow local and regional authorities to make quick decisions to make budgetary adjustments, contribute to the COVID-19 Force fund, grant relief allowances, and purchase food, products and protective equipment against the pandemic. In partnership with the minister of health and social action, a meeting on the involvement of local elected officials in the response to COVID-19 was held on 9 March 2020 at the House of Elected Officials in the presence of the three local and regional government umbrella organisations, the Union of Associations of Local Elected Officials (UEAL or Union des associations des élus locaux), the Association of Mayors of Senegal (AMS or Association des maires du Sénégal) and the Association of Departments (ADS or Association des départements) In practice, however, the involvement of local and regional authorities in the national response and resilience strategy has remained modest and coordination between the government and local authorities has been too weak to ensure that the response is truly localised. For their part, the local and regional authorities have not been able to set up a coherent overall system to coordinate their actions through their associations (AMS, APCD, or UAEL).

EMERGENCY MEASURES TO COPE WITH THE CRISIS AT THE DIFFERENT LEVELS OF GOVERN: Various measures were taken to contain the health crisis within the framework of the state of emergency proclaimed by Decree 2020-830 of 23 March 2020 throughout the national territory: closure of airports, schools and universities, restaurants, suspension of inter-city transport and partial lockdowns, measures that have had a negative impact on industrial and service activities.

Most of the local and regional governments have contributed financially to the national response mechanism “COVID-19 FORCE” fund and have also taken individual measures in their jurisdiction to support the health structures and the poorest populations. In December 2020, the minister of local and regional authorities reported that subnational government support to the COVID-19 FORCE fund had amounted to more than CFAF 7 billion (~USD 29 million PPP), including nearly USD 500 000 PPP from the City of Dakar.

Following the example of the State, some communes have put in place measures to provide financial support to actors in the local economy and to different socio-economic groups (disabled people’s association, motorbike taxi drivers, pensioners, etc.). Various partners have supported them in the development and implementation of communal response plans aligned with the national plan, such as UNDP.

In its 2014-2022 mandate report, the City of Dakar estimates its contribution to the national response strategy against COVID-19 at nearly CFAF 3.5 billion (~USD 15 million PPP). It contributed to equipping hospitals, disinfecting public buildings, including high schools and colleges, and providing the State with all the socio-cultural centres, particularly for accommodating homeless children, etc. It also increased the support provided to actors in the social and solidarity economy (small entrepreneurs, economic interest groupings, informal sector) through its Municipal Development and Solidarity Fund (FODEM or Fonds de développement et solidarité municipale), the number of beneficiaries of which tripled in 2020 and increased more than tenfold to reach 12 350 by 2021.

IMPACTS OF THE CRISIS ON SUBNATIONAL GOVERNMENT FINANCE: The economic and social impact of the pandemic can only be assessed on the basis of approximate and partial estimates at this stage.

At the national level, the macro-economic aggregates show a clear decline in forecast levels. According to the latest forecasts, the GDP growth rate, initially projected to be 6.8% in the wake of the good results obtained since 2014, has been revised downwards by 5.7% to 1.1%, due to the expected slowdown in the secondary and tertiary sectors. The COVID-19 pandemic disrupted economic activities, affecting vital sectors such as tourism, catering, fishing, trade, education and transport. This situation resulted in a slowdown in economic growth, down from 5.3% in 2019 to -0.7% in 2020.

The COVID-19 crisis has had negative effects on the institutional functioning of local and regional authorities and their fragile “financial stability”, as well as on the State. According to a survey carried out by the Ministry of the Economy, out of 388 communes, 218 experienced a drop in revenue, excluding State transfers. These drops ranged from 25% to 70% between 2019 and 2020.

Communes whose revenue comes from local taxation, property income and other sources linked to economic and commercial activity have been more strongly affected than departments whose revenue comes mainly from the State (grants, financial support). The local economic contribution, the minimum tax and the advertising tax, among others, have been particularly affected by the closure of market halls, the restrictions on opening, the limitation of the occupation of public spaces and the ban on weekly markets.

ECONOMIC AND SOCIAL STIMULUS PLANS: To begin the economic and social recovery, the State has stressed the need to adopt a “war economy”, with a reorientation of all policies towards actions to remedy the negative effects of the pandemic on the economy. A reorganisation of development activities has been undertaken through the Adjusted and Accelerated Priority Action Plan (PAP 2A or Plan d’action prioritaire ajusté et accéléré) of Phase II of the Emerging Senegal Plan (PSE or Plan Sénégal émergent). The PAP 2A aims to strengthen private investment with strong support from the State by setting up adapted financing systems to facilitate access to credit for very small enterprises and the informal sector, and extended to large companies. The implementation of the adjusted and accelerated PAP 2A is expected to be accompanied by massive reforms and investments, particularly in the social sectors, agriculture, aquaculture, livestock, digital and industry. Various related programmes are also being implemented by the State, including “the Programme for Employment, Economic Transformation and Recovery in Senegal” (ETER or “Programme pour l’emploi, la transformation économique et la relance au Sénégal”) supported by the World Bank with USD 125 million (current dollars) to support Senegal’s resilient economic recovery after COVID-19.

Act III of decentralisation is a part of the agenda of making the PSE operational and local. The implementation of PSE part 3: The “governance, institutions, peace and security” programme should make it possible to more effectively take into account the objectives of improving the economic, financial and fiscal framework of the local and regional authorities, regional planning and the localisation of public policies.