This fiscal year marks the signing of MIGA’s 1,000th project, which provides guarantees allowing the Senegalese government to increase its interest in the current operator of container terminals at the port of Dakar and future port of Ndayane. The MIGA-covered loan facility is expected to decrease the present value of the total debt service of the facilities being refinanced. In addition, the reprofiling of debt service over a longer tenor is estimated to decrease debt service obligations in the near term, providing more flexibility in the current challenging global financing conditions. Moreover, the additional dividends derived from the government’s increased shareholding in DP World Dakar are expected to lead to a positive return on investment for the government based on DP World Dakar’s historical performance and future outlook.
Ports play a key role in Senegal’s economy and plans for future development of the country. With more than 700 kilometers of coastline, Senegal’s position at the westernmost point of Africa and the Sahel gives the country a strategic advantage to become a regional hub linking Africa to the rest of the world. Located at the crossroads of several key maritime routes, the port of Dakar offers ships competitive navigation time in West Africa. This project supporting the government of Senegal’s investment in the port of Dakar is the most recent example of MIGA in action and demonstrates MIGA’s commitment to its mission of supporting economic growth, reducing poverty, and improving people’s lives by mobilizing cross-border private investment into developing countries.