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    Senegal-Companies-Debt

    Debt recovery bogs down Senegalese contractors

    APA - Dakar (Senegal)

    One of the main constraints faced by Senegalese contractors in the building and public works (BTP) sub-sector in April 2017 was the challenge inherent in collecting debt, a recent survey by the Directorate of Forecasting and Economic Analysis (DPEE) says.

    A total of 29 percent of these companies referred to this situation, while 14 percent of them blamed it on unfair competition, difficult access to credits and the high cost of inputs.


    The DPEE survey suggests a decline in general activity on a monthly basis, thanks to a simultaneous contraction of public orders (- 26 points) and private ones (- 29 points), according to some business leaders in an interview with APA.

    Anticipating May 2017, BTP business leaders expect general activity and orders (public and private) to be below respective long-term averages.

    The majority of business leaders in the industrial sector emphasized the challenges of unfair competition (29 percent), falling demand (16 percent) and difficulties in recovering debts (13 percent).

    “In addition, for the most part, they declared a monthly drop in production (- 21 points) and orders (- 24 points),” DPEE said, adding that stocks of finished products rose to above-normal levels.

    Looking ahead to May 2017, production and orders are expected to outperform the respective long-term averages, according to the same survey.

    MS/od/fss/as/APA

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