Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 07DAKAR1868, REMITTANCES TO SENEGAL ARE AN ECONOMIC FORCE

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07DAKAR1868.
Reference ID Created Released Classification Origin
07DAKAR1868 2007-09-14 11:27 2011-08-24 16:30 UNCLASSIFIED Embassy Dakar
VZCZCXRO7692
PP RUEHMA RUEHPA
DE RUEHDK #1868/01 2571127
ZNR UUUUU ZZH
P 141127Z SEP 07
FM AMEMBASSY DAKAR
TO RUEHC/SECSTATE WASHDC PRIORITY 9195
INFO RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHLMC/MCC WASHDC
RUEHZK/ECOWAS COLLECTIVE
UNCLAS SECTION 01 OF 02 DAKAR 001868 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR AF/W, AF/EPS, AND EB/IFD/ODF 
AND PASS AID/AFR/SWA AND AID/PPC/DC 
TREASURY FOR OIASA/IDB:EBARBER 
 
E.O. 12958: N/A 
TAGS: EFIN ECON EAID SG
SUBJECT: REMITTANCES TO SENEGAL ARE AN ECONOMIC FORCE 
 
 
DAKAR 00001868  001.2 OF 002 
 
 
1.  (U) SUMMARY: Formally recorded remittances to Senegal topped USD 
800 million in 2006 and are undoubtedly higher this year.  Informal 
money transfers are not quantified, but are also significant, 
perhaps equaling the formal flow.  These funds are an important 
source of foreign currency and alleviate somewhat Senegal's balance 
of payments deficit.  Most of these funds are sent to family members 
to help with basic living expenses or to contribute to investments 
in residential housing.  The international network of traders and 
workers affiliated with Senegal's Muslim Mouride Brotherhood 
transfers tens of millions of dollars or more to their leaders in 
Touba as religious tithes.  GOS policy to date has encouraged 
Senegalese to use formal banking and money transfer systems (and pay 
the associated high fees).  To date, however, there has not been 
much movement to take advantage of these financial in-flows to 
create broader investment instruments.  END SUMMARY. 
 
THE SIGNIFICANCE OF REMITTANCES 
------------------------------- 
2.  (U) Remittances back to Senegal from citizens living overseas 
(mostly in Europe, the U.S., the Middle East, and Gabon) are a major 
source of foreign currency, providing a counterweight on Senegal's 
balance of payments deficit.  According to a recent report published 
by the GOS's Department of Forecasting and Economic Studies (DFES), 
remittances from expatriates reached USD 820 million in 2006 
compared to USD 681.6 million in 2005, an increase of 17 percent. 
This upward trend will undoubtedly continue in 2007 and beyond. 
These transfers have contributed to lessen the deterioration of 
Senegal's current account deficit (9.5 percent of GDP in 2006 and 
8.5 percent of GDP in 2007). 
 
3.  (U) The DFES report also noted that the majority of remittances 
are not formally recorded and that the official estimates likely 
capture only 50 percent of the actual volume.  Actual remittances 
(formal and informal) are therefore likely well above USD 1 billion 
this year, the equivalent of half of Senegal's total planned revenue 
collection and equaling more than ten percent of GDP.  In 
comparison, Senegal's FY 2007 investment/development budget to 
address poverty reduction and basic needs calls for spending 
approximately USD 764 million of GOS funds and an additional USD 512 
million from donors. 
 
WHERE DOES THE MONEY GO? 
------------------------ 
4.  (U) According to the report, remittances have become the highest 
legal source of external income for Senegal, and major source of 
income for a large percentage of Senegalese families and, though 
difficult to quantify, a major contributor to poverty reduction.  In 
general, it is estimated that more than 40 percent of Senegalese 
households benefit from remittances.  These contributions, often 
sent in USD 100-150 increments on a monthly basis through services 
such as Western Union, are used to directly support households with 
daily consumer items, for health and education costs, accumulation 
of assets including property and livestock, and for housing 
construction.  Senegalese living overseas also send cash, clothing, 
and documents through an informal network of "runners" in an 
apparent effort to avoid shipping, customs, and money transfer fees. 
 A relatively small percentage of family remittances go into formal 
bank accounts or investment funds.  Some also provide family members 
in Senegal with bank cards that allow them to withdraw money from a 
foreign-based account. 
 
5.  (U) The source of the remittances is mostly from traders and 
small business people working in Europe and the U.S., many without 
legal status.  However, a significant amount also comes from 
Senegalese with legal residence or dual citizenship, who continue to 
support family members in Senegal.  Surprisingly, some Senegalese 
children who apply for immigrant visas do not appear to benefit 
educationally from these remittances.  Many appear for their 
interviews unable to speak French, not having benefited from formal 
education as one might have otherwise expected.  Perhaps the largest 
contributors to this phenomenon are members of Senegal's Muslim 
Mouride Brotherhood, who are well known as small traders operating 
abroad.  The brotherhood has amassed considerable economic power 
through tithe-like remittances.  In addition to supporting their 
families, Mourides are very faithful in sending money back to Touba 
(the "sacred" town of Mouridism) in the name of the Kalif.  It is 
not possible to know the amount of money flowing back to the Mouride 
leadership, but it is likely more than USD 100 million per year. 
 
6.  (U) In Dakar and Touba the impact of remittances can be seen in 
new investments, particularly in residential construction in Dakar 
and improvements to the grand mosque and other Mouride institutions 
in Touba, a city that has grown much faster than national GDP over 
the last decade.  Investments have pushed up the real estate values 
in Dakar as real estate "back home" has become one of the most 
attractive forms of investment for many overseas Senegalese.  Other 
cities with high rates of remittances, such as Tambacounda, Matam, 
 
DAKAR 00001868  002.2 OF 002 
 
 
and Kedougou, do not appear to be benefiting as much, at least in 
terms of new construction or employment-generating activities.  One 
commentator noted that remittances have encouraged "laziness" among 
recipient families who receive more from abroad than by working in 
the local economy. 
 
THE GOS ROLE 
------------- 
7.  (U) The GOS has highlighted the positive impact of remittances 
in its Poverty Reduction Strategy (PRSP) and has proposed strategies 
to further promote remittances by formalizing contact with Senegal's 
diaspora.  For example, the GOS has been active in encouraging more 
flexible arrangements between banks and post offices and 
organizations such as the Western Union and Money Gram.  At the same 
time, when the report was publicized, there was criticism of the 
government for "permitting" Western Union and banks to charge 
"outrageous" fees for money transfers.  Some commentators called on 
the Government to establish a "solidarity bank" linking overseas 
Senegalese with family members at home to permit the establishment 
of joint accounts and cheaper transfer mechanisms. 
 
8.  (U) One area that is not yet being addressed is the potential 
role the microfinance institutions (MFIs) might play in banking 
remittances.  Only two of Senegal's one hundred-plus MFIs are 
formally involved in the remittance market (UNACOIS and Djoloff 
Mutuel d'Epargne et de Credit) and the legal framework for 
microfinance institutions in the West African Monetary Union (WAEMU) 
does not facilitate MFIs access to the remittance market. 
 
COMMENT 
------- 
 
9.  (U) While contributing to boosting family income and lessening 
poverty, the GOS needs to do more to enhance remittances' positive 
effects, by, for instance, encouraging investment instruments that 
can turn remittances into capital for new business ventures. 
Furthermore, the government needs to create economic platforms that 
would encourage migrants to return to Senegal to set up Small and 
Medium Enterprises thus applying their foreign educations and skills 
at home. 
 
SMITH