Situated on the West African coast between Mauritania and Guinea Bissau, Senegal covers an area of 196 190 km² and has a population of 12.2 million. Despite its Atlantic port at Dakar and its rather developed transport infrastructure in the interior, Senegal remains one of the least developed countries in Africa.

The country's real economic potential is undermined by corruption, so economic governance and the state of public finances must be improved.

In political terms, Senegal is one of the most stable countries in the region, with a solid democratic tradition. Nevertheless, governance must be improved to respond to new challenges posed by the increase in organised crime in the region.

Key issues in EU-Senegal relations

The EU's aid strategy seeks to reduce poverty by:

• restructuring public health and transport services
• promoting agricultural production and exports
• promoting local economies

During the 9^th European development funding (EDF) round, aid was concentrated on:

• good political, economic and social governance
• road transport
• sanitation

This work will be continued during the 10^th funding round, with special attention for sanitation, and regional and trade integration. Migration, governance and culture will also be covered.

€288m have been made available for the whole programme.

More than 50% of funding under the 10^th EDF will go towards general budget support for poverty reduction measures (2007-10 strategy and beyond). The intention is to reduce poverty by creating strong and balanced growth, providing access to basic social services, protecting the most vulnerable and promoting good governance and the rule of law. The conditions for implementation of the aid include sound management of public finances and macro-economic management.