Guide for Policy-Makers : Pro-Competition Market Solutions to Address Key Bottlenecks in Senegal’s Groundnut Value Chain

The government of Senegal is developing a new strategy to improve the competitiveness of the groundnut sector, aimed at reestablishing Senegal as a leading producer of groundnuts. This note identifies key bottlenecks to competition along Senegal’s groundnut value chain that inhibit the sector from adapting to global trends and realizing the government’s priorities for the sector. The note focuses on three markets along the groundnut value chain that are key for shaping market outcomes for farmers, consumers and job creation: the input market, the market for buying raw groundnut and the market for vegetable oils. It provides policy recommendations for pro-competition reforms, that if implemented, are estimated to generate over 250 million US dollars for all actors across Senegal’s groundnut value chain, create employment for Senegal’s rural poor women and lift 50,000 Senegalese out of poverty.