Located on the west coast of Africa, between 12 ° 88 and 16 ° 41 N latitude and 11 ° 21 and 17 ° 32 W longitude, the situation of Senegal at the western end of the African continent in its most advanced in the Atlantic Ocean, gives it a hub position linking Africa to the rest of the world. Praised as the simplest and fastest way to West Africa, it opens access to a common market of 300 million consumers.
Senegal also serves as an important gateway to major export markets in Europe, Asia and the Americas. Economic indicators have been constantly improving for several years.
Area: 196 722 km2
Population: 15 million inhabitants
Democracy, multiparty politics, solidity of institutions, recognition of political and social rights, freedom of expression: Senegal is a model in West Africa • A stable country cited as an example all over the world and presenting a moderate level of risk according to Credit Risk International (CRI). The country has a long tradition of peace and democracy. This peaceful climate has helped to create a business environment conducive to investment and increased FDI flows.
- Crossroads of West Africa, Senegal is a country with multiple influences reconciling modernity and respect for traditions. A trading place where any investor, regardless of origin, is free to settle, prosper and repatriate capital.
- Senegal is a country with a liberal economy where the private sector is unreservedly supported by the authorities. The vast privatization program, the free competition, the simplification of the regulatory and legal framework and the dynamism of the investment promotion mechanism favor a healthy business climate.
- As an influential player in Africa, Senegal is a signatory to international conventions on the protection of the environment, human rights, trade, copyright, labor law, etc. He stands out for his leadership in making major decisions in favor of Africa.
- A HEALTHY AND COMPETITIVE ECONOMY
Senegal is the second largest economy of Francophone West Africa
GDP growth:> 7%
Senegal is a political exception in Africa. A safe bet confirmed by a number of international organizations, and multinationals who have made Dakar, the capital, the basis of their regional operations. The exemplarity at all levels of the state has been erected into dogma and the promotion of good governance is a major axis of state policy.
As the first country in West Africa to have been rated “B + / B” by Standard & Poors, Senegal confirms its international recognition with the stable outlook rating of Moody’s Ba3, due to its macroeconomic stability, unlimited access to foreign exchange, a rising but moderate debt, support from the international financial community.
Monetary policy is governed by the Central Bank of West African States (BCEAO) headquartered in Dakar. The fixed exchange rate between the euro and the CFA franc (€ 1 = 655 CFA) guarantees a stable exchange rate in commercial relations with the European Union partners. Senegal shares a common currency with 8 countries of the West African Economic and Monetary Union (UEMOA).
Looking to the future, the government has implemented an accelerated growth strategy to boost investment and fight poverty over the long term. This formal commitment is reflected in a proactive and innovative policy of investment promotion and the introduction of incentives.
Macroeconomic objectives and strategic choices are clearly defined and disseminated, in advance, to the private sector. The conditions laid down and the advantages granted are known and identical for all, national and foreign. Thanks to its good governance practices, Senegal enjoys the confidence of international financial institutions.
Senegal is the first West African country to receive the “B + / stable / B” rating for three consecutive years (Standards & Poor’s). Inflation is under control, financial receipts are up, and the country is in the top 5 of the fastest growing countries in Africa in 2018.
Senegal has a large reservoir of young, skilled labor. It is estimated that the majority of the population is between 15 and 55 years old, so is active. Indeed, technical and vocational training is a serious option in state policy. Parallel to the classical education system (primary, middle, secondary and higher) there are several training schemes whose numbers are constantly growing (from 29,000 learners in 2012, they increased to 55,000 in 2016). In addition, the Competence-Based Approach (CPA) has replaced the traditional approach, for a qualifying vocational training allowing pupils and students a faster operationality.
“As a Spanish group, we are satisfied with our investment in Senegal. Senegalese is someone who learns very quickly and our management staff is mostly of Senegalese nationality… ” says Pedro Gonzales, President and CEO of Top Tires
Convinced that the quality of men and women is the true wealth of a country, Senegal devotes more than half of its national budget to education and health. The country has many public and private institutions of primary, secondary and higher education. Prestigious universities and foreign schools offer high-level specialized training on site or in partnership.
Senegal has a large pool of senior executives and experts trained locally or abroad. The local offer offers a wide range of quality professional training. Technical learning provides practical training tailored to the needs of the labor market.
Senegal has made significant progress in improving its transport infrastructure. Substantial investments have enabled the expansion of national and cross-border networks to improve the mobility and safety of people and goods, and promote the creation of new economic centers across the country.
Thanks to the good state of its infrastructure (air, land, sea) and its unique geographical position, Senegal occupies the first place in West Africa in the ranking of logistical performance, according to the World Bank. Having recently invested heavily in its transport infrastructure, Senegal offers companies world-class structures, based on a “corridor-gate” mechanism that allow them to ship their goods more quickly to markets, under conditions modern and efficient.
- Major infrastructure projects
The development of efficient infrastructures is a prerequisite for economic development. It is a key factor in any investment promotion strategy. In this spirit, the authorities have initiated a series of structuring projects.
Senegal has a dense and well-maintained road network that can ensure a smooth flow of people and goods. A program to improve urban mobility is underway to optimize travel to and within the capital.
In the road sector, major projects such as the Dakar-AIBD-SINDIA toll roads, Ila Touba and national road construction and rehabilitation projects will further improve access to major highways Dakar – Bamako, Dakar – Conakry and Dakar – Tangier.
Major projects are underway to rehabilitate and modernize the railway system in Senegal.
The Dakar – Bamako railway with 1,286 km to improve the connectivity between Dakar and Bamako.
The Regional Express Train (TER) from Dakar with 55 km to connect Dakar to AIBD airport.
The Dakar-AIBD Regional Express Train (or TER Dakar-AIBD) is a standard gauge electric railway line under construction in Senegal, with the opening of the first section scheduled for early 2019. It will link the capital city of Dakar with Blaise-Diagne International Airport (AIBD) as well as new cities located on the mainland.
This project will open up the capital, which represents most of the country’s activity, the rest of Senegal and move towards international rail networks.
Senegal has put into operation a last generation international airport, located about fifty kilometers from Dakar. Blaise Diagne International Airport (AIBD) offers the very best in world-class airport standards. It currently has a capacity of three (03) million passengers a year and is expected to reach ten (10) million a year, making it a hub of regional and international mobility. Decongestion of Dakar and emergence of a second economic pole outside the capital. Compliance with new requirements of international air traffic.
Electricity production of satisfactory quality and in sufficient quantity thanks to major investments in the energy sector.
- 4 solar power plants
- 1000 megawatts produced in 2017
Production factor costs (water, electricity, etc.) down.
At the crossroads of several maritime routes, the Autonomous Port of Dakar enjoys an exceptional geographical situation. Located at the crossroads of three key trade routes (North America – Africa, Europe – Africa and Europe – South America), access is direct, at any time of the year, without tidal restrictions, and vessel operations and handling 24/7. Containers, hydrocarbons, food and seafood are handled day and night. The service offering is competitive and diversified and includes ship repair. A major modernization and extension program is underway, with the construction of a third container terminal, a new ferry terminal and a fruit pier. The realization of a mineral terminal is also planned.
Undisputed leader in West Africa, Senegal has an efficient and fully digitized telecommunications network with more than 2200 km of fiber optics. It is connected to Europe, America, Asia and the Middle East via permanent cable connections. The penetration of the Internet and telephony services is important in companies as in individuals. The liberalization of the telecommunications sector has resulted in healthy competition in basic services and an explosion of supply in specialized services.
- Some key figures in 2017
Mobile Phone: 15.7 million subscribers
Penetration rate mobile services: 103.29%
Coverage rate: 90%
Internet penetration rate: 62.97%
9.34 million 2G + 3G subscribers
(97.20% coverage rate)
- Special Economic Zones
ZES, competitive clusters and growth drivers for Senegal’s economy”
With an incentive tax and customs framework, state-of-the-art infrastructures and management meeting the highest international standards, SEZs are spaces designed to accommodate economic activities and aim to position Senegal as a hub for integrated logistics platforms in Africa. ‘Where is. In the long run, they will enable Senegal to be in the best business environment standards and offer investors a wide range of high-quality services.
- AN INCIDENTAL LEGAL AND TAX FRAMEWORK
In Senegal, investment is supported by an attractive incentive policy based on regularly updated legal, fiscal and customs systems. Tax relief, guarantees and benefits are provided to investors through the new Investment Code, the Export Free Business Regime and the BOT Act. A modern single window centralizes, facilitates and accelerates the administrative formalities.
This status is granted to companies that export at least 80% of their production. Agriculture in the broad sense, industry and tele-services are the sectors eligible for EFE status. Several advantages are granted to the companies, in particular the reduction of the corporation tax (15%), the exemption from the tax on the wages, the registration and stamp duties, the contribution of the patents, the exemption from duties and taxes on production equipment and raw materials, and more.
Senegal has adopted a new investment code that provides specific incentives to boost investment in key sectors such as agriculture and agri-food, fisheries, livestock and related industries, manufacturing, tourism, and mining, among other sectors. Investment incentives include, but are not limited to:
Customs duty exemptions (over 03 years); A suspension of VAT (over 03 years); Tax credits of 40% for the eligible investment and deductible within 5 years; A free export company status for agriculture, industry and telecom companies drawing at least 8% of their export turnover.
Senegal is a member of the West African Economic and Monetary Union (UEMOA), a regional organization of 8 countries and 112 million inhabitants, representing a market of 90 million consumers, whose mission is to promote economic integration by strengthening the competitiveness of their economies in an open and competitive market and a harmonized legal environment.
Senegal is also a member of the Economic Community of West African States (ECOWAS), a regional bloc of 15 countries (approximately 360 million inhabitants) to promote economic integration in various sectors, including transport. , energy, industry, agriculture, natural resources and trade.
As an important member of the above economic blocks, and thanks to its strategic position, Senegal is a gateway to a large market of more than 300 million consumers in Africa.
- Member of:
West African Economic and Monetary Union (UEMOA);
The Economic Community of West African States (CEDEAO);
The African Union (AU);
The Organization for the Development of the Gambia River (OMVG);
And the Organization for the Development of the Senegal River (OMVS).
Senegal enjoys preferential access to European (EU / ACP), American (AGOA) and Canadian (Canadian initiative) markets. These measures make it possible to export consumer goods without quotas and duty-free or at lighter rates.
Senegal is less than 5 hours from Europe and 7 hours from the United States, by plane. Dakar is at the crossroads of many shipping routes and presents a real comparative advantage for ocean freight. The link takes less than 6 days for Europe, and 7 days for the United States. The port of Dakar offers quality logistical services and a direct link with the train and major highways.
The hospitality of the people is legendary. The epithet of Pays de la Teranga covers this very Senegalese virtue. The World Economic Forum ranked Senegal 6th most welcoming country in the world, according to tourists.
Senegal is a country with pleasant living conditions. Its mild and sunny climate is refreshed by the 700km of beaches that offer its residents and visitors a varied choice of leisure. Modern residential neighborhoods with luxury housing, shopping malls with famous international brands, gourmet restaurants, foreign schools (French, American) contribute to the creation of a range of upscale amenities suitable for expatriates .
Authenticity and innovation give a unique cachet to Senegalese artistic programming. The cultural scene is extremely vibrant, animated by world-famous artists and eclectic styles. The film industry is at its peak with the international recognition of Senegalese talent.
Senegal is a country where hospitality is a real national motto. The population is young, dynamic and tolerant. The climate is pleasant and the sun shines all year round. The country offers an ideal living environment to achieve, work and do good business.
Haven of peace, Senegal offers a secure and soothing environment. The country has well-equipped hospitals and health centers. In Dakar and large cities, modern private polyclinics offer specialized care of international quality, including medical evacuation services.
The formalities of stay are simple for the visitors as for the residents. Hotel, residence or dream villa, the offer in quality accommodation is multiple and varied. For the schooling of children, the private school offers quality training opportunities, in French as in English, from preschool to higher education.
Senegal offers a living environment where tradition meets modernity. A large network of banks offers automated services and instant bank transfers across the country. The presence of shopping centers, supermarkets, bookstores, casinos and excellent restaurants embellishes everyday life.
Sport, leisure and culture occupy a place of choice in Senegalese society. Sports fishing, diving, sailing, karting and golf are some of the popular activities. The cultural life is rich and offers fans of local and international productions of high level. Houses by the sea, nature reserves and thalassotherapy centers invite relaxation and change of scenery.
The Government of Senegal has taken important steps to improve the country’s business environment. Following the implementation of business environment reforms, it is much easier to start and operate a business in Senegal. Investors are now able to:
- Register a company in 24h;
- Do an import or export operation in 10 days;
- Make a transfer of ownership in 50 days;
- Obtain an online building permit in 40 days;
- Make an online return and a tax payment;
- Create an LLC without any requirement of social capital;
- Benefit from the services of commercial courts;
- Perform all procedures related to the life of the company online (e-tax, Teledac, etc.).
- INVESTMENT PROTECTION
Senegal is a land of opportunity, the business environment is favorable and constantly improving. Since 2013, the Government of Senegal has been implementing the Business Environment and Competitiveness Reform Program (PREAC). Numerous innovations have been made, such as the abolition of the share capital for the creation of an LLC, the creation of one-stop shops for setting up a business or the connection to electricity, the dematerialization of customs procedures, the reduction of taxes for companies that invest, as well as the various tax incentives allowed by the Investment Code and the free enterprise export regime. The implementation of a package of 52 measures has propelled Senegal among the top 10 reformers in the world by the ranking “Doing Business” established by the World Bank and its partners.
Senegal has signed several Investment Protection and Promotion Agreements (APPI) with several dozen partner countries around the world. In a context of globalization, these agreements improve the legal certainty of investments. They provide for the free repatriation of investment capital and returns on investment, guarantee expropriation and provide for a Most Favored Nation (MFN) clause for the treatment of investors. They also provide for compensation for losses in case of war, armed conflict or riot. Senegal is fully committed to improving its business climate to promote investment and promote private sector-led economic growth.
Telephone : +221 33 889 21 06
Site Web : economie.gouv.sn