THEME SHEET ON ZES
In order to achieve the PES objectives in terms of jobs and FDI, the State of Senegal has decided to set up special economic zones (ZES), a strategic tool to attract private investment and strengthen the competitiveness of companies.
ZES are developed spaces for the production of goods and services and governed by economic laws, incentives and specific schemes for businesses. The aim is to create an environment conducive to economic activities, with a set of infrastructures and services of international standard providing companies with the best conditions for carrying out their activities (industrial park, service areas, offices and platforms). logistics, commercial areas, tourist complexes, technology parks, etc.). These advantages, combined with technology transfer and the availability of factors of production, will enable companies to gain in productivity.
Businesses in these locations benefit from preferences, including an incentive tax framework, procedures to reduce their exploitation, access to land, flexibility in social legislation, and competitive financial services. This concept goes well beyond the concept of an industrial free zone, particularly in terms of the scale of infrastructure and incentives.
In order to align with the best international standards, a new legal framework governing ZES in Senegal has been established. It has already allowed the creation of three (03) ZES, one in the form of industrial park on 53 ha in Diamniadio 25 km from Dakar, the other in Diass on 718 ha near the new airport Blaise Diagne and the last on 100 ha in Sandiara.
In terms of governance, ZES are anchored in the MEPC, which provides strategic direction on a concerted basis. The institutional arrangement is composed of a Joint Public / Private Committee, an Administrator (APIX SA), Promoters / Developers and private companies. The Committee is a body under the supervision of the Minister in charge of the Economy. Its role is focused on regulation, mediation and conciliation between actors operating in ZES.
Overall, the new texts devote the following innovations:
- the assumption of responsibility for all the special economic zones;
- a new approach to the ZES governance framework that draws on international best practices through, among other things, a clear and precise definition of the tasks and prerogatives of the ZES Administrator;
- the designation of promoters / developers of the ZES that may be public or private;
- a bundling of incentives;
- liberalization of the sale and purchase of electricity;
- taking into account provisions derogating from labor legislation;
- rules for the protection of private property within ZES.
- The ZES in Senegal are intended to:
- Information and Communication Technologies;
- tourism ;
- Medical Services;
- other services.
Beyond the creation of a critical mass of jobs, ZES should contribute to boosting exports, in particular to take advantage of international preferences (AGOA II, ECOWAS CET, Everything but arms, etc.). . So far, Senegal has not yet been able to take advantage of these advantages because of a lack of relevant supply and in line with international demand. With the ZES, Senegal's ambition is to create the conditions for an international competitiveness of our country. To this end, the focus will be on industrial transformation with added value and technologies. Thus, the challenges faced by ZES in Senegal include:
- job creation to contribute to the PES objectives (600 000 jobs);
- the increase in FDI: helping to increase FDI from 2% to 6-8% of GDP between 2012 and 2023;
- increased exports to help rebalance the trade balance;
- value chain creation on local products;
- technology transfer;
- gaining competitiveness of Senegalese PME and PMI through outsourcing and technology transfer;
- training young people to enable companies to have a skilled workforce.