SENEGAL IN BRIEF
Located on the west coast of Africa, between 12 ° 88 and 16 ° 41 north latitude and 11 ° 21 and 17 ° 32 west longitude, Senegal has a strategic geographical position that gives it an opening to the world and a easy accessibility ..
Senegal is one of the most successful economies in sub-Saharan Africa. For several years now, the economy has recorded sustained growth of more than 6%. Its long history of social and political stability and its ever-improving business environment make it a safe destination for investment. The implementation of a major reform agenda bodes for a better competitiveness of the economy, stimulating FDI flows in key sectors, including agriculture, industry, tourism, transport infrastructure and extractive industries. .
Under the leadership of His Excellency President Macky SALL, the Senegalese Government is implementing the Emerging Senegal Plan (PSE), a unique reference document for economic and social development policies whose vision is "Senegal, an emerging country in the horizon 2035, with a solidarity society in a state of law ".
The PSE is based on 3 main strategic axes.
Stimulate the transformation of the structure of the economy by focusing on the creation of wealth and employment.
Promote human capital, expand access to social perfection and preserve the conditions for sustainable development.
Meet the requirements of good governance and regional integration.
Senegal is a member of CEDEAO, a regional bloc of 15 countries (approximately 360 million inhabitants) to promote economic integration in different sectors, including transport, energy, industry, agriculture, resources natural resources and trade.
- 90 million potential consumers in UEMOA.
- More than 300 million potential consumers in CEDEAO.
Senegal is also a member of the West African Monetary Union (UEMOA), a regional organization of 8 countries and 112 million inhabitants, whose mission is to promote economic integration by strengthening the competitiveness of their economies within the framework of an open and competitive market and a harmonized legal environment.
As an important member of the above economic blocs, and thanks to its strategic position, Senegal is a gateway to a large market of more than 300 million consumers in Africa, a region with one of the most high growth rate in the world, 6.8 %% in 2016.
With an average growth rate of more than 6% over the last four years, Senegal is the second largest economy in Francophone West Africa. It is a privileged destination for investment for several reasons.
CLIMATE OF PEACE AND SOCIAL AND POLITICAL STABILITY
Unlike many African countries, Senegal has never experienced a military coup, civil war or ethnic or religious conflict, with the exception of a southern-wing separatist conflict in the 1980s. 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.
STRATEGIC GEOGRAPHICAL POSITION
Senegal is located on the extreme western tip of Africa, in its most advanced part in the Atlantic Ocean. This strategic geographical location places Senegal on the border of investment and trade opportunities in the region. Senegal links Africa to the rest of the world; it also serves as an important gateway to the main export markets in Europe, Asia and the Americas. Economic indicators have been constantly improving for several years.
AN OPEN AND EXPENSIVE ECONOMY
Senegal has a very open economy. Its membership in zones of economic and monetary integration (ECOWAS, UEMOA) and its geographical position make it a main entry of large regional markets. Senegal is also the beneficiary of several preferential trade agreements with several major economies in the world, including the European Union, China and the United States.
A WIDE QUALIFIED AND WELL-FORMED EMPLOYMENT BASIN
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. In addition to the classical education system (primary, middle, secondary and higher), there are several training programs whose numbers are constantly increasing (from 29,000 learners in 2012 to 55,000 in 2016). In addition, the Competence-Based Approach (CBA) has replaced the traditional approach for qualifying vocational training that enables students to achieve faster operationalization.
A VERY ATTRACTIVE INVESTMENT CLIMATE
Senegal is a land of opportunity, the business environment is favorable and constantly improving. Since 2013, the Senegalese government has implemented 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 propelled Senegal among the top 10 reformers in the world by the Doing Business ranking established by the World Bank and its partners.
The Senegalese Investment Code provides specific incentives to stimulate investment in key sectors such as agriculture and agri-food, fisheries, livestock and related industries, manufacturing, tourism, and other industries. mines, among other sectors. Investment incentives include, but are not limited to:
- Exemptions from customs duties (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 telecommunications companies drawing at least 80 %% of their export turnover ...
- EASY TO DO BUSINESS
- 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
- Get a building permit online in 40 days
- Make an online return and a tax payment
- Abolition of the requirement of share capital for the creation of a company
- Creation of commercial courts
- Dematerialization of all procedures related to the life of the company (e-tax, Teledac, etc ...)
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) 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 foster private sector-led economic growth"
INFRASTRUCTURE AND QUALITY SERVICES
The Autonomous Port of Dakar (PAD) is the third largest port in West Africa. Located at the crossroads of three key trade routes (North America - Africa, Europe - Africa and Europe - South America), the PAD offers direct access at any time of the year, without tidal restrictions, and ships and handling 24 hours a day, 7 days a week.
Senegal has put into operation a last generation international airport, located about fifty km 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.
The Senegalese banking system is one of the most competitive in Africa "The Banker"
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. In the road sector, major projects such as the Dakar-Diamniadio and Thiès-Touba toll roads and the construction and
rehabilitation of national roads will further improve access to major roads 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 1,228 km to improve the connectivity between the port of Dakar and Bamako.
The Regional Express Train (TTER)) from Dakar with 55 km to connect Dakar to the AIBD airport.
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
+++++++ Costs of factors of production (water, electricity, etc ..) down.
A dynamic service sector
15.7 million subscribers
Penetration rate mobile services: 103.29 %%
Coverage rate: 90 %%
Internet penetration rate: 62.97 %%
9.34 million 2G ++ 33G subscribers
(Coverage rate of 97.20 %%)
Source:Investir au sénégal