8 reasons to invest in senegal

8Raisons

A stable and open country

Located on the west coast of Africa, between 12° 88 and 16°41 north latitude and 11°21 and 17°32 west longitude, Senegal's location at the western end of the African continent in its most advanced part in the Atlantic Ocean, gives it a position as a hub linking Africa to the rest of the world. Hailed as the simplest and fastest gateway to West Africa, it opens access to a common market of 300 million consumers.

Le Sénégal sert également de passerelle importante vers les principaux marchés d’exportation en Europe, en Asie et dans les Amériques. Les indicateurs économiques sont en constante amélioration depuis plusieurs années.

Area : 196,722 km2

Capital : Dakar

Population : 15 million inhabitants

  • Unique

Democracy, multiparty system, solid institutions, recognition of political and social rights, freedom of expression: Senegal is a model in West Africa - a stable country cited as an example worldwide and with 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 .

  • At the crossroads of West Africa, Senegal is a country with multiple influences, reconciling modernity and respect for traditions. A place of exchanges where any investor, without distinction of origin, is free to settle, prosper and repatriate capital.
  • Senegal is a country with a liberal economy where the private sector is fully supported by the authorities. The vast privatisation programme, free competition, simplification of the regulatory and legal framework and the dynamism of the investment promotion system promote a healthy business climate.
  • An influential player in Africa, Senegal is a signatory to international conventions on environmental protection, human rights, trade, copyright, labour law, etc. It stands out for its leadership in taking major decisions in favour of Africa.

 

A healthy and competitive economy

Le Sénégal est la deuxième plus grande économie de l’Afrique de l’Ouest francophone

GDP Growth: > 7 %

Senegal is a political exception in Africa. A sure value confirmed by a good number of international organisations and multinationals that have made Dakar, the capital, the base of their regional operations. Exemplarity at all levels of the state has been established as a dogma and the promotion of good governance is a major focus of state policy.

The first country in West Africa to be rated "B+/B" by Standard & Poors, Senegal confirms its international recognition with a Ba3 rating with stable outlook, awarded by Moody's and due to its macroeconomic stability, unlimited access to foreign currency, growing but moderate debt, and support from the international financial community.

La politique monétaire est régie par la Banque Centrale des Etats d’Afrique de l’Ouest (BCEAO) dont le siège est à Dakar. La parité fixe entre l’euro et le franc CFA (1€ = 655 CFA) garantit une stabilité du taux de change dans les relations commerciales avec les partenaires de l’Union Européenne. Le Sénégal partage une monnaie commune avec 8 pays de l’Union Économique et Monétaire Ouest Africaine (UEMOA).

  • Voluntary

Tourné vers l’avenir, l’État a mis en œuvre une stratégie de croissance accélérée destinée à doper les investissements et à lutter durablement contre la pauvreté. Cet engagement formel se traduit par une politique volontariste et novatrice de promotion des investissements et la mise en place de mesures incitatives.

  • Transparent

Macro-economic objectives and strategic choices are clearly defined and disseminated, in advance, to the private sector. The conditions set and the advantages granted are known and the same for all, nationals and foreigners alike. Thanks to its good governance practices, Senegal enjoys the confidence of international financial institutions.

  • Performing

Le Sénégal est le premier pays ouest africain à se voir attribuer la notation « B+ / stable / B » trois années consécutives (Standards & Poor’s). L’inflation y est maîtrisée, les recettes financières en hausse, et le pays figure dans le top 5 des pays en Afrique à la croissance la plus forte en 2018.

Quality human resources

Le Sénégal dispose d’un important réservoir de main – d’œuvre jeune, qualifiée. On estime que la majorité de la population a entre 15 et 55 ans, donc est active. En effet, la formation technique et professionnelle est une option sérieuse dans la politique de l’État. Parallèlement au système d’éducation classique (primaire, moyen, secondaire et supérieur) il existe plusieurs dispositifs de formation dont les effectifs sont sans cesse croissants (de 29 000 apprenants en 2012 , ils sont passés à 55 000 en 2016 ) . En outre, l’Approche Par les Compétences (APC) s’est substituée à l’approche traditionnelle, pour une formation professionnelle qualifiante permettant aux élèves et étudiants une plus rapide opérationnalité.

"As a Spanish group, we are satisfied with our investment in Senegal. Senegalese is a very fast learner and our management staff is mostly Senegalese."

Pedro Gonzales

CEO of Top Pneus

  • Supported

Convinced that the quality of men and women is the real wealth of a country, Senegal devotes more than half of its national budget to education and health. The country has many public and private primary, secondary and higher education institutions. Prestigious universities and foreign schools offer high-level specialised training either locally or in partnership.

  • Trained

Senegal has a large pool of high-level managers and experts trained locally or abroad. The local offer provides a wide range of quality vocational training. Technical apprenticeships provide practical training tailored to the needs of the labour market.

 

Modern and structuring infrastructures

Le Sénégal a fait des progrès significatifs dans l’amélioration de ses infrastructures de transport. Des investissements conséquents ont permis l’expansion des réseaux nationaux et transfrontaliers pour améliorer la mobilité et la sécurité des personnes et des biens, et promouvoir la création de nouveaux centres économiques à travers le pays.

Thanks to the good state of its infrastructures (air, land, sea) and its unique geographical position, Senegal is ranked first in West Africa in the logistics performance ranking, according to the World Bank. Having recently invested heavily in its transport infrastructure, Senegal offers companies world-class engineering structures based on a "gate - corridor" mechanism that enables them to ship their goods to markets more quickly, under modern and efficient conditions.

Every day, the largest airlines connect Dakar to the world's business centres: Paris, London, Dubai, New York, Johannesburg and Air Senegal S.A., the national airline, provides connections from Dakar to the interior of Senegal and to other countries.

Senegal is an efficient maritime port that offers a gain in navigation for ships coming from the North compared to other ports on the West African coast. The Port of Dakar offers 24 hours a day, a range of professional services and the latest generation of infrastructures which help to optimise the conditions of call, transit and transhipment.

According to the International Telecommunication Union (ITU), Senegal is the leading West African country in terms of penetration rate and quality of services.

  • 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.

  • Roads

Senegal has a dense and well-maintained road network that can ensure the smooth movement of people and goods. A programme to improve urban mobility is underway to optimise travel to and within the capital.

Dans le secteur routier, les grands projets tels que les autoroutes à péage Dakar-AIBD-SINDIA, Ila Touba et les projets de construction et réhabilitation de routes nationales permettront d’améliorer encore l’accès aux grands axes routiers Dakar – Bamako, Dakar – Conakry et Dakar – Tanger.

  • Railways

Major projects are underway to rehabilitate and modernise the railway system in Senegal.

The Dakar - Bamako railway with 1,286 km to improve connectivity between Dakar and Bamako.

The Dakar Regional Express Train (TER) with 55 km to link Dakar to AIBD airport

The Dakar-AIBD Regional Express Train (or TER Dakar-AIBD) is a standard gauge electric railway line   en construction au Sénégal dont l’ouverture du premier tronçon est prévue pour début 2019. Elle reliera la capitale de Dakar, à l’Blaise-Diagne International Airport (AIBD) as well as new cities located on the mainland of the country.

Ce projet permettra de désenclaver la capitale, qui représente la majeure partie de l’activité du pays, du reste du Sénégal et de s’orienter vers les réseaux de chemins de fer internationaux.

  • Airports

Le Sénégal a mis en service un aéroport international de dernière génération , situé à une cinquantaine de kilomètres de Dakar. L’Aéroport International Blaise Diagne (AIBD) offre ce qu’il y’a de meilleur en matière de standards aéroportuaires de classe mondiale. Il dispose actuellement d’une capacité de trois (03) millions de passagers par an et devrait atteindre dix (10) millions par an, ce qui en fait un pôle de mobilité régional et international. Désengorgement de Dakar et émergence d’un second pôle économique à l’extérieur de la capitale. Conformité aux nouvelles exigences du trafic aérien international.

  • Energies

The production of electricity of satisfactory quality and in sufficient quantity thanks to major investments in the energy sector.

  • 4 solar power plants
  • 1000 megawatts produced in 2017

Decreasing costs of production factors (water, electricity, etc.).

  • Ports

À la croisée de plusieurs routes maritimes, le Port Autonome de Dakar jouit d’une situation géographique exceptionnelle. Situé au carrefour de trois voies commerciales clés (Amérique du Nord – Afrique, Europe – Afrique et Europe – Amérique du Sud), l’accès est direct, en toute période de l’année, sans restriction de marée, et des opérations de navires et de manutention 24/7 . Conteneurs, hydrocarbures, denrées et produits de la mer y sont manutentionnés jour et nuit. L’offre de service est compétitive et diversifiée et inclut la réparation navale. Un important programme de modernisation et d’extension, en cours, prévoit la réalisation d’un troisième terminal à conteneur, d’une nouvelle gare maritime et d’un quai fruitier. La réalisation d’un terminal minéralier est également projetée.

  • Communication

Senegal, the undisputed leader in West Africa, has an efficient and fully digitised telecommunications network comprising more than 2200 km of optical fibres. It is connected to Europe, America, Asia and the Middle East via permanent cable connections. The penetration of Internet and telephony services is high for both businesses and individuals. The liberalisation of the telecommunications sector has led to healthy competition in basic services and an explosion of supply in specialised services.

Some key figures in 2017

Mobile phone:  15.7 million subscribers

Penetration rate of mobile services: 103,29%

Coverage rate : 90%

Penetration rate of Internet services : 62,97%

9.34 million 2G+3G subscribers

(coverage rate of 97.20%)

  • Special Economic Zones

"The SEZs, competitiveness clusters and growth engines for the Senegalese economy".

With a fiscal and customs incentive framework, latest-generation infrastructures and management that meets the best international standards, the SEZs are spaces designed to accommodate economic activities and aim to position Senegal as a hub of integrated logistics platforms in West Africa. In the long term, they will enable Senegal to meet the highest standards of business environment and to offer investors a range of high quality services.

A legal and fiscal incentive framework

  • Competitive

Le Sénégal a adopté un nouveau code des investissements qui prévoit des incitations spécifiques pour stimuler l’investissement dans des secteurs clés tels que l’agriculture et l’agroalimentaire, la pêche, l’élevage et les industries connexes, l’industrie manufacturière, le tourisme, et les mines, entre autres secteurs. Les incitations à l’investissement comprennent, sans toutefois s’y limiter :

  • Exemptions from customs duties (over 03 years) ;
  • Suspension of VAT (over 03 years);
  • Des crédits d’impôt de 40% pour l’investissement admissible et déductibles dans les 05 ans ;
  • Un statut de société d’exportation gratuite pour les entreprises de l’agriculture, de l’industrie et des télécommunications tirant au moins 8% de leur chiffre d’affaires de l’exportation.
  • Export free company status

This status is granted to companies that export at least 80% of their production. Agriculture in the broadest sense, industry and teleservices are the sectors eligible for EFE status. Several advantages are granted to companies, including the reduction of corporate tax (15%), exemption from payroll tax, registration and stamp duty, patent contribution, exemption from duties and taxes on production equipment and raw materials, and more.

  • Renewed

In Senegal, investment is supported by an attractive incentive policy based on regularly updated legal, fiscal and customs arrangements. Tax relief measures, guarantees and advantages are granted to investors through the new investment code, the export free enterprise regime and the BOT law. A modern single window centralises, facilitates and accelerates administrative formalities.

Privileged access to regional and international markets

  • Integrated

Senegal is a member of the West African Economic and Monetary Union (WAEMU), a regional organisation 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 within the framework of an open and competitive market and a harmonised 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 blocs, and thanks to its strategic position, Senegal is a gateway to a large market of more than 300 million consumers in Africa.

Member of :

The West African Economic and Monetary Union (WAEMU) ;

La Communauté économique des États de l’Afrique de l’Ouest (ECOWAS) ;

The African Union (AU) ;

The Organisation for the Development of the Gambia River(OMVG) ;

And the Organisation for the Development of the Senegal River (OMVS).

  • Priviledged

Senegal benefits from preferential access to European (EU/ACP agreements), American (AGOA) and Canadian (Canadian Initiative Act) markets. These measures allow consumer goods to be exported to these markets without quotas and free of duty or at reduced rates.

  • Accessible

Senegal is less than 5 hours from Europe and 7 hours from the United States by plane. Dakar is at the crossroads of many maritime routes and has a real comparative advantage for sea freight. The connection is made in less than 6 days for Europe and in 7 days for the United States. The port of Dakar offers quality logistics services and a direct link with trains and major roads.

 

An exceptional quality of life

The hospitality of the population is legendary. The epithet of "Teranga" country covers this very Senegalese virtue. The "World Economic Forum" has 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 cooled by the 700km of beaches which offer its residents and visitors a varied choice of leisure activities. Modern residential areas with luxury housing, shopping centres with famous international brands, gastronomic restaurants and foreign schools (French, American) contribute to the creation of a range of upscale amenities adapted to expatriates.

Authenticity and innovation give a unique cachet to the Senegalese artistic programme. The cultural scene is extremely vibrant, animated by world-famous artists with eclectic styles. The film industry is at its peak with the international consecration of Senegalese talent.

  • Welcoming

Senegal is a country where hospitality is a true 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 fulfil yourself, work and do good business.

  • Reassuring

A haven of peace, Senegal offers a safe and soothing environment. The country has well-equipped hospitals and health centres. In Dakar and the larger cities, modern private polyclinics offer specialised care of international quality, including medical evacuation services.

  • Pratical

The formalities of the stay are simple for both visitors and residents. Whether you choose to stay in a hotel, a residence or a dream villa, the range of quality accommodation on offer is many and varied. For the schooling of children, the public school offers quality educational opportunities, in French and English, from pre-school to higher education.

  • User-friendly

Senegal offers a living environment where tradition and modernity meet. A large network of banks offers automated services and instant bank transfers throughout the country. Shopping centres, supermarkets, bookshops, casinos and excellent restaurants enhance everyday life.

  • Stimulating

Sport, leisure and culture occupy an important place in Senegalese society. Sport fishing, diving, sailing, go-karting and golf are among the popular activities. The cultural life is rich and offers amateurs of local and international productions of high level. Seaside cottages, nature reserves and thalassotherapy centres invite you to relax and enjoy a change of scenery.

 

A very attractive business climate

Le gouvernement du Sénégal a pris des mesures importantes pour améliorer l’environnement des affaires du pays. À la suite de la mise en œuvre des réformes sur l’environnement des affaires, il est beaucoup plus facile de créer et d’exploiter une entreprise au Sénégal. Les investisseurs sont maintenant en mesure de:

  • Register a company in 24 hours ;
  • Faire une opération d’importation ou d’exportation en 10 jours ;
  • Transfer of ownership in 50 days;
  • Obtain a building permit online in 40 days;
  • Faire une déclaration en ligne et un paiement d’impôt ;
  • Create a limited liability company with no share capital requirement;
  • Benefit from the services of the commercial courts;
  • Carry out all procedures related to the life of the company online (e - tax, Teledac, etc).
Protection of investments

Senegal is a land of opportunities, where the business environment is favourable and constantly improving. Since 2013, the Senegalese government has been implementing the Programme for the Reform of the Business Environment and Competitiveness (PREAC). Numerous innovations have been introduced, such as the abolition of share capital for the creation of a limited liability company, the creation of windows for setting up a business or connecting to electricity, the dematerialisation of customs procedures, tax reductions for companies that invest, as well as the various tax incentives allowed by the Investment Code and the export free enterprise regime. The implementation of a package of 52 measures has propelled Senegal into the top 10 reformers in the world by the "Doing Business" ranking established by the World Bank and its partners.

Le Sénégal a signé plusieurs Accords de Protection et de Promotion des Investissements (APPI) avec plusieurs dizaines de pays partenaires à travers le monde. Dans un contexte de mondialisation, ces accords améliorent la sécurité juridique des investissements. Ils prévoient le rapatriement libre des capitaux d’investissement et des retours sur investissement, garantissent l’expropriation et prévoient une clause de la Nation la Plus Favorisée (NPF) au traitement des investisseurs. Ils prévoient aussi l’indemnisation des pertes en cas de guerre, de conflit armé ou d’émeute. Le Sénégal est pleinement engagé à améliorer son climat des affaires pour promouvoir les investissements et favoriser une croissance économique tirée par le secteur privé.

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