INVEST IN SENEGAL / SEVEN REASONS

-An open  and stable countrylink

A strongly anchored democratic tradition
In Africa, Senegal has the reputation of having a peaceful political life, thanks to the solidity of its institutions and a strong demographic culture resulting from a long historical process. There are many political parties in Senegal, and a well-organised civil society that participates in the nation’s life. After the political change that recently occurred, a new Constitution was passed; it gives greater meaning to citizenship and grants new political and social rights to the Senegalese and all those who are living in the country.

A broad and open partnership network
Senegal is trusted at the international level, and is a country whose voices are carefully listened to and respected abroad. The new external policy strategy is based on the consolidation of these assets as well as on a close and high-quality type of assistance to foreign and national investors, in the various diplomatic representations throughout the world.

The private sector, the driving force of the economy
These past years, Senegal has adopted a broad programme of privatisation of public companies involved in major sectors of the economy. Famous investors are operating today in the water, telecommunications, energy, tourism and transport sectors. In certain fields, these economic reforms have led to the establishment of regulation institutions in charge of promoting healthy competition between the various economic actors.

A more operational facility to support investments
Since the structural adjustment programmes that took place in the 1980s and 1990s , Senegal has embarked on a programme of improvement of the business environment. It is in this context that some measures were taken which led to the creation of one-stop offices, the revision of the Investment Code and the re-designing of the whole system of promotion of investment, namely through the adoption of free export companies. To make the one-stop office system perform better, APIX has articulated its reforms on the following points :
Simplification of the applications for certification to the Investment Code, with the feasibility studies replaced with technical forms ;
Replacement of the registration forms by a unique harmonized and simplified form.

-A healthy and competitive economy

The Senegalese economy is dominated by tertiary activities that make up 60% of the GDP. The primary and secondary activities each make up 20% of the GDP.

The country received a “B+ / stable / B” credit rating.
Senegal is the first country in West Africa that has been rated B+/ stable / B by the famous international rating agency Standard & Poor’s, for three consecutive years.

This excellent credit rating is an indication of the great level of performance achieved. It is a confirmation of the country’s positive image, as well as political and social stability, which considerably contributes to reducing the country’s investment risk.

Restoration of the State’s financial capacity
Thanks to a rigorous management of the public finances, the Senegalese state has gradually restored its financial capacity. The policy of stabilization of public finances has yielded good results. The state has even made budgetary surplus that offers the possibility of diversifying investments, namely in social sectors.

A fixed exchange rate, a common currency
The CFA Franc is tied to the EURO at a rate of € 1 = F CFA 655.957 (FF1 = FCFA 100). Senegal shares a common currency with 8 UEMOA (WAEMU) countries, which is a community organisation of which she is a member . The Central Bank (BCEAO) is in charge of this zone’s monetary policy.

-Qualified  human resources 

A high-level of education and vocational training
During the colonial period, Senegal established the first university in Africa, which has trained most of the country’s leaders. Famous African statesmen have been at the former “Ecole Normale William Ponty” of Sebikotane.
Senegal invested in the training of Senegalese and African intellectuals from a very early stage.

Nowadays the country has high-level experts in various sectors.
A large number of Senegalese intellectuals have honourable references in European or American universities.

Ambitious programmes to rationalise education
Senegal is the first African country to have implemented a system for taking care of early childhood through the setting up of structures for learning new skills. This system is called the « Case des Tout-Petits » (Kindergartens). A programme for the building of 28,000 houses is planned.
In elementary, medium or secondary education, plans revolve around the increasing of the schooling rate and the professionalisation of high schools and colleges with particular focus on the quality of training.
As for technical education and vocational training, the learning programmes will be modernised, while setting up multifunctional resource centres that would be flexible enough to meet the needs for pre-qualification and for the training of young girls and boys from the cities or rural areas.
Higher education curricula are designed, so as to meet the needs of the labour market, through a greater focus on scientific and technical research. In addition to this, regional university colleges will be gradually introduced, so that students can study in an environment that is closer to their city/ area of origin.

Leadership in the field of intellectual services to enterprises
Today, the Senegalese education system can boast two renowned national universities and several training schools offering university-level courses. The latter provide training in various disciplines, such as computer science, medicine, economics/management, marketing etc.
These schools provide bilingual teaching, with courses given via satellite. Most of them have built partnerships with renowned European and American universities and deliver diplomas certified by such institutions. Dakar-based ultra-modern enterprises and multinational companies employ a great number of students trained in these higher schools.

-Modern and performing infrastructures 

Senegal has a road network of 14,500 km. 90% of the movements of people and goods are made via roads.
The road sector is currently going through major restructuration, with the creation of the Conseil des Routes – Road Council- and the Agence Autonome des travaux Routiers – Autonomous Agency for Road Works (AATR), and the reorganisation of the Direction des Travaux Publics-Public Works Department.
A second Sectoral Programme for Transport (PST2) (Programme sectoriel des transports) is being implemented ; this programme amounts to FCFA165 billion, 70% of which are used for the road programme.
Several projects were launched in 2004, for the building of bridges and for the rehabilitation of the road network. Urban grade-separated intersections and new crossroads will be built by 2005 which will considerably improve urban mobility. The project of the extension of the Voie de Dégagement Nord (Northern Distribution Road) is at an advanced stage.
The Programme d'Amélioration de la Mobilité Urbaine - Programme for the Improvement of Urban Mobility - is financed by the World Bank.

The railway network
The railway network stretches 1,057 km, 905 km of which make up the main network and 152 km of which make up the secondary network. The railway network is composed of two main axes : the Dakar – Kidira railway line (at the Malian border) and the Thies – Saint-Louis line, which is currently not being exploited by any company.

Following a call for tenders, the Canadian Group Canac-Getma was selected for the full management of the Dakar-Bamako axis. On the basis of a concession contract, the Group has committed to invest around forty billion CFA for the rehabilitation and maintenance of the network.

The ultimate objective is the development and gradual rehabilitation of the railway network, which will turn from a metre gauge system into a standard gauge system, or broad gauge system.

Airports
Senegal has three international airports: Dakar, Saint-Louis and Ziguinchor. However, 15 airports are opened for public use. The Leopold Sedar Senghor international airport, in Dakar, generates the main part of the traffic, due to the fact that it can receive all kinds or planes, included high-capacity aircraft.

With a steady average growth of 7% per year over the past decade and a flow of 1.2 million passengers for 35,000 aircraft operations throughout the year, the Dakar airport has now become a major regional platform. It is the first airport of the ECOWAS zone, in terms of its flow of passengers and is the eighth one of its type in Africa, after those of Johannesburg and Northern Africa.

Today, Air Sénégal International (ASI), which was created in partnership with Morocco, in 2001, serve 17 destinations from Dakar. ASI and South African Airways have signed a code-sharing agreement for two Johannesburg-Dakar-New-York flights each week. ASI also has two daily flights between Dakar and Paris, and two weekly flights to Lyons and Marseilles. ASI’s air traffic has doubled in one year to reach 25,000 passengers; its staff has tripled in 2 years and they now have 400 employees.



The  port of Dakar
The port of Dakar enjoys an favourable geographical location, because it is located at the furthest end of the West African Coast; it is a crossroads for several maritime roads between Europe, North America, Latin America and the African continent.
The port area extends over 3,260,000 square metres. This comprises :
10 km of quays
40 working berths for ships drawing a maximum of 11 metres
80,900 m2 platform for short-term storing
170.600 m2 of yards (container yards)
60.597 m2 of covered warehouses
The Dakar Port is mainly frequented by container-carriers, cargo ships, roll-on roll-off vessels, tankers, and fishing vessels. Large companies are based in the port, offering various services and all kinds of port facilities. The port has:
infrastructures for transit towards hinterland countries, such as Mali, Burkina Faso.
A facility for ship repair, which has one of the biggest ship repair yards on the West African coast.
Railway infrastructures linked to the national and international railway network, with two main lines for the transportation of goods.
The authorities of the port of Dakar have launched a major modernisation programme, including the building of a road bypassing the container terminal, a distribution platform, and a third container terminal, facilities for the storing of fruit and vegetables, and a port goods station. The finalisation of the Bargny mineral port will make Dakar’s port fit for the twenty-first century.

Telecommunications
Over the past few years, Senegal has invested more money than any other African country in the telecommunications sector. In 1994, Senegal was ranked top of all sub-Saharan countries by the International Telecommunications Union, for the telephone penetration rate and the high quality of service.

In the field of telecommunications, Senegal has become a leader in West Africa, with the growing modernisation of its technological apparatus including: the operating of optic fibre submarine liaisons linking Africa, Europe, America and Asia ; the development of the IP (Internet Protocol) network ; the use of ADSL technology; coverage of the wholeof the country by an optic fibre network; the securing of transmission by means of the SDH network (Synchronous Digital Hierarchy).

Mobile telephony has experienced a steady progression in Senegal. In early 2001, the number of mobile lines had exceeded that of fixed lines. Today, the number of mobile phone owners is 700,000, for a teledensity of 4.8%. From the second half of the year 2004, the Société nationale des Télécommunications (Sonatel) – National Telecommunications Company -, will no longer have a monopoly on the operation of the national and international fixed telephony.

-A renovated legal and fiscal framework

  Senegal has taken large-scale measures to liberalise its economy and make it more efficient and transparent. It has several assets ensuring the security and prosperity of investments.

Major benefits are granted to investors with significant support, incentives and assistance with the development of their activities. The system is as follows:

The fiscal and customs system
Thanks to the recent fiscal reform, the Tax Code has moved our system more in line with international standards by setting the stage for a substantial decrease of the capital gains tax rate.
Indeed, tax decrease has been made possible, thanks to the trading tax reform, the decrease in the tax rate for companies (from 35% to 33%) and the extension of the accelerated depreciation system.

The Customs Regulations include a set of economic guidelines, designed to facilitate under specific conditions, various operations, such as:
• production (temporary admission, warehouses, draw-back, etc.)
• storing (warehouses)
• transport (transit)

The investment Code
The Senegalese state has promulgated a new investment code, with the view of continually improving the business environment, to boost private investment.

The new code meets the following objectives:
• Improvement of competitiveness in Senegal, in terms of incentives to investors
• Cohesion with the fiscal reform
• Job creation
• Decentralisation of production-related activities
• Densification of the existing industrial sector


Major innovations

The new code is characterized by a set of major innovations aimed at boosting private investment in strategic sectors ; these innovations include:
The setting-up of a system of tax credit for investments amounting to 40% of the fixed assets investments, over a period of five (5) years, levelled off, for each exercise, at 50% of the taxable income for the new companies, and at 25 % for extensions;
Extending of the code to strategic sectors (teleservices, industrial areas, cyber-villages, malls etc.)
Removal of the ceiling regarding the amount of planned investments for services;
The promoting of activities employing labour intensively and granting of incentives for job creation in the other regions;
Delimitation between the investment stage and the operation stage, which allows the investor to fully enjoy the benefits of exploitation for a duration of five (5) years, and which also allows the Administration to collect all the information relating to the carrying out of the approved programme and the launching of activities;
Compliance with the provisions of the Environment Code;
Removal of the minimum amount of personal funds required;

The free export company system
The status of the free export company covers the field of agriculture, in a broad sense, as well as industry and teleservices. In order to be certified, a company should have an export potential of at least 80% of its turnover.

Certification to the status of a free export company guarantees to free export companies:
Free transfer to destinations in countries outside the Franc zone, of all sums required to make an investment and carry out their commercial and financial operations
Free transfer of the salaries of foreign employees
Free transfer of the dividends for foreign shareholders
The recruiting of foreign staff without any restriction
The arbitration of the International Centre for the Settlement of disputes relating to investment (CIRDI)
Additional benefits are granted to companies, alongside these guarantees. These have a validity of 25 years and are renewable from the date they were granted.


The new law on BOT
The new law on BOT, which was passed by the Senegalese Parliament in April 2004, filled a legal vacuum as there had been no formal regulation relating to public/private partnership for the financing, realisation and operation of public interest infrastructures.

The law on BOT now ratifies the legal framework enabling this new kind of partnership. It applies to the so-called “Build, Operate, Transfer” contracts, through which the state, the local authorities, or a public institution or enterprises with public participation (the seller) entrusts a third party (the project operator), to run a public interest infrastructure (all or part of the conception, financing, and operation phases), insofar as the private operator remunerates itself mainly from the paid user fees.

The new law prioritises transparency in the selection procedures, while guaranteeing a satisfactory execution of the contractual commitment . All BOT contracts are submitted to advertisement and to a competition process. There is also a tender committee, whose proceedings are recorded in minutes, which are then made public.

The law on BOT also regulates the conditions of operation of the Council in charge of Infrastructures, which has a function of regulation and mediation, within this partnership. This council helps build sustainable consensuses in the field of infrastructures. It also has to monitor the implementation of projects and the prevention of incidents or disputes, that could have an impact on the performance of contracts.

-A privileged access to regional and international markets

 A country oriented towards regional integration
Senegal is a member of the UEMOA –WAEMU- (West African Economic and Monetary Union), which is:
An economic union of 8 West African countries : Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Togo, Niger and Senegal ;
A million consumers based on the free movement of people and goods;
A market relying on a common commercial policy with a common external rate (CER);
A regional financial market with a stock exchange.
Senegal is also a member of the Economic Community of West African States (ECOWAS), which is characterized by a market of 200 millions consumers from 15 member states. The ECOWAS, which was founded in 1975, aims at promoting e economic integration.

Senegal is also a member of the African Union (former OAU), an organisation whose mission is to improve living conditions through cooperation and solidarity between African countries.

Senegal has set up the OMVS (Organisation for the Development of the Senegal River), in cooperation with Mauritania and Mali. In cooperation with the Gambia, Guinea Bissau and Conakry Guinea, Senegal has also set up the OMVG (Organisation for the Development of the Gambia River).

In compliance with the multilateral commercial agreements and with the ILO principles,
Senegal offers an exceptional site with privileged access to :
The European market (EU/ACP agreements) ;
The American market (African Growth and Opportunity Act);

African Growth and Opportunity Act (AGOA)
This enables 36 Sub-Saharan countries, including Senegal, to export more goods to the American market; this applies to more than 6,000 products, free of customs duties (17.5%, on average), for 8 years.

This Act, which was promulgated in 2000 has been so far the most important initiative taken by the USA for Africa.

It is favourable as it provides the Senegalese textile products with a large trade outlet towards the American market. The American market is thus becoming more accessible to the textile and clothing companies based in Senegal.

The geographical location of Senegal, halfway between Europe, Asia and America, combined with the policy of opening of the Senegalese authorities, could attract investors from all continents.

Adhering to its traditional openness, the Senegalese state has set up a system encouraging local and foreign economic operators to take advantage of the opportunities offered by AGOA.

The Canadian Initiative Act
Since 1st April 2003, when the Initiative for access to the Canadian markets came into effect, exports from several countries, including Senegal, have had access to the Canadian market without any quotas and with exemption from duties.

Customs duties and quotas have been cancelled for more than 880 products, primarily in the textile and agricultural sectors.
 
Good relations with the multilateral organisations
Senegal has good relations with the World Bank (WB) and the International Monetary Fund (IMF).

In Senegal, the World Bank is investing in poverty-alleviation oriented programmes in the fields of education, health, and also in the area of infrastructures, urban development, production of electricity and drinking water supply.

The IMF is financing a programme of poverty reduction and capacity-building initiatives. This also includes the privatisation of some public enterprises, via a transparent process.

Due to the good performance achieved by Senegal, as far as macroeconomic reforms and results obtained are concerned, the W.B. and IMF declared that Senegal should be eligible for the initiative of debt cancellation for heavily indebted countries, which will allow the government to provide more resources for education and health.

Business partners throughout the world
In 1999, 27 % of goods were exported to African states, but mainly to WAEMU countries. 43% were exported to Europe (of which 37% went to France) and 21% to Asia. 60% of imports came from Europe, half of which were from France; 20 % of which were from Asia.

-An exceptional quality of life

A charming country, open to the world
Located at the westernmost tip of the continent, Senegal embraces the Atlantic Ocean and is at the crossroads of Europe, Africa and the two Americas. It is also at the crossroads of the main air and maritime routes.

Senegal, which has a surface area of 196,722 km2, is bordered by Mauritania in the north, Mali in the east, Guinea Conakry and Guinea Bissau in the south, and in the west by the Gambia.

Its maritime facade stretches more than 500 km. Dakar, its capital, (550km2) is a peninsula located at the westernmost side of the country.

Three rivers flow across the country from the east to the west: the Senegal River (1700km) in the north, the Gambia River (750km and the Casamance River (300 km) in the south. Rivers such as the Lac de Guiers make up the country’s surface waters.

The country of Teranga
The Senegalese population is estimated at 9.9 million inhabitants, which is an average density of 48 inhabitants per km2. More than 25% of the population lives in Dakar.

The other concentration area is the centre of the country (the groundnut belt), which accounts for more than 35% of the population. The eastern part of the country has a lower demographic concentration.

The population is rather young: 55% of the Senegalese are less than 55 years old.

Senegal has around twenty ethnic groups, among which are the Wolofs (43 %), the Pulaar (24%), and the Serers (15%).

Foreigners make up around 2% of the population. They are mainly based in the capital, Dakar, where they are involved in business activities, and also in the industrial and services sector, as well as in international organisations. Some also live in the northern and southern part of the country, namely nationals from the bordering countries.

Senegal is a secular country, with an advanced democratic status. The Constitution guarantees an equality of rights to all citizens. Authorities practise an open kind of political dialogue. Religious groups live together in harmony and cordiality.

In Senegal, dynamic and independent private press groups are developing next to state medias. Freedom of association is formally recognised. Today, there are around thirty publications, of all categories. There are plenty of public and private radio stations.

The Senegalese are a welcoming people and the country’s hospitality is now legendary - hence the word “Teranga”, a Wolof word, meaning hospitality and typifies Senegalese qualities.

Senegal is a country of which one becomes fond easily, and it is quite impossible for a foreign guest not to succumb to the beauty of the country. It has a mild climate during virtually the whole year. Senegalese people are helpful, available and like sharing what they have with others. They are always well dressed.

Senegal has been independent since 1960 and its political organisation is a reproduction of the French model of the separation of powers. The President of the Republic is elected by universal suffrage for a period of five years (new constitutional rules). The National Assembly is made up of 120 members who are also elected for five years. Senegal has eleven administrative regions, the capitals of which are also the country’s main cities: Dakar, Diourbel, Fatick, Kaolack, Kolda, Louga, Matam, Saint – Louis, Tambacounda, Thies, and Ziguinchor.

Senegal operates at GMT. The official language is French, which is used everywhere in administrations and is practised by most Senegalese. Wolof is the most widely spread of the six national languages (its is spoken by 80% of the Senegalese); the other national languages are Diola, Serere, Pulaar, Soninke and Mandingo.


Health, a necessity for a good quality life
Senegal has trained the most brilliant African doctors. The first faculty of medicine in the AOF (French Western Africa), which was in Dakar, has trained brilliant health specialists – some of them are now practising in developed countries (in Europe and the USA).

Hospitals have gradually become well-equipped, from a technical point of view. Moreover, in Dakar, and in most Senegalese cities, there are private clinics, which provide care of the same quality as the best health centres worldwide.

The liberal government is primarily concerned with the resolution of health problems. Its pledge is « giving all Senegalese a chance to have access to health care, whether in the cities or in rural areas ». Particular focus is laid on prevention.

The National Plan for Health Development (PNDS), whose first phase, the PDIS has already been launched, is at an advanced stage of realisation. It has commendable goals, such as the reduction of infant and child mortality, the curbing of maternal mortality and the control of fertility, through the improvement of health coverage and the quality of the services provided.

Hospital and pharmaceutical reform is also a priority. A new status is going to give hospitals a legal status and management autonomy, while allowing them to focus on the improvement of care quality and security, through the setting up of performance-enhancing tools for hospital management.

When art and culture support the economic development
Senegal understood from quite an early stage the role of culture in the development process. Under the rule of President Leopold Sédar Senghor, authorities ensured the securing of an enabling environment to support artists and promote cultural jobs.

A coherent and innovating programme of development of cultural industries has been initiated to honour the Senegalese culture. It includes books, music, theatre, and cinema – this sector will thereby be brought to life again and will be made more dynamic.

Every two years, a big international event dedicated to art and culture is held in Dakar: the Biennale de l’art africain contemporain – Biennale of contemporary African art. Senegalese fashion has started being recognised worldwide, spurred on by talented couturiers and fashion designers.

To discover the country, one must also visit its art galleries and museums, its unique architectural sites, which are protected by UNESCO, such as the Kermel market, the Ministry of Foreign Affairs, the Sandaga market or the Dakar raiway station. One also needs to sample its delicious food, such as the fish and rice dish, whose art and secrets are known only by the Senegalese. One must not miss the country’s handicraft and reverse glass paintings, and the diversity of the art objects displayed in the museums of Saint-Louis and Dakar.