Doing Business In SENEGAL British

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doingbusinessin EDITION 2016

SENEGAL EDITION 2016

Senegal The gateway to a trailblazing Africa

P LANET M EDIAS

In partnership with

P LANET M EDIAS

page 1

The Table of Contents Chapter 1 : Senegal, land of investment

Chapter 2 : A diversified economy

A rich potential . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 The second WAEMU economy . . . . . . . . . . . . . . . . 26 PSE priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Chapter 3 : A country open to the world

The hub of West Africa . . . . . . . . . . . . . . . . . . . . . 32 FDI is coming. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Chapter 4 : An economy on the move

Basic infrastructure : the Diamniadio story . . . . . . . 42 Energy : a mix of fossil and renewable energy . . . . . 46 Construction work : stimulating dynamic growth . . . . 50 Chapter 5 : An economy forging ahead

Virtuous circles of actions . . . . . . . . . . . . . . . . . . . 54 Clear improvement in the business environment . . . 56 GAINDE 2000, artisans of change . . . . . . . . . . . . . 60 The major infrastructure . . . . . . . . . . . . . . . . . . . . 64 Chapter 6 : Industries of the future

The digital revolution on the go . . . . . . . . . . . . . . . 70 ATOS chooses Diamniadio . . . . . . . . . . . . . . . . . . . 72 ADIE ushers in the digital era . . . . . . . . . . . . . . . . . 74 A growing insurance market . . . . . . . . . . . . . . . . . 76 The many facets of the healthcare proposal . . . . . . 80 Sound industrial recovery . . . . . . . . . . . . . . . . . . . 82 Expansion of the mining sector . . . . . . . . . . . . . . . 84 The promise of hydrocarbons . . . . . . . . . . . . . . . . . 87 An exceptional agricultural potential . . . . . . . . . . . . 88 Fishery and aquaculture . . . . . . . . . . . . . . . . . . . . 92 Tourism and its tremendous potential . . . . . . . . . . . 96 Traveller’s logbook . . . . . . . . . . . . . . . . . . . . . . . . 98

Mr. Macky SALL President of the Republic of Senegal.

Editorial

‘‘

In today’s digital revolution with all its impact on the planet, Senegal, in just a few years, has created economic, social, cultural and administrative conditions that enable the country to fully participate in changes in the digital ecosystem.

A series of well-structured reforms and many major projects being carried out under the Plan Sénégal Emergent have helped to create a healthy business environment that is acknowledged and appreciated by the international bodies.

Alongside the construction of new world-class infrastructure, – highways, an international airport, an integrated economic platform, – we are providing training for the women and men who will keep it all going.

‘‘

The great return of Senegal . . . . . . . . . . . . . . . . . . . 4 7 good reasons to invest in Senegal . . . . . . . . . . . . . 6 APIX, the key to success . . . . . . . . . . . . . . . . . . . . 10 APIX, a global reference . . . . . . . . . . . . . . . . . . . . 12 Improving the business climate . . . . . . . . . . . . . . . 14 Business taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 The economic forecast . . . . . . . . . . . . . . . . . . . . . 20

Senegal, a key country in a continent focused on the present and the future, has equipped itself to ensure the success of the transitions to which the planet is committed and to work for a knowledge economy, a green economy, and a digital economy, thereby growing its incredible potential.

As we naturally turn to business, we invite investors to join us.

doingbusinessin Senegal | Edition 2016

© APIX. All rights reserved.

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1 SEnEgAL, LAnd of invEStMEnt A healthy background :

The great return of Senegal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 7 good reasons to invest in Senegal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Effective support :

APIX, the key to success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 APIX, a global reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Improving the business climate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Tax system for business enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Economic prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

doingbusinessin Senegal | Edition 2016

© APIX. All rights reserved.

tHE gREAt REtURn of SEnEgAL Senegal was built on two pillars of stability: an exceptional geostrategic location and unwavering democracy since 1960.

S

enegal was the first African country to have a multi-party system. It is also the only one whose first president, Mr. Léopold Sédar Senghor, after twenty years as head of state, relinquished power of his own volition, by transmitting it to his successor, Abdou Diouf. That was in December 1980.

Twenty years later, Mr. Diouf was succeeded by his longtime opponent Abdoulaye Wade.

In 2012, Macky Sall was elected president, the highest office of the state.

Dakar, capital of a stable open country

The steadfastness of its Presidents (four in a period of over fifty years) and the regularity of political transitions have contributed substantially to the stability of a country governed by the Constitution of 2001, as amended in 2009, which provides for separation of power among the executive, legislative and judicial branches. The executive power is exercised by the president, elected for five years in a two-round universal suffrage system. The president ap-

points a prime minister who leads and coordinates the government. There is a onechamber Parliament and a National Assembly composed of 120 members elected for five years. Senegal’s Economic, Social and Environmental Council (CESE) promotes collaboration between the dif fe r ent socio-professional groups and the different communities. It is a mediator in social conflicts and ensures the representation of key social and economic activities and their participation in the country’s economic, social and environmental policy.

THE THREE MAJOR THRUSTS OF THE PLAN SÉNÉGAL ÉMERGENT (PSE)

Upon his election in March 2012 President Macky Sall pledged to implement the reforms needed to accelerate national progress so that by the year 2035 Senegal could leave the cohort of LDCs (least developed countries) and join the promising circle of emerging

doingbusinessin Senegal | Edition 2016

countries. The main tool of this new strategy is Senegal’s emergence plan, the PSE (Plan Sénégal Emergent) designed to integrate all public development policies.

also energy and low-cost housing. The Ministry of Housing estimates housing requirements at somewhere between 10,000 and 15,000 units per year.

The Plan has three components : • Structural transformation of the economy and growth ; • Human capital, social protection and sustainable development ; • Governance, institutions, peace, and security.

All these prospects are favorable to investment and the first effects of the PREAC (Reform program to improve the business environment and competitiveness) launched in 2013 are already noticeable

It is being carried out in three stages : “transformation” (2014-2017), “acceleration” (2017-2023) and then the consolidation of achievements to reach “economic emergence” (2035).

The PSE is the medium-term reference for the social and economic policy. It focuses on the structural transformation of the economy through the strengthening of existing drivers of growth and the development of new sectors that can create wealth and employment and promote social integration. This plan is directed towards a “sustainable development goal... with strong values such as solidarity and the rule of law”. It seeks to improve the well-being of the Senegalese people through the protection of vulnerable groups and access to basic social services. It also seeks to contribute to strengthening governance, promoting peace and security and consolidating the rule of law.

Through the PREAC, The Head of State wants Senegal to rank among the top ten in Africa on the performance-based attractiveness scale. Good results have been obtained since 2014 inter alia from the simplification of administrative procedures and the introduction of the new law on public-private partnerships. Progress was recognized in the World Bank’s 2015 Doing Business ranking, which propelled Senegal to 156th position, and elevated it three places higher in 2016. ■ Saint Louis, Faidherbe Bridge, apparently designed by Gustav Eiffel

The private sector is essential to Senegal’s emergence plan (PSE) and is central to the process of wealth creation, in partnership with the State. To set the economy on the path of strong growth (6.8% in 2015), the State favors big infrastructure projects – especially transportation : roads, highways, railways, airports – and investments in key sectors, such as agriculture and tourism but

© APIX. All rights reserved.

THE PRIVATE SECTOR AT THE HEART OF THE PSE

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Senegal 2016 | A healthy background

7

Senegal 2016 | A healthy background

GOOD REASONS TO INVEST IN SENEGAL Stability, openness to the rest of Africa and to the world, human and natural resources, quality of life. there are so many good reasons to invest in Senegal.

1 A STABLE,

3 QUALIFIED MANPOWER

OPEN COUNTRY

Senegal has been a vibrant democracy since its independence, and stands out on the continent as a country where the presidency was passed on peacefully. This situation reflects the country’s historical principles of democracy, rule of law and freedom, qualities that are also shown in the strength of its institutions. Guaranteed stability is a major selling point for investors in this country, which furthermore is open to the world and is the favorite gateway to West Africa.

2 A HEALTHY,

COMPETITIVE ECONOMY

Senegal has capitalized its natural resources — agriculture, fishery and tourism — to emerge as the fourth largest economy in West Africa while previously, except for phosphates, gold and some other minerals, it did not have much raw material. It is one of the most industrialized countries in the area. The presence of European, US and now Asian multinationals is a good indicator of the opportunities it has to offer.

Dakar has always been the flagship of Francophone Africa in secondary and higher education, and a wealth of expertise for the entire continent. Recognizing the importance of human resources for the country’s future, Senegal spends more than a third of its national budget on education.

4 EXCEPTIONAL

QUALITY OF LIFE

Its climate, its history, its beaches but also its flora sheltering a great diversity of wildlife have given Senegal the appeal of a first-rate tourism country. Senegal has numerous exceptional sites, from the historic streets of St. Louis to the beaches of Cap Skirring, the animals of the Niokolo Koba national park, and the Great Mosque of Touba. Dakar offers elegant colonial architecture alongside more modern buildings, opposite the historical Island of Gorée. The magic of these places can be found in an exceptional Wolof word, Teranga, which means welcome, hospitality, art of living.

Teranga is practiced throughout the country where it brightens up everyday life.

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Senegal 2016 | A healthy background

!

dagana !

Kaédi ! Saint-Louis

Matam ! ■ ! Louga !

! Ranérou

Linguère ! M’Boro

thiès

■

! tivaouane ! touba

!

! diourbel

dAKAR

SENEGAL

Kidira !

! M’Bour ! Kaolack

! Koumpentoum ! tambacounda

!

Kolda

vélingara

!

Bignona

Saraya Kédougou !

!

! Ziguinchor

Area : 196,722 square kilometers.

Population : 13.3 million inhabitants.

Population under 15 years : 43.5%.

Population growth rate : 2.5%.

Urban population : 50%.

Official language : French.

Other spoken languages : Wolof, most widely spoken, but also Diola, Poulaar, Malinke and Mandingo.

Business Languages : French and Wolof.

Religions : Islam (94%), Christian (4%) and Animism (2%).

Literacy rate : 39.3%.

doingbusinessin Senegal | Edition 2016

!

© APIX. All rights reserved.

Senegal 2016 | A healthy background

Dakar city center, with the sea in the background

5 PREFERENTIAL ACCESS

TO REGIONAL AND INTERNATIONAL MARKETS

The position and quality of its port has made Dakar Africa’s ocean gate to the world. It also intersects the corridor connecting four major West African countries (Senegal, Mali, Burkina Faso and Ghana) to the lane along the Mauritanian coast to Rabat. These communication links are essential to the healthy growth of the region and thus rank among the projects most favored by the international donors, etc.

6 MODERN

INFRASTRUCTURE

To maximize its strong points, including its exceptional location at the western tip of the continent, and fully play its role as a regional hub, Senegal has launched a series of infrastructure improvement projects, together with reforms to promote investment and public-private partnerships. The first

section of the Motorway of the Future (Autouroute de l’Avenir) between Dakar and Diamniadio, that was opened in April 2014, has already generated economic benefits.

7 LEGAL AND FISCAL

INCENTIVES

Banking on the rule of law and strong institutions, Senegal has been able to establish a secure and enabling legal and fiscal framework for both national and international investors. Its Conseil presidential de l’investissement (CPI) provides an open space for dialogue between the highest state bodies and the private sector, via the investors. The greatest event for such contacts is the annual session that is chaired personally by the President of the Republic. This is where important, realistic reforms take shape in areas essential to the creation and the healthy development of enterprises : access to land, building permits, labor legislation, taxation… The CPI is an essential element of the Plan Sénégal Émergent, the most ambitious program on the road to emergence in 2035. ■

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As the gateway to Africa, one of the most promising areas of the world, Senegal has built up its capacity to play a role as a competitive world-class business destination. the national Agency for the Promotion of investments, APiX, is the fulcrum.

S

ince its establishment in 2000, APIX, as the one-stop shop for all formalities, has assisted thousands of foreign and Senegalese companies by providing services that are free and custom-tailored to the individual’s needs so that each investor can make the most of opportunities in Senegal.

As the primary contact for investors, APIX is also best equipped to speak on behalf of the national and foreign private sector to the State, which relies on this leading economic player to boost national development.

The Motorway of the Future opens up the Cap Vert peninsula

APIX provides A-to-Z assistance with business creation and expansion, and gives investors a one-stop shop to complete all documents and administrative formalities.

It is also responsible for granting companies the benefits of the Investment Code or the free export status if at least 80% of a company’s output is for export. The Agency reviews applications and authorizes benefits accruing from customs, tax and other agreements.

GUIDE AND CATALYST

Through its permanent contacts with the business world, APIX guides the business climate improvement program. Knowledge of field conditions enables APIX to identify shortcomings and obstacles to the development of private initiatives and thereupon make recommendations on how govern-

doingbusinessin Senegal | Edition 2016

© APIX. All rights reserved.

APiX, tHE KEy to SUCCESS

ment can eliminate barriers. Since 2002, many new reforms have contributed to modernizing the law, relaxing labor legislation, facilitating access to land and cross-border trade, and creating new businesses APIX is also a catalyst for infrastructure development, which plays an essential role in making investments profitable, and as such is responsible for preparing, coordinating and monitoring the implementation of the State’s major projects.

The toll motorway linking Dakar to Diamnia dio, the first in Africa, was an essential step. Thanks to its innovative design and operating method, this project won the World Bank’s 2009 Innovation Award.

The highway was built through a public-private partnership costing an estimated 380 billion CFA francs.

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Senegal 2016 | Effective support

APIX was in charge of coordination, social communications, population resettlement, and environmental issues. ■

||||||||||||| APIX in figures ! ! ! !

160 multidisciplinary experts at your service.

6 regional offices covering 14 cities with strong economic potential.

CFA 557.2 billion in certified investments.

Nearly 9,000 enterprises created in 2014 (+4.2%).

2,000 people displaced and resettled for the construction of the tollway.

© APIX. All rights reserved.

!

A country under reconstruction

doingbusinessin Senegal | Edition 2016

Senegal 2016 | Effective support

APIX, A GLOBAL REFERENCE regulations. In many areas, Senegal is ahead of its competitors and even competes with the OECD countries.

In what areas does Senegal rank best?

‘‘

Mountaga Sy. Chief Executive officer of APiX

Africa is more prominent on the investors’ screen than it has been in a long time.

How can you convince investors to choose Senegal?

Mountaga Sy – Mountaga Sy - The best recipe is to help them. That's the raison d’être of APIX which was created to help entrepreneurs at all stages of their investment, from creating a company to, if necessary, winding it up. To do this, we have marked out a pathway that we manage to make as simple and secure as possible. The results are clear, and are the same as they were last year. In its 13th edition, the World Bank’s Doing Business classification ranked Senegal among the world’s top 10 reformers.

Senegal’s excellent performance be traced to the reforms undertaken by our country ; the World Bank validated at least one of the four of Doing Business assessment areas and emphasized that our country is now among the world’s top 10 countries with regard to improvements in its business

M.S. – The four areas where the World Bank’s Doing Business assessment praised the progress of Senegal are : the elimination of the minimum capital for the creation of a limited liability company (SARL) ; the establishment of a single window for connecting electricity for SMEs with a 50% decrease in the advance deposit for electricity consumption and a faster delivery of ground crossing permits ; a reduction in the property transfer registration fee from 10% to 5%, and the adoption of a decree on mediation and reconciliation to encourage recourse to bodies and instruments that render alternative decisions on contractual conditions.

The effectiveness of APIX’s merged services has removed some major barriers to the establishment of business companies.

Its single window, certified ISO 9001-2008, has tremendously reduced the time it takes to create a business company… from 58 days to 48 hours. All of this makes APIX, the investment promotion agency, an oft-cited global reference.

One important benefit for investors is our local labor force, which is well trained, educated, inexpensive and motivated, in other words, we can offer valuable human resources readily adaptable to business needs. The outstanding problem is energy. The mixed energy policy, to which the government is firmly committed, focuses strongly on renewable sources of energy, which will provide a growing share of

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Senegal 2016 | Effective support

Another key element of the business environment is the conditions of cross-border trade. The successful dematerialization of customs processes represents the most important administrative progress of the 21st century and has made trade relations significantly easier and more secure.

The difficulties of obtaining access to land have long been considered as a weakness.

What is the situation now?

M.S. – Concrete actions have been launched.

One example is land codification, a process that prepares the legal groundwork for leasing. In Dakar, a single window for land tenure issues has been set up to facilitate the delivery of building permits in the Cap Vert peninsula. A coding system to identify agricultural land will soon be operational.

But funding is still one of the major challenges to the business world in Senegal.

We often talk about corruption when we talk about African countries. What is the situation in Senegal?

M.S. – True, nothing discourages investors more than corrupt bureaucracy, suspicious procurement procedures, unfair competition and, above all, permanent legal and judicial instability. Since President Macky Sall is determined to eliminate these problems, he regularly emphasizes that he placed his presidency under the banner of the fight against corruption and will continue to demonstrate his commitment to this issue.With the creation of the ARMP (public procurement regulation authority), the special unlawful enrichment repression court called the Court de repression de l’enrichissement illicite, the national corruption control office called the Office national de lutte contre la corruption, Senegal is setting up a formidable battery of firewalls to curb this plague.

||||||||||||| APIX, customized coaching ! Control of the fiscal, legislative and regulatory framework.

APIX experts identify fiscal, legal and regulatory obligations related to all investment projects. ! Required documentation in 48 hours.

An investment documentation office can be consulted by mail, phone or directly at APIX without an appointment.

The investor receives the required economic, financial, technical and commercial information in less than 48 hours after filing a request. ! Data on the best business opportunities.

Market leaders, assisted by experts, conduct regular strategic and global studies on promising sectors. APIX provides detailed information and in-depth analyzes

‘‘

electricity to fulfill the needs of our economy at the best price.

as support for sound investment decisions. ! Personalized project monitoring.

Market leaders, assisted by experts, conduct regular strategic and global studies on promising sectors. APIX provides detailed information and in-depth analyzes as support for sound investment decisions. ! Assistance with building up infrastructure.

A civil engineering expert provides assistance and advice on all aspects of construction for infrastructure included in the investment program and helps draws up the list of building and other materials to be submitted on the customs exemption application. ! Decentralized services.

APIX has regional offices in the main regions of Senegal.

doingbusinessin Senegal | Edition 2016

Senegal 2016 | Effective support

IMPROVING THE BUSINESS CLIMATE By automating procedures, Senegal has become significantly more attractive. By dint of reforms that have already entered into force, the investor can carry out the main administrative formalities in complete security and confidentiality in a short enough time to remain competitive. ! Setting up a business company

Minimum capital paid

ONE-STEP PROCESS, REGISTRATION IN ONE DAY

" Submit application at APIX (BCE : enterprise creation bureau) in the morning and retrieve it in the afternoon. " Automated platform : www.orbusentreprise.sn " Elimination of stamp duty . " Elimination of Senegal’s minimum capital requirement .

85th !+6

Country or area

% per capita income

Senegal

4.8

Sub-Saharan Africa

45.1

OECD

9.6

! Cross-border trade

EASIER AND MORE EFFICIENT

World rank.

2015/2016 Progress.

Business establishment time Country or area

average in days

Senegal

6.0

Sub-Saharan Africa

26.8

OECD

8.3

" Reduction of number of categories of terminal handling charges (THC), from 46 to 6, with a per box billing system. " Lower port costs thanks to the new THCs. " Interconnection of different services: harbor, agents, GAINDE 2000 system, customs, freight forwarders, banks, shippers, which means that almost all operations can be completed on line. " The logistical framework is also highly developed and contributes to making exports more competitive (low costs for logistics, lead-ins to West African markets, no export taxes). Senegal was one of the first countries to establish a cross-border one-stop shop to

doingbusinessin Senegal | Edition 2016

accelerate administrative formalities and strengthen ties with the other countries in the sub-region.

113th !+1

World rank

2015/2016 progress

Export time Country or area

in hours

Senegal

26

Sub-Saharan Africa

97

OECD

5

Import time Country or area

in hours

Senegal

54

Sub-Saharan Africa

123

" For a new firm to apply for electricity (Senelec), telephone (Sonatel), water (SDE) and sewage disposal (ONAS) services it completes one single form and sends it to APIX. " Electricity : a single window for SMEs at the Centre des grands comptes, Sacré-Coeur 3 Pyrotechnique.

• Indicative price scale for electrical installations, • Deposit on consumption reduced by 50%, •Waiting time for installation of electricity reduced by 50%. " The waiting time for a connection to the sewage system has been reduced from 90 to 45 days, and the procedures simplified : • Special windows for SME connections are located at the Cité TP SOM N°4 Hann.

• Cancellation of the water bill for the sewage connection.

170th !+10

World rank.

OECD

4

! Building permits

LESS WAITING TIME

" Depositing and processing application files online via www.teledac.gouv.sn " Single windows (physical and electronic) fully operational. " Building permit issued within 40 days for business companies.

148th

World rank.

! Connecting to networks

2015/2016 progress.

! Transfer of ownership

FASTER AND LESS EXPENSIVE

" Merger of registration process and land registry for all land registration. " Ownership transfer time : 30 days (from the notary to the land register). " Reduction of registration fees, from 10% to 5%

152th !+18

World rank.

ONE APPLICATION FOR WATER, ELECTRICITY AND TELEPHONE

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2015/2016 progress.

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Senegal 2016 | Effective support

Senegal 2016 | Effective support

A single Senelec/APIX window for fast, less expensive connections An ad hoc committee meets once a week to approve the applications.

As a result of the work done by this committee : • businesses can request advice on their pre-projects, even by telephone or e-mail.

In the near future they can stay in contact online directly on the Senelec site ;

The improvements to the business environment in Senegal have been applauded, starting with the World Bank’s Doing Business assessment. As part of these improvements, Senelec and Apix established a single window (one-stop shop) to facilitate access to electricity for investors.

By cutting the cost and the waiting time for connections to the electricity grid in half, this single window has contributed substantially to the business acumen, especially for the SMEs and the SMIs that only have to deal with one service.

This single window for connections requests serves as a go-between for SME/SMIs and the Senelec technical services (Société nationale d’électricité du Sénégal).

It has been established in the Major Accounts unit and monitors transactions in real time.

• the number of procedures for a connection application file has been halved, from 8 to 4 ; • the same reduction in the price for studies, follow-through and verifications and also for testing equipment (cables, transformers, TC). The price, reduced by 50% after all the procedures were combined, is now a fixed price that is paid all at once when the application is filed ; • the deposit on future consumption has also been cut in half.

Ever concerned with facilitating the investment process in Senegal, Senelec has introduced another innovation : whenever a connection involves the crossing of a road or a railway, Senelec employs its own services to cover the cost and do the work. Ageroute for the road and Transrail for the railway.

‘‘

‘‘

Papa Saer Lo, one-stop Window officer

• time from submission to approach has dropped from generally one month to less then six days ;

Senelec’s initiatives and efforts to facilitate access to electricity are already showing signs of success. Senegal’s higher ranking in the Doing Business 2016 assessment is largely (43%) due to Senelec.

doingbusinessin Senegal | Edition 2016

! Loans

! Commercial justice

Since the early 2000s, Senegal has been developing an enabling framework to finance its private sector. " Diversification of funding sources and facilitation of bank loans to SMEs through venture capital and leasing agreements ; " Computerization of the trade and personal property register (RCCM) and the online portal www.seninfogreffe.com to provide information on the collateral from properties listed in the database.

133rd

World rank.

SPEED IN EXECUTING CONTRACTS AND INCREASED RIGHTS FOR MINORITY INVESTOR

" Effectiveness of chambers of commerce and increased resources for bailiffs and auctioneers. " Protection of investors, especially minority investors. " Enforcement of time lines for the various phases. " Extrajudicial mediation. " Computerized platform for online issuance of deeds related to trade registration (RCCM) via www.seninfogreffe.sn in land registry.

! Payment of fees and taxes

EFFICIENCY AND SIMPLICITY

Enforcing Contracts

The general reform of the Tax Code, which entered into force in January 2013, reflects the government’s aspiration to use the tax system as an instrument of economic growth. Declaring and paying taxes has become easier. Efforts to make operations papers are well underway : " Generalization of e-VAT reporting for SMEs. " Paying taxes online using an e-tax platform (www.dgid.sn/etaxe). " Fee exemptions for online payments. " Notification period reduced by 50% (from 26 to 13 days). " Guidance on repayment schedule for VAT.

145th !+1

183th

Regulations on insolvency

World rank.

World rank.

2015/2016 progress.

Protection of minority investors

155th

88th !+8 doingbusinessin Senegal | Edition 2016

World rank.

World rank.

2015/2016 progress.

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Senegal 2016 | Effective support

© APIX. All rights reserved.

TAX SYSTEM FOR BUSINESS ENTERPRISES Corporate taxes, licensing, labor law, social security... for the investor in Senegal, improvements now underway are evidence that the public authorities are listening to the business world and keeping an eye on investments, from start to finish.

CORPORATE TAXES The corporate tax is 30% in Senegal. In a deficit year, the CMT (contractual minimum tax) is charged instead. The CMT is based on the annual turnover, which must not be under CFA 500,000 or over CFA 5 million.

VAT (VALUE ADDED TAX)

" The value added tax is 18% (10% for hotels and restaurants).

" Exemptions : • Different rates for goods and services related health, education, banking and insurance / reinsurance / coinsurance.

• Exports directly delivered outside of Senegal.

• Telecommunications services provided by a telecom operator established in Senegal on behalf of a physical or legal person certified outside of Senegal.

LICENSING TAX

Companies performing industrial or commercial business are subject to the licensing tax.

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WITHHOLDING TAX

" Senegal charges a 20% withholding tax on payments to foreign suppliers with no base in Senegal for services rendered or used in Senegal, unless other or different tax agreements apply. " The employer deducts the withholding tax from the employee’s wages. The amount is determined by the tax authorities. The employer must pay an employer tax of 3% on the entire payroll.

REPORTING OBLIGATIONS RELATED TO FINANCIAL STATEMENTS

The financial statements and the taxable income statements must be filed by April 30 of each year.

LABoR LAWS CORPORATE TAXES

" Senegalese workers may be freely recruited but must be declared to the labor inspectorate. " The recruitment of expatriate workers is subject to prior authorization and the contract must be approved by the Ministry of Labor. " The employer must keep the payroll records and register workers with the social welfare organizations : the Senegal Retirement Welfare Institute (IPRES) and Social Security Fund (CSS).

EMPLOYMENT CONTRACTS

" CDD (fixed-term contracts) cannot be concluded for more than two years (with exceptions for specific contracts for labor or construction work) and can only be renewed once. " The CDI (permanent contract) is not subject to any time limitation.

DISMISSALS

The authorization of the Labor Inspector is not required except when staff representatives are involved. A specific procedure, including meetings with staff representatives, the transmission of information to the Labor Inspector, and respect for given time periods are mandatory.

EMPLoyERS’ SoCiAL SECURity CHARgES SOCIAL SECURITY CONTRIBUTIONS

" These contributions are paid exclusively by the employer. " The worker’s gross monthly salary is used as the basis for calculating the contribution, which is capped at CFA 63,000. " Contribution rates : • Family allowances : 7%.

• Industrial accidents or diseases : 1%, 3%, 5% depending on the sector.

SOCIAL SECURITY CONTRIBUTIONS PAID TO IPRES

All workers, foreign or national, must pay social security charges. For foreign workers, this obligation is waived if they are affiliated to a pension program under a foreign law.

HEALTH INSURANCE

" Obligatory coverage by an insurance company. " Any employer who has 300 employees or more is required to establish a health insurance facility (IPM) for its permanent workers and their families (spouses and dependent children). " If the number is under 300, the employer is allowed to establish an IPM with another employer or join an existing IPM. ■

doingbusinessin Senegal | Edition 2016

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Senegal 2016 | Effective support

EConoMiC PRoSPECtS the regularity of Senegal’s step-by-step reforms is often cited as an example by international donors. foR tHE iMf, SEnEgAL iS…

become a locomotive for other countries in WAEMU…”

A LOCOMOTIVE FOR THE OTHER WAEMU COUNTRIES

foR tHE WoRLd BAnK, SEnEgAL HAS…

A recent IMF report asserts that Senegal has the capacity to become a permanent “hub for West Africa.”

“Senegal's development goals are ambitious but achievableindication ... The preconditions are in place, the opportunities are vast and challenging.”

The IMF report added that “The PSE provides a unique opportunity for Senegal to break with the past and to join the ranks of fast growing countries in Africa and across the developing world. Now is the opportune time to go further – to work together with development partners towards an inclusive, job-rich and sustainable growth strategy... Senegal could be at the leading edge of a joint effort to put the region on a path to inclusive growth and poverty reduction,

MEDIUM-TERM PROSPECTS…

Senegal should recover its medium-term economic dynamism through its PSE. Substantial public investments have been planned and are supported by technical and financial partners who made commitments during the Consultative Group meeting in Paris in February 2014… …AND THE CHALLENGES OF DEVELOPMENT The unsatisfactory management of export commodities such as groundnuts, fishery products and phosphates has inhibited growth. The tourism sector, with its great potential, has been neglected. The economy

doingbusinessin Senegal | Edition 2016

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Senegal 2016 | Effective support

needs greater diversification to make it more resilient to external and internal shocks.

This will require the development of sectors such as horticulture, mining, telecommunications and manufacturing. The PSE gives priority to economic diversification and exports and seeks to boost the productivity of both the public and the private sector of the Senegalese economy.

Through the PSE the country can develop its potential for faster growth and all-round prosperity. The World Bank is proud to be a partner in this process.

foR tHE AfRiCAn dEvELoPMEnt BAnK (AfdB), SEnEgAL HAS…

A REGIONAL CAMPUS OF EXCELLENCE

Senegal also has the capacity to expand its local and regional supply circuits for tropical fruits and vegetables that are exported to appreciative markets abroad. The transportation infrastructure (seaports, airports, rail and road) is rather good and the telecommunications system is very good.

These assets can be used to turn Senegal into a “business park” and a regional campus of excellence. But the availability and cost of electricity are curtailing growth ; special measures are needed for the informal sector, which employs nine out of ten entrepreneurs in Senegal. ■

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Senegal 2016 | Effective support

UNQUESTIONABLE COMPARATIVE ADVANTAGES

The PSE seeks to expand Senegal’s markets to include the neighboring areas. And Dakar is positioning itself as a regional platform for services, tourism, and logistics for industry…

The quality of its labor force is one of Senegal’s main trump cards

doingbusinessin Senegal | Edition 2016

© All rights reserved.

In any case, the country can capitalize its comparative edge by becoming a competitive regional hub for international subcontracting and logistics.

© APIX. All rights reserved.

pages 22 | 23

2 A DIVERSIFIED ECONOMY Opportunities :

A rich potential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Second in the WAEMU zone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 The priorities of the PSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

doingbusinessin Senegal | Edition 2016

SECOND IN THE WAEMU ZONE Senegal, with its 13,508,517 inhabitants and a GDP of US$15.2 billion (2013 figures), is the second largest economy of the WAEMU (West African Economic and Monetary Union) and the fourth in ECOWAS (Economic Community of West African States).

F

Arable lands with a tremendous potential

ar-reaching structural reforms have equipped Senegal, – where 1.24% of the entire African population lives on 0.64% of the African land area, – to reach the level of the leading sub-regional powers, and stand up to the large oil and cocoa exporters.

business climate, Senegal can optimize its time-tested strengths : political stability, a unique geostrategic position and a rich potential. Senegal is relying on its historical base to make the most of the upturn of Africa, where growth is among the fastest in the world.

The Senegalese economy is based on agriculture, fishing (12.3% of its export earnings), and services, including telecommunications and tourism, which is the second largest foreign exchange earner after fishing. The country is not a big exporter of mining products and did not benefit from the 20002012 economic boom stemming from price hikes in oil and other underground resources.

Today, thanks to improvements in the

After a few difficult years, both for geopolitical, — the crisis in Mali, — and climatic reasons, Senegal has recovered a strong growth rate, driven by construction work and services. The timely opening of the first section of the Motorway of the Future linking Dakar to Diamniadio improved the traffic flow between the capital and the rest of the country and thus boosts growth.

This tollway, the first in sub-Saharan Africa,

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Senegal 2016 | Opportunities

was born of a public-private partnership that is now responsible for operations, management and maintenance. The extension of this highway to the Somone and to the new Blaise Diagne International Airport (AIBD), that should be open soon, will contribute substantially to making the country even more dynamic.

CAPITALISING A TREMENDOUS POTENTIAL

The primary sector (agriculture, livestock, and fisheries) accounts for 18% of GDP and the livelihood of half the workforce. Agriculture has undeniable potential in the vast arable lands, inter alia in the Senegal River Valley and the Casamance, especially suited to rice cultivation, and also in the Bawol region, the historical groundnut basin. Senegal has the know-how and is actively engaging in industrial-scale farming and processing.

The country can expect to switch soon from being a net food importer to being an exporter. These economic and social reasons explain the central importance of agriculture in the PSE. The PRACAS component (reviving and accelerating the pace of agriculture in Senegal) of the Plan focuses on : • Self-sufficiency from irrigated and rainfed rice ; • Restructuring the value chain in groundnut production ; • Developing garden crops and horticulture, especially for export.

To cover its rice needs, Senegal will have to increase its production from the current 300,000 tons per year to 1.6 million tons by 2018. This will require an investment estimated at CFA 800 billion by the Ministry of Agriculture, and must be weighted against the cost of current imports, which consume an average CFA 150 billion in foreign currency per year. For groundnuts, — Senegal used to be a major producer, —

the PSE is counting on an annual production of one million tons by 2017. The goal is to replace 20 to 30% of the imported oil with oil produced in the country. Plans have been made to upgrade the processing and industrial tools.

Alongside rice to meet national needs, and the groundnut sector to supply local industries, the PSE wants to develop cash crops with a high export potential, such as market garden crops and horticultural products. In thirteen years, from 2000 to 2013, exports of these products grew over 700% from 9,300 tons to 67,000 tons. Since products marked “Made in Senegal” are increasingly appreciated on European markets, the whole sector has ample room for development.

The secondary sector accounts for 24% of the GDP. It is based on gold, – whose high world prices made it the number one export product in 2012, – phosphate, cement, agrifood products, and construction. The current growth has been driven mainly by construction, meat processing and preservation and leather products. The Senegalese industrial sector, one of the most dynamic in West Africa, was hit by the decline in the Malian demand, and also suffered from electricity problems and many power cuts.

The current rehabilitation of Senelec, the national electricity company, (to repair the power plants) will remedy what had become a handicap.

THE TERTIARY SECTOR BOOSTS OUTPUT

The tertiary sector, 58% of the GDP, — of which public service accounts for 20%, — is currently the most dynamic. Telecommunications, together with transport, occupies a prominent place. Tourism, on the other hand, despite the undeniable attraction of Senegal, has taken a downturn due

doingbusinessin Senegal | Edition 2016

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Senegal 2016 | Opportunities

Senegal 2016 | Opportunities

to various factors, all reversible (high taxes on air travel to pay for the new international airport now under construction, the aging hotel infrastructure, the inadequately trained workforce‌). The PSE hopes to remedy this situation and build on its untapped potential.

The momentum currently enjoyed by Senegal is also reinforced by the success of the projects implemented under the Millennium Challenge Account (MCA), a partnership initiated by the US government that aims to reduce poverty through economic growth, Growth rate of real GDP.

reward the country's progress in good governance of public affairs management and the creation of an environment favorable to private initiative, whilst at the same time investing heavily in the social sector.

Senegal benefits from many bilateral partnerships and assistance from international organizations such as the International Monetary Fund, European Union, African Development Bank and in particular the World Bank, which granted a loan of 3.6 billion US dollars to fund over 160 current programs in various sectors. â–

Sources : Ministry of Finance / APIX

Growth is back

Major activity sectors.

Sources : Ministry of Finance / APIX

Primary : 18%

Tertiary : 58%

Secondary : 24%

A dynamic tertiary sector

doingbusinessin Senegal | Edition 2016

In the next two decades, the PSE (Plan Sénégal Emergent), with the support of major international donors (World Bank, African Development Bank, International Monetary Fund, etc.), will involve Senegal’s entire workforce and contribute to upgrading infrastructure for transport, energy, and agriculture.

T

he PSE is evidence of the authorities’ determination and will cost more than CFA 10 billion. Over 70% of these funds have been secured and will be made available to the “technical and financial partners” (TFPs) and the national and international private sector, through publicprivate partnerships (PPP).

Energy and the interconnection of networks are among the top priorities

The first phase, the economic takeoff phase, has already started and will run through 2018. Early results can be seen especially through the significant improvement in the business environment.

THE TOP SIX PRIORITIES INFRASTRUCTURE AND TRANSPORT

! Construction of highway, e.g. the ThièsTouba project, ! Rehabilitation of the railroad linking Dakar-Tambacounda-Bamako and the construction of a link between Dakar and the future Blaise Diagne International Airport (AIBD) ; ! Construction of rural roads, bridges and many other structures.

ENERGY

! Strengthening the energy production capacity using an energy mix and network interconnections.

doingbusinessin Senegal | Edition 2016

© Sénélec/APIX. All rights reserved.

THE PRIORITIES OF THE PSE

Senegal 2016 | Opportunities

THREE KEY SERVICES Together with the three pillars (infrastructure, energy, agriculture) that underpin the whole Senegalese economy, there are three key services that make up the top six priorities of the PSE : ! Drinking water and sanitation, through the PEPAM (Millennium Drinking Water Supply and Sanitation Program) to ensure that people have easy access to water

pages 28 | 29

AGRICULTURE

! Family farming has not been ignored.

The PSE includes close to 200 support projects, with priority to the restructuring of the groundnut sector. The groundnut basin produces one of the main export crops and needs to be reorganized. It is still the main source of livelihood in the rural world. If the groundnut sector was properly structured, it could supply both the export market and the local agrifood industry where product transformation could create added value.

in the course of this decade. ! Education and training, with the University of Sine-Saloum construction project, the establishment of a network of higher institutes for vocational training, and Dakar’s international campus of excellence. ! Health, with the national program for restoring the technical facilities of hospitals and other health centers and the large Dakar Medical City project.

FIVE OTHER PRIORITIES ! Communication, infrastructure and telecommunications services ; ! Tourism, with the flagship project on the development of integrated tourism; ! Social protection, with the development of universal coverage through health insurance and the support program for social safety nets. ! Risks and disasters, with the rainwater management project, and the climate resilience, risk and disaster management project. ! Environment, with the climate change integration and adaptation project contributing to the country’s sustainable development. ■

PSE top priorities

% of total financing

Infrastructure and transportation

26.3%

Energy

13.0%

Agriculture

11.0%

Education and training

10.9%

Drinking water and sanitation

10.7%

Health

5.3%

Total of the first 6 priorities

77.2%

The 5 other priority sectors

22.8%

doingbusinessin Senegal | Edition 2016

Source : Ministry of Finance

! Reconstruction and extension of transport and distribution network.

© APIX. All rights reserved.

pages 30 | 31

3 A Country opEn to thE World At the heart of internationalization :

The hub of West Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 FDI flows in. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

doingbusinessin Senegal | Edition 2016

thE huB oF WESt AFrICA Senegal, the most westerly African country, lies on the Atlantic ocean and is a hub for trade between Africa, Europe, Asia and America. It is a highly appreciated port of call and the favored entry to all of West Africa, and more broadly to the whole continent.

B

The Dakar Autonomous Port enjoys an exceptionally favorable position

PREFERENTIAL ACCESS TO WESTERN MARKETS

y plane Dakar is 5 hours from Europe, 7 hours from the United States and 9 hours from Asia. For freight transport, Dakar has the comparative advantage of lying at the crossroads of several maritime routes. Its port is strategically located at the intersection of major trade lanes connecting Europe to South America and North America to South Africa.

Dakar, a modern, dynamic capital city reflects openness to the world. The country is a forum where all investors, regardless of origin, are free to install and develop their projects under optimal conditions. Senegal facilitates formalities for both tourists and foreign investors.

Thanks to its sheltered bay, it is now the third biggest port of the sub-region, just after Abidjan and Lagos. Senegal’s position across from the Cape Verde islands, gives it an advantage in serving its neighbors, namely The Gambia, Mauritania, Mali, Guinea, and Guinea-Bissau. At the crossroads of Africa, Senegal is home to a blend of influences that connect modernity and tradition.

Besides its particularly favorable location, the country enjoys preferential access to large pools of consumers throughout the world. The EU/ACP agreements open European markets duty free or at reduced import rates and without a quota. The AGOA (African Growth and Opportunity Act) applies the same soft conditions to manufactured goods exported from Senegal to the USA.

doingbusinessin Senegal | Edition 2016

Š All rights reserved.

Senegal 2016 | At the heart of internationalization

Senegal 2016 | At the heart of internationalization

2012

2013

2014

2015

Imports (ANDS)

3 005,5

2 994,7

2 961,2

—

Imports (DPEE)

—

—

2998, 0

3 103,7

Exports. (ANDS)

1 259,4

1 530,5

1 206,1

—

Exports. (DPEE)

—

—

1 267,1

1 370,6

Main import partners

Suppliers

Source : CIA World Factbook.

Source : ITC Trade Map Intracen.

16.2% 12.9%

6.3%

6.3% 4.6%

France

Nigeria

India

China

Zones and countries

% of total

Europe

48.30%

Africa

17.99%

America

9.57%

Asia

23.16%

Other

0.98%

pages 32 | 33

EXPORT / IMPORT (Goods in billions of CFA francs) Sources : ANDS and DPEE (Forecast and Economic Studies Department).

UK

Main export partners Source : CIA World Factbook 14.4%

14.1%

Mali

Switzerland

India

4.7%

4.2%

France

Guinea

Cameracontrolled port operations

doingbusinessin Senegal | Edition 2016

© DP World. All rights reserved.

11.9%

focus

Senegal 2016 | At the heart of internationalization

rEGIonAl IntEGrAtIon

with all the countries in the European Union that use the euro, namely a vast economic and monetary zone with a population of nearly 400 million people, structured around this common currency. The headquarters of the central bank of the WAEMU countries, i.e., the Central Bank of the West African States (BCEAO), which defines and implements the Union’s monetary policy, is located in Dakar. This cooperation has many benefits, including greater monetary and financial stability and a consolidated financial system.

Furthermore, it reassures economic operators about the future of their investments and has resulted in opening European markets to products from WAEMU countries, since half of the Union’s foreign trade takes place in a stable monetary environment, made secure by the absence of exchange rate fluctuations. Besides reducing trade transaction costs, the structural link of the CFA franc to the Euro is likely to stimulate the movement of persons, goods and funds between the two zones.

! ECOWAS

More than 300 million consumers.

Senegal is a founding member of the Economic Community of West African States. Created in 1975, it is composed of 15 states (1) and generates a combined GDP of nearly $700 billion, making it the world’s twentieth largest economy. It represents a market of over 300 million consumers.

! WAEMU

A market of 90 million consumers.

The West Africa Economic and Monetary Union, of which Senegal is a member, is composed of 8 countries (2) and represents an open and competitive market of 90 million consumers, including a growing middle class.

! CFA Franc

Fixed parity and 400 million consumers.

The CFA franc is pegged to the euro at a fixed exchange rate thus providing de facto integration of the WAEMU countries

! SYSCOA

For greater efficiency.

The West Africa Accounting System, the new general accounting plan shared by the WAEMU members, ensures greater efficiency in auditing accounts and gives partners and other users of guarantees of financial accuracy, sincerity and transparency.

1/ ECOWAS countries: Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo © APIX. All rights reserved.

2/ WAEMU countries: Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, Togo

! OHADA

Harmonized business law.

By joining the Organization for the Harmonization of Business Law in Africa, which is open to all member states of the Organization of African Unity (OAU), Senegal adhered to a legal and judicial security area, thereby strengthening investors’ confidence. ■

doingbusinessin Senegal | Edition 2016

pages 34 | 35

Senegal 2016 | At the heart of internationalization

SENEGAL IN WEST AFRICA ! ECOWAS

The Economic Community of West African States ECOWAS (founded in 1975) is the main intergovernmental organization tasked to coordinate the actions of the West Africa countries. Its mission is to promote cooperation and integration, with the goal

of creating a West African economic and monetary union and, since 1990, maintaining regional stability through the newly created ECOMOG, a military intervention group that became permanent in 1999. ECOWAS now has 15 member States. ■

THE MEMBER STATES OF THE CFA FRANC ZONE ! The CFA Franc zone

The West Africa Economic and Monetary Union is composed of eight member states : • Benin, • Burkina Faso,

• Côte d’Ivoire, • Guinea-Bissau, • Mali, • Niger, • Senegal, • Togo.

The six member states of CEMAC (Economic and Monetary Community of Central Africa) are to be added : • Cameroon, • Republic of Congo, • Gabon, • Equatorial Guinea, • Central African Republic, • Chad. ■

Âdoingbusinessin Senegal | Edition 2016

Senegal 2016 | At the heart of internationalization

SENEGAL THE DRIVING FORCE OF THE WAEMU ! WAEMU IN NUMBERS

Area : 3,509,600 square kilometers Population : 80,340,000 inhabitants Population growth rate : 3% Nominal GDP : CFA francs 24,332.6 billion Real GDP (at constant rate) : 18,458.8 billion CFA francs Real GDP growth rate : 4.3% Annual inflation rate : 4.3% . ■ Regional comparison of FDI

SEnEGAl’S MAJor ASSEtS ! A strategic geographical position, ! Competitive production costs, ! An inexpensive and skilled workforce, ! A healthy and competitive economy, ! A modern legal and fiscal framework, ! Privileged access to regional and international markets.

Country

Area in sq km

Country

% of average GDP

Benin

115,700

7,408,800

Cape Verde

9.7%

Burkina Faso

274,100

13,107,200

Côte d’Ivoire

1.8%

Côte d’Ivoire

322,500

18,800,000

Nigeria

3.6%

Guinea Bissau

36,100

1,324,700

Ghana

3.7%

Mali

1,240,200

11,139,800

Senegal

4.5%

Niger

1,267,000

12,372,000

WAEMU average

2.1%

Senegal

196,722

13,508,517

ECOWAS average

6.0%

Togo

56,800

5,232,600

Source : ANSD reviewed by APIX for Senegal

doingbusinessin Senegal | Edition 2016

Nb of inhabitants

‘‘

SUPPORTING SECURE INVESTMENTS

pages 36 | 37

Senegal 2016 | At the heart of internationalization

Lawyers play a leading role in the development of Africa, a continent with one of the most dynamic growth rates in the world.

Most Francophone countries that are members of WAEMU (West African Economic and Monetary Union) and CEMAC (Economic and Monetary Community of Central Africa) have prepared themselves by creating an enabling environment for FDI.

The improvement of the business climate in Senegal, so visible on the ground, was hailed by international authorities and investors alike. Legal security is one of the major elements. The country is a founding member of OHADA, (Organization for the Harmonization of Business Law in Africa), which has been promoting and supporting improvements to legal systems in its 17 member states since 1993.

GENI & KEBE was created in 1912.

Through its affiliate offices in 14 countries in Africa, this law firm gives guidance for investments in key sectors that advance the African continent’s growth and development.

Mouhamed Kebe, Managing partner of GEnI & KEBE.

Recognized by Chambers Global, Who's Who Legal, and IFLR as experts on business law and investment issues in Africa, GENI & KEBE has become essential as a source of counsel and in coaching local and international investors in their operations in Senegal and throughout Francophone Africa. Moreover, the experience of its multilingual teams with local and Anglo-Saxon law, and its references are the fruit of over a century of work on the continent and make it a preferred partner for multinational corporations and States in the key sectors of investment.

The expertise of this firm is recognized in many sectors including : Arbitration, Insurance, Banking and Finance, Corporate Law, Mergers & Acquisitions, Construction & PPP, Energy & Mines, Transport…

‘‘

Africa is the area of the world where Foreign Direct Investment (FDI) will increase fastest over the next decade. Its great potential, combined with huge infrastructure needs and the rise of an active and dynamic middle class will drive this surge.

tel. : +221 338 211 916 E-mail : mhkebe@gsklaw.sn Web : www.gsklaw.sn

doingbusinessin Senegal | Edition 2016

Its geographical position, stability, dynamic economy and business environment make Senegal a superb entry point for investors interested in Africa on the dawn of its “thirty Glorious years”.

I

nvestors of international repute had already been attracted by what Senegal had to offer in the water, telecommunications, energy, tourism and transport sectors, thereby adding to the main Foreign Direct Investments in the region. Before the turn of the millennium, many investors came from Europe, especially France.

x2

FDI flows have more than doubled in a year, from over CFA 166 billion to almost 468 billion.

The rise of Africa as a raw material supplier that developed into a large attractive market and a place of production eager for recognition of its global values, greatly expanded the spectrum of FDI beneficiaries.

Alongside the “traditional investors”, we find more and more companies mainly from geographical regions with which trade has intensified. China, Brazil, India and Arab countries have significantly contributed to diversifying the origin and nature of the external investment portfolio by buying into the energy, agriculture and industry sectors.

All of them want to invest in a continent whose growth is rooted in sound values such as the growing middle class and an available workforce that is eager to be trained and to contribute locally to the creation of added value.

The results are clear : in a single year, from 2011-2012, the FDI inflow doubled from CFA 166.2 billion to 467.8 billion (713.2 million euros). In 2013, with the continued implementation of the investment promotion strategies, more reform measures and large infrastructure development projects, inflows rose to CFA 254 billion (390 million euros) and are still going up. ■

doingbusinessin Senegal | Edition 2016

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FdI FloWS on

Senegal 2016 | At the heart of internationalization

Source : UNCTAD

450

398

400

338

350

320

300

298

297

250 220

200

276

266

153

150 100

78

63

77

50

52

32

45

19

99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13

0

Investment intentions in millions of CFA francs Source : ANSD reviewed by APIX for Senegal 436

450

411

400 350 300 250 200

215

231

257 254

244 222

Local

215

190 160

150

Foreign

155 131

133

127

110

100 50 3 20 1

20 1

2

20 11

10 20

20 09

20 08

20 07

20 06

0

Large investors. Source : APIX Business sector

Energy

Agriculture

Industry

Mines

Tourism

Education

Main investors

Europe

China

Brazil

India

Arab countries

—

FDI stock. Source : APIX Country*

France

*China is in 13th position with CFA 76.236 billion

Italy

Sweden Germany

Virgin Islands

Spain

USA

Kuwait

Mali

In billions 887,898 380,730 267,072 228,649 228,420 185,500 128,837 105,062 93,401 of CFA francs

doingbusinessin Senegal | Edition 2016

Switzerland 89,859

pages 38 | 39

Millions of US dollars in Foreign Direct Investment

China, Brazil, India and Arab countries are among the new investors in Senegal

© APIX. All rights reserved.

pages t4 | 41

4 AN ECONOMY ON THE MOVE A dynamic economic fabric :

Basic infrastructure: the Diamniadio story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Fossil and renewable energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 CPW: a sector with great promise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

doingbusinessin Senegal | Edition 2016

“Thanks to its infrastructure program, per capita GDP will increase from $1,000 to $1,500 in the next ten years.”

Mountaga Sy, CEO APiX.

B

usiness relations in Senegal were completely altered by the opening of the first section of the Dakar to Diamniadio toll road in 2013. Ideally located on the Atlantic Ocean, the Cap Vert peninsula (0.3% of country’s land area and 25% of the national population) drew most of the country’s economic activities, like a magnet, to the Dakar region. It is difficult to recall the interminable traffic jams that jeopardized relations between Dakar and the rest of the country.

Independence Square, the nerve center of Dakar

THE REFERENCE : THE DAKARDIAMNIADIO TOLL MOTORWAY

Since the first phases of its construction, the Motorway of the Future, whose first section leads to the nearly-completed Blaise Diagne

international airport (AIBD), has energized the construction sector, and allowed for smooth traffic flows in an area previously stifled by traffic congestion that was very costly to the economy. In former times, it took at least 1-1/2 hours to drive the 32 kilometers between Diamniadio and the capital, now it takes only 30 minutes. Reducing travel time from 90 to just 30 minutes saves time, fuel (7 liters less for some passenger vehicles) and energy. This project and the way it was conducted have become an example for Saharan and sub-Saharan Africa.

A technological reference : this freeway compares well with the most modern roads in the Western world, even in financial terms ; a public-private partnership (PPP) oversaw

doingbusinessin Senegal | Edition 2016

© APIX. All rights reserved.

BASiC iNfrASTruCTurE: THE DiAMNiADiO STOrY

Senegal 2016 s A dynamic economic fabric

The project is now being used as the basis for thought and action by international donors, governments, and private companies alike. How this first public-private partnership in West Africa produced the Motorway of the Future, the first tollway in West Africa, also reflects the government’s good relations with the private sector and its promise of future business.

As the flagship project of the Plan Sénégal Emergent, the construction of the P2i is progressing well. P2i is part of a large economic entity located in an excellent geographic position 20 minutes from Dakar. It is near major structures such as the Blaise Diagne International Airport (AIBD), the tollway, and the Bargny mineral ore port. This platform is an extension of the Dakar special economic zone (ZES) so eagerly awaited by investors, especially foreign investors, who see construction activities that cater to their needs.

Originally one 5000 m2 hangar was to be built, but to accommodate requests from

Toll highway Road national 1

Once the motorway reaches the Blaise Diagne International Airport (AIBD) it will branch off to Thiès in the north and to Mbour in the south. By opening up the Cap Vert peninsula, home to most economic activity, the highway improves access to major, — existing or planned, — infrastructure projects such as the Special Integrated Economic Zone and a new conference center.

pages t2 | 43

P2I : THE DIAMNIADIO INTEGRATED ECONOMIC PLATFORM

investors, three 7000 m2 hangars, each able to accommodate up to 15,000 workers, are currently under construction.

By encouraging the creation of jobs and wealth, the Diamniadio platform will contribute to the structural transformation of the Senegalese economy. ■

doingbusinessin Senegal | Edition 2016

© APIX. All rights reserved.

its construction and is now operating and maintaining it. In this PPP, — which links the State of Senegal to the African Development Bank (AfDB), the World Bank, the French Development Agency (AFD), and, other partners, such as the Eiffage group, — the AfDB has used its concessional resources by channeling the non-sovereign operations of a low-income country.

Š All rights reserved.

focus

Senegal 2016 s A dynamic economic fabric

iNfrASTruCTurE

AirPOrTS

! 1,360 km of railroad tracks, ! 1,170 km of rural roads, ! 4,000 km of roads, ! 1,000 MW of electricity.

! Senegal has three international airports: Dakar, St. Louis, and Ziguinchor.

The Blaise Diagne international Airport (AIBD) located at Diass, 45 km east of Dakar will soon be opened to handle the swell in passenger and freight traffic and to provide good quality services in efficient, modern premises.

P2i MAJOr ASSETS The Diamniadio platform offers highquality services consisting of latest-generation equipment, functional space and buildings, an integrated service center, a one-stop shop, and production facilities, especially :

RN1 between Kaolack and M'Birkelane

! Reliable round-the-clock electricity and water supplies, ! Reserve water supplies, ! A wastewater treatment plant, ! An accessible telecommunications network, ! Integrated service centers (banks, restaurants, hotels, a health clinic...), ! A 3,000 m2 logistics center, ! Fire protection, ! Rest areas. â–

! Senegal is served by most major airlines with direct connections to capital cities in America, Europe, Asia and the Middle East, and to the rest of Africa. The national carrier, Senegal Airlines, offers regular flights to many destinations.

doingbusinessin Senegal | Edition 2016

© All rights reserved.

pages tt | 45

Senegal 2016 s A dynamic economic fabric

President Macky Sall and the President of Guinea, Professor Alpha Condé, visiting the Diamniado Urban Pole

! 2 main tracks : • The 645 km, Dakar-Thiès-Kidira west-east track ; • The 193 km, Thiès-Saint-Louis south-north track. ! 3 secondary tracks : • Tivaouane Darou-owned by ICS (Senegal Chemical Industries) [for phosphate] ; • Diourbel-Touba (47 km) ; • Guinguinéo-Kaolack (21 km) and PK13-Mbao.

TkANSPOkTaINFkASTkUCTUkE

A unique economic environment

© All rights reserved.

rAiLWAYS

Source : APIX

Situation in 2015

2018 Prospect

kdoer

1i,444ab5apov0eao ea u pov0eaRdoer,ao ea|Rocbr

ti4 b5adfaRdoera|dam0amuln| ti4 b5adfaRdoera|dam0aR0 dvo|0e

kolnwoyr

946 b5

i4 b5adfaRolnwoyra|dam0amuln| 6tt b5adfaRolnwoyra|dam0aR0 dvo|0e

doingbusinessin Senegal | Edition 2016

Senegal 2016 s A dynamic economic fabric

© APIX. All rights reserved.

fOSSiL AND rENEWABLE ENErGY

National development generated needs that the power plants could not meet. renewable wind and solar power have been explored as alternative sources of energy.

S Photovoltaic farm, 20% of the energy produced in Senegal will soon be obtained from renewable sources

upplying and distributing energy is high on the government’s list of priorities. Before renewable energy projects were started, the government had already greatly improved the situation by upgrading the existing facilities. Aware of the financial and environmental weight of producing 80% of the country’s electricity from fossil fuels, the government took advantage of an all-round review of the situation to encourage the development of renewable energy which should, by 2018, provide 20% of the electricity production, about 260 megawatts (MW). All types of

renewable energy will be required, namely eolian, solar, biomass, but also hydraulic.

Hydropower, which already contributes 50 MW to the national production through the Manantali dam site, will be supplemented by supplies from Félou, Gouina (Mali) and other plants constructed under the ægis of the Senegal (OMVS) and Gambia (OMVG) river basin development organizations.

Senegal is a member of both. SENELEC has also called for tenders on other forms of renewable energy. The government, which is targeting sustainable energy selfsufficiency at low cost relies heavily …⁄…

doingbusinessin Senegal | Edition 2016

Solar energy is the best solution for reducing the use of fossil fuel in Senegal.

pages t6 | 47

‘‘

Senegal 2016 s A dynamic economic fabric

What do you envision for GreenWish Partners in Sub-Saharan Africa ?

GreenWish Partners is an investment company specializing in renewable energy infrastructure ; its mission is to create a diversified portfolio of 600 MW of renewable assets in Sub-Saharan Africa during the next five to six years, 150 MW of which will be for solar projects over the next two years. We are mainly targeting the countries where renewable energy may be a permanent and competitive solution to the lack of electricity and the high cost of supplying it.

We want our investment strategy to be inclusive with, on the one hand, international and African investors participating in the funding of investment opportunities through a special mechanism drawn up in CFA francs and, on the other hand, all the stakeholders (State, national electricity companies and ordinary citizens) to share in on the benefits of the economic, environmental and social projects.

What role will Senegal play ?

Senegal is a place of choice in our investment strategy for the production of solar-powered electricity and provides a competitive response to the current high cost of the energy mix. In addition, solar photovoltaic is the most appropriate and rapid way to reduce the country's dependence on imported fossil fuels for electricity generation, especially considering the particularly high level of sunlight enjoyed by all of Senegal. Furthermore there is a strong political will supporting the promotion of renewable energy in Senegal.

The geographic location, political stability and the regulatory framework of Senegal were also factors taken into consideration when GreenWish chose Dakar as the base for its activities in the WAEMU and other West African countries.

Charlotte Aubin Kalaidjian CEO, GreenWish Partners

will be connected to the Senelec network in September 2016 and will represent 2.5% of the country’s current production capacity and 4% of the output of Senelec. The annual production of Senergy II will provide electricity to nearly 200,000 people and will eliminate 25,000 tons of carbon emissions per year. Because it is financed privately and not by the State, Senergy II will save the government approximately CFA 2.9 billion annually on subsidies and fuel.

You have been working in Senegal for several months now. What has impressed you the most about this collaboration ?

‘‘

We anticipate that by 2022 there will be solar, wind, biomass and hydraulic resources available in close to a dozen sub-Saharan countries ; our focus over the next two years will be on solar photovoltaic technology.

The enthusiasm about the Senergy II project shown by both government and Senelec, whose support for the project is considerable, and also by the Bokhol town people, with whom we have had very useful discussions on what benefits they expect. The only downside we felt was during of the negotiations on the power purchase agreement.

Can you describe Senergy 2 ?

What advice would you give to investors interested in the many opportunities the country has to offer ?

The Senergy II project entails the construction of a photovoltaic power plant with a capacity of 20 MW located in Bokhol, near Dagana. The infrastructure

We encourage investors to get involved with Senegal which offers an enabling business environment as can be seen in its regulations, as well as its political and economic policies.

doingbusinessin Senegal | Edition 2016

Senegal 2016 s A dynamic economic fabric

on the renewables to achieve its goal for 2017, namely, an electrification rate of 70% (95% in urban area and 50% in rural area).

Currently, most electricity comes from fueldriven thermal power plants. It is essential to diversify and consider using coal and/or gas.

Production costs are still high and the government is targeting a CFA 80 per kWh rate by the year 2018. The networks are antiquated and the territory poorly meshed. Plans have been made to extend and renovate the system. Three coal plants with a total capacity of 645 MW should gradually replace the current production plant that runs on diesel power and gas turbines. It is actually powered by fuel for lack of sufficient gas in Senegal.

SOLAR POWER, THE ENERGY OF THE FUTURE

Solar irradiation of 1850 to 2250 kWh/m2 per year gives the country great potential.

Eolian sources are less spectacular, especially on the long coast where the average wind speed is 65 meters per second. The cumulative installed capacity reached 4MWc (Megawatt Peak) or 0.7% of the total energy.

The State’s political ambition is to develop an energy mix that offers a wide variety of investment opportunities for the transport and distribution infrastructure, and for renewable energy (solar, biomass, eolian, etc.), hydroelectricity, bio-fuels, plant construction, and oil and gas exploration and research.

RURAL ELECTRIFICATION : MAJOR PROJECTS

The government is engaged in a major project to reduce the gap between urban and rural access to electricity. The country’s global average electrification rate is 54% with services of 90% in the urban areas and 24% in the rural areas. The aim is to achieve an overall rate of 60% in 2016. The Ministry of Energy and the Senegalese Rural Electrification Agency (ASER) have undertaken the enormous task of installing 2,454 kilometers of medium-voltage power lines in the rural areas.

Decentralized low-voltage mini-networks and photovoltaic systems have been installed in close to 2,240 villages. ■

||||||||||||| Renewables : the Bokhol example

© Source IRENA. All rights reserved.

! GreenWish Partners is building Senergy II at Bokhol on the Senegalo-Mauritanian border.

This is the first large solar power project in the country.

Senergy II, a photovoltaic plant with a power of 20 MW, will provide access to electricity to nearly 200,000 people and contribute to the objective of doubling Senegal’s electrical output (725 MW according to the Ministry of Energy) capacity. It will reduce the country's dependence on fossil fuels and avoid the emission of 25,000 tons of CO2 per year.

The plant will be connected to the national grid in the third quarter of 2016 and will cost 25 million euros.

Bioenergy Geothermic Hydraulic Tidal Solar Wind

doingbusinessin Senegal | Edition 2016

Map of renewable energy resources in Africa

CPW: A SECTOr WiTH GrEAT PrOMiSE The dynamism of the Construction and Public Works sector comes from the major construction projects launched by the State and the need to met the demand for housing.

S Construction, the driver of national development

enegal is moving full speed ahead.

Its Construction and Public Works (CPW) sector is flourishing with an average growth rate of close to 12% since the year 2000. This sector constitutes an important element of the national economy and has become a key component not only because of its contribution to the economy but also as a source of new jobs. Major efforts have been made to support CPW and thereby contribute to economic growth and job creation.

THE IMPORTANCE OF LARGE CONSTRUCTION PROJECTS

The large construction projects, especially for roads, are backed by the public sector and development partners. The Blaise Diagne International Airport (AIBD) being built at Diass is one example, as are the Dakar-Thiès toll road, the industrial platform at Diamniadio, and the reconstruction work in the Casamance.

All these projects required the construction of new buildings as well as sanitation systems and sewer systems. …⁄…

doingbusinessin Senegal | Edition 2016

© APIX. All rights reserved.

Senegal 2016 s A dynamic economic fabric

Another driver of growth is housing, so badly needed. These and other factors will contribute to strong national economic growth over the next five years and to the fight against poverty through new jobs and revenue distribution. The public authorities are very keen on this issue and count on CPW to make Senegal prosperous, modern and future-oriented. The expertise of the Senegal enterprises, which often manage huge projects, is broadly acknowledged and often solicited from many corners of the continent where the CPW sector is bustling.

Of the many companies in this sector that have been doing well over the last few decades, some have special positions. One example is the CSE, a family enterprise created in 1970, whose spectacular growth has shot it to the top of the CPW list for Senegal and certainly placed it on the list of leaders for all of Africa. The company started crossing borders early in its existence to work in other African countries.

At the international level, CSE builds hospitals, schools, public and private buildings, hotels, airports, and religious centers. In Dakar it modernized the center of the city by building very modern glass towers, e.g. the Waterfront and the Radisson Blue Hotel, that have changed the face of the famous coastline.

SOCIAL HOUSING, A FAST GROWING SECTOR

The low-income housing sector accounts for 11% of the GDP and is of major strategic importance. The government is giving high priority to the development of social housing since it offers an economic opportunity in these times of fast urbanization.

The sector is growing at a rate of about 3.3%, in other words, faster than the population growth rate (2.6%). About 43% of the Senegalese people live in the cities.

Urbanization rates will continue to rise, like

everywhere else in the world, and increase the need for housing, which at present is between 10,000 and 15,000 units per year.

This sector generates a large number of jobs, both direct and indirect. It weighs heavily on the economy but in the long term, will be a driver of development and competitiveness.

Supply does not live up to demand in the housing sector. The Senegalese housing program offers turnkey housing on fully serviced plots, which also encourages people to build their own homes. Public-Private Partnerships are very popular and the government is trying to provide enabling conditions. â–

DEVELOPMENT Of AffOrDABLE HOuSiNG SITUATION IN 2015 ! Demand much greater than supply : between 3,000 and 5,000 lodgings/year, of which 1,000 offered by real estate promoters and 4,000 by individual promoters. ! Rent increases and uncontrolled occupancy in zones without land planning and servicing is often untenable.

PROJECTED SITUATION FOR 2025 ! Creation of new urban poles in Dakar and in other cities ; ! Construction of 10,000 housing units per annum.

doingbusinessin Senegal | Edition 2016

pages i4 | 51

Senegal 2016 s A dynamic economic fabric

ROGNE

Senegal 2016 | Advertorial

THE EFFICIENCY OF ONE OF THE WORLD’S BIGGEST PORT OPERATORS As part of its strategy for modernizing the infrastructure at the Port Autonome de Dakar, the company DP World, the fourth largest port manager in the world, was commissioned in 2008, for a renewable period of 20 years, to organize, equip, manage and maintain the container terminal in the northern part of the port area.

M

Many activities were launched to replace national standards with international standards, improve performance, and turn the terminal into a modern tool, the leader in the sub-region.

The investment cost was over 77 billion CFA, far more than the cost commitments in the concession contract. The funds were spent on vital areas such as civil engineering, equipment, electronic technology, security, and safety. The container terminal was equipped with a fleet of RTG gantry cranes and straddle carriers while the tractors and heavy vehicles were all equipped with mounted terminals so that instructions could be transmitted to the drivers on a screen from a 4km optic fiber network throughout the terminal.

The safety of goods and people is an essential part of the DP World-Dakar policy. All the installations have their own closed circuit television system (CCTV), and access is by smart card.

DP WORLD PERFORMANCE

Forever seeking innovative solutions for its clients, DP World Dakar is the first terminal operator in West Africa to offer maritime companies specific time slots: DP World promises regular berthing for the maritime companies’ ships at a given hour and day of the week, as well as personnel and equipment for fast loading and unloading to ensure optimal management of ship rotation schedules. This all translates into major economies of scale …⁄…

VESSELS RECEPTION Quay depth

12 m

Entrance channel depth

13 m

Number of berths

3

Linear of quay

720 m

Container park area

25 hectares

Capacity

619,900 TEUs

doingbusinessin Senegal | Edition 2016

© DP World. All rights reserved.

DP World Dakar has considerably shortened the time ships are laid up in the harbor… from around 15 to almost zero hours.

A survey of the other ports in the sub-region shows that Dakar is the port with the shortest waiting times.

The use of the cranes, and an efficient operating system and qualified manpower has significantly raised, – and is still raising, – ship productivity. The terminal is open and running round the clock, every day of the week. Clients and loaders can receive their containers or have access to them at any time of the day or night. The average turnaround time for delivery and receipt of the

EQUIPMENT ! 2 post-Panamax gantry cranes with a double lifting capacity, ! 2 STS Panamax gantry cranes with a double lifting capacity, ! 3 Gottwald cranes, ! 10 RTG (rubber tyre gantry) cranes — (1 over 6), ! 7 Reachstackers, ! 4 seven-high empty container forklifts, ! 32 tractors and semi-trailers, ! 560 connection points for coldstorage containers.

containers on the whole for all categories, between the time the truck passes the terminal’s entrance gate until it leaves with the container has been about 23 minutes since 2009.

In its concessionary agreement with the Port Autonome de Dakar, DP World will build the port of the future, called the New Port of Dakar. It will be located at Bargny and be included in the free trade zone thereby connecting to the new Blaise Diagne International Airport. ■

DP WORLD THROUGHOUT THE WORLD ! More than 65 port terminals on the six continents. ! Total traffic: 60 million TEUs in 2014. Forecast: over 100 million TEUs in 2020. ! DP is the 4th largest terminal operator in the world in terms of volume handled and capacity. ! Altogether, the total number of containers handled by DP World would encircle the world 8 times. ! DP World has 36,000 employees.

doingbusinessin Senegal | Edition 2016

SENEGAL’S TOP HUNDRED

© Source APIX, Classement 2014.

Rank

Company name

Sector

Sales (millions of CFA francs)

CEO

Contact

1

SONATEL - SA

Telecom

559 838

Alioune Ndiaye

www.sonatel.sn

2

SAR - SA (SOCIÉTÉ AFRICAINE DE RAFFINAGE)

Industry

438 576

Omar Diop

www.sar.sn

3

TOTAL SÉNÉGAL

Industry

337 602

Thibault Flichy

www.total.sn

4

SENELEC - SA

Industry

264 211

Pape Dieng

www.senelec.sn

5

ITOC - SA

Industry

167 534

Abdoulaye Diao

itoc@orange.sn

6

GROUPE MIMRAN (GMD+CSS)

Industry

159 763

Jean C. Mimran

groupemimran.com

7

SHELL SÉNÉGAL - SA

Industry

139 749

Ebenezer Faulkner

www.shell.com

8

SOCOCIM INDUSTRIES - SA

Industry

138 551

Youga Sow

www.vicat.com

9

INDUSTRIES CHIMIQUES DU SÉNÉGAL

Industry

127 927

Alassane Diallo

www.ics.sn

10

OILIBYA

Fuel Trade

112 569

Ezzedin Hamyouni

www.oillibya.com

11

C.D.S. - SA (LES CIMENTS DU SAHEL)

Cement

106 947

Latfallah Layousse

+221 33 839 87 27

12

GROUPE TSE

Trade

101 500

Cheikh Amar

tse-afrique.com

13

SUNEOR

Industry

101 494

Thiendiaté Bouyo Ndaw

www.suneor.sn

14

SENTEL GSM - SA (TIGO)

Telecom

66 113

Diego Camberos

www.tigo.sn

15

SDE - SA

Services

66 028

Mamadou Dia

www.sde.sn

16

ELTON SA (ELTON OIL COMPANY SA)

Industry

60 189

Babacar Tall

www.eltonoil.com

17

SBG SÉNÉGAL - SA (SAUDI BINLADIN GROUP)

Construction

56 296

Bakr bin Laden

www.sbg.com.sa

18

ETNOCELL SA

Trade

55 577

Marcello Tormenti

+221 33 820 17 38

19

COMPTOIR COMMERCIAL MANDIAYE NDIAYE

Trade

49 889

Moustapha Ndiaye

+221 77 638 29 70

20

DIPROM - SA

Services

48 089

Moustapha Seye

www.diprom.sn

21

CBAO-AWB

Bank

46 230

Mounir Oughiri

www.cbao.sn

22

DPW DAKAR (DP WORLD DAKAR SA)

Services

45 765

Alassane Diop

www.dpworld.com

23

SGBS

Bank

44 886

Yann de Nanteuil

www.sgbsonline.sn

24

NESTLE SÉNÉGAL - SA

Industry

44 034

Jean C. Coujat

www.nestle.com

25

SIBA - SA

Industry

43 097

Falilou Kane

+221 33 879 12 70

26

LABOREX SÉNÉGAL - SA

Trade

41 309

Sylvain Voletti

www.laborex-senegal.com

27

SOBOA - SA

Industry

41 134

Patrick Heraibi

www.soboa.sn

28

PHILIP MORRIS MANUFACTURING SÉNÉGAL

Tobacco

40 488

Thierno Diallo

www.pmi.com

29

CSE - SA (CIE SAHÉLIENNE D’ENTREPRISES)

Construction

39 167

Aliou Sow

groupecse.com

30

NOUVELLE MINOTERIE AFRICAINE SA

Industry

38 168

Ameth Amar

nmasanders.com

31

EIFFAGE SÉNÉGAL

Construction

37 581

Gérard Sénac

www.eiffage.sn

32

COMPAGNIE SÉNÉGALAISE DES LUBRIFIANTS

Industry

36 569

Bertrand Hatier

221 33 839 54 54

33

COPHASE - SA

Industry

34 098

Stéphane Francisco

www.ubipharm-senegal.com

34

HOLDING CCBM

Trade

34 080

Serigne Mboup

www.ccbm.sn

35

ORYX SÉNÉGAL - SA

Industry

33 143

Serigne M. Dièye

oryxenergies.com

36

LA SÉNÉGALAISE DE L’AUTOMOBILE

Trade

32 693

Jérôme Barth

senegalaise-automobile.com

37

LONASE - SA

Services

31 821

Amadou S. Kane

www.lonase.sn

38

BOCAR SAMBA DIEYE

39

MTOA - SA

40

Trade

31 473

Bocar S. Dièye

+221 77 638 44 10

Industry

31 367

Claude Mullender

+221 33 849 25 00

CFAO SÉNÉGAL

Trade

31 223

Richard Bielle

cfaomotors-senegal.com

41

DAMAG - SA

Trade

29 608

André Michel

Bd de la Gueule Tapée

42

CONSORTIUM D’ENTREPRISES - DAKAR

Construction

29 542

Rassene Chemali

www.cde.sn

43

SATREC - SA

Industry

29 440

Chaikou Haidouz

+221 33 832 55 38

44

PORT AUTONOME DE DAKAR

Services

29 044

Cheikh Kanté

www.portdakar.sn

45

SOCIÉTÉ COMMERCIALE NDIENE SARL

Trade

27 772

Oumar Touré

toubatrade.org

46

BICIS

Bank

27 200

Pierre Bérégovoy

www.bicis.sn

47

SOFIEX - SARL

Trade

26 171

Adnane Choubassy

www.sofiex.sn

48

GROUPE SENTENAC (MOULINS SENTENAC +SOCAS)

Industry

25 337

Donald Baron

socas-senegal.com

49

PATISEN - SA

Industry

24 646

Youssef Omais

www.patisen.com

50

BOLLORE AFRICA LOGISTICS SÉNÉGAL

Services

24 403

Christophe Pujalte

bollore-africa-logistics.com

COMPANIES AT A GLANCE Company name

Sector

Sales (millions of CFA francs)

CEO

Contact

51

ECOBANK

Bank

24 251

Serge Ackré

www.ecobank.com

52

SENARH SA

Trade

23 001

Nicolas Brugvin

www.oleosen.com

53

MÉTAL AFRIQUE - SA

Industry

22 939

Ghaleb Jaber

+221 33 849 39 51

54

AMADOU LO

Trade

22 391

Amadou Lo

+221 77 638 23 68

55

STAR OIL SA

22 383

Birahim Diop

+221 33 869 39 39

56

INTERFACE MOBILE SARL

21 118

Mamadou Niane (DGA)

+221 33 825 20 70

57

SENCOM - SARL

Industry Product and Apparel Trade

20 836

M Ndiouck

sencomcompany.com

58

GROUPE CMS

Bank

20 309

Mouhamed Ndiaye

www.cms.sn

59

LRD - SA (LA ROCHETTE DAKAR)

Industry

19 723

Adel Salhab

www.larochettedakar.com

60

SAF INDUSTRIES SÉNÉGAL - SA

Industry

19 173

Riad Fakhri

+221 33 889 70 00

61

COMTRADE SARL MONIZ DA MAIA SERRA & FORTUNATO EMPREITEIROS SUCCURSALE SONES SA (SOCIÉTÉ NATIONALE DES EAUX DU SÉNÉGAL)

Trade

19 124

Karim Chirara

+221 33 821 66 78

Construction

19 077

Luis Campos Ferreira

www.msf.pt

Distribution

18 784

Charles Fall

www.sones.sn

62 63

me

64

MATFORCE

Trade

18 395

Mamadou Sow

www.matforce.com

65

FALL DISTRIBUTIONS & SERVICES SARL

Trade

18 352

Abdoulaye Fall

+221 33 842 35 60

66

PFIZER AFRIQUE DE L’OUEST

Industry

17 660

Cheikh Tidiane Ba

www.pfizer.sn

67

SOCIÉTÉ DE PÈCHE ET D’ARMEMENT SÉNÉGALAIS

Industry

17 420

Jacques Marec

sopasen-sn.net

68

VITOGAZ SÉNÉGAL

Services

17 405

Pierre Vuillier

www.vitogaz.com

69

BOA

Bank

17 057

Mamadou Igor Diarra

www.bank-of-africa.net

70

SOCIÉTÉ HENAN CHINE

Construction

16 922

Bao Fei

senegal.henanchine.com

71

BATI-PLUS INDUSTRIE - SA

Industry

16 526

Christian Samra

groupebatimat.com

72

DIOP DISTRIBUTION

Trade

16 368

M. Diop

n.c.

73

CCSN (COMPTOIR COMMERCIAL SOPE NABY)

Trade

16 303

Mamadou Diallé Ndiaye

+221 33 864 68 85

74

SONAM ASSURANCES

Insurance

15 802

Mamadou Diop

www.sonamassurances.sn

75

ATLAS DISTRIBUTION SARL

Trade

15 453

n.c.

+221 33 832 57 16

76

SODEFITEX - SA

Industry

15 421

Bachir Diop

www.sodefitex.sn

77

LCS - SA (LES CÂBLERIES DU SÉNÉGAL)

Industry

15 027

Adel Attieh

www.lcs.sn

78

SIMPA - SA (SOCIÉTÉ INDUSTRIELLE MODERNE DES PLASTIQUES AFRICAINS)

Industry

14 891

Ibrahima Hawili

+221 33 834 39 39

79

ÉTABLISSEMENTS JAMIL TARRAF & COMPAGNIE

Trade

14 806

Ali Khalil

+221 33 821 58 74

80

MBACKE & FRÈRES SURL

Trade

14 701

n.c.

n.c.

81

EXPRESSO SÉNÉGAL - SA

Telecom

14 595

Abdallah Saïd

expressotelecom.sn

82

WARTSILA WEST AFRICA - SA

Trade

14 542

Mamadou Goumble

www.wartsila.com

83

TIGER DENRÉES SÉNÉGAL

Trade

14 521

Ibrahima Diop

+221 33 822 11 19

84

TRANSRAIL - SA

Services

14 319

Abass Jaber

+221 33 842 79 65 +221 33 853 05 98

85

SOSEMAT SA (SOCIÉTÉ SÉNÉGALAISE DE MATÉRIAUX)

86

L’AFRICAINE DE L’AUTOMOBILE

87

ERES SÉNÉGAL - SA

88

SEDIMA - SA

89

ALLIANZ ASSURANCES

90

SODIPHARM - SA

91

Trade

14 101

Baalbaki Ali

Car Dealer

14 099

Joseph Azar

www.laa.sn

Trade

13 999

Pilar Fernandez

+221 33 832 39 20

Industry

13 991

Babacar Ngom

www.sedima.com

Insurance

13 876

Xavier Laurent

www.allianz-sn.com

Trade

13 781

Papa Oumar Diaw

www.sodipharm.sn

SÉNÉGAL PÈCHE - SA

Industry

13 686

Fabien Chenal

+221 33 822 23 23

92

COGECA SA (COMPAGNIE GÉNÉRALE D’EXPLOITATION DE CARRIÈRE)

Industry

13 338

M. Layousse

Km 23 route de Rufisque, Rufisque, Sénégal

93

CNCAS

Bank

13 262

Arfang Boubacar Daffe

www.cncas.sn

94

BIS

Bank

13 256

Omar Mbodj

www.bis-bank.com

95

SENICO - SARL (SÉNÉGALAISE INDUSTRIE COMMERCE)

Industry

12 992

M. Dia

www.senico-sn.com

96

SCIS (Sté COMMERCIALE ET INDUSTRIELLE DU SÉNÉGAL)

Trade

12 907

n.c.

ccis.sn/us.htm

97

LA POSTE (ex OPCE)

Services

12 893

Siré Dia

www.laposte.sn

98

BRM

Bank

12 543

Alioune Camara

www.brmbank.com

99

NSSA (NOVEL SÉNÉGAL SA)

Trade

12 467

Lamine Kane

+221 33 824 03 63

100

SOCIÉTÉ NOUVELLE DES SALINS DU SINE SALOUM

Industry

12 162

Guy Deschamps

salins@sinesaloum.net

© Source APIX, Classement 2014.

Rank

Š All rights reserved.

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5 AN ECONOMY FORGING AHEAD The positive climate of the business world :

Virtuous circles of actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Clear improvement in the business environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 GAINDE 2000, artisans of change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 The major infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

doingbusinessin Senegal | Edition 2016

The first concrete measures in the Plan Sénégal Emergent involve the three top priority actions that were launched soon after the plan was adopted. Their beneficial results are already visible and have been recognized in international assessments.

S

ome weak areas that were costly to the Senegalese economy have been improved. We could start by mentioning traffic and transportation, especially between the Cap Vert peninsula and the rest of the country, or energy supply. Agriculture has also taken an upturn

INFRASTRUCTURE AND HUMAN RESOURCES : CATCHING UP FAST

Cheikh Anta Diop University in Dakar, the main university in the country

On road and transport infrastructure : the life of business people and their businesses was changed when the first segment of the Motorway of the Future, about 30 km between Dakar and Diamniadio, was opened. And with regard to energy, the restructuring of the human resources and the materials at Senelec was a strong signal, especially since

it meant modernizing the grid. The result was that the situation in the field improved immensely. Electricity is a crucial lever of national growth in a country like Senegal, one of the most industrialized countries of Africa. But delays in investments made it impossible to keep up with the 8% per annum increase in demand. Efforts are underway to meet the needs of the economy by producing more electricity, all the while encouraging the use of non-fossil renewable sources like solar power. As for agriculture, the emphasis on restructuring the groundnut industry and installing projects to support family farming are showing tangible results.

doingbusinessin Senegal | Edition 2016

© All rights reserved.

VIRTuOuS CIRClES OF ACTIONS

HUMAN RESOURCES : HIGH QUALITY HIGHER EDUCATION

The world economic picture is bleak. Competition is everywhere, and the need to be competitive cannot be ignored. Without high quality human resources the economies of the developing countries cannot compete with the global economy. Senegal understood this situation and has wagered on education and training for its men and women, the nation’s most precious asset.

More than one-third of the national budget is allocated to education. The country has a very large number of public and private schools for primary, secondary and higher education.

Education is given in French, but schools also teach in other languages such as Arabic, English and Chinese. Senegal is a “knowledge pool” and has a large number of senior employees and experts trained within the

country or abroad, especially in the European Union and in North America. The very varied training, especially in technical and professional fields, has turned out men and women who are efficient and adapt quickly to new jobs.

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Senegal 2016 | The positive climate of the business world

Furthermore, knowledge of the most common foreign languages (English, Spanish, Arabic, Italian) besides French, the official language, facilitates international business relations. And easy access to the ICTs means that people in Senegal are generally comfortable with the most modern electronic tools.

Prestigious foreign schools and universities offer high level initial and lifelong training courses, either locally or through partnerships, to meet the needs of business in all sectors, especially in the agrifood and services sectors. E-learning is also becoming very popular. ■

© All rights reserved.

From early on, Senegal focused sharply on education and training

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Senegal 2016 | The positive climate of the business world

EDuCATION

Supply meets demand.

Secondary education in Senegal is offered in three types of schools : Enseignement supérieur public, (public higher education), Écoles nationales supérieures (national higher education), and Établissements privés d’enseignement supérieur (private higher education). : ! The Enseignement supérieur public is composed of five universities, namely Cheikh Anta Diop university of Dakar (UCAD), the Gaston Berger university of Saint-Louis (UGB) and the universities of Thiès, Ziguinchor and Bambey. ! The Écoles nationales supérieures include schools such as the École polytechnique de Thiès (EPT). ! There are 173 Établissements privés d’enseignement supérieur that mainly give professional training in the tertiary (services) sector.

Total enrolment in the public schools is close to 78,000 students.

Besides the public universities, Senegal has four regional schools for higher education created jointly with other countries : ! The Inter-State School of Veterinary Science and Medicine (EISMV) that trains veterinarians ; ! The Higher Multinational School for Telecommunications (ESMT) that specializes in computer sciences and telecommunications ; ! The African Centre for Higher Studies in Management (CESAG), under the supervision of the BCEAO, (the Bank of West African states), that provides training in finances, accounting, and management ; ! The Regional School of Air Navigation and Management (ERNAM), a school under the supervision of ASECNA, the Agency for Aerial Navigation Safety in Africa, provides training on safety in civil aviation, airport management, e-management and maintenance of civil engineering infrastructure.

The five main universities of Senegal.

■ Saint-louis

Dakar ■ ■ Thiès

■ Bambey

Ziguinchor ■

doingbusinessin Senegal | Edition 2016

Expected growth Years

Number of students per 100,000 inhab.

2015

985

Prospects 2025

1,317

THE BuSINESS ClIMATE The World Bank’s Doing Business index, Moody’s, Standard and Poor’s and many other such organizations that assess the business climate and the competitiveness of production sites have acknowledged the positive changes taking place in Senegal by substantially raising its ranking.

T

The terminal containers in the Dakar port

he change in the World Bank’s opinion occurred in October 2014 when Senegal, which had been ranked 171th by Doing Business was promoted to 156th. At end October 2015, recognition of improvements continued so that in the 2016 classification, Senegal rose to 153rd place. Such advancements were extremely rare, but the World Bank indicated that henceforth it would factor in realities on the ground : “Doing Business is by and large about the efficiency of regulations — how fast, how cheap, how simple it is to get a transaction completed.” (Rita Ramalho, Manager, Doing Business Project, Oct. 2014).

The World Economic Forum at Davos had the same opinion. Its Global Competitiveness Index published in September 2015 confirmed Senegal’s position among the top 15 most competitive African countries and moved it up two places to 110th position, in second position on the ECOWAS scale.

The same holds true for the IIAG, Ibrahim Index of African Governance, an index henceforth recognized as the one that best reflects African realities. The IIAG focuses mainly on four concepts that measure the quality of governance, infrastructure and basic human

doingbusinessin Senegal | Edition 2016

© All rights reserved.

Senegal 2016 | The positive climate of the business world

rights, i.e. access to education and health, as well as freedom of speech.

In its October 2015 report, IIAG lists Senegal among the five countries that have improved during the last four years yet indicates that the situation in Africa as a whole has deteriorated.

SENEGAL STILL AMONG THE TOP 10 BUSINESS REFORMERS

Senegal has been included in the World Bank’s list of the 10 “best reformers” for the second consecutive year thanks to the country’s reform program which includes at least three flagship reforms. The program is still underway and more improvements are on the horizon. Apparently some of the reforms were not factored into the rankings published at end 2015, e.g. rates charged by notaries, and automated platforms such as Seninfogreffe. So many more achievements to include in the assessment next time !

Improvements affecting foreign trade stood out among the most noteworthy and have led to results in Senegal that sometimes were superior to those obtained in the OECD countries. Most results were connected to to the finalization of a process to make customs procedures paperless and the entry into force, in February 2012, of the electronic remotecontrol custom clearance procedure called “Gaindé integral”, which allows private operators to complete their import-export administrative formalities without leaving their office.

In its efforts to reach the main PSE targets, namely a growth rate of 7% by the year 2017 and economic diversification, the government is seeking to consolidate production by creating a business climate that attracts national and foreign private investment. With the assistance of the World Bank, Senegal has adopted a road map whose implementation is being monitored at the highest level of government.

Close to 30 reform and other measures to improve the business climate and competitiveness

were carried out between December 2012 and August 2014 to allow Senegal to benefit from the dynamics of decentralization and the potential inherent in its membership in the ECOWAS common market with its 300 million people. All these elements should bring Senegal the status of a “major manufacturing country in Africa”.

The legal and fiscal environment has been improved and better coordinated through the adoption of a new Fiscal Code in 2012 and a Customs Code in 2013 and the revision of the Civil Procedures Code. As for commercial justice, the labor law and the public-private partnerships (PPP), the pace of the reform measures was accelerated, whilst investment and commercial procedures were simplified and automated. All the revisions to the business law and regulations will be completed by the end of 2015, with the revision of the mining code and the OHADA uniform acts. More reforms are coming, fast, as usual. ■

REFORMS THAT CATCH THE EYE The World Bank acknowledged Senegal’s reform measures.

Highlights : ! Adoption of new Fiscal Code in 2012 and new Customs Code in 2014 ! Getting electricity (+10 percentile rankings) ! Property transfer (+18 percentile rankings) ! Starting a business and maintaining performance among the top 100 (+6 percentile rankings) ! Closing a business (+8 percentile rankings)

doingbusinessin Senegal | Edition 2016

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Senegal 2016 | The positive climate of the business world

Š GAIN 2000. All rights reserved.

Senegal 2016 | The positive climate of the business world

GAINDE 2000, ARTISANS OF CHANGE GAINDE 2000, primary innovator of e-solutions, is crucial to improvements in the business climate.

F

or the last 20 years GAINDE 2000 has been researching the concepts and implementation of vanguard technological solutions for governments, port areas and business firms. Its digital tools are used to create programs such as Orbus Single Window, Orbus Customs, Orbus Payment, Orbus Logistics‌

The GAINDE 2000 solutions contribute to improving the productivity and performances of business companies. In the field, they contributed substantially to the business climate created by the government and enabled the customs services to meet the challenges of modernization.

Everything started with the Orbus Single Window created in 2004 for external trade.

The system was designed to facilitate the pre-customs formalities through e-relations among the stakeholders and thus facilitate trade by streamlining and ensuring the security of all stages of the customs clearance process. The Orbus system interconnects the public and private agencies, the banks and all parties involved in the customs clearance process. The system is founded on technological infrastructure and a services mechanism. It is a modular system that can be adapted to all customs clearance systems, whether centralized or decentralized.

doingbusinessin Senegal | Edition 2016

agents, (customs officials, economic players, etc.) and the customs offices.

Orbus Customs, that came next, is an integral solution that can be adapted to the requirements of a modern customs administration. It is flexible and allows the customs officials to share data with other entities. Declarations are transmitted electronically by certified customs officers. The system makes the whole customs clearance procedures seamless, from the e-transmission of the bill of lading by the forwarding agent to the removal of the merchandise via warehouse management, the customs declarations, transit operations, and payments.

The solution encourages e-commerce and includes processing operations that comply with EDIFACT standards. Online payment is essential to the customs clearance procedures. Since it is connected to the customs’ online system, the Orbus Payment platform can be used for the secure payment of all customs duties and related taxes. Orbus Payment connects banks, — to which users can give payment orders, — authorized

Orbus Logistics provides paperless logistics services. This platform is used for the whole range of cargo handling and transit operations in seaports and airports. It is a timeand money-saver that, furthermore ensures secure services for information transmission and cargo processing.

GAINDE 2000 was created as an international service, and now offers solutions worldwide. ■

France Kazakhstan Kirgizstan Tajikistan

États-Unis

Sénégal

Togo

Burkina Benin

Malaisie

Maurice

GAINDE 2000 operational solutions GAINDE 2000 expertise GAINDE 2000 partnerships

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Senegal 2016 | The positive climate of the business world

Senegal 2016 | The positive climate of the business world

SECURITY, A KEY FACTOR OF SUCCESS

Because of the current state of affairs and the many worrisome, or potentially worrisome threats, organizations of all sizes, structures, and importance now have to include a security component in their operations or risk jeopardizing their work or their very existence. This paradigm is forcing us to adapt our ports to very live strategic challenges.

After we understood this, we increased the level of security in our installations.

The American Coast Guards recently recognized our efforts by commending us for our seaport. This will also help us to obtain our ISO 28000 certification, which we are working on with our partner G3S Securimind. We are well on our way.

The fact that Senegal, through its Subdivision des Phares et Balises (Lighthouses and Beacons Subdivision), was selected to host the 61st IALA Council meeting (International Association of Marine Aids to Navigation and Lighthouse Authorities) at the same time as the workshop of the Maritime Organization for West and Central Africa (MOWCA) was an unexpected opportunity for us to showcase the performance of our maritime security system. It was also an opportunity to invite our counterparts from these organizations to meet with us to discuss how to combine forces in our quest for greater maritime security.

‘‘

‘‘

Cheikh Kante, CEO, Port Autonome de Dakar

Choosing Dakar, the capital of marine assistance to navigation, as the venue for all these meetings was indeed an honor for us.

It compels us to continue our efforts in making safety and security key factors of success.

And yes, we can do it !

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© All rights reserved.

THE MAJOR INFRASTRUCTURE Together with the major investment projects that have been carried out during the last few years, namely the DakarDiamniadio toll road, in service since August 2013, and the P2i platform, other infrastructure has been constructed to meet the needs of the Special Integrated Economic Zone of Dakar, (DIZES).

D AIBD the new Blaise Diagne International Airport

IZES is especially well located. It is 45 kilometers from Dakar, at the present exit of the new toll motorway close to the new Blaise Diagne International Airport (AIBD). The location and the buildings will make DIZES central to the development, competitiveness and growth of the zone, with a strong spillover effect on the national economy. This area, which will offer services that comply with international standards, tax incentives based on national law, and easy operating procedures, will be home to many economic activities and will

anchor Senegal’s position as the business hub of West Africa.

The project is more than an industrial free zone. It was designed to include an industrial park, services areas, offices, and a logistics platform. Plans are also in the offing for a commercial zone, tourist facilities, and residential areas.

The authority responsible for the administration of the zone will use a one-stop window to provide business companies …⁄…

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Senegal 2016 | The positive climate of the business world

© All rights reserved.

with communal services (telecommunications, electricity, water, and waste management), administrative services (certification, permits, authorizations, banks and financial services), and logistics (transport and storage), compliant with international standards. These services, when completed, will make DIZES one of the main levers of the Senegal’s accelerated growth strategy.

The economic zone extends over 718 hectares, with a reserve of 12,000 hectares for future expansion. The project has run a pilot phase on 45 hectares.

The plan is to attract 400 enterprises during the first five years and grow to serve 1,000 enterprises in a score of years, thus providing direct jobs for 40,000 people and indirect jobs for close to 100,000.

THE BARGNY PORT FOR ORE CARRIERS

The Bargny ore port is a project developed by the State to handle mining and petroleum products (phosphate from Thiès and Taïba) and, in the future, similar products

from Matam (phosphate) and eastern Senegal (iron ore). It will relieve traffic in the Dakar port and contribute to the mining sector by offering reduced transport costs and smooth operating conditions. Decongestion of the capital city will mean less time for loading and unloading. The provision of large storage areas and a capacity to accommodate large vessels will contribute to cutting the cost of land transport and demurrage.

The port is located at Sendou, 32 km from the port of Dakar, on the Gorée Bay next to Bargny, and close to the P2i integrated economic platform which is part of the special economic zone, DIZES-Dakar.

The project will include : • A 4,400 m offshore jetty, with land and rail access, and processing and storage installations ; • A loading berth for a 60,000 metric ton vessels with a draught of 15 meters, and another one for a 170,000 metric ton vessels with a draught of 21 meters, and a 483ha storage and operations area. ■

© APIX. All rights reserved.

The Diamniadio International Conference Center, host to the 15th Sommet de la Francophonie, was inaugurated in 2014

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© APIX .All rights reserved.

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6 |RUkufv|0ue 6-efB0e-kfkv0 Opportunities : services-industries :

The digital revolution on the go . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 ATOS chooses Diamniadio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 ADIE ushers in the digital era . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 A growing insurance market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 The many facets of the healthcare proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Sound industrial recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Opportunities : natural sources of wealth :

Expansion of the mining sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 The promise of hydrocarbons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 An exceptional agricultural potential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Fishery and aquaculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Irresistible Senegal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Tourism and its tremendous potential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Traveller’s logbook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

Stnodbusinessnoeuioidrg A 0Snsntoe12hT

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enegal has great ambitions for digitization, ICT, and tele-services. As the beacon of Africa, Senegal was foresighted in allocating resources to support its ambitions. Huge projects are being carried out to prepare for their role in transforming the country. And as they take shape, we will see many activities in this key sector now rooted in Dakar, move to Diamniadio and the Diamniadio Valley, home of the future Digital City.

Senegal has become a popular place for outsourcing client relations and added value IT services

Diamniadio Valley City is part of the digital technologies park (PTN), a component of the Plan Sénégal Emergent (PSE). It is being built on a 25 ha piece of land and will include data storage centers, training centers, and modern telecommunications infrastructure.

A VIBRANT FAST-DEVELOPING SECTOR

Senegal is becoming the ICT leader of Africa. Between 2006 and 2010, the country gradually reduced the digital divide thanks to a totally digital network and fuller coverage by various telecommunications partners such as Orange-Senegal, Tigo and Expresso.

E-technology skyrocketed in the business world, government services and the society at large. The introduction of ICTs in the education system is familiarizing the people with these tools early in life.

The digital economy is strongest in the private sector, both nationally and internationally. More than 300 SMEs are devoted to information and communications technologies (ICTs) at all levels to cater to the

StnodbusinessnoeuioidrgeeA 0Snsntoe12hT

© APIX. All rights reserved.

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local economy. However, what is new is the growing importance of Senegal on the international stage, for both IT and telephony services. During the last decade Senegal has become a popular place for outsourcing client relations and added value IT services.

Its reputation as a provider of various types of services is growing and holds tremendous opportunities. Business Process Outsourcing

f0D0w6bbkR|wNf|6Ru 6,0vNf6vue NRUe|Rf0vR0f ,v6j|U0vu ! Three operators with global licenses : • Sonatel (Orange) a subsidiary of the France Telecom group ;

,v6u,0wfue -6vef|b0D|R0e121V ! Installation of the Digital City of Senegal ; ! Installation of broadband ;

• Sentel GMS (Tigo) a subsidiary of the Millicom international group ; • Sudat el (Expresso) a subsidiary of the Sudatel Telecom Group.

! Installation of the BPO center, a digital terminal assembly unit ;

! The holder of a universal telecommunications service license (the Service Universel SA CSU consortium) ;

! Digipoles, Internet exchange points (IXP) and digital sites (cyber cases).

! The two internet service providers (Orange and Arc informatique).

! Completion of digital transition ;

Neh22%eU|5|fND f0D0w6bbkR|wNf|6Ru uXuf0b ! 6,000 km of fiber optic cable ; ! 12.4 gb/s internet bandwidth ; ! 3G throughout the country, 4G upcoming ; ! 17,000 km of ACE cable landing in Dakar.

mobile banking, etc.,) also ranks high, together with the contact centers for telemarketing, hotlines, remote technical support, etc.

The proliferation of the Senegalese SSII, call centers, sites and portals are signs of the ICT surge in Senegal. Big players such as Nokia, Microsoft, Hewlett Packard, and Ericsson have not ignored the opportunity.

And since 2009, Dakar has been the domicile of Google’s only permanent office in French-speaking Africa. ■

(BPO), is an example of how business companies’ needs e.g. client relations, remote data entry, data processing… can be sub-contracted. Electronic engineering (applications management, system integration, development of specific applications,

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ATOS CHOOSES DIAMNIADIO fOie-lioEOedltpceNstaenaetoietIesOiedgtPrgedltpcaesOrse.ra rsslrEsiSesterecgrEieot.ezot.oeraeUnryonrSntejrggiCM

|

n January 2015, Thierry Breton, CEO of Atos and France’s Minister of Economy, Finance and Industry from 2005 to 2007 during the presidency of Jacques Chirac announced that the French group “Atos”, a world specialist in computing services (consultancy, system management and inte-

an opportunity to work in software development for the major global programs. When asked about the reasons underpinning this important decision, Thierry Breton stressed the realism and energy that the public authorities put into advancing the policies of the Plan Sénégal Émergent.

© ATOS. All rights reserved.

SENEGAL HAS THE RIGHT CONDITIONS FOR AN ICT TAKE OFF

“Senegal should head the think tank on creating a digital Africa” said Thierry Breton, CEO of Atos

gration) intended to install a digital platform in the future Diamniadio digital city that will turn Senegal into a preferential destination for ICT innovations and research.

This project should create a thousand jobs in the next three years. Atos was already working in Senegal through Bull, a member of its group and wanted to develop a digital platform to offer the Senegalese engineers

For ICT to sprint ahead requires three conditions. Senegal can offer all three: training in fast job generating sectors with high added value digital content ; high quality digital networks that are constantly being improved, and enabling legal and fiscal conditions.

Additionally, he said, “it is important to look beyond the national borders since discussions on digital content, the cloud, Big Data etc. involve groups of countries that share the same vision, especially in terms of regulations and data protection.

I think that Senegal should take the lead in thinking out the installation of a digital Africa”. ■

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DIE, the Agence de l’Informatique de l’État, together with various government and State services, and local communities has paved the way for the Administration to adopt a coherent information processing and dissemination mechanism that meets international standards of quality, safety, performance, and access.

Its main task is to combine State resources in an effort to better manage IT costs, coordinate the technological choices of the government services, and facilitate data-sharing.

TANGIBLE GOALS WELL MET

An efficient digitalized administration to serve its people

Very specific goals have been assigned to ADIE. The success of the Senegalese digital project, and pari passu, the country’s economic and technological progress will depend on the fulfillment of these goals.

All these goals have been met, as evidenced by the considerable improvements in the business climate : ! Construction of a national system of networks to interlink government services ; ! Equipment for the State to provide e-services ; ! Online access to decision-support and management tools, plus contents and applications ; ! Improved communications with users (general public, enterprises and State agents) through decentralized interface to provide access to government services ; ! Introduction of conditions that meet international quality and safety standards for information systems.

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© APIX. All rights reserved.

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The government of Senegal, through ADIE, has adopted an ICT-based approach designed to improve public services. With this in mind, ADIE has developed a range of services to contribute to good governance through the digitalization of public administration.

ADIE’s activities gravitate around 6 sectors : ! Engineering, ! Equipment and infrastructure, ! Housing, ! Digital solidarity, ! E-people services, ! Training.

■

||||||||||||| ADIE’s major achievements and projects ! As a State intranet network, ADIE has provided the infrastructure for telecommunications services using 500 kilometers of optic fiber cables and serving 47 Winmax base stations, together with CDMA 80 MHz BTS that offers the government various types of access : voice, video, data, and images. ! The preparation of the 2014-2017 ADIE Strategic Development Plan that takes account of the 2009-2020 Orientation Law of 4 May 2009, its application decree and Decree no. 2010-1812 of 31 December 2010 on the performance contract for implementation agencies. This Plan has been used as the basis for the preparation of a performance contract, a new directive on the implementation agencies, that will tie ADIE to the Ministry of Economy and Finance (and Ministry oversight) with regard to the obligation to obtain target-oriented results. In return, the government will provide funding. ! FUDPE a unified data file on State personnel, is seeking to contribute to the improvement of public finance management by providing more complete data on civil servants and thus enabling the State to better manage its employees and payroll since both affect the general budget. ! The aim of TeleDAC, is to facilitate the formalities for obtaining building permits in the Dakar region by making the whole procedure paperless, in other words, reducing the recipients’ costs by at least 25% and the time for examining the permit application and issuing the permit to under 15 days.

■! Installation of a State telephony service for the government administration to ensure secure, non-paying communications among the civil servants. Furthermore, a tripartite partnership agreement was concluded between the Ministry of Finance, SONATEL and ADIE for the procurement of modern equipment and the reduction of the State’s telephone bill. ! A new portal service, – servicepublic.gouv.sn – will provide easy access to government information on citizens’ rights and obligations.

In 2014 the portal created a new space for tele-procedures and an e-citizen space for dialogue between the administration and its public. ! The e-waste project, was created to collect waste from electric and electronic equipment belonging to the government, the private sector and business companies and then to process it, applying standards that are risk-free for the workers, the resident population and the environment.

Agreements have already been signed with SAR, SONATEL, and ISE and will be signed with organizations such as SOCOCIM, Crédit Mutuel du Sénégal, Expresso, Ecobank, CBAO, SDE, etc.

The Ministry of Environment has certified that ADIE lives up to environmental standards and is qualified to manage waste. Ten tons have been recovered up to now.

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he Senegalese insurance sector has 24 insurance companies (16 for nonlife insurance covering fire, accidents and other risks and 8 for life insurance and capitalization operations), whose sales figures exceed CFA 100 billion (102.812 billion CFA) with 74% for non-life (sales of over CFA 76 billion, a 6% growth rate). Life insurance recorded sales of over CFA 26 billion, i.e., a 9% growth rate that reflects the growing middle class that wants both consumption and capitalization

Economic growth and a budding middle class are boosting the insurance sector

Insurance companies intend to grow their market by developing agricultural insurance, the Islamic insurance policy (Takaful), microinsurance, credit insurance and guarantees, and life insurance, thereby enabling the insurance sector to contribute more to the economy.

R6RLD|-0e|RukvNRw0 w6b,NR|0u • Amsa Assurances • Axa Assurances • Allianz Assurances • Assurance La Sécurité Sénégalaise • Askia Assurances • Sunu Assurances • Saham Assurance • CNART • Groupe Sonam Assurances • MAAS • NSIA Sénégal • Prévoyance Assurance • Salama Assurances • Sonac • Saar • Wafa Assurances

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© Red Bull. All rights reserved.

Ne5v6q|R5e |RukvNRw0ebNvK0fe

STRONG GROWTH IN THE AUTOMOBILE AND LIFE INSURANCE SECTORS

for Senegalese people living in Europe and in several ECOWAS countries, as well as to their family members who remained in Senegal.

Non-life insurance, mainly driven by motor vehicle insurance, has risen 7% thus recovering from the 7.4% drop in 2011. This sector has helped pull the market up and earn CFA 1.67 billion in de facto gains that unquestionably result from extending the age of used vehicles that car dealers can accept from 5 to 8 years.

Another mark of the country’s dynamic economy is the flourishing insurance market’s 1.28% contribution to the country’s GDP. ■

Life insurance is still handled through fastgrowing group insurance plans (banks, supplementary pensions, death, business, etc. which account for two-thirds) : +20% not including group retirement savings. All the companies in the sector, starting with Allianz, are innovating. For instance, Askia has introduced easy online access to find custom-tailored solutions

D|-0e|RukvNRw0e • Amsa Assurances • Allianz Assurances • NSIA-Vie Sénégal • Sen Assurance Vie • Saar Vie • Sonam Mutuelle • Sonam Vie • UASEN-Vie

The top 9 banks of Senegal Name

Rank

Turnover (millions F CFA)

CEO

Contacts

1

CBAO-AWB

46 230

Mounir Oughiri

www.cbao.sn

2

SGBS

44 886

Yann De Nanteuil

www.sgbsonline.sn/fr

3

BICIS

27 200

Pierre Bérégovoy

www.bicis.sn

4

ECOBANK

24 251

Serge Ackré

wwww.ecobank.com

5

Groupe CMS

20 309

Mouhamed Ndiaye

www.cms.sn

6

BOA

17 057

Mamadou Igor Diarra

www.bank-of-africa.net

7

CNCAS

13 262

Arfang Boubacar Daffe

www.cncas.sn

8

BIS

13 256

Omar Mbodj

www.bis-bank.com

9

BRM

12 543

Alioune Camara

www.brmbank.com

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Senegal, the ideal place for a first investment in Africa. within the contractual limits and ceiling rates) to the most simple package (hospitalization).

‘‘

• Assurance Prévoyance Complémentaire Santé (supplementary healthcare insurance) that assists businesses with their social obligations to their employees by adding to the health insurance contract, a contract authorizing payment of a certain sum to an employee’s heir(s) in case of his/her untimely death.

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What are the innovations and special products that Allianz is proposing to Senegal ?

Xavier Laurent – Allianz Sénégal Assurances, number one in the Senegalese insurance world, is driven by a spirit of innovation in order to live up to the expectations of present and future customers.

In 2015, for instance, we introduced four new products : • Assurance Santé Prestige, a high-end insurance product providing for the reimbursement of medical costs for insured individuals and families on the basis of the international territoriality principle.

Various packages of reimbursements are available, from the most complete (full reimbursement providing 100% coverage,

• Assurance Titulaire de cartes (cardholder insurance) that allows a certain segment of the population, usually cardholders who do not use bank services and whose cards thus are not connected to a bank account, to take out an insurance policy that pays a certain sum to his/her dependents/heirs in the event of disability or untimely death.

• Assurance Homme-Clé (key person life insurance) is also a vanguard insurance product since it guarantees the survival of a company and its know-how in case of disability or untimely death of a key person whose role within the company is crucial.

The compensation is paid to the company, thus keeping the business going and maintaining the confidence of its financial partners.

How do you think the Senegalese insurance market will develop ?

X.L. – The Senegalese insurance market is constantly expanding mainly as a result of the development of national companies, the arrival of new foreign investment, and the growth of the middle class.

Senegal is an ideal place for a first business venture in Africa thanks to its stability, its huge port, its transportation infrastructure that facilitates trade with the rest of the sub-region and its generally well-defined regulatory framework.

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This has given Allianz Sénégal Assurances the opportunity to work with the biggest companies in the country on managing risks related to financial and human resources.

The Direction des Assurances, under the auspices of the Ministry of Finance, is a regulatory body that knows how to listen and is aware of the importance of insurance companies in ensuring national growth and the sustainability of investments in the private sector..

© Allianz. All rights reserved.

Being part of the Allianz group, one of the world leaders in insurance and financing, encourages us to offer the best to our customers.

It is with this in mind that we promised to adopt an Operational Excellence (OPEX) approach to production and compensation that facilitates procedures, offers the visibility

needed for daily operations but above all, improves the quality of our services by reducing the time for processing claims..

Our main goal now is to offer customtailored insurance policies (fire, civil liability, transport, automobile, health, construction, supplementary pension funds, retirement benefits) to companies established in Senegal.

In case of damage and losses, we refer to our core business, namely, providing support for the insured party and striving to obtain maximum compensation within as short a time as possible.

Two examples can illustrate this support : • As the insurance company for the largest hotel in Senegal where the biggest fire in all times broke out, we paid out more than two billion CFA francs. This enabled the hotel to open its doors again in the shortest possible time.

• We insured the biggest used clothing recycling plant ; it burned to the ground in 2014.

Compensation for damages amounted to 1.7 billion CFA francs.

Securing enterprises that establish themselves in Senegal is a goal that we are energetically pursuing at the Dakar port. We offer welladapted transport insurance contracts (sea, land, air, etc.).

Moreover, through our representatives in 12 African countries, we can offer international insurance to future investors in Senegal.

‘‘

Allianz Sénégal Assurances has been operating in Senegal since 1938 and, as the years passed, developed relationships based on trust with its clients that have turned the group into the leading insurance group in the country.

Lastly, as people become aware of the value of insurance and the middle class grows, we are determined to present insurance offers that secure the living conditions of the Senegalese people.

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u HĂ´pital de la Paix in Ziguinchor and the Touba Hospital

enegal is a reference in the field of medical and healthcare training. The highly qualified physicians and technical services are instrumental in attracting a clientele from all over the sub-region.

AIDS containment. A multidisciplinary program to control AIDS was started in Senegal in 2002.

All the special fields of medicine, paramedicine and surgery are represented in the public healthcare sector, a sector that works together with a broad private sector : clinics, treatment centers, emergency services, and home care. The private clinics offer top-ofthe-art medical care, diagnostic services and modern laboratories.

Specialized multi-service health clinics have been opened throughout the country and attract patients from the whole sub-region.

As of 2004-2005 the most sophisticated fields such as medical imagery, retinal surgery, mammograms, biological research, etc. have been developing spectacularly. The sector is supported by : ! A solid network of private clinics and specialized centers that offer a wide range of treatments ;

Senegal, for instance, is one of the few african countries considered as an example in HIV

A REPUTATION FOR EXCELLENCE THROUGHOUT THE SUB-REGION

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Š Photo : Louis Dasylva. All rights reserved.

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! Modern diagnostic centers and laboratories ; ! International level educational institutions, e.g. ENDSS and the École de Médecine St Christopher Iba Mar Diop, and a highly reputed medical faculty that trains physicians for the sub-region and the Maghreb ; ! A code of ethics that conforms to international standards ; ! A secure institutional and regulatory framework ; ! The presence of many large companies such as Pfizer and Sanofi-Avantis that have started producing generic drugs and distributing medical equipment and machinery ; ! Intellectual property protection for patents ; ! A large spectrum of medicinal plants and a sound understanding of plant therapy that could be used as the basis for phytotherapy research and development.

,v6u,0wfue -6ve121V • Coverage and improvement of the technical services ;

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• Universal health coverage ; • National emergency policy ; • Stronger mechanism for the free services policy ; • Improvement of sectoral governance ; • Development of public-private partnerships.

This sector holds promise for the whole value chain

Senegal offers attractive prospects for investments throughout the value chain, from research and development to the production of generic drugs and phytopharmaceutical products.

© Photo : Louis Dasylva. All rights reserved.

Other opportunities are awaiting attention in biomedical and genetic research, convalescence and well-being centers, reconstructive plastic surgery, the pharmaceutical industry, etc.

Furthermore, because of its geographical location, Senegal has an abundant, extremely diversified flora that could be used for medicinal purposes.

Some of the medicinal plants have molecules of proven scientific value. ■

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© All rights reserved.

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u SOBOA’s commitment to quality and its tightknit distribution network have won the trust of the world’s most prestigious brand names

enegal’s secondary sector is forging ahead with growth figures rising from 0.9% in 2012 to 2.9% in 2014 and an expected 7.3% in 2015. It is structured around four pillars : ! Mining, mainly involving chemistry, cement, phosphates, and iron in the east of Senegal ; ! The maritime front with ship repair, and industrial and small-scale fishing ; ! Agrifood industries such as oil mills and soap production ; ! Tourism, with the development of seaside and business tourism.

Senegal has close to 1,300 industrial units, including major groups in areas such as agrifood : Suneor for the groundnut sector, the Grands moulins de Dakar for flour, the Compagnie sucrière sénégalaise for sugar and SOBOA (Société des Brasseries de l’Ouest Africain) for beer. This economic thrust has triggered the creation of a very dynamic mix of companies to process products such as vinegar, tomato concentrates, mustard, margarine, pasta and flour 92% of Senegal’s industrial fabric is composed of SMEs. The Agence nationale de statistique de la démographie du Sénégal (ANDS) reported in August 2015 that the small and

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medium enterprises were progressing and had grown some 33% over the last five years.

This recovery and growth can be traced to the industrial policy and the strong measures adopted by the government, and more generally the reform measures. The international institutions, starting with the World Bank, spoke highly of the effects of these political and economic reforms, as can be seen in the 2016 Doing Business assessment. Further, a recent analysis by the World Bank and other specialized institutions compared Senegal to similar countries and confirmed Senegal’s strong potential as an exporter of manufactured goods. The country has a high potential for developing its industrial capacity, its added value and job offers, especially in the following sectors : agrifood, chemical products, textile, metal industry, and the non-metal ore industry. This justifies Senegal’s ambition to become the region’s industrial and services platform (for tourism, education, healthcare and finance) and an entry point for forwarding goods throughout West Africa.

Endogenous development, strengthening the capacity for competitiveness, and the promotion of technological innovation, industrial property and standardization are the main pillars of the Senegalese industrial policy, implemented by the Ministry of Industry. These pillars are full of opportunities for businesses interested in investing in Senegal.

Most of the business enterprises are headquartered on the Cap Vert peninsula, home to 86% of Senegal’s industries although there are a few encouraging examples of successful installations elsewhere : battery plant in Thiès, cotton processing plants in Vélingara and Kédougou, oil refinery in Kaolack and Ziguinchor, sugar processing plant in Richard Toll, etc.

In the Special Integrated Economic Zone of Dakar (DIZES), prospects for the future are expanding especially thanks to the major infrastructure development connected to projects in the Diamniadio area.■

Industries in Senegal

as a % of the sector

Food industries

31.81%

Chemistry

22.38%

Energy and water

17.35%

Construction materials

9.09%

Extractive industries

6.78%

Machinery and metal workshop

3.87%

Industries connected to agriculture, livestock and hunting

2.37%

Other industries

2.22%

Paper, cardboard, publishing

1.88%

Wood

1.61%

Textile, clothes, leather

0.63%

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ig, high-potential deposits have recently joined the list of traditional sources like phosphate rock and limestone which have been major sources of Senegal’s mining products and foreign currency since 1980. Other resources that have recently been exploited, or soon will be, include heavy metals and gold, while the production of iron will not be resumed until the price goes up.

PHOSPHATES, THE MAIN MINING RESOURCE

New resources add to mining potential

Senegal is listed among the top 15 world producers of phosphate. The depletion of the first phosphate rock deposits stim u lated research that led to important discoveries, namely the Piré Goureye deposits (Tivaouane Department) where resources are estimated at 19 million tons.

Much of Senegal’s phosphate is transformed locally into phosphoric acid and solid fertilizer and then exported, especially to India. The increase in world demand for fertilizer is very promising for good quality phosphate ; exports rose 80% in 2014.

DYNAMIC CONSTRUCTION SECTOR BOOSTS LIMESTONE PRODUCTION

The biggest limestone quarries in Senegal are near Dakar (Bargny and Pout).

Although numbers are difficult to obtain, significant quantities of limestone are used locally to produce granulates and cement, and the market is bullish. Local production is used to meet the growing needs of the construction sector in Senegal and throughout the sub-region, pushing exports up by 19%. …⁄…

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© CMDS. All rights reserved.

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‘‘

Our aim is to contribute to making the Senegalese mining sector more competitive.

Its purpose is to encourage, promote and protect investments in the mining sector in Senegal, and at the same time develop professional and business ethics. Its mandate also includes the defense of its members’ common interests and speaking on their behalf with stakeholders of the mining industry.

Through its discussion and informationsharing platform, CMDS provides an opportunity to coordinate the members’ opinions, and transmit them to the authorities.

CMDS’ activities include :

‘‘

The Chambre des Mines du Sénégal (CMDS) was created on 5 June 2013.

It is a non-profit organization composed of close to thirty mining companies that work in the field of mining exploration and exploitation.

• Facilitating discussions on themes such as mining legislation, tax systems, environmental protection, and economic contributions related to the administration of mining, environment and finance services ;

• Implementing a training/communications action plan to makes the stakeholders aware of the implications of the various phases of the exploitation cycle.

Doro Diagne, Secretary General, CMDS

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ZIRCON AND ILMENITE, RESOURCES WITH A FUTURE

The news that Senegal is rich in heavy metals is not new, but it wasn’t until 2014 that the country, thanks to its deposits on the Grande Côte, entered the exclusive club of zircon and ilmenite producing countries.

Since 2014 premium quality zircon and ilmenite have been mined from reserves that are the third largest in the world. The French Eramet and the Australian Mineral Deposits companies made investments that rivaled the biggest in the country. The annual production from the mine is estimated at 85,000 tons of zircon, in other words 7% of the world’s production, and 575,000 tons of ilmenite for a period of at least 20 years. Other reserves have been found in Casamance and could be exploited in the near future.

GOLD, A RECENTLY MINED RESOURCE WITH A STRONG POTENTIAL

As soon as the price starts rising, Senegal will agree to mine the large Falémé iron ore deposit in the south-east of the country where reserves are estimated at 750 millions and the extraction capacity is between 12 and 15 million tons per annum. In the medium and long term, the mine will be an important asset for the country. The total cost of the operation is estimated at 2.2 billion US dollars. This includes a mineral ore port south of Dakar and a 750 km railroad to connect the site to Dakar. Recent examples of successful public-private partnerships, such as the PPP for the construction and running of the Motorway of the Future, has expanded the range of project financing schemes that could be solicited for a project whose economic profitability depends on the dynamism of a stable country and its healthy growth. ■

Gold doré (± 86% gold) from the Sabodala mine

@ Teranga Gold.

Industrial production of gold resources was begun in 2009. Senegal now ranks among the emerging gold-producing countries of West Africa, alongside Mali, Burkina Faso, Niger, Ghana, Guinea, Côte d’Ivoire and Mauritania. With exports of 10 tons of gold in 2014 (of which 6.4 tons came from the Sabodala mines, operated by the Canadian firm Teranga Gold Mining) this precious metal has become the principal source of export revenue from Senegal’s mineral resources. The prospects of developing the sector are good. Teranga Gold, that operates the only existing industrial mine in Senegal, is actively exploring the area and working on new de velopment projects.

IRON ORE, A POTENTIAL WAITING TO BE TAPPED

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THE PROMISE OF HYDROCARBONS fOiei’nasioEietIetngetIIesOieaOtliaetIeuioidrge.rae.iggezot.o ItleCirlaePpseliairlEOetogCeasrlsiSenoesOieirlgCehYV2aMe|séaePiio ItpoSFegtsaetIensM

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t least eleven countries have started exploring, and major discoveries have already be reported. In midMay 2015 the British development firm Cairn Energy said it had struck oil when it discovered “a world class basin with a potential of over a billion barrels a day” and started drilling.

Earlier on, Cairn had announced, together with the Senegalese company Petrosen, that it had discovered quality off-shore oil reserves in Sangomar Profond, a block with resources of somewhere between 250 million and 2.5 billion barrels. Prospects are reassuring and appealing for investors in all walks of the oil industry, — oil and related products, — and is promising for the economy in terms of job creation and income.

v0-|R0vX 6,0vNf|6Ru ! The SAR (Société Africaine de Raffinage) can process 1.2 million tons/year of crude oil. The national demand is 1.8 million tons/year (structural problems and obsolescent installations). ! Goal for 2018 : maintain SAR’s industrial capacity and activities in the medium term.

0W,D6vNf|6Re NRUe,v6Ukwf|6R ! 10 exploration blocks out of 18 allocated as CRPPs (research and sharing contracts) to foreign companies ; ! 705 million m3 of reserves, probably ; ! 357 millions m3 of gas reserves confirmed ; ! 120,000 Nm3 of gas produced per day. ! Goal for 2018 : intensification of oil exploration and production.

The discovery of large reserves of oil and gas off the shores of Senegal will benefit business by creating reliable long-term energy supplies and potentially generating export income.

Senegal, long considered as an underexplored region, now is attracting the world’s oil industry. Several companies are exploring the Senegalese coastal area.

Kosmos Energy recently announced that it had discovered large gas reserves in the north of Senegal, perpendicular to the Mauritania border. ■

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6 Abundant land and water resources offer a world of opportunities for investors

n a continent where a quarter of the world’s population will be living in 2050, some countries have major advantages. Senegal is one of them, with 19% of its national territory (4 million hectares) allocated for various uses of which only 65% (2.5 million hectares) has been developed up to now. To have large quantities of arable land available and increasingly prized by the world is tremendous good fortune in the medium term, and, in this case, offers an even greater opportunity thanks to two factors : weather suitable for off-season crops and huge European markets nearby

In sum, thanks to its greatly underutilized resources in land and water (35 billion m3), in the heart of a growing consumer basin and 5 flying hours from major European capitals, agriculture in Senegal offers exceptional investment opportunities. Banking on this potential, several years ago Senegal launched a major diversification policy that focused on restructuring the groundnut basin and developing and promoting export crops, without however neglecting the small-scale farmers.

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© APIX. All rights reserved.

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THE SUCCESS OF HIGH GROWTH SECTORS

High-growth sectors for import substitution (groundnuts, rice, etc.) and for export, especially to the European markets (off-season crops, tropical fruits, cut flowers, decorative foliage, etc.) are making Senegal’s agriculture competitive. Sweet corn (one of the leading export products), cherry tomatoes and melons are other examples. Sales of all these products are skyrocketing, and their market life is growing longer. At present cut flowers and decorative foliage are greatlyappreciated, under-marketed export products.

Proven investment opportunities are awaiting private investors in agriculture to modernize cropping techniques, and to develop farm plots, boreholes, post-harvest installations, cold chains, and infrastructure for logistics and commercialization.

All these structural investments are backed by the State and the funding agencies, especially by the partners in development. This modernization policy has already produced considerable effects. Diversification of Senegalese products and markets has steadily increased exports from this sector since 2006 and the label “Product of Senegal” has gained clout on the export markets. Exports of

off-season crops to Europe exceeded 48,000 tons for the 2011-2012 cropping season, an 11% increase over the preceding year.

SENEGAL, A LIVESTOCK PRODUCING COUNTRY

With 15 million head of cattle, approx— imately 25% cows, 41% sheep and 35% goats, livestock production has become one of the main sources of livelihood for the rural populations and employs close to 3 million people. In the present situation marked by growing and diversifying needs, the State is implementing a policy that reflects its pledge to make livestock production a driver of economic growth.

With the development of the middle class throughout Africa comes the development of new eating habits ; increased consumption of animal protein confirms the accuracy of the government policy which, furthermore, also provided for export diversification that includes leather and hides, as well as cold meats and honey. Senegal has a ruminant stock composed of breeds that are adapted to both traditional and modern rearing conditions. The animal health status in the country is good : no rinderpest, no bird flu and the presence of veterinary services that cover the country and include research and training institutions. ■

N5v|wkDfkv0 me fvkb,ewNvUuefBNfebNK0efB0eU|--0v0Rw0M ! Several soil types suitable for cereal crops, garden crops and horticulture ; ! Major potential water resources ; ! Considerable production experience ; ! Infrastructure being constructed, mainly in the northern and southern zones (hydro-agricultural construction, installations for paddy rice processing, storage and packaging facilities for agriculture products, etc.) ; ! “Produce of Senegal” label increasingly valued ; ! Five hours away from large European markets.

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GREAT OPPORTUNITIES FOR INVESTORS

! Rice : demand is soaring. Because of high consumption levels (over 79 kg per person per year) 400,000 tons a year have to be imported. Production levels are rising in the middle and lower valley of the Senegal River. ! Horticulture : off-season fruits and vegetables (asparagus, green beans, melons, cherry tomatoes, peas, aromatic herbs, sweet corn, bell pepper, etc.), cut flowers, tropical fruits (mangoes, papaya, bananas), sweet potatoes, lemons, okra, onions (instead of imports). ! Processing and support for the industry : post-harvest infrastructure, agrifood processing, conditioning and packing, logistics of cold storage and conservation.

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In Senegal, access to land for farming involves two regimes, the first being a prerequisite to the second. ! Land allocated for agriculture. This status is awarded free of charge and no rent is charged after the land has been allocated. Land use rights are guaranteed for as long as cropping continues. If the agricultural activity is ended, the status can be revoked. This is the first step in the land allocation process. It is preliminary to regularizing the status through a lease. ! Regularization through a long-term lease (emphyteusis), or a 20-year lease that can be extended to last 30 years and renewed to last 50 years.

! Climate : Soudano-Sahelian climate providing for three growing seasons (rainy hivernage, dry off-season, rainy off-season). ! Rainfall: in the north about 300 mm/year; in the center, about 600-800 mm/year ; in the south-east, about 1,200 mm per year. ! Water resources : 35 billions m3. ! Surface waters : 31 billion m3. ! Groundwaters : 4 billion m3. ! Irrigation potential : 350,000 hectares, of which only 130,000 have been cultivated. ! Main crops : rice, millet, maize, sorghum, groundnuts, onions, tomatoes, potatoes, beans, sweet potatoes, melons, mangoes, bananas. ! Type of agriculture : small-scale (about 90% family farms), agribusiness/industrial (national and international).

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! Rice : self-sufficiency by producing 1,600,000 tons of paddy rice with a more balanced contribution from the Senegal River Valley and the rainfed areas in the south. ! Onions : self-sufficiency by producing 265,000 tons by seed regeneration and installing storage facilities. ! Groundnut: production of 1,000,000 tons through increased average yields, accelerated reconstitution of certified seedstock, and intensive mechanization. ! Off-seasons fruits and vegetables : achieve an approximate 10% growth per annum and increase exports to Europe to a volume of 157,000 tons per annum. â–

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! Arable lands : 3.8 million hectares, with an average of 2.5 million hectares cultivated per year.

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he fishery sector plays a key role in the national society and economy thanks to the diversity and the magnitude of its contribution to macroeconomic and social indicators such as GDP, trade balance, employment and food security. Maritime fishing accounts for most of the fishery activities and the landed volumes (95%), as opposed to inland fishing in the rivers, estuaries, and lakes.

RICH BIO-DIVERSITY

Fishing is essential to the economic and social life of Senegal

The Senegalese maritime zone has a great biological diversity. Resources from fishing activities fall into two major groups : pelagic species, such as haring, sardines, anchovies, mackerels, tuna that live in deep waters or waters between the surface and the sea floor, and demersal species, such as seabream, hake, whiting, and codfish, that live and feed near the sea floor. Another advantage

for the fishery sector is the relatively warm, sunny climate throughout the entire coastal zone that is very conducive to the development of a rich variety of marine algal flora.

Pelagic species from the coastal zone account for 70% of the landed catch in the senegalese EEZ and the greater part of the catch from the small-scale or artisanal fishing sector. These fish, plus the sardinella, are the fish most commonly consumed by the Senegalese population. Round sardinella account for 35% of the local fish consumption and flat sardinella, 25%. Local fisherfolk also concentrate their efforts on this species. The most recent CECAF/FAO scientific evaluation of the sub-regional gave evidence of overexploitation of the sardinella stocks and recommended reducing the total sardinella fish catches by 50%.

Deep seas pelagic resources are composed

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mainly of three tropical tuna species : yellowfin, skipjack, and big-eye. These are migratory species fished internationally over very large areas, usually outside the country’s Exclusive Economic Zone (EEZ). Intensive fishing and even overfishing has been recorded in certain zones.

Next comes the alga. Studies show that the Senegalese algal vegetation is composed of 260 species of marine alga. Three species, — Ulva lactuca, Hypnea musciformis and Hypnea cervicornis, — account for close to 80% of the instantaneous biomass that can produce 500 tons/day.

The deep-water demersal fish include shrimp (prawns) and fish (hake, scorpion fish, gulper sharks, monkfish), and spiny lobster while the coastal demersal fish are composed essentially of shell fish (coastal shrimps, lobster, crab) and the “noble” fish (sole, red mullet, grouper, seabream) and the cephalopoda (octopus, cuttlefish, squid). These are the main species, and are all victims of overfishing. The scientific committee under the auspices of CECAF/FAO recommended that the fishing fleets seriously reduce their efforts to fish these overexploited species.

SMALL-SCALE AND INDUSTRIAL FISHING

Between 10,000 and 11,000 pirogues, half of them based in the Thiès region, land 89% of the national catch, in other words, 380,000 tons. There are more than 58,000 fisherfolk practicing artisanal fishing. They supply the national market, and also contribute a large quantity of fresh products to the processing plants and shops that work for the export market.

Industrial fishing is carried out by a national fleet (98 vessels) and foreign fleet (about 30 vessels), usually with special permits. The total catch is around 119,000 tons of which 60,000 are landed on Senegalese territory.

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Aquaculture is one of the pillars of the Accelerated Growth Strategy (SCA)

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production units (7%), salted and dried fish processing units (3%) canneries (3%) and refrigerated warehousing (2%).

Harvesting algae is essentially practiced by women. Most of the seaweed is exported unprocessed or is used in foods, agriculture, agro-industry, medicine, cosmetics, pharmacy, pharmacopeia, etc.

AQUACULTURE FULL OF PROMISE

Scarcity of the most popular maritime species has encouraged the introduction of species developed through aquaculture (abalone, tilapia, catfish, etc.) to meet the growing demand of both the local and the export markets. The eco-geographical conditions in Senegal are suitable for large-scale aquaculture. The enormous volumes of unpolluted marine and fresh water, at an ideal temperature, will contribute to rapid development.

INDUSTRIAL PROCESSING FOR THE EXPORT MARKET

Processing is an important part of the fishery industry since it creates added value and jobs, provides food for the inland populations, and feeds the export market. Fishery products are processed on a small or industrial scale : • Close to 45,000 tons are transformed in small-scale plants that are usually run by women, thus giving the activity a very important social role ;

Six eco-geographical zones have been selected because of their potential. Besides the +700 km Atlantic coastline, there are river deltas and the course of the country’s three big rivers (Senegal, 1,700 km, Gambia 750 km, Casamance 300 km), plus Lake Guiers (280 km2).

• Industrial transformation is intended mainly for the export of products processed and presented in various forms, e.g. whole fresh, fresh and prepared, frozen, canned, processed.

Other favorable sites include the retention basins, with special attention to the estuaries of Sine-Saloum and the Lower and Middle Casamance where certain targeted wild species live and conditions are optimal for fish farming. ■

Most of the land fisheries are composed of units for processing fresh and frozen products (51%), and for trade in whole fresh fish (34%). The rest is composed of fishmeal

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! Production and commercialization of species such as tilapia (intensive fish farming : Saint Louis, especially in the flood plains and on the Petite Côte), the Nile tilapia and the tiger shrimp (intensive and semi-intensive fish farming in the Sine Saloum and the Casamance regions).

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! Production from the hatching to the fattening stage.

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Dakar has become one of the most attractive and most efficient African capital cities for both national and foreign businesses looking for productive, competitive investments.

Maître Moustapha Ndoye Barrister at the Court of DakarM

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The world has become a village where Western and African cultures mix together. The English language has become a basic working language that everyone learns and speaks.

The economic importance of Senegal, especially the Dakar region, is constantly increasing. The development and modernization of its infrastructure is offering foreign enterprises very interesting opportunities. Dakar has an efficient, dynamic seaport for maritime traffic, with sectoral and structural programs that include the renovation of the petroleum wharf, the deepening of the access channel, and the fruit terminal. The Port of the Future program should lead to the construction of a new terminal with a capacity of 1.5 million TEU boxes.

The capital, Dakar, has an international airport, rated first in the WAEMU countries, and a new airport, the Blaise Diagne International Airport, is being built at Diass, 40 kilometers from Dakar. The volume of air transport is expected to double since Senegal will have the capacity to land all types of aircraft, in particular the Airbus A380.

As concerns the legal climate for business ventures, the country’s political stability and the new legislation that takes account of the realities of today’s business world, are pillars of support for good business. After introducing a series of reform measures to improve the investment conditions, Senegal improved its business environment, access to both financial and non-financial services, and the quality of government services, especially through the introduction of the 2013-2015 PREAC (Reform program to improve the business environment and competitiveness).

All this is making Dakar one of the most attractive and most efficient African capital cities for both national and foreign businesses looking for productive, competitive investments.

Does the fact that Senegal is in French-speaking Africa discourage Anglo-Saxon investors ?

The language barrier, that English-speaking businessmen used to cite as a possible reason for not investing in French-speaking countries, is no longer important.

By the way, the biggest investments in Senegal over the last five years have been made by investors in the AngloSaxon world. One example is Dangote Cement that invested over 300 billion CFA francs in cement production and commercialization.

In other words, the language barrier has crumbled over the years and has been replaced by the British and American investors’ concern for the legal security and competitiveness of their investments, although, let’s face it, the Englishlanguage African countries are still the ones with the highest economic growth rates. We might add China; our relationship with the Chinese language has broken the linguistic barriers.

What advice would you give to potential investors ?

Let me start by assuring investors that Senegal has very interesting business opportunities to offer, especially in its capital, Dakar. The sectors that attract the most investors are : real estate (with the construction of the new city of Diamniadio), and ICT (Senegal is one of the most advanced countries in Africa in this field). There are some real opportunities in road and rail transport, in the agro-food industry and in agriculture, also in the trade sector.

Many people in Dakar are developing a taste for supermarkets. In short, investing in Senegal is investing in a great opportunity, thanks to the country’s stability, the arsenal of legal measures to protect business investments, and the government’s determination to make Senegal reach the emerging country status. All these factors strongly support investments. The development of road, rail and port infrastructure and the discovery of oil are great advantages.

The only handicap holding back the country’s development is the aviation sector. WAEMU legislation, and reform measures at ASECNA are badly needed to facilitate sub-regional movement and to eliminate the many taxes that add extra charges to the price of airline tickets and the airlines’ rotation schedules. Another sector that needs to be exploited and developed is the processing and canning of agricultural products.

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Why is Dakar essential to the African business world ?

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ihe diversity and quality of the tourism offer in Senegal ranks it among the most attractive in Africa. The sun shines, on average, eight hours a day and, the gentle trade winds provide relief from the summer heat all along the Cap Vert peninsula. And then there are the long beaches with their fine sand that are just five hours by plane from the largest pool of tourists coming from the European Union.

Sunshine, exceptional landscapes and a warm welcome make Senegal one of the most attractive destinations for tourists

Tourism also means culture : the country’s international audience, its far-reaching horizons have developed it into a cultural crossroad of the Black world. Senegal is proud of its sense of welcome, its long tradition as an open, hospitable country that is part of its Teranga (hospitality in Wolof) so deeply entrenched in the nature of the Senegalese people. All these qualities contribute to the success of Senegal as a

f6kv|ube|ReRkbx0vu Intake capacity ! 815 hotels ; ! 17,500 rooms ; ! 35,000 beds.

Senegal receives an average of 500,000 tourists per year, inter alia : ! 42% French, ! 23% African (besides Senegalese), ! 13% European (besides French), ! 4% American. destination for tourists. From the north to Casamance, via the Saloum islands, the country has many natural splendors such as its coastal, river and land ecosystems, its parks and natural reserves, and its biodiversity. Other natural sites, such as the lac Rose,

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conferences and meetings, recreational activities, sports, etc.

Senegal has six national parks and five natural reserves: Kalissaye, Guembeul, Popengine, Ferlo Nord, Bandia, and offers many

Senegal has positioned the development of tourism to fit in with its national strategy on building up the offer and ensuring quality.

It is also focused on sustainability as of the initial project design phase by factoring in the environmental, biophysical and social challenges and stakes. Many projects have been launched around the country where, inter alia, there are immediate opportunities in hotel management. ■

© APIX. All rights reserved.

the Niayes, Dindéfélo waterfalls, the Bassari lands are strikingly beautiful.

Delta of Sine Saloum.

opportunities for various types of tourism, from cultural tourism to hunting (a small but lucrative niche) and fishing, via discovery tourism to explore the country, and business tourism. Senegal has a considerably diverse wildlife, and, high concentrations of fish in the Senegalese waters make the country an excellent place for big game fishing, reputed the world over. Senegal as a destination for tourism has focused on two strong types of customers : leisure and business. The beaches offer winter seaside tourism that can benefit from the large numbers of tourists coming from nearby Europe. Dakar, which hosts numerous major international events has become the leader in business tourism and conferences.

The following areas can accommodate large numbers of tourists: Dakar (business tourism), Thiès (seaside) especially la Petite Côte, Casamance (eco-tourism and seaside), Tambacounda (nature discovery), Fatick (ecotourism) and Saint-Louis (culture).

The tourism sector offers a wide-range of investment opportunities in a variety of industries and activities such as the development of the touristic zones, hotel accommodations, food services, transport for tourists, capacity building, services, organization of

kR-6v50ffNxD0eu,6fu ! Cap Vert peninsula : across from Dakar with its markets, its artists, its Théodore Monod African Art Museum lies the Island of Gorée, with the gentleness of its old houses and the far-away tragic echo of slavery. A little further on, be— tween the savannah and the beach, lies the lac Rose (Retba), one of the saltiest lakes in the world. ! A few centuries of history : the wondrous architectural heritage of SaintLouis in such a cosmopolitan city offers a startling bird’s eye view of the recent history of West Africa. ! Wildlife, vegetation, the sea… : the Parc du Niokolo Koba one of the biggest animal reserves of West Africa, and the Parc national du Djoudj with its three million migratory birds, the third largest bird sanctuary in the world. ! UNESCO world heritage sites : Island of Gorée, Island of Saint-Louis, Djoudj National Bird Sanctuary, Niokolo Koba National Park, Sine Ngayène and Wanar (Nioro du Rip) Stone Circles, the Saloum delta, and Bassari country.

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! Passport that must be valid for at least six months after the date of travel.

Senegal is located in the intertropical zone. It is always warm and exceptionally sunny. There are two seasons :

! Vaccination booklet : vaccination against yellow fever required.

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in conjunction with the Agence nationale chargĂŠe de la promotion des investissements et des grands travaux (APIX).

! The dry season, October to June. Practically no rain at all but from December to February the harmattan dust storm sweeps over the country, especially the northern half.

Š APIX. All rights reserved.

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This business guide was produced by :

Planet Medias sarl 77, rue du Faubourg Poissonnière 75010 Paris (FRANCE)

tel. : + 33 (0) 1 80 91 61 94 email : contact@doingbusinessin.fr web : www.doingbusinessin.fr

Publisher : glanet Medias Publication manager : dany lalouM

! The rainy season, July to September, called the “hivernage�. It does not rain all the time, just enough to make the country turn green.

The baobabs are covered with green bobbles, the fields turn into pastures and orchards, and the vegetable gardens, — like the markets, — are plush with fruits and vegetables.

Chief Editor : elisabet@ laMy Artistic Direction : Go and see Iconographic research : er an eneqG ir Advertisement : Éric lalouM andrÉ Gancel dany lalouM AGENCE NATIONALE CHARGÉE DE LA PROMOTION DES INVESTISSEMENTS ET DES GRANDS TRAVAUX (aPiX)

52 - 54 Rue Mohamed V BP 430 CP 18524 Dakar RP (SÉNÉGAL)

! Official language : French.

National languages : Wolof, Diola, Malinke, Poulaar, Serere, Soninke ! Religions : Islam (94%), Christianism (4%), Animism (2%). ! National holiday : 4 April (Independence Day : 1960). ! Telephone country code : 221 ! Internet extension : sn ! Time difference from Europe : 2 hours earlier in summer, 1 hour earlier in winter. ! Currency : Senegal is in the CFA franc zone which has a set exchange rate to the euro, i.e. 656 F. CFA = 1 euro, or approximately 0.15 eurocents = 100 CFA francs. â‚Ź.

tel. : (221) 33 849 v5 55 fax : (221) 33 823 94 89 e-mail : c ntactwaoiP.sn web : inmestinsenelaJ.c h

APIX Chief Executive Officer : MountaGa sy Communications Director : Fac0ueline patiMa bocouM

Š APIX. All rights reserved.

Business Environment Director : MaMadou laMine ba

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Maximum efforts have been made to ensure the accuracy of the facts stated in this article. The editors cannot be held responsible for any errors. The opinions expressed in these articles are those of the authors or the persons interviewed and do not necessarily reflect the opinion of the Senegalese government.

Printed in Senegal.

Copyright 2016.

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