Guide senegal gb 2015

INVESTING

INVESTING SENEGAL 2015

Senegal 2015

Doing Business in Africa

INVESTING SENEGAL 2014

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CONTENTS 6

SÉNÉGAL 2015 BANKING AND FINANCE

KEY POINTS

POLITICS & SOCIETY

52

A West African financial centre

55

FACTFILE BANKING AND FINANCE

AGRIBUSINESS

56

HISTORY

10

Nations of traders

13

Geographic map

SOCIETY

14

A spiritual and tolerant people

AGRICULTURE 34 High on the list of development priorities 37 FACTFILE AGRICULTURE

Meeting local and international demand

LAND USE PLANNING

60

New economic centres

POLITICAL LIFE

16 19

An African model of stability FACTFILE POLITIQUE

INTERNATIONAL

20

The will to work for peace and development

23

FACTFILE INTERNATIONAL

MINING AND MINERALS 38 Great ambitions 39 Economic map INFRASTRUCTURE 42 Significant headway 45 FACTFILE INFRASTRUCTURE & MINING

SERVICES

62

Telecommunications driving growth

65

FACTFILE SERVICES

HEALTH AND EDUCATION

66

No growth without human development

COMPANIES & MARKETS ECONOMY & BUSINESS ENVIRONMENT

COMPANY LIFE

48

Raising SMEs to business champion status

51

FACTFILE COMPANY LIFE

OUTLOOK

26

Continued economic recovery

29

FACTFILE OUTLOOK

FOREIGN TRADE

30 33

TRAVEL DIARY

Trade diversification FACTFILE FOREIGN TRADE

70

Your trip

KEY POINTS With a population of over 14 million people, a per capita GDP of over $1,000 and an advantageous geostrategic location on the

AN AMBITIOUS DEVELOPMENT PLAN As the reference framework of the government s economic and social

western point of the continent, Senegal is the

policy, the Senegal Emergence Plan

second largest economy in the West African

(PSE) aims to set the momentum for

Economic and Monetary Union (WAEMU,

strong growth in order to achieve the

French West Africa). Its growth rate is forecast

status of a high-income country by 2035. Currently underway, the PSE

at 5.4% in 2015, making it one of the most dynamic countries in Africa.

is implementing Flagship Projects in the most promising sectors. The first phase of this plan is based on

Presented as an African model of political

achieving an average annual growth rate of 7.1% over the period 2014-2018.

stability, Senegal has developed and maintained strong institutions; it has increasing financial capacity and a low level of risk. The country of Teranga (Wolof for

AT THE CROSSROADS OF MASSIVE MARKETS With a young and well-educated population, Senegal is capitalising on

hospitality) also has a modern capital and a

its strategic location and developing

growing number of well-educated people.

its infrastructure to better serve the

All these factors contribute to the country s

European and African markets. Its

aspirations of becoming a true logistics,

expertise in many promising sectors is the driving force behind its ambition

industrial and services platform at the crossroads of European and African markets.

to become a major West African logistics, industrial and services hub.

FAVOURABLE BUSINESS CLIMATE

potential and investment

industry

attractiveness. Widely supported

Agro-industries offer huge

Rapid modernisation of the

by the international community,

potential for development,

business environment is

the PSE is an ambitious but

with guaranteed growth in the

imperative for the success of

realistic programme, with each

the Senegal Emergence Plan.

phase governed by criteria that

It is driven by the Business

guarantee its performance and

Environment Reform and

reliability.

period 2013-2015 and includes 57 measures. Those implemented in 2013 and 2014 have already

INVESTING IN • agriculture and mining

prospects, in terms of satisfying

resulted in a significant

of the administrative procedures serving businesses.

on oilseeds, fruit and vegetables,

Infrastructure projects launched as part of the PSE offer interesting energy, construction and public works prospects.

Agriculture offers promising

both export and domestic improvement in the efficiency

The processing industry focus is

fisheries and livestock products.

Competitiveness Programme (PREAC), which covers the

domestic and export markets.

• services With telecommunications and

demand. The focus is on

financial services driving growth,

upgrading farming techniques

Senegal plans to develop its

and improving yields in the rice,

digital application and offshoring

food crop, fruit and vegetable

potential, building on its base

sectors. Senegal, with its historical

WELCOMING INVESTORS

of proven skills. The currently

mining expertise and wide

under-exploited potential of

variety of minerals (in particular

tourism and modern commerce

Consolidation of current growth

phosphates, gold, iron, zircon

offers exciting development

engines and the development

and limestone), aims to become

opportunities, as do the

of the country s wealth- and

a regional mining hub and West

education and health sectors,

job-creating sectors have

African platform of reference for

where private organisations are

strengthened Senegal s export

this sector

already proving successful.

politiCS & sociEtY

10

POLITICS AND SOCIETY HISTORY

HISTOIRY

Nations of traders

© UPI

For thousands of years, this part of the continent was a crossroads of peoples and cultures.

In August 1960 Léopold Sédar Senghor (centre) announced the dissolution of the Mali Federation before the National Assembly in Dakar.

th

XII

Century The Jolof Empire was founded by the Ndiaye clan

AN ANCIENT CIVILISATION Traces of life discovered in eastern Senegal (Falémé Valley) date back nearly 350,000 years. Many artefacts attest to the presence of man and show his evolution from producer (livestock and agriculture) to trader. Commercial migration followed and the country was gradually populated from the north and

INVESTING SENEGAL 2015

the east. In the absence of monuments or written records, historians were able to establish this through oral testimony, stories told by Arab chroniclers and archaeological excavations. Senegalese Egyptologist Cheikh Anta Diop (19231986), an avid champion of Africa s contribution to world civilisation, contributed significantly to this work

POLITICS AND SOCIETY HISTORY

courts and the Tirailleurs Sénégalais , the first Senegalese infantrymen, in 1857.

A LONG TRADITION OF TRADE

FRENCH WEST AFRICA

In the tenth century of the Christian era, the Kingdom of Tekrur, straddling the banks of the Senegal River, was a satellite of the great empire of Ghana. It remained as such when it was replaced by the Mali Empire until its peak, in the thirteenth and fourteenth centuries, alongside the Jolof Empire, founded in the twelfth century by the Ndiaye clan (a Wolof family name that still exists today).

At the time, trade with North African nations interested in gold and slaves was flourishing. In the fifteenth century, trade relations focused on the "New World". The Portuguese, Dutch, English and French vied for the most strategic positions to set up their trading posts, mainly in Gorée and Saint-Louis. Largely due to the Treaties of Paris (1763) and Versailles (1783), France strengthened its hold on the region. Saint-Louis remained an important French trading post until 1957.

In 1862, French troops began construction work on the port of Dakar which, until then, had been a fishing village. In 1902 Dakar replaced SaintLouis as the capital of French West Africa (AOF ‒ Afrique Occidentale Française).

Meanwhile, at the Berlin Conference (1884-1885), Paris had obtained most of the region, with the exception of The Gambia, which was attributed to Britain. Blaise Diagne, born in Gorée, was the first African member elected to the French National Assembly in 1914. As Commissioner General of the Republic of West Africa, he was also responsible for the conscription of infantrymen during the First World War. With more than 20,000 soldiers, Senegal made French West Africa s biggest contribution to the war effort, according to historian Babacar Fall. Of the 63,000 Senegalese men conscripted during the course of the Second World War, more than a third were killed. Between these two wars, Senegal features in the pages of aviation history, written by Jean Mermoz (Casablanca-Dakar, Toulouse-SaintLouis) and Antoine de Saint-Exupéry (Toulouse-Dakar).

RESISTANCE TO COLONIALISM The French General Faidherbe, governor of Senegal from 1854 to 1861 and from 1863 to 1865, forged into the country s hinterland to impose colonial rule, against fierce resistance. One of his main opponents was Lat Dior, now revered as a hero. An Islamic convert, he led a holy war against the colonialists, ultimately losing his life to the cause in 1886. The Islamic Empire of El Hadj Omar, chief of the Tidjane brotherhood, was also defeated in 1864. In a region where agriculture mainly focused on food crops, Faidherbe ordered the cultivation of groundnuts. He ended the traditional administration and created indigenous

KEY FIGURES ◗ Population: 14.133 million ◗ Area: 196,722 km2 ◗ Coastline: 531 km ◗ GDP: $15.15 billion ◗ Per capita GDP: $1,071.92 ◗ Currency : CFA franc (1 euro = 656,65 CFA francs)

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1902 Dakar became the capital of French West Africa

(2013 data, National Demographic and Statistics Agency; World Bank)

and, today, in recognition of this, the University of Dakar is named after him.

11

© JACQUES DU SORDET/EDITIONSDUJAGUAR

Mamadou Dia, with whom he founded the Senegalese Progressive Union (UPS), was Prime Minister.

The town of Saint-Louis remained an important French trading post until 1957.

TOWARDS INDEPENDENCE

1960 Independent Republic

After World War II, the road towards the gradual autonomy of French colonies was opened. Anxious to preserve regional unity, Upper Volta (now Burkina Faso), Dahomey (Benin), French Sudan (Mali) and Senegal merged in January 1959. This "Mali Federation", which Benin and Burkina Faso left two months later, was dissolved on 20 August 1960.

Senegal and Mali both declared their independence a month later, on 28 September. Léopold Sédar Senghor, an internationally known poet, was elected President of the new Republic of Senegal.

UNEQUALLED POLITICAL STABILITY While Senegal is one of the few African countries to have never undergone a coup, it is not, strictly speaking, a model of democracy. Senghor was elected president five times, usually without any opposition. It was not until 1974 that an opposition party, Abdoula Wade s Senegalese Democratic Party (PDS ‒ Parti Démocratique Sénégalais), was allowed. In 1978, Senghor won the presidential election against Wade. In 1980, he retired and appointed Abdou Diouf, Prime Minister for ten years, as his successor. Diouf was elected in 1983 and re-elected in 1988. In the face of social movements and the claims of electoral irregularities, Diouf declared a state of emergency. Wade was arrested but in 1995 was invited by Abdou Diouf to participate in a government of national unity. Diouf was re-elected in 1993 but in 2000 Wade was elected head of state. He was succeeded by Macky Sall in 2012. ■

WESTERNMOST POINT OF THE AFRICAN CONTINENT Covering an area of 196,722 km² (about twice the size of Portugal), Senegal has a 531 km-long coastline on the Atlantic Ocean in the west. It shares borders with five states. The Senegal River, from whence it gets its name, separates it from Mauritania to the north, and Mali to the east. In the Southeast, the border with Guinea is demarcated by the foothills of the Fouta Djallon Highlands and in the Southwest, with Guinea-Bissau, by a rainforest. Senegal is one of only a handful of countries to have a near-enclave within its borders ‒ a 740 km "interior" border with The Gambia, which penetrates more than 320 km from the Atlantic coast to the centre of Senegal along the Gambia River to the river mouth, bisects Senegal s territory. The Cape Verde Peninsula, on which Dakar is located, is the westernmost point of Africa. With more than three million people, Dakar is the second largest city in Francophone Africa.

INVESTING SENEGAL 2015

POLITICS AND SOCIETY

16°O

13

Urban population

14°O

Over 1.500,000 people 100,000 to 500,000 people

M A U R I T A N I A 20,000 to 100,000 people

A T LA NT I C

Under 20,000 people Seneg

OCE A N

Dagana

Richard-Toll

Podor

r al Rive

Thillé-Boubacar Sangomé

Lake Guiers

200 to 500 m

FOUTA

Tatki

Ross-Béthio

Altitude in metres

Kaskas

100 to 200 m Saldé

F

Mpal

Rao

Fe r

S

o

g Tian

Yang-Yang

I A N

Ndoulo

Bambey

Nianing

Semmé

Mamari Fer lo Va lle y

Tiél

Bakel

Gabou

Diourbel Mbar

Kidira

Gossas Va

Fatick

Foundiougne

BOUNDOU Lour-Escale

Kaffrine

Goudiri

Koumpentoum

Bala

Koungheul

Nioro du Rip

Banjul

Missira

G A M B I A Gambia

Dialakoto

Ndiamakouta Pata

Oussouye

a Casam nce Goudomp

Dabo

Kounkané

u

Ziguinchor

Kolda

Marsassoum

Wassadou

Sédhiou

Niokolo Koba

Simenti Gamb

ie

Satadougou Mt Sambagalou 581 m

Diattacounda

G U I N E A - B I S S A U G U I N E A 100 km

INVESTING SENEGAL 2015

Saraya

Étiolo

CAP SKIRRING

50

Goléakouto 414 m

Salemata

Kabrousse

0

Khossanto

NiokoloKoba

Assirik 311 m

nto

Bignona

ADO U

u ulo

C A S A M A N C E Tionk Essil

F OUL

TENDA

Ko

ugrou ngro Sou

MédinaGounasse

Vélingara

Bounkiling

Diouloulou

M A L I

Dalafi

WOULI T H E

o

mé

ri K Nié

Tambacounda

S A L O U M Toubacouta

F al é

S I N E

Saloum Islands

lley

m lou Sa

Kaolack

Joal-Fadiout

14°N

Diembéring

M A U R I T A N I A

Diamounguéi

Ouro Amat

Gassane

Mbacké

Niakhar

Tiadiaye

Mbour

Ranérou

Vélingara

Touba

Thiès

Dakar Saly

DJOLOF

DarouMousti

Tivouane

Rufisque

Barkedji

Ferlo

Kédougou

© CARTOGRAPHIE : LES ÉDITIONS DU JAGUAR

Pikine

Yonoféré

Ndande Mékhé

CAP Kayar VERT Guédiawaye

Dahra

O

Mboro

Mangrove

Kanel

Linguère

Boulal

Kébémer

C A Y OR

Flood zone

Ouro Sogui

L

Fass-Boyé

Below 50 m

Matam

l

Y

Koki

Saré Liou

R

E

Louga

éré ugg

50 to 100 m

r

Lo

E

a l ley

Thilogne

iv e

lo

Lagbar

V

Boké Namadi

lR ega Sen

Saint-Louis

14

POLITICS AND SOCIETY

SOCIETY

A spiritual and tolerant people

漏 ISM

From the sea to the Sahel, modern Senegal is a West African cultural melting pot

Hospitality (Teranga in Wolof) is an essential value of the warm and welcoming Senegalese people.

A MULTITUDE OF ETHNIC GROUPS

90% of Senegalese people speak Wolof

The Wolof peoples, originally from the North West and today very present in the urban centres, represents 40% of the population of Senegal. The Lebou (1%), a coastal people, are related to the Wolof.

Other major groups are the Fulani (15%), originally nomadic herders who have become sedentary over the years, and

INVESTING SENEGAL 2015

the Tukulor (10%), who share the same language (Fulani). The Serer people (15%) are concentrated on the islands of the Sine-Saloum Delta, north of the border with The Gambia, and along the Petite C么te, south of Dakar. The Jola (4%) are numerous in the Casamance region between southern Gambia and northern Guinea-Bissau, alongside smaller groups

POLITICS AND SOCIETY SOCIETY

(Balanta, Bainuk, and Manjack people, etc.). Senegal's population is young, with half under 18 years of age. Although there are problems in terms of its capacity in public education, the country has one of the most successful secondary education rates in West Africa, mainly because of its private institutions.

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animist traditions. Islam is represented in Senegal by four dominant brotherhoods: Tidiane, Mouride, Khadre and Layene.

A third of Senegalese Muslims refer to the Mouride brotherhood, founded

by Cheikh Ahmadou Bamba in the late nineteenth century.

AN ACTIVE DIASPORA

Senegal also has a Mandinka population (Soninke, Sarakole, and Bambara, etc.), a group present throughout West Africa. There are still large numbers of Bassari, Bedick and Yalunka people in the Fouta Djallon Highlands. Senegal has been enriched by the African, European and Lebanese diaspora, many of whom have become citizens. The 2001 Constitution made French the official and administrative language (29% of the population speaks French), while Wolof, Serer, Fula, Mandinka, Soninke and Jola are national languages. Eight local languages are recognised: Hassaniyya, Balanta, Mankanya, Noon, Mandjak, Menik, Oniyan and Safene. Wolof is spoken by more than 90% of Senegalese people.

SECULAR, TOLERANT, MAINLY MUSLIM Senegal is a predominantly Muslim country (about 95%). While the Tukular people have been associated with Islam from the seventh century, and the Fulani from the fifteenth century, Islamisation grew most during the nineteenth century, particularly among the Wolof.

The Serer and Jola people, known for their resistance to colonialism, longresisted Islam and Catholicism before converting to one or the other of these religions, all the while maintaining strong

Senegal has given the world many intellectuals and artists, such as historian Cheikh Anta Diop, French poet and academician Léopold Sédar Senghor, writer and filmmaker Ousmane Sambène, and singer Youssou N'Dour, probably the most well-known Senegalese artiste today. Ousmane Sow, a sculptor who immigrated to Paris in the 1950s, became famous in 1999 with an exhibition on the Pont des Arts in Paris, which attracted around three million visitors.

The Senegalese diaspora is estimated at nearly three million people, half of whom are settled in Africa but also in Europe (Italy, France), in the Arab world and America. Their contribution to Senegal s economy, through remittances and support to their families, is estimated at 700 billion CFA francs per year. ■

3 MILLION Senegalese people live in foreign countries

MAIN HUMAN INDICATORS ◗ Espérance de vie : 63,20 ans ◗ Densité : 71,8 hab/km2 ◗ Croissance démographique : 2,92 % par an ◗ Pop. âgée de moins de 14 ans : 43,5 % ◗ Âge médian : 18,4 ans ◗ Population urbaine : 43,08

INVESTING SENEGAL 2015

(Données 2013, Banque mondiale, PNUD)

ONE OFFICIAL LANGUAGE AND SIX NATIONAL LANGUAGES

16

POLITICS AND SOCIETY

POLITICAL LIFE

An African model of stability

© EMILIE RÉGNIER POUR JA

Senegal s political situation is in contrast to the political upheavals experienced by many other countries on the continent.

Togo held its first multiparty elections in October 2007.

FROM INDEPENDENCE TO POLITICAL CHANGE

130 political parties

Senegal has long enjoyed the image of being a stable country without actually being fully democratic. For fifteen years it has been a model of successful political turnover. In 2000, opposition leader Abdoulaye Wade won the presidential election against the incumbent and

INVESTING SENEGAL 2015

former Prime Minister, Abdou Diouf.

In turn, Macky Sall was elected Head of State in March 2012 with 65% of the vote, at the head of a coalition formed by the opposition against the incumbent president. Although the campaign between Wade and his former Prime Minister was particularly bitter, voter turnout, the absence of violence during

POLITICS AND SOCIETY POLITICAL LIFE

the second round, and Wade s rapid acceptance of defeat, like that of Abdou Diouf in 2000, is proof of the country s political maturity.

PARLIAMENTARY MAJORITY In the parliamentary elections that followed on 1 July 2012, 5.3 million voters were asked to choose 150 representatives from 24 lists and 7,200 candidates, according to a mixed system combining proportional representation at national level and majority voting at county level.

This election was the first in the country to apply the rule of absolute parity between men and women, as required by law since May 2010 (65 women were elected, against the previous 33). The coalition of parties that supported Macky Sall won 119 seats. The outgoing president s Senegalese Democratic Party (PDS) was far behind, with 12 seats, while the remaining 15 seats were shared amongst the smaller parties. Voter turnout (36.7%) was significantly lower than in the second round of the presidential elections a few weeks earlier (55%), but comparable to the 2007 legislative elections.

A PRESIDENTIAL SYSTEM Senegal is a secular, democratic and social republic. It has a multi-party presidential system in which the president holds the position of Head of State. He or she is elected for seven years, renewable once (the term was five years between 1978 and 1983). The Prime Minister, appointed by the president, is the head of government. The executive is in the hands of the government, which shares legislative power with the National Assembly. The judiciary is independent of executive and legislative powers. The Court of Cassation, the highest court of criminal and civil appeal, and the

17

Constitutional Council, the judges of which are appointed by the president, are the highest courts in the country. Senegal is divided into fourteen administrative regions headed by a governor appointed by the president. The decentralisation law, which took effect in January 1997, attributed a number of competencies, previously reserved for the central government, to regional assemblies.

TOO MANY PARTIES In addition to the Alliance for the Republic (APR), to which the Head of State belongs, the victorious 2012 legislative list was composed of the main former opposition parties: Moustapha Niasse s Alliance of Progressive Forces (AFP ‒ Alliance des Forces de Progrès), the Socialist Party (PS) led by Ousmane Tanor Dieng and Idrissa Seck s Rewmi ("the country" in Wolof).

In total, Senegal has more than 130 political parties. The multiparty system introduced in 1974, under tight control, became a reality in 1981 with Abdou Diouf s election to the presidency. At the time there were four parties. They had to adhere to a defined ideology (liberalism, socialism, communism, etc.). Like other countries on the continent, steps were taken to limit the proliferation of political parties.

VITAL CIVIL SOCIETY Civil society played an important role in the last presidential election. Activists from the world of music and journalism (the Y en a Marre collective, which means Enough is Enough ), organised peaceful demonstrations against the renewed candidacy of Abdoulaye Wade, who was running for a third term. A party made up of various movements protesting against power cuts and rising

INVESTING SENEGAL 2015

150 representatives in the National Assembly

18

POLITICS AND SOCIETY POLITICAL LIFE

the Senegalese Network of Citizen Observers (RESOCIT ‒ Réseau Sénégalais des Observateurs Citoyens) whose voice counts in public debate.

DEVELOPING MEDIA

Le Togo a organisé ses premières élections législatives pluralistes en octobre 2007.

food prices, "Y en a Marre" evolved towards more ambitious goals: encourage the Senegalese people to vote for a new generation of politicians, fight against corruption and promote community involvement.

Previously, numerous NGOs had distinguished themselves in promoting transparency, citizen control of public action and human rights. In 2011 many of them organised around

The Senegalese media world is striving to diversify. Ten general dailies have come into existence during the past decade alongside Le Soleil (State-owned), with an enjoyable freedom of tone. The country is also seeing the emergence of weeklies and monthlies, a few of which are specialist publications (economy, culture, sports, celebrity, etc.). Similarly, private television channels are increasing, competing with Radio-Television du Senegal (RTS, public), created in 1963.

Broadcast political debates are lively but argued and courteous. One of the threats to the Senegalese media space is its ownership by a few groups that control radio stations, television stations and websites. Other media are struggling due to funding problems and there is a profusion of news and information websites of dubious quality. ■

© V. FOURNIER POUR J.A.

PRESIDENT MACKY SALL

Macky Sall, the President of the Republic.

Macky Sall was born on 11 December 1961 in Fatick, a town of which he was mayor for many years. He became the fourth President of the Republic of Senegal when he won the second round of the March 2012 presidential election with a comfortable majority. He is an engineering geologist and geophysicist, trained at the Institute of Earth Sciences (IST) in Dakar, and the École Nationale Supérieure du Pétrole et des Moteurs (ENSPM), now the French Institute of Petroleum (IFP School), in Paris.

He was Prime Minister from 2004 to 2007 and President of the National Assembly from 2007 to 2008. Upon taking office, Macky Sall began working to reduce administration spending, starting with the government, by halving the number of ministers. Of a liberal persuasion, he is implementing, through the Senegal Emergence Plan (PES), a policy that gives pride of place to productive investment in agriculture, industry and mining, without neglecting the importance of social investments in education, health and housing.

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FACTFILE

POLITICS

THE CONSTITUTION of the Republic of Senegal was adopted in 2001 by a referendum which collected 94% of positive votes. It replaced the texts of 1959, 1960 and 1963, and was revised several times between 1967 and 1981. The fourth constitution particularly expresses the will of the country to be a modern state which functions according to the rules of fair and equitable play between majority and opposition.

THE FLAG has

three vertical green, gold (yellow) and red stripes with a green five-pointed star in the middle. For Muslims the green represents the colour of the flag of the prophet, for Christians that of hope and for animists that of fertility. Yellow is a sign of wealth (economic and cultural), while the red recalls blood, the colour of life and the sacrifices made to build Senegal.

The star marks the country s opening to the five continents.

It also represents heaven and spiritual values.

NATIONAL MOTTO

One people, one goal, one faith

The Government conducts and coordinates the policy of the nation under the leadership of the Prime Minister, who answers to the President and Parliament.

THE NATIONAL ASSEMBLY

ASSEMBLY has 150 members, elected by direct universal suffrage. They each serve a five-year term. The July 2012 parliamentary elections resulted in 119 seats being won by the coalition of parties supporting the presidential majority. A 60-member senate was established in 1999. It was abolished in 2011, restored in 2007 and abolished once again in 2012 for economic reasons.

THE CONSTITUTIONAL COUNCIL

consists of five members ‒ a president, a vice-president and three judges ‒ appointed by the President of the Republic for a non-renewable term of six years. Its decisions are binding on public authorities and all administrative and judicial bodies, and are not subject to appeal.

THE COURT OF AUDITORS verifies

the regularity of income and expenditure and ensures the proper use of loans, funds and securities managed by state agencies or other legal entities of public law, public enterprises and other public financial participation bodies.

THE PRESIDENT OF THE REPUBLIC

is elected by direct universal suffrage and majority vote in two rounds. The term of office is seven years, renewable once.

Between 1978 and 1983, the term of office was five years.

The president appoints the Prime Minister and has the power to dissolve parliament.

THE OMBUDSMAN OF THE REPUBLIC

is an independent authority appointed by decree for a nonrenewable six- year term. It hears complaints concerning the operation of state governments, local authorities, public institutions and any other body with a public service mission.

ADMINISTRATIVE ORGANISATION

Since 2008, Senegal has fourteen regions, each of which is composed of 45 departments (counties). The departments are divided into districts and cities into district municipalities (46 in total, of which 19 are in Dakar).

Senegal has 113 towns and 370 rural communities (village clusters).

MAIN MINISTRIES ●

OFFICE OF THE PRIME MINISTER Tel.: (+221) 33 889 69 69 www.gouv.sn

●

FOREIGN AFFAIRS Tel.: (+221) 33 889 13 00 www.diplomatie.gouv.sn

●

ECONOMY & FINANCE Tel.: (+221) 33 889 21 00 www.finances.gouv.sn

●

FISHERIES & MARITIME ECONOMY Tel.: (+221) 33 889 02 30

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AGRICULTURE & RURAL EQUIPMENT Tel.: (+221) 33 864 64 13 www.agriculture.gouv.sn

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LIVESTOCK & ANIMAL PRODUCTION Tel.: (+221) 33 859 06 30 www.elevage.gouv.sn

●

INDUSTRY & MINES Tel.: (+221) 33 889 57 24 www.industrie.gouv.sn

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TRADE, CONSUMERISM & SMES Tel.: (+221) 33 860 26 36 www.commerce.gouv.sn

POLITICS AND SOCIETY

INTERNATIONAL

Militant to work for peace and development The country intends playing an important diplomatic role based on its political stability and strategic geographic location.

Š REBECCA BLACKWELL

20

US President Obama in Dakar during his African tour in 2013.

PRO AFRICAN INTEGRATION Since its independence, Senegal s international relations have thrived on active and balanced diplomacy, demonstrating the country s will for African integration. The Mali Federation,

INVESTING SENEGAL 2015

formed in early 1959 by an alliance between Senegal, Mali, Benin and Burkina Faso, was designed to unite African states about to gain their independence. This federation lasted only a few months, while the merger

POLITICS AND SOCIETY INTERNATIONAL

21

Š BERTRAND GUAY

with The Gambia (Senegambia) lasted seven years (1982-1989). Senegal has also played an important role in the adoption and entry into force of the African Charter on Human and Peoples' Rights, also known as the Banjul Charter, which came into force in 1986. The country remains at the forefront of the fight for the advancement of African women and gender equality and, particularly in the UN Security Council, advocates for the reform of international institutions for improved global governance.

STRONGER TOGETHER ‒ ECONOMIC UNITY From an economic point of view, the goal is clearly to avoid the fragmentation of markets to make West African states less vulnerable to external shocks, maximising their assets and potential for the creation of genuine domestic markets.

Senegal is promoting this message within the Economic Community of West African States (ECOWAS), which has more than 300 million consumers, as well as within the West African Economic and Monetary Union (WAEMU), of which it is the second largest economy, accounting for 20% of overall GDP. Although there is still a lot to be done, the membership of regional communities contributes to macroeconomic stability in member countries by controlling inflation and deficits, and the harmonisation of sectoral policies. It strengthens the competitiveness of businesses and facilitates the free movement of persons, goods, services and capital.

FROM NEPAD TO LA FRANCOPHONIE Dakar played a leading role in promoting the advent of the first economic development plan designed by and for Africans. The New Partnership for

Macky Sall (left) with Abdou Diouf, Secretary General of the International Organisation of La Francophonie.

Africa's Development (NEPAD) was founded in July 2001 as a result of the merging of Senegal s Omega Plan and former South African President Thabo Mbeki s Millennium Africa Recovery Plan.

Nearly fifteen years later, at the end of 2014, on the occasion of the fifteenth Francophonie Summit which was hosted

by Senegal, the country ensured that economic values were formally registered in the objectives of the International Organisation of La Francophonie. This major Francophone Economic Forum brought together more than 1,300 political and economic decision-makers in Dakar. They submitted 50 proposals to boost the Francophone economic space, with a focus on improving business networks. More than half of the world's French-speakers live in Africa.

HEADING UP PEACEKEEPING OPERATIONS The promotion of peace, a prerequisite for sustainable economic development, is another vital aspect of Senegal s international action and one which it demonstrates on the ground. Ranked

INVESTING SENEGAL 2015

25,000 Senegalese soldiers have participated in UN peacekeeping operations

22

POLITICS AND SOCIETY INTERNATIONAL

© CAMILLE MILLERAND POUR JEUNEAFRIQUE

Mission in the Democratic Republic of the Congo (MONUC, now MONUSCO) from 2000 to 2003, leading UN Forces in the UN Mission in Côte d'Ivoire (MINUCI) and, more recently, at the head of the United Nations Integrated Peacebuilding Office in the Central African Republic (BINUCA).

INTERNATIONAL DIVERSIFICATION

Senegal's president speaking at a summit for peace and security in Africa.

20% Senegal s contribution to the GDP of WAEMU

as the fourteenth contributor (out of 115) in UN peacekeeping operations, the country has participated in over twenty missions with nearly 25,000 soldiers. In 1981, Senegal joined the African Union s peacekeeping operations in Chad and Sudan, as well as those of ECOWAS (in Liberia, Mali, etc.), engaging over 5,000 soldiers and directing many of these operations. Senegalese soldiers and officials can be found in the field, heading up the United Nations Organisation

Firmly anchored in African realities, Senegalese diplomacy also seeks to strengthen its presence outside the continent. It is already doing so in Asia, in China, the country s main economic partner, India and South Korea, who have invested in Senegal s strategic sectors (mining and fishing).

The same goes for a number of Gulf countries, whose sovereign wealth funds contribute to the financing of several development projects. In 2008 Senegal, a predominantly Muslim country, hosted the eleventh Summit of the Organisation of the Islamic Conference (OIC). Senegal is also the only French-speaking country visited by US President Barack Obama during his African tour in June 2013. ■

HOME OF LA FRANCOPHONIE Even though fewer than 30% of Senegalese people speak French and more than 90% speak Wolof, including in their professional relationships, and English is essential in business community, the country nevertheless played a prominent role in the creation and development of the International Organisation of La Francophonie (OIF). Its first president, Léopold Sédar Senghor, is considered one of the founders of this "French-speaking community" in 1970, along with his counterparts Habib Bourguiba (Tunisia), Hamani Diori (Niger) and Norodom Sihanouk (Cambodia).

The French-language International University in the service of African development (UIFLA), based in Alexandria, Egypt, is named after him. Abdou Diouf, President of Senegal from 1981 to 2000, used his three terms as Secretary General of the OIF (2003-2014) to develop the international visibility and credibility of the organisation.

INVESTING SENEGAL 2015

FACTFILE INTERNATIONAL ORGANISATIONS

INTERNATIONAL regional stability with the creation of ECOMOG, a West African multilateral armed force.

REPRESENTATION OF INTERNATIONAL BODIES

UNITED NATIONS

• Senegal is a member of the United Nations and participates in most of its institutions, both financial (World Bank, IMF) and social (WHO, UNDP, FAO, etc.).

• Senegal s attention to human rights has ensured it the presidency of the United Nations Committee on the Exercise of the Inalienable Rights of the Palestinian People since its inception.

WTO

Senegal is a member of the World Trade Organisation (WTO) and contributed to its foundation in 1995.

WAEMU

• Created in Dakar in 1994, the West African Economic and Monetary Union (WAEMU) brings together eight states: Benin, Burkina Faso, Côte d Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo, representing more than 80 million people.

• WAEMU is managed on a daily basis by the WAEMU Commission.

• Member countries share the CFA franc (100 CFA francs = 0.15€). The common monetary policy is managed by the Central Bank of West African States (BCEAO).

●

Tel.: (+221) 33 820 08 88 www.afdb.org ●

●

REGIONAL ORGANISATIONS ECOWAS

• Founded in 1975, the Economic Community of West African States (ECOWAS) aims to promote regional cooperation and integration for the establishment of a common market.

• Fifteen member countries: Benin, Burkina Faso, Cape Verde, Côte d'Ivoire, The Gambia, Ghana, Guinea, GuineaBissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo.

• In 1990, its power was extended to maintaining

FINANCIAL INSTITUTIONS

Senegal belongs to specialist African institutions including the African Development Bank (AfDB) and the West African Development Bank (BOAD).

(BAD) et la Banque ouestafricaine de développement (BOAD).

WEST AFRICAN DEVELOPMENT BANK (BOAD) Tel.: (+221) 33 823 63 47 www.boad.org

●

WORLD BANK Tel.: (+221) 33 849 50 00 www.worldbank.org

●

INTERNATIONAL MONETARY FUND (IMF) Tel.: (+221) 33 821 33 98 www.imf.org

OMVS Senegal River Basin Development Authority

• Senegal, along with Mali and Mauritania, is part of the OMVS (Senegal River Basin Development Authority) founded on 11 March 1972, in Nouakchott, to manage and optimise the river basin. Its headquarters are in Dakar.

• The OMVS initiated the construction of the anti-salinity Diama Dam in the river delta, the water control weir and the Manantali hydroelectric power station (200 MW).

CENTRAL BANK OF WEST AFRICAN STATES (BCEAO) Tel.: (+221) 33 869 05 00 www.bceao.int

AFRICAN UNION

Senegal belongs to the African Union (AU), formed in 2002, and was also a member of the original body, the Organisation of African Unity (OAU), established in 1963.

AFRICAN DEVELOPMENT BANK (AFDB)

●

UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP) Tel.: (+221) 33 859 67 00 www.undp.org

DIPLOMATIC REPRESENTATION ●

BELGIUM Tel.: (+221) 33 889 43 90 www.diplomatie.be/fr/senegal

●

CHINA Tel.: (+221) 33 869 77 01 sn.china-embassy.org

●

UNITED STATES Tel.: (+221) 33 879 40 00 french.dakar.usembassy.gov

●

FRANCE Tel.: (+221) 33 839 51 00 www.ambafrance-sn.org

eCONOMy & BUSINESS ENVIRONMENT

26

ECONOMY AND BUSINESS ENVIRONMENT

OUTLOOK

Continued economic recovery The momentum set by the Senegal Emergence Plan and the improved management of public resources is delivering results.

Control room at the Sococim cement plant. BPW activities grew by 4.9% in 2014.

INCREASING ECONOMIC GROWTH

5.4% Growth rate in 2015

According to the Department of Forecasting and Economic Studies (DPEE) Senegal s GDP growth is expected at 4.5% in 2014 and 5.4% in 2015, compared with 3.5% in 2013. On the other hand, the African Development Bank (AfDB) estimates it at 4.8% in 2014 and 5.3%

INVESTING SENEGAL 2015

in 2015. Senegal is benefiting from a slight recovery in the global economy, but its performance is based primarily on domestic and regional results, including in neighbouring Mali. The government is banking on its strategic Senegal Emergence Plan (PSE, see box below), which was implemented in

ECONOMY AND BUSINESS ENVIRONMENT OUTLOOK

2014 to boost the short- and long-term economy. Results can already be seen in the increased infrastructure and energy investment which, along with a dynamic services sector, is driving growth upwards. According to the AfDB, inflation is projected at 1.3% in 2014 (0.7% in 2013 and 2.1% in 2012), in a context of stabilising oil prices. It is expected at 1.7% in 2015, reflecting the increase in producer prices in the secondary and tertiary sectors.

27

by 4.9% in 2014, following a contraction of 1.5% the previous year. Similarly, while they fell or stagnated in 2013, oil refining, metallurgy and machinery manufacturing, meat and fish processing and preservation, cotton ginning and textile manufacturing increased in 2014.

Other industrial activities, such as those related to mining, and grain and timber processing, should prove promising in the future.

DYNAMIC SERVICES SECTOR PRIMARY SECTOR STRUGGLING TO TAKE-OFF Although primary sector investments are also on the rise, there is uncertainty around agriculture, a strategic sector that accounts for nearly 15% of GDP. However, due to good mining sector results, the primary sector grew by 3.3% in 2013 but slowed in 2014 (0.8%), due to the stagnation of agriculture: 0.3% in 2013 and 0.1% in 2014. The poor performance of industrial agriculture activity (-3.4% in 2014 -2.3% in 2013), mainly linked to the groundnut sector, is offset by the progress, albeit limited, of food crops (+1.3% in 2014, as in 2013). Livestock activities increased by only 1.5% in 2014, after rising by 8.9% a year earlier. The fisheries sector, a major source of foreign exchange for Senegal, showed a slight improvement in 2014, up 1.5% after 0.9% in 2013.

SECONDARY SECTOR RECOVERY After the difficulties experienced in 2012 and 2013, raw materials processing activities benefited from the 2014 recovery in the food oils and fats sector, and the manufacturing of sugar, chemicals and building materials, the latter linked to the thriving construction industry. Growth in construction and infrastructure activities is expected to rise

The tertiary sector grew by 5.6% in 2014 after 6.4% growth in 2013. The momentum recorded in 2013 is expected to continue in 2015, supported in particular by telecommunications and financial services. The seriousness of the Ebola epidemic in the region has negatively impacted the services sector in general, resulting in uncertainty about the progress of commercial activities, transport, accommodation and food services in a tourism sector already in poor shape. In addition, final consumption expenditure, expected to rise by 3.7% in 2014 after 4.7% in 2013, constrains growth in the areas of education, training and real estate.

INCREASED BUDGET, CONTAINED DEFICIT The 2015 Finance Act provides for a state budget of 2.869 billion CFA francs (â‚Ź4.4 billion), an increase of 5% over the previous year, after a 7.9% increase between 2013 and 2014. Capital expenditure, which allows for the continuation of the economic recovery objectives, represents a third of the total (about 1,000 billion CFA francs) and benefits from the increased support of international partners. With regard to revenues, the increase in tax revenue continues, driven by indirect taxes, customs duties and direct taxes.

INVESTING SENEGAL 2015

15% Agriculture s contribution to GDP

28

ECONOMY AND BUSINESS ENVIRONMENT OUTLOOK

Through prudent public finance policy, the budget deficit has been declining since 2013. It fell from 400.4 billion CFA francs in 2013 to 396.4 billion CFA francs in 2014 and is expected to fall to 383.40 billion CFA francs in 2015.

HEAVIER DEBT LOAD

Société Africaine de Raffinage. The petroleum products sector showed strong growth in 2014.

49.9% Public debt percentage of GDP

In force since January 2013, the new tax and customs codes, which ensure a simpler, fair and efficient tax system, have demonstrated their effectiveness while the government's operating expenses continue to be streamlined.

In 2004 and 2006, Senegal benefited from strong debt relief under the Heavily Indebted Poor Countries Initiative (HIPC) and Multilateral Debt Relief Initiative (MDRI). The debt ratio fell from 78% of GDP in 2000 to 20.9% in 2006. In 2015, the total public debt stock is projected at 4,109.6 billion CFA francs, an increase of 9.9% compared to 2014 (3,738.1 billion CFA francs), where it was already up 11.8% (3,341.7 billion in 2013). At 49.9% of GDP in 2015, the debt ratio remains consistent with the WAEMU Pact of Convergence that sets the standard at 70% of GDP. ■

SENEGAL EMERGENCE PLAN As a frame of reference for the Senegalese government s economic and social policy, the Senegal Emergence Plan (Plan Sénégal Émergent ‒ PSE) is transforming Senegal's economy with the aim of reaching the status of a high-income country by 2035. The plan targets the development of six engines of growth. Agriculture and agribusiness, social housing and a modernised informal sector should primarily take advantage of local opportunities. Mining and industry will secure regional opportunities, as will services (logistics hub, health, education, etc.), which are already, along with telecoms and financial services, an engine of growth. A number of projects (27 Flagship Projects), accompanied by reforms (land, business environment) have to be implemented while investments are strengthened in "catalyst" sectors such as infrastructure, energy and education. The PSE is being implemented through five-year Priority Action Plans (PAPs). The first targets an annual average growth rate of 7.1% over the period 2014-2018.

INVESTING SENEGAL 2015

FACTFILE

OUTLOOK RESUMPTION OF GROWTH

2006

2007

2008

2009

2010

2011

2012

2013

2014(e)

2015(e)

2.4 %

4.9 %

3.7%

2.1%

4.3%

1.7%

3.4%

3.5%

4.5%

5.4%

Data: African Development Bank and DREE ‒ estimated (e) and projected (p)

BUSINESS ENVIRONMENT

GDP STRUCTURE (en % du PIB)

2008

2012

Agriculture

15.9

15.8

Of which fisheries

1.8

2

Mining

1

3.1

Industry

14.1

Strong improvement in the Doing Business ranking

2014

2015

General ranking

171

161

13.7

Starting a business

133

90

5

4,5

Trading across borders

79

79

Trade

20.8

20

Dealing with construction permits

151

149

Transport and communications

12.7

11.9

Registering property

181

167

13

12.6

Getting credit

131

125

17.5

18.4

Protecting minority investors

153

122

Construction

Finance, real estate and business services Other services Data: African Development Bank

Data: 2015 Doing Business Ranking

GDP PER SECTOR (in billions of CFA francs) Primary

2012

2013

2014

2015 (p)

2016 (p)

% over 5 years

995.3

1,038.1

1,073

1,150.7

1,247

+25%

Secondary

1,516.7

1,423.8

1,492,1

1,627.6

1,791.3

+18%

Tertiary

3,293.8

3,462.2

3,657.8

3,890

4,169.5

+26.5%

Data: Department of Forecasting and Economic Studies (DPEE) ‒ projected (p)

PUBLIC FINANCES (in % of GDP) Total revenues Of which tax revenues

2005

2012

2013

2014 (e)

2015 (p)

20.8

23.3

23.5

23.5

23.7

18.5

19.2

19.4

19.6

19.9

24

29.1

28.9

28.8

28.8

13.7

17.5

17

16.9

16.8

Total spending Current expenditure Salaries Balance

5.6

6.4

6.4

6,3

6,2

-3.2

-5.9

-5.4

-5.3

-5.1

Data: African Development Bank ‒ estimated (e) and projected (p)

2015 COFACE RATING

(on a scale of increasing risk from A1 to A4 and B to D)

Country risk assessment : B Business climate : B

30

ECONOMY AND BUSINESS ENVIRONMENT

FOREIGN TRADE

Trade diversification

© SYLVAIN CHERKAOUI POUR JA

While exports and imports grow in tandem, the trade balance remains in deficit.

Between 2009 and 2013 container traffic at the port of Dakar grew by 37%, while trade with Mali increased by 200%.

EXPORTS UP

70% Foreign trade contribution to GDP

Senegal's exports account for more than a quarter of GDP. In five years, they have risen 42%, growing from 864.5 billion CFA francs in 2009 to 1,230.5 billion CFA francs in 2013 (last known statistics). Although 2013 recorded a 2.3% slump compared to

INVESTING SENEGAL 2015

the 2012 increase of 10.1%, the upward trend shows no sign of slowing.

The Department of Forecasting and Economic Studies (DPEE) forecasts an increase of around 30% of the value of Senegalese exports for the next five years (2014-2018). In addition, the structure of exports is stable. Refined

ECONOMY AND BUSINESS ENVIRONMENT FOREIGN TRADE

31

petroleum products are the leading export (+18.1% in 2013), followed by fisheries products (+22.2%), nonmonetary gold (-20.7%, from leader in 2012), phosphoric acid (-41.8%) and cement (-26.9%). These are followed by groundnut products, cotton and cotton fabrics, salt and phosphates. It is important to note that fresh vegetable exports doubled in 2013 (+94.9%).

WEST AFRICA, NUMBER ONE CUSTOMER Almost half of Senegal's exports go to Africa (565.5 billion CFA francs in 2013), mainly neighbouring ECOWAS countries (the share is 81.2%), including Mali, top export customer (46.7%), Guinea (10.9%), Gambia (9.2%), C么te d'Ivoire (7.7%) and Guinea-Bissau (6.5%).

In 2013, the growth of exports to these countries was driven by shipments of petroleum products (+38.2%, mainly to Mali) and fresh sea fish (+62.9%, especially to C么te d Ivoire). The year was marked by a decline in cement sales (-26.5%). Most cement exports were destined for Mali and the decline can be put down to the uncertainty of that country s political situation and its impact on planned new cement plants.

EUROPEAN DEMAND FOR SENEGAL S VEGETABLES Senegal's exports to Europe account for about a quarter of its foreign trade, at 320 billion CFA francs in 2013, down 6.8%. This decline is the result of the contraction of sales of non-monetary gold (-28.5%), shellfish (-26.2%), nonroasted peanuts (-40.1%) and cotton by weight (-33.5%). Other products, in particular fresh vegetables (+96%) mitigated the impact of this decline.

Exports to Asia totalled 203.7 billion

Usine de production d'arachides

CFA francs in 2013. They recorded a sharp decline due to the 2012 and 2013 decrease in phosphoric acid exports, exclusively to India. This situation is expected to continue in 2014; however phosphoric acid exports are expected to return to their regular annual growth rate in 2016.

INCREASED IMPORTS Imports account for nearly half of Senegal s GDP. As with exports, imports increased by 40% between 2009 and 2013, reaching 2,994.7 billion CFA francs in 2013. The DPEE forecasts a growth of about 30% in value for the next five years (2014-2018).

Capital goods (machinery, engines and transport equipment) rank first in imported products (about 25%), just ahead of or equivalent to, depending on the year, petroleum products and food products. Like many other African countries, Senegal imports a large number of basic commodities, including rice and wheat.

INVESTING SENEGAL 2015

45.9% Exports going to Africa

32

ECONOMY AND BUSINESS ENVIRONMENT FOREIGN TRADE

CFA francs in 2013), mainly machinery (+42.8% between 2012 and 2013), as well as animal and vegetable oils and fats (+77.7%).

© ARONA/AHOUNOU

NIGERIA, MAIN AFRICAN SUPPLIER

The Dangote Industries Senegal cement plant near Thies.

EUROPE, LEADING SUPPLIER

47.9% Imports coming from Europe

Europe supplies nearly half of Senegal's imports (1,437.2 billion CFA francs in 2013). These include petroleum products from the Netherlands, France and Spain, wheat (coming mainly from France) and capital goods, in particular agricultural machinery, from France, China and the United States. A quarter of imports come from Asia (696.6 billion

Senegal imports almost as much from Africa (579.7 billion CFA francs in 2013) as it does from Asia, mainly from ECOWAS countries (about three quarters). Its main suppliers between 2008 and 2013 were Nigeria (77.4%), Côte d Ivoire (18.7%) and Ghana (1.8%). Nigeria supplies crude oil, Côte d Ivoire oilseeds, and Ghana raw timber. In total, Senegal's trade balance shows a structural deficit, largely due to products from the energy and lubricants and finished products for industry groups. In the first nine months of 2014, the value of exports amounted to 939 billion CFA francs, and imports to 2,159 billion CFA francs. With the falling prices of crude oil, the trade deficit was up slightly (1.5%) compared to the same period in 2013. ■

SENEGAL IN GLOBAL VALUE CHAINS The improvement in Senegal s foreign trade structure is based on the country s integration into global value chains (GVCs). To summarise, it means importing more and more materials or source materials in order to export more value-added products.

To achieve this, Senegal intends to build on its strategic geographic position, infrastructure development and human resources, which should enable it to better serve the European and African markets. The strategy is to better position the country as a West African logistics and outsourcing hub, while improving local and regional fruit and vegetable supply circuits in order to re-export to demanding markets (Europe, West Africa and Gulf countries). The country nurtures strong ambitions to make Dakar a business park and centre on a regional scale. Once mining and industry are sufficiently developed locally, these sectors will open up future markets.

INVESTING SENEGAL 2015

FACTFILE

FOREIGN TRADE FOREIGN TRADE

(in billions of CFA francs)

2011

2012

2013

2014(e)

2015(p)

% over 5 years

Exports

1,138.8

1,216.3

1,217.5

1,440.6

1,539.1

35.15 %

Imports

2,544.2

3,005.5

2,994.5

2,905.7

3,087.6

21.35 %

Trade balance

-1,405.4

-1,789.2

-1,777

-1,465.1

-1,548.5

10.18 %

Data: National Agency of Statistics and Demography (ANSD) and DPEE ‒ estimated (e), projected (p)

PRINCIPAUX PRODUITS EXPORTÉS (in millions of CFA francs) Petroleum products

2009

2013

187,453

217,316

Non-monetary gold

85,403

176,336

Fisheries products

113,305

146,082

Cement

70,620

81,839

Phosphoric acid

69,815

81,745

Groundnuts and groundnut products

20,423

33,463

Phosphates and fertilisers

5,793

14,423

Cotton and cotton fabrics

6,271

11,664

Salt

7,229

9,052

Data: ANSD

MAIN IMPORTS (in millions of CFA francs) Machinery and equipment

2009

2013

330,786

416,304

Finished petroleum products

214,198

361,570

Crude petroleum oils

186,706

346,545

Grain products

233,013

311,975

Transport materials

160,651

229,350

Basic metals and fabricated metal products

136,342

196,951

Oils and fats

68,629

90,312

Dairy products, fruit and vegetables

94,410

79,542

Paper and cardboard

47,279

58,405

Data: ANSD

SENEGAL S MAIN CUSTOMERS AND SUPPLIERS Export destination

% of total exports

Source of imports

% dof total imports

39%

Europe

44,9 %

Europe

17.5%

Asia

20,5 %

Asia

19,5 %

Afrique de l Ouest

10,2 %

West Africa

Data: ANSD ‒ first nine months 2014

34

ECONOMY AND BUSINESS ENVIRONMENT

AGRICULTURE

High on the list of development priorities The country s agricultural expertise and the modernisation of the agri-food industry present extensive opportunities and potential.

A hundred projects to develop export crops will be launched in 2015.

3.8 MILLION hectares Of arable land

A STRATEGIC SECTOR Agriculture is the source of income for nearly half of the Senegalese population and accounts for 15% of GDP. Yet in this strategic sector, with its enormous potential for development, 90% of farms are still family-owned and overall production represents only 7.6%

INVESTING SENEGAL 2015

of national productivity (2000-2012).

Arable land accounts for nearly 20% of the 3.8 million hectares of territory, and only 65% of this arable land is cultivated.

The sector faces numerous difficulties, such as poor water management, unpredictable weather conditions, poor access to quality inputs, a lack of modern

ECONOMY AND BUSINESS ENVIRONMENT AGRICULTURE

production facilities, preservation and storage, and inadequate land policy and funding.

100 PROJECTS FOR 2015 Like its African neighbours, Senegal is aiming to improve farmers productivity and incomes and structure agriculture and value chains to allow them to export more and promote local industrial processing of crops.

Agriculture therefore features as one of the Senegal Emergence Plan s top priorities. Plans include setting up "grain corridors" and organising small producers and farmers around the largest operators to improve their productivity and export capacity, while supporting family farming. There are a hundred projects being kicked off in 2015 to develop exports.

REVIVAL OF THE GROUNDNUT SECTOR Groundnuts are an important feature of the Senegalese economic landscape.

The sector employs nearly 4 million people in growing and processing activities, while the by-products (shells and tops) are used in livestock fodder.

In the 1970s, Senegal was the world's largest exporter of groundnuts. Due to tough competition (China, India, Nigeria), the over-cultivation of land and problems with prices paid to farmers, production fell from a record 1.4 million tonnes in 1976 to 260,723 tonnes in 2003. At the same time, cultivated areas were reduced to a third. The sector needs to be restructured, in agreement with all the players (farmers, processors, etc.), for true revival and economic take-off. A little over one million tonnes were produced in 2010 but only 677,456 tonnes in 2013.

35

DISAPPOINTING 2014-2015 CROP YEAR There is not only an expected decline in groundnut production; other industrial crops (tobacco, sugar cane, cotton, etc.), after an exceptional 2012 crop year (+17.9%), went into decline in 2014 (-3.4%) as in 2013 (-2.3%). Food crop production remained stable (+1.3%).

However, there is uncertainty around the wintering (rainy season from April to October) as rains were late and insufficient in many areas. To deal with this, the government has made shortcycle varieties of cowpea and millet seeds and cheaper fertilisers available to farmers, especially for groundnut and millet production. The entire sector is expected to stagnate at 0.1% growth in 2014, slightly less than the previous year s 0.3%. Food crops and industrial agriculture are nevertheless projected up at, respectively, 6% and 9% in 2015, due to the implementation of the Senegal Emergence Plan (PSE).

SELF-SUFFICIENCY IN RICE Senegal consumes nearly one million tonnes of rice annually, of which 80% is imported each year at a cost of around 200 billion CFA francs. In the rice cultivation sector, the objective is to achieve self-sufficiency by 2017. The aim of the National Programme of SelfSufficiency in Rice (PNAR) is to develop rice cultivation in the Senegal River delta by promoting upland rice farming in the Kaolack, Kaffrine and Fatick areas, as well as irrigated crops, particularly in WaoundĂŠ and Podor. Besides the revival of the groundnut sector, part of the 50 billion CFA francs for the agricultural sector in 2015 will be put into this programme.

INVESTING SENEGAL 2015

9% Growth expected in 2015

36

ECONOMY AND BUSINESS ENVIRONMENT AGRICULTURE

has more than 15 million head, mostly sheep and goats, while the poultry sector represents nearly 50 million birds and an annual production of 500 million eggs. Production of raw milk is expected to grow by 8.3%, a result of measures taken by the government such as increased artificial insemination.

INCREASED COMMERCIAL FISHING

Senegal currently imports 80% of its rice needs but intends to be self-suďŹƒcient by 2017.

LIVESTOCK SHAPING UP

96% Of meat consumed is locally produced

Livestock farming is expected to increase by 4.1% in 2015 from 1.5% the previous year. Local production provides the bulk (96% in 2013) of meat consumed annually in Senegal (16.4 kg/capita). There was even a decline in meat imports in 2013. The country

After recording 0.9% growth in 2013, the fisheries sector grew by 1.5% in 2014. Growth was driven by commercial fishing, under the impetus of the recovering fish processing industry.

Landings increased by 10.1% during the first half of 2014. In contrast, artisanal fishery landings decreased by 2.2%.

The sector is faced with a diminishing resource. Despite the actions taken in the restoration of fisheries resources, ecosystems, coastal marine habitats and sustainable fisheries management, this trend is expected to continue over time. â–

SIX AGRICULTURAL ZONES Senegal's agricultural production is organised around six basins. In the centre-west of the country, the groundnut basin has a long tradition of food and groundnut crops under rain on ferruginous tropical soils. It involves almost 60% of the rural population. The agro-ecological zone of the Senegal River in the far north is dominated by rainfed crops (millet, sorghum, cowpea, groundnuts). The construction of dams has allowed for the cultivation of maize and rice, while pastoralism dominates the middle and upper valley. South of the river, a forest grazing area, marked by a shortage of water, is home to a quarter of the national herd of cattle and small ruminants. The Niayes area, north of Dakar, with its long coastline, is dedicated to horticultural production and enjoys a good water supply and climate, known as Canary Islands weather. In the eastern Senegal Upper Casamance area, fuel wood production is carried out. To the west, Casamance, the wettest part of Senegal, has even more forest. The main crops produced here are rice, millet, sorghum, maize, groundnuts and cotton.

INVESTING SENEGAL 2015

FACTFILE

AGRICULTURE, LIVESTOCK & FISHERIES

SEED COTTON PRODUCTION Period

En tonnes

Tonnes

USEFUL ADDRESSES

Average

2007-2011

28,190

Production peaks

2006-2007

52,610

MINISTRY OF AGRICULTURE AND RURAL EQUIPMENT

2010-2011 crop year

23,434

2011-2012 crop year

25,736

Tel.: (+221) 33 864 64 13 www.agriculture.gouv.sn

2012-2013 crop year

32,250

2013-2014 crop year (p)

32,000

2014-2015 crop year (p)

22,000

●

●

Tel.: (+221) 33 859 06 30 www.elevage.gouv.sn

Data: WAEMU

●

LIVESTOCK SECTOR



201,558 ●

Million Million 519.2

Eggs

●

2013 data

● Beef

 Goats ●

20%

● Industrial poultry

8% 14%

●

16%

●

Tonnes

Billions of CFA francs

405,974

98.9

Commercial

41,987

52.6

Total

447,961

151.5

2012 data: Ministry of Fisheries and Maritime Affairs

WORKFORCE • 58,505 active artisanal fishermen • 10,763 canoes • 87 commercial fishing boats, 5,000 jobs

SUNEOR Tel.: (+221) 33 849 17 00 www.suneor.sn

FISHERIES SECTOR

Artisanal

SODEFITEX (TEXTILE FIBRE & DEVELOPMENT COMPANY) Tel.: (+221) 33 889 79 50 www.sodefitex.sn

● Small-scale poultry

Sheep ●

GROUNDNUT PRODUCERS FRAMEWORK FOR DIALOGUE (CCPA) in Kaolak Tel.: (+221) 77 653 50 51 www.ccpa-senegal.org

36%

Others ● 12%

NATION FEDERATION OF COTTON PRODUCERS (FNPC) in Tambacounda Tel.: (+221) 33 981 54 24 fnpc@sentoo.sn

217

Milk

NATIONAL COUNCIL FOR DIALOGUE AND RURAL COOPERATION (CNCR) Tel.: (+221) 33 827 74 53 www.cncr.org

Tonnes Viande et abats

MINISTRY OF LIVESTOCK AND ANIMAL PRODUCTION

●

SOCAS Tel.: (+221) 33 839 90 00 www.socas-senegal.com

●

COMPAGNIE SUCRIÈRE SÉNÉGALAISE (SENEGAL SUGAR CORPORATION) Tel.: (+221) 33 938 23 22 www.groupemimran.com

38

ECONOMY AND BUSINESS ENVIRONMENT

MINING AND MINERALS

Great ambitions The entry into operation in March 2014 of the world s fourth largest zircon deposit opens new prospects for a promising sector.

Senegal aims to become one of the top three African phosphates producers.

HIGH POTENTIAL

80,000 MILLION TONNES Zircon production from 2015

Senegal has been endowed with a wide variety of minerals and possesses real mining expertise, particularly in phosphate and gold. However, the progress and sustainable development of these operations are hindered by outdated production equipment. In 2014, the extractive industry registered a decline of 16.6%, after -27.7% in 2013. A

INVESTING SENEGAL 2015

revival is forecast for 2015 (+8%), reflecting ongoing investments. Senegal, a member of the Extractive Industries Transparency Initiative (EITI), wants to fully exploit its potential in the coming years and ensure the emergence of structured industries. It is counting on private sector involvement and the establishment of a regulatory framework that preserves the state's interests.

›››

ECONOMY AND BUSINESS ENVIRONMENT MINING AND MINERALS

AGRICULTURE

A TLA N TIC O C EA N

Podor

Artisanal river fishing Commercial port (and industrial fishing in Dakar)

Market gardens

Dagana Thillé-Boubacar Richard-Toll Sangomé

Diama Dam

Ross-Béthio

Tatki

F

Lagbar

Groundnut

Thilogne

ol

R Ferlo

Semmé

Mamari Fer lo Va lle y

Vélingara

Tivouane

Touba

Dakar

100 km

Ranérou

O

Mékhé

50

L

Dahra Ndande

Mboro

0

Ouro Sogui Kanel

Linguère

Fass-Boyé

Cotton

Saré Liou Matam

Tiang

Kébémer

Sugar cane

r

a l ley

géré ug Lo

E

lo

V

Boké Namadi

iv e

Fe r

Louga

Rice

Saldé

lR ega Sen

Lac de Guiers

CASH CROPS

Rainfed crops

Kaskas

Saint-Louis

M A U R I T A N I A

Diamounguéi

Bakel Ouro Amat

Rufisque Thiès

Gabou Niakhar

Saly

Diourbel

Mbar Kidira

Mbour

Fatick

Va

lley

m lou Sa

Joal-Fadiout

Kaolack

Foundiougne

Lour-Escale

Kaffrine

Goudiri

Koumpentoum

Saloum Islands

o

mé

ri K Nié

Toubacouta

F al é

Bala

Tambacounda

Nioro du Rip

M A L I

Dalafi Missira

T H E G A M B I A

Banjul

Gambia

Dialakoto

Ndiamakouta

Vélingara

Pata

NIOKOLO-KOBA Niok

Ko

Bounkiling

Kolda

Dabo

Kounkané

Ziguinchor Diembéring

Marsassoum

a Casam nce Goudomp

Oussouye

Kabrousse

Wassadou

Sédhiou

Assirik 311 m

Gam bia Salemata

Sabodala Gankaéné

Goléakouto 414 m

Tenkoto

MassaMassa

Saraya

Tambanoumaya Satadougou Kédougou

Diattacounda

Mt Sambagalou 581 m

GUINEA-BISSAU

CAP SKIRRING

Khossanto

NiokoloKoba

NATIONAL PARK

u

Bignona

Tionk Essil

olo Koba

nto

ugrou ngro Sou

u ulo

Diouloulou

MédinaGounasse

ENERGY, MINING, INDUSTRY Phosphate Unexploited oil fields

Roads Flood zone

Main

Railway line

Mangrove

Secondary

Airport

Thermal power plant

G ore U I N É E Irone Site d’orpaillage Gold important Lead

INVESTING SENEGAL 2015

Textile industry Timber industry Agri-food industry Diversified industry

© CARTOGRAPHIE : LES ÉDITIONS DU JAGUAR

CAP VERT

Artisanal river fishing

Extensive mixed farming (crops and nomadic livestock) Groundnut and millet crops, sedentary livestock farming Groundnut crops

r al Rive Seneg

Kayar

FISHERIES

Mainly food crops

M A U R I T A N I A

39

40

ECONOMY AND BUSINESS ENVIRONMENT MINING AND MINERALS

to continue in 2015. The site currently in operation (Sabodala) contains estimated resources of 3.5 million ounces, with an annual output of 6 tonnes of gold. Several other sites show good potential. The government is focused on developing gold mining, regulating small-scale gold panning and attracting investors. The goal is to triple domestic production by 2020 by putting new deposits into operation, such as those in Golouma (in development), Massawa, Mako and Makabingui (under exploration).

Senegal is West Africa's leading salt producer, with over 400,000 t/year.

›››

630 MILLION TONNES Reserves at the Falémé iron ore deposit

PHOSPHATES Phosphate deposit operations contributed to the success of the Senegalese economy for decades. In 2008, the company Industries Chimiques du Sénégal (ICS), the country s industrial flagship, currently in difficulty, has been taken over by the Indian Farmers Fertiliser Cooperative (IFFCO), its main customer.

The production of phosphoric acid grew from 183,000 tonnes in 2008 to 313,000 tonnes in 2010, yet is still far from its full capacity (600,000 t). Various breakdowns again impacted production, which fell to 260,056 tonnes in 2013. In 2014, the recapitalisation of the company by Indonesian partners helped restart it.

On this basis, Senegal aims to stimulate domestic production and exploitation of new deposits, with the objective of becoming one of the top three African phosphates producers, with more than five million tonnes per year, by 2023.

GOLD The decline in gold production was confirmed at -15.7% in 2014. Related to unfavourable changes in international prices, the cyclical downturn is expected

INVESTING SENEGAL 2015

SALT With production around an average of 400,000 tonnes per year, Senegal is the leading producer of West African salt.

Drought and the decline of the mangroves are forcing an increasing number of farmers to find extra income and sell their product, raw, in neighbouring countries. The Société des Salins du Sine Saloum is the only salt industry in the country to produce purified salt, about 225,000 tonnes per year. Salt production is considered an extractive industry and increased by 3.2% in 2014.

A WORLD CLASS IRON ORE DEPOSIT The Faléme iron ore mine in south-east Senegal is a strategic project worth nearly three billion dollars. It includes not only the operation of an iron ore deposit, but also the construction of a railway and a mineral port in Bargny near Dakar. Proven reserves are 630 million tonnes of ore with an iron content ranging from 40% to 57%. Production capacity is estimated at 25 million tonnes per year. In September 2013 Senegal regained State rights to the project after winning a case against ArcelorMittal in which the steelmaker was accused of failing to honour its commitments.

ECONOMY AND BUSINESS ENVIRONMENT MINING AND MINERALS

ZIRCON Senegal has the world s fourth largest deposit of zircon, a mineral used in numerous alloys. The operation of the Diogo mine, 150 km north of Dakar, began in March 2014. The company Grande CĂ´te Operation (GCO), which is 90% owned by Australia s Mineral Deposits Limited and France s Eramet, and 10% by the state, has invested $678 million in the project, one of the largest investments ever made in Senegal. Production is expected to reach 80,000 tonnes in 2015, 7% of the world total. The site, which is over 100 km long, will also annually produce about 600,000 tonnes of ilmenite, a mineral used in the pigments industry. A second site, rich in zircon and titanium, was discovered at Niafourang in Casamance.

HIGH HOPES FOR OIL Towards the end of 2013, British company Cairn Energy discovered two oil fields off the coast of Senegal on the Sangomar deep block, along with its partners, the US s ConocoPhillips (35%), Australia s FAR (15%) and the Senegalese national oil company Petrosen (10%). Initial

41

estimates of reserves for the first well range from 250 million barrels (with a probability of 90%) to 2.5 billion barrels and, for the second well, from 150 million barrels (with a probability of 90%) to 670 million barrels. Production is scheduled to start sometime around 2019-2020.

This discovery is a boon to the country whose oil bill reached 10% of GDP.

INDUSTRIAL LIMESTONE, CEMENT AND ATTAPULGITE Significant limestone and marl resources encouraged the founding of the first West African cement factory in 1948.

Today, two cement plants, Sococim (Vicat) and Cimenteries du Sahel, are in operation. They have a production capacity of 6.5 million tonnes for a Senegalese market of 2.6 million tonnes and there are plans to build a third cement plant. Senegal s attapulgite deposits show great potential. This mineral, found in a certain type of clay soil, is used especially for animal litter.

There are currently only three companies involved in the operation of the site, near Dakar. â–

18 TONNES per year Potential gold production

HUB MINIER DE L AFRIQUE DE L OUEST Developing a regional mining hub and making the country a West African platform of reference for this sector is one of the Senegal Emergence Plan s Flagship Projects. With this in mind, the establishment of a dedicated ecosystem that will draw the largest mining service providers in the market to Dakar, focuses on three components: services (operational outsourcing, catering, facility management), logistics (a distribution centre for consumables, spare parts, etc.) and academic services (training centres, specialist schools). The country has mobilised about 70 billion CFA francs for this project, mainly from private partners. This platform could become an engine of growth and exports for Senegal within a decade.

INVESTING SENEGAL 2015

42

ECONOMY AND BUSINESS ENVIRONMENT

INFRASTRUCTURE

SigniďŹ cant headway Airport, port, roads and energy: eorts to improve the competitiveness of Senegal are showing concrete results.

Blaise Diagne International Airport under construction. It is due to open in 2015.

80% of economic activity is concentrated in Dakar

ROAD LINKS Senegal has a road network of 15,000 kilometres (coated, uncoated and tracks).

The goal is to build 450 km of new roads and rehabilitate the equivalent by 2018.

Several links have been successfully built in recent years, including those within the framework of public-private partnerships, such as the DakarDiamniadio toll road (34 km). Other

INVESTING SENEGAL 2015

projects will contribute to increased economic activity in the provinces and improve interaction with neighbouring countries. These are highway projects such as Thies-Diourbel-Touba (120 km), at an estimated cost of $800 million, Mbour-Fatick-Kaolack (125 km, at $760 million) and Thies-Saint-Louis (190 km, at $1,200 million) towards the Senegal River agricultural valley.

ECONOMY AND BUSINESS ENVIRONMENT INFRASTUCTURE

AIR TRANSPORT The construction of the Blaise Diagne International Airport (AIBD), scheduled to enter into service in 2015, will promote the emergence of a new business cluster outside the capital. It is located 45 km east of Dakar, in the Thies region, not far from Saly-Portudal, the country s main seaside resort. It will have a capacity of up to three million passengers for its initial phase, expandable to ten million in a second phase and up to twenty million in the final phase. The airport apron will manage 50 aircraft at a time, including 26 widebody planes. Its construction required an investment of €350 million.

RAIL INFRASTRUCTURE Senegal s railway network, which covers 906 km, is in poor condition. It includes two main lines (the 645 km-long DakarThies-Kidira line and the 193 km-long Thies-Saint-Louis line) and three secondary lines. These lines are managed by public or private companies, such as Transrail SA for the Dakar-Bamako section, as well as by mining companies (Grande Côte Operation, Industries Chimiques du Sénégal and Société des Phosphates de Thiès). The goal set for 2018 is the rehabilitation of 644 km of track. A 50 km Dakar-AIBD line ($200 million) will go to the new airport and its Special Economic Zone.

There are also plans to build a new 750 kmlong standard gauge line to the Falémé iron ore mine (Dakar-TambacoundaBamako, at a cost of $1.5 million). Of this, 300 km will be built in Mali, because the objective is also to allow neighbouring countries to exploit their own resources.

PORT OF DAKAR AND KAOLACK DRY PORT The Port of Dakar is the third largest in West Africa, after Lagos and Abidjan,

and is located on the westernmost tip of the continent, a maritime crossroads between Europe, America and Africa. Its overall traffic has been rising continuously over the past five years (see table p. 45), despite strong subregional competition, especially in container traffic. The PSE objective is to make the Port of Dakar a platform of reference by 2023. A second container terminal was put into operation in February 2014 by the CMA-CGM group.

The Bolloré group won the tender for the operation of a roll-on/roll-of (RORO) terminal and will invest €97 million over 25 years. The consolidation of the growth of the Port of Dakar also depends on the rehabilitation of the Dakar-Bamako railway line. The Kaolack dry port project, 190 km southeast of Dakar, destined mainly for agricultural use, will help improve regional domestic trade and trade with neighbouring countries.

ENERGY Senegal s almost legendary electricity deficit, a real handicap for industrial development, will become history in 2015.

The government has increased the number of energy projects and has succeeded in mobilising investors from various sectors.

Electrical interconnection with Mauritania should be operational from October 2015 (80 MW). In addition, the commissioning of a 125 MW coal-fired plant at Sendou, not far from the capital, a 53 MW power plant in Dakar, built by Contour Global, and the construction of another in Tobène (70 MW), 90 km northeast, will support production growth, recorded at 4% in 2014. As a whole, they will reduce the cost of electricity production. The short-term objective is to introduce 20% renewable energy, primarily solar, into the national energy mix. By 2018, the country intends to have increased the rate of access in rural

INVESTING SENEGAL 2015

43

350 MW Capacity of new power plants

© SYLVAIN CHERKAOUI POUR JA

ECONOMY AND BUSINESS ENVIRONMENT INFRASTUCTURE

© SYLVAIN CHERKAOUI POUR JA

44

New highways are being built to encourage economic development outside of Dakar and strengthen ties with neighbouring countries.

60% Rate of access to electricity in rural areas by 2018

areas to 60% (currently 24% ), through the construction of 2,454 km of medium voltage lines, the building of low voltage mini-networks and decentralised PV systems, as part of the Rural Electrification Emergency Programme (at a cost of $385 million).

OIL REFINING Although oil refining activity increased by 6.3% in 2014, due to the resilience of

domestic demand, the Société Africaine de Raffinage (SAR) has experienced profitability problems due to its low storage capacity and the delay in the mobilising the necessary finance for its modernisation. There are two possible business models for meeting these challenges in the future: the building of a new refinery or the implementation of an import programme that includes adequate storage capacity. ■

NEW ECONOMIC CENTRES The Dakar region represents 0.3% of the territory and is where almost 25% of the population and 80% of economic activity is concentrated. One of the future challenges is to relieve the Cape Verde Peninsula, on which the capital is located, and bring about the emergence of development hubs in the rest of the country. Doing this not only requires improvements in transport infrastructure, but also continued and stable access to energy for companies. With regard to neighbouring countries, Senegal intends to take advantage of its geographic location to become a key logistics hub. Again, this requires the rehabilitation of the Dakar-Bamako railway, the continued modernisation of the port of Dakar and the construction of logistics platforms (transit, storage) to improve the fluidity of regional flows.

INVESTING SENEGAL 2015

FACTFILE

MINING AND INFRASTRUCTURE PORT OF DAKAR ACTIVITY 2009

2013

Change

8,743

12,218

+40 %

331

454

+37%

Mali transit traffic (in thousands of tonnes)

603.2

1,845.8

+200%

Vessel traffic (port of call)

2,262

2,745

+21%

Total traffic (in thousands of tonnes) Container traffic (EVP)

Data: Autonomous Port of Dakar

CHANGES IN MINING OUTPUT (in billions of CFA francs) Contribution to GDP

2010

2012

2014 (e)

2016 (p)

2018 (p)

% over 5 years

101.7

193.5

126.2

157.1

202

+98%

Data: Department of Forecasting and Economic Studies (DPEE) ‒ estimated (e), projected (p)

CHANGES IN TRANSPORT (in billions of CFA francs) Contribution to GDP

2010

2012

2014 (e)

2016 (p)

2018 (p)

% over 5 years

240.3

282.8

317.7

349.9

370.2

+54%

Data: Department of Forecasting and Economic Studies (DPEE) ‒ estimated (e), projected (p)

USEFUL ADDRESSES ●

MINISTRY OF INDUSTRY & MINES Tél. : (+221) 33 889 57 24

●

www.senelec.sn

www.industrie.gouv.sn ●

DEPARTMENT OF MINES AND GEOLOGY Tél. : (+221) 33 821 15 45

●

BLAISE DIAGNE INTERNATIONAL AIRPORT Tél. : (+221) 33 889 65 00

●

AUTONOMOUS PORT OF DAKAR Tél. : (+221) 33 849 45 45 www.portdakar.sn

INDUSTRIES CHIMIQUES DU SÉNÉGAL (ICS) Tél. : (+221) 33 879 10 00 www.ics.sn

www.aibd.sn ●

SÉNÉGALAISE DES EAUX (WATER) Tél. : (+221) 33 839 37 37 www.sde.sn

www.dirmingeol.sn ●

SOCIÉTÉ NATIONALE D ÉLECTRICITÉ (SENELEC) Tél. : (+221) 33 839 30 30

●

SOCIÉTÉ AFRICAINE DE RAFFINAGE (SAR) Tél. : (+221) 33 823 46 84 www.sar.sn

COMPANIES & MARKETS

48

COMPANIES AND MARKETS

COMPANY LIFE

Raising SMEs to business champion status

Š SYLVAIN CHERKAOUI POUR JA

Real eorts are being made to modernise the country s economic fabric and stretch it across domestic and regional markets.

Microenterprises, SMEs and SMIs contribute 80% of GDP.

6 hours to register an LLC

THE PSE S INDUSTRIAL CHALLENGE The Senegal Emergence Plan aims to accelerate the country's industrial development by creating two to three integrated platforms of significant size and high added value, particularly in food processing, textiles and clothing,

INVESTING SENEGAL 2015

construction materials and the assembly industry. The goal is to initiate a process of industrialisation necessary to reset the trade balance and make Senegal the hub of industrial products and services in West Africa. The Diamniadio Special Economic Zone under construction near

COMPANIES AND MARKETS COMPANY LIFE

the new international airport will be a multifunctional platform for incomegenerating activities (industry, crafts, clothing, equipment, infrastructure, etc.). Companies that set up in this SEZ will benefit from customs duties exemption on equipment and raw materials.

STATE OF PLAY Senegal s industry, which accounts for about 12% of GDP, comprises only a small number of major players. It is still undiversified and expansion is limited by its concentration in Dakar. Between 2000 and 2012, less than 50% of the country s workforce was employed in industry and services, but it produces more than 80% of the secondary sector s contribution to GDP. Microenterprises, SMEs and SMIs play a decisive role. They represent nearly 90% of the business fabric, 42% of employment and 30% of added value.

However, they are mainly concentrated in the informal sector, forming 39.8% of total output and 41.6% of the sector GDP. All these characteristics explain the persistence of low productivity and poverty in rural areas and city outskirts.

IMPROVING THE BUSINESS CLIMATE The success of the industrial challenge is also based on the efficiency of the administrative machinery. The Business Environment Reform and Competitiveness Programme (PREAC), implemented for the period 20132015, includes 57 measures. A new Tax Code (2012) and a new Customs Code (2013) were adopted. Procedures related to investment and trade have been simplified, automated and dematerialised (2014). Those facilitating connections to water, electricity, sanitation and telecommunications were merged in 2014. Starting a company is now a two-step process and, since 2013, an LLC can be registered in six hours through the Business Registration Support Office, domiciled at the Agency for the Promotion of Investment and Public Works (APIX).

An "Enterprising" statute has appeared in legislation to identify and support informal businesses. Senegal has risen ten places in the 2015 Doing Business rankings, which lists the reforms made in 189 countries for the improvement of the business environment.

OTHER REFORMS UNDERWAY FORMALISING COMPANIES To resolve this complex situation, the PSE is putting systems in place that promote the "formalisation" of businesses, which could have a rapid and effective impact on exports.

Currently, local SMEs with opaque legal status sell their products exclusively on the domestic market. Furthermore, the establishment of the National Business Development Bank in 2014 (BBNDE, see page 52) is an original initiative to promote business access to finance.

49

In addition, many reforms are underway to support and give credibility to the country s aim of becoming an industrial and regional logistics hub.

Finalisation of the regulatory framework for Public-Private Partnerships (PPP) is underway, as is the revision of the public procurement code with the aim of making public procurement more transparent and efficient. The government also wants to finalise land reforms currently under discussion in the context of a national commission,

INVESTING SENEGAL 2015

80% of businesses are VSEs, SMEs and SMIs

50

COMPANIES AND MARKETS COMPANY LIFE

in order to allow better access to reliable property title deeds. Pending its completion, access to agricultural and industrial land is secured by various means, including in the context of the establishment of new economic parks.

CRAFTS, TEXTILES AND TRADE

The development of modern commerce oers excellent prospects.

Taking into account the expertise and know-how of Senegal s people, many sectors offer immediate opportunities to satisfy domestic and foreign demand for goods and services. One of these is crafts (tanning, clothing, jewellery, masonry, mechanics, furniture, etc.).

Despite competition from Asia, the Senegalese government is convinced that niches exist in the textiles and clothing sector, driven by new ethical consumer trends and international trade preferences (no customs duty in West Africa, 6% in the US and preferential access to European Union markets).

There are also interesting opportunities in trade and, more generally, services (see p. 62). â–

BOOSTING INDUSTRIAL KNOW-HOW After independence, Senegal's economy was driven mainly by the groundnut industry, which accounted for 80% of its export earnings. During the 1980s, when it was in trouble, this growth engine was not replaced. The agricultural sector, although a major generator of employment, remained unstable and unproductive, while the country steadily de-industrialised. After the devaluation of the CFA franc in 1994, it was the tertiary sector that picked up the Senegalese economy (4.5% annual growth from 1995 to 2005), with telecommunications (15.2%) and construction in the lead (8.4%), followed by chemical industries, trade and tourism. After 2005, economic performance remained mediocre, despite an increase in public spending and a series of development programmes. Senegal has so far been slow to implement structural reforms, particularly in the energy sector and the business environment.

INVESTING SENEGAL 2015

FACTFILE

COMPANY LIFE SENEGAL S TOP TWENTY COMPANIES Name

Activity

Turnover*

Sonatel

Telecoms

1,331.9

2

Société Africaine de Raffinage (SAR)

Hydrocarbons

1,089.4

3

Total Sénégal

Services

737.3

4

Sonatel Mobiles

Telecoms

578.7

5

Société Nationale d Électricité

Energy

509.9

6

Vivo Énergie

Services

362.9

7

Industries Chimiques du Sénégal

Mining

326.5

8

Grands Moulins de Dakar

Agribusiness

274.4

9

Sococim Industries

Building materials

266.2

10

Ciments du Sahel

Building materials

206.4

11

Libya Oil Sénégal

Services

191.5

12

Tiger Denrées Sénégal

Import-export

188.9

13

Compagnie Sucrière Sénégalaise

Agribusiness

161.1

14

Sénégalaise des Eaux

Utilities

148.3

15

Compagnie Sahélienne D entreprises

Public works

119.9

16

Elton Oil Co.

Services

119.8

17

Suneor

Agribusiness

115.2

18

Sentel GSM

Telecoms

113.9

19

Société Industrielle de Bois et d Acier

Building materials

110.3

20

Patisen

Agrifood industries

109.5

2012 turnover in millions of dollars (2011 turnover in italics) - Data: The Africa Report, Top 500 African Companies

SENEGALESE COMPANIES IN AFRICA Rank in West Africa (Francophone and Anglophone)

Rank

Rank in Africa

1

Sonatel

9

121

2

Société Africaine de Raffinage (SAR)

14

145

5

Société Nationale d Électricité

45

293

Data: The Africa Report, Top 500 African Companies

USEFUL ADDRESSES ●

AGENCY FOR THE PROMOTION OF INVESTMENT AND PUBLIC WORKS (APIX) AND BUSINESS REGISTRATION SUPPORT OFFICE Tel.: (+221) 33 849 05 55 www.investinsenegal.com

●

DAKAR CHAMBER OF COMMERCE, INDUSTRY & AGRICULTURE Tel.: (+221) 33 823 71 89

●

SENEGALESE EXPORT PROMOTION AGENCY (ASEPEX) Tél. : (+221) 33 889 29 88 www.senegalexport.com

www.cciad.sn ● ●

NATIONAL EMPLOYERS COUNCIL OF SENEGAL (CNPS) Tel.: (+221) 33 889 65 65 www.cnp.sn

MINISTRY OF TRADE, CONSUMERISM & SMES Tél. : (+221) 33 860 26 36 www.commerce.gouv.sn

*(in millions of dollars)

Rang 1

52

COMPANIES AND MARKETS

BANKING AND FINANCE

A West African financial centre Financial services have been one of Senegal s growth engines for fifteen years.

There are currently 18 banks and over 360 branches in Senegal.

20,4% Senegal s share of the WAEMU banking market

SECOND BIGGEST CENTRE IN WAEMU Senegal has 25 financial institutions, including 18 banks (fourteen general and four specialist). Overall total assets reached 4,100 billion CFA francs (end 2013), making it the second largest financial centre in the West African

INVESTING SENEGAL 2015

Economic and Monetary Union (WAEMU). It holds a 20.4% market share, just behind Côte d Ivoire (25.5%) and far ahead of Mali or Burkina Faso. The Dakar financial centre has diversified: it is the only one to have banks specialising in agriculture, housing, microfinance and

COMPANIES AND MARKETS BANKING AND FINANCE

53

financial markets. It has one-third of the region s leases, just behind Abidjan (63.8%). The average risk coverage ratio of Senegalese banks is 18.3%, compared with an average of 12.9% in the WAEMU.

DOUBLE-DIGIT GROWTH For fifteen years, financial services have been driving growth in the tertiary sector and that of the Senegalese economy. The vitality of loans, but also the variety of banking services and the breakthrough of new payment and money transfer systems (payment cards, M-banking, M-payment) in 2010 resulted in an 11.9% growth in the sector in 2013, after 10.2% in 2012 and 16.6% in 2011. The year 2014 is set to progress at the same pace, with growth expected at 12.7%. And 2015 should be even better, as the strength of consumption and private investment combines with project financing needs stimulated by the Senegal Emergence Plan (PSE).

VYING FOR FIRST PLACE In 2006, the momentum of the Senegalese banking market attracted the banking world s biggest names. After creating a local subsidiary, the Moroccan giant Attijariwafa Bank took over the assets of the Senegalese-Tunisian Bank (BST) in 2007, in fourth place and now called Attijari Bank Senegal, as well as those of Senegalese leader, the Compagnie Bancaire de l Afrique Occidentale (CBAO).

Several Nigerian institutions, among the most active on the continent, have followed suit. First Bank of Nigeria finalised its acquisition of ICB Senegal, a subsidiary of Malaysia s International Commercial Bank (ICB) in May 2014.

Nigeria s number one was preceded in 2009 by United Bank for Africa (UBA) and, in 2011, by Diamond Bank.

ATMs are being installed across the country.

ENSE BRANCH NETWORK With one of the lowest banking rates in the WAEMU (7.6% in 2013), Senegal continues to attract new players, such as Gabon s BGFI Bank, and the Banque pour le Commerce et l Industrie (BCI, Mauritania), which set up in November 2013. All players are engaged in fierce competition and are expanding their branch networks throughout the country to win new customers. Between 2007 and 2012, 157 branches were opened.

Bank deposits for the period increased by an average of 8.5% per year. At the end of 2013, banking networks totalled 367 tellers (agencies, offices and ATMs).

MORE LONG-TERM LOANS NEEDED Over the period 2007 to 2011, the average increase in lending by banks was 13.9% per year. At the same time, net accounts receivable grew 13.7%. Lending activity remains poorly diversified, dominated by short- and medium-term loans. In 2012, short-term loans accounted for 46% of the total ($1.84 billion), compared with 41% of medium-term loans and 3% long-

INVESTING SENEGAL 2015

8,5% Annual increase in bank deposits

54

COMPANIES AND MARKETS BANKING AND FINANCE

term loans. In total, 51% of domestic demand remains unsatisfied. A loan structure such as this denounces the failure of corporate finance, which the country wants to counter by developing the National Bank for Economic Development (BNDE), which started operations in January 2014.

A MECHANISM FOR SMES

25 banks and financial institutions

The BNDE was created to finance Senegal s SMEs, which see about 80% of their funding applications rejected by banks, mainly because they do not have collateral. Unmet financing needs are estimated at 500 billion CFA francs.

BNDE has to meet the same financial requirements as any other bank in the WAEMU, particularly with regard to the quality and sustainability of its assets.

It is part of an overall mechanism that includes two other business support organisations: the Strategic Sovereign Investment Fund (FONSIS) and the

National Priority Investment Guarantee Fund (FONGIP). SMEs can apply for loans at the BNDE, be supported by FONSIS and obtain guarantees from FONGIP.

MICROFINANCE GROWTH Senegal is the WAEMU country with the most active microfinance sector. The country has just under a third of the institutions identified in the region (218 out of 718, at June 2014), 982 service points, 2.9 million customers, deposits totalling 222.4 billion CFA francs (26% of total deposits in the WAEMU zone) and 244 billion CFA francs in loans (33%).

In just one year, total loans granted by Senegalese microfinance institutions increased by 4.5% and deposits by 4.1%.

This area is well regulated by WAEMU financial authorities, which has put only 13 microfinance institutions, including three in Senegal, under temporary administration. ■

LIFE INSURANCE IN GOOD SHAPE The Senegalese insurance market is attractive and growing, but contributes only 1.4% of GDP. It ranks fourth in Francophone West Africa and Central Africa, behind Côte d'Ivoire, Cameroon and Gabon, which has just overtaken it. It grew by almost 17 billion CFA francs from 2009 to 2013 (+5.5% in one year). This growth is mainly due to progress made in life insurance (retirement 53%, death 35%, combined 12%), of which turnover reached 24 billion CFA francs in 2013 (+12.9%). General insurance rose 3.28% in 2013 to 71.987 billion CFA francs. Leading Senegalese life insurance company, SONAMVIE, even managed to move into fourth place in the market behind the three all-risk and damage insurance leaders (Fire, accident and multiple-risk): AXA (turnover: 11.7 billion CFA francs), Allianz (9.9 billion CFA francs) and NSIA (7.41 billion CFA francs). Senegal has 16 general insurance companies and eight life insurance companies.

INVESTING SENEGAL 2015

FACTFILE

BANKING AND FINANCE LES VINGT PREMIÈRES BANQUES DU SÉNÉGAL Total assets (billions of CFA francs)

Number of branches

704.5

91

Société Générale de Banques au Sénégal

645.5

46

Ecobank Sénégal

491.7

37

4

Banque Internationale pour le Commerce et l Industrie

335.9

37

5

Banque de l Habitat du Sénégal

249.6

11

6

Banque Régionale des Marchés

221.2

1

7

Caisse Nationale de Crédit Agricole du Sénégal (CNCAS)

198.9

30

8

Bank of Africa Sénégal

192.4

27

9

Banque Atlantique Sénégal

181.2

17

10

United Bank af Africa

171.2

9

11

Crédit du Sénégal

139.3

8

12

Banque Islamique du Sénégal

139.6

17

Rank

Name

1

CBAO Attijariwafa Bank

2 3

13

Diamond Bank Bénin (succ. Sénégal)

113;7

4

14

Citibank Sénégal

109.2

1

15

Banque Sahélo-Saharienne pour l investissement et le Commerce

53.7

14

16

Banque Des Institutions Mutualistes d Afrique de l Ouest

35.9

3

17

Crédit International

31

1

18

Banque Nationale pour le Développement Économique

30.5

1

19

International Commercial Bank Sénégal

27.4

3

20

Orabank Côte D ivoire (succ. Sénégal)

3.2

8

Data: WAEMU Banking Commission, 2013

SENEGALESE BANKS IN AFRICA West African ranking (francophone and anglophone)

African ranking

CBAO Attijariwafa Bank

25

135

Société Générale de Banques au Sénégal

29

147

Ecobank Sénégal

36

163

Rank

Désignation

1 2 3

Data: The Africa Report, Top 200 African Banks

INSURANCE TURNOVER Millions of CFA francs

2009

2010

2011

2012

2013

Accident, Fire, All-risks

16,582

19,762

135

21,328

24,080

Life

64,021

68,113

147

71,177

73,513

Total

80,603

93,328

163

92,505

97,593

Data: The Africa Report, Top 200 African Banks

56

COMPANIES AND MARKETS

AGRIBUSINESS & AGRO-INDUSTRY

Meeting local and international demand

Š SYLVAIN CHERKAOUI POUR JA

Crucial levers of transformation for Senegal s economy, agribusiness and agro-industries are fertile ground for rapid development.

Bananas, tomatoes, beans and mangoes are some of the o-season produce being exported to Europe.

UNDEVELOPED POTENTIAL

157,000 Tonnes Fruit and vegetable export potential

Senegal possesses all the attributes of an agriculturally promising country: a coastal strip with a climate conducive to the cultivation of fruit and vegetables throughout the year, a variety of soil types suitable for grain and horticultural crops, a somewhat underutilised water potential and privileged access to African

INVESTING SENEGAL 2015

and European markets. About 3.8 million hectares of land are under-exploited.

Several investment opportunities exist in areas that correspond to growing market demand. Moreover, they are often wellsupported by state programmes and international development agencies.

This is certainly the case for rice, a sector in which Senegal aims to become self-

COMPANIES AND MARKETS AGRIBUSINESS AND AGRO-INDUSTRY

sufficient by 2017, thereby meeting the shortfall of 400,000 tonnes per year, currently imported.

GRAINS AND HORTICULTURE Grain crop yields are still low and the sector is in drastic need of modernisation and mechanisation, something private partners could help alleviate. Currently the agricultural landscape consists mainly of small family-owned farms using traditional production techniques and almost fully dependent on rainfall. Similar investments have proven successful in horticulture in order to satisfy domestic demand (onions, potatoes, tomatoes) and export demand (organic bananas, cherry tomatoes, beans, mangoes, ornamental plants, etc.). The Sustainable and Inclusive Agribusiness Development Project of Senegal (PDIDAS) receives World Bank support to the tune of $86 million. PDIDAS should create 50,000 jobs and produce more than 100,000 tonnes of fruit and vegetables per year by 2017.

The goal is to export 157,000 tonnes of off-season products to Europe (currently 67,000 tonnes). The 10,000 hectares set aside for the project are subject to "joint management" between local people, government and investors, which helps avoid land disputes. British company West Africa Farms set up in the north of the country three years ago, growing onions for export, and is an example of a successful project involving local and international players.

AGRO-INDUSTRY TO BE STRUCTURED AND PROTECTED There are also numerous promising investment opportunities in the processing of locally-grown produce. For many years, progress in Senegal s food industry has been up and down. The

57

reasons for this are the lack of organisation along the value chains, competitiveness issues related to production costs and competition from imported products.

These issues were taken into account during the development of the Senegal Emergence Plan (PSE), which affirms the government s commitment to supporting local agricultural product processing and industry spillover effects on the economy.

OILSEEDS AND PROCESSING The edible oils and fats sector, down 19.6% from 2011 to 2013, is expected to grow by 6.5% in 2014 and 4% in 2015. In 2013, the state increased the base purchase price for groundnuts and temporarily closed the borders to protect the local processing industry. With regard to other oilseeds, most mills are adversely affected by structural competitiveness problems due, in particular, to high production costs. In the long term, the state wants to regulate the commercial relationship (price and volume) between farmers and processors and renew industrial facilities with private partners. Emphasis is placed on new processing and value chains, including for confectionary groundnuts.

FRUIT AND VEGETABLE PROCESSING Launched in 2004 and presented as a successful vertical integration model, the Senegalese tomato industry has suffered from a lack of investment in farming equipment and various input supply difficulties (fertilisers, etc.). As a result, the 2012-2013 crop year produced only 40,000 tonnes, far from the official projections of 70,000 tonnes. The three processing companies, Socas, Agroline and Takamoul had to slow their production and fruit and vegetable processing and preserving

INVESTING SENEGAL 2015

25 % Increase in sugar and confectionary production in 2014

58

COMPANIES AND MARKETS AGRIBUSINESS AND AGRO-INDUSTRY

sugar confectionery sector is expected to grow by 25%; imports fell 66% in the first seven months of the year. Investments in this sector benefit from subsidised production and refining with the goal of making the country a net exporter in the long term.

TEXTILE RENAISSANCE

Fish processing is one of Senegal s main sources of revenue.

was down by 39.9% for the year. In this branch of agriculture, as in others, the aim is to satisfy the local market with local produce and processed products. The creation of three agro-industrial parks to develop the agricultural value chain and reduce imports of food products, will largely contribute to achieving these objectives (see box p. 58).

10% croissance annuelle des activités cuir et peaux

SUGAR AND CONFECTIONARY BACK ON TRACK The state s targeted interventions saved the sugar and confectionery industry which was severely threatened by competition from imports. While having grown in 2012 (104,977 tonnes), production collapsed by 15.6% in 2013, forcing the Compagnie Sucrière Sénégalaise (CSS ‒ Senegalese Sugar Company), which has its sugar cane plantations at Richard-Toll in the north of the country, to temporarily suspend its activities. At year end, the Ministry of Trade decided to regulate imports according to domestic production. For its part, the CSS launched an investment programme to ensure self-sufficiency in sugar and consolidate its position as regional industry leader. In 2014, the

INVESTING SENEGAL 2015

The same reasoning applies to the textile industry. While seed cotton production has seen better days, it is stable (see table p. 37) and the industrial expertise is intact.

At the end of 2014, the government announced the restructuring of the sector, showing its determination to find partners for the reopening of the Nouvelle Société des Textiles du Sénégal (NSTS), which employed 600 people at its closure in 2000, and that of the Société des Textiles de Kaolack (SOTEXTA).

Despite competition from Asia, Senegal remains convinced that the sector offers niche markets to explore both locally and internationally.

FISHERIES ON AN UPWARD CURVE Fish processing is one of Senegal s main sources of revenue. In crisis for several years, partly because of artisanal and commercial overfishing (several fleets saw their fishing licences withdrawn), the sector was revived in 2013 thanks to South Korea s Dongwon purchase of 60% of the Société Nationale de Conserverie du Sénégal (SNCDS), for $16 million. One of the main production units of Senegal s fisheries industry, it is now called the Société de Conserverie en Afrique SA (SCASA). Other opportunities exist in this sector, where growth is expected to continue in 2015 and beyond.

PROMISING AQUACULTURE The limitations on the exploitation

COMPANIES AND MARKETS AGRIBUSINESS AND AGRO-INDUSTRY

of fish resources have paved the way for aquaculture. Still in its infancy, production is 95% freshwater when maritime aquaculture zones would be more profitable and less exposed to competition. There are incentives to attract investors to the sector, strongly supported by Senegal s international partners. In addition to production, there are numerous opportunities in technical development, structuring of the aquaculture sector and supply of material resources. Opportunities also exist in the potential links between the fishing and poultry industries (fishmeal). Aquaculture is recording higher growth than livestock and agriculture.

DEVELOPING LIVESTOCK VALUE CHAINS Growth margins exist in poultry farming, mainly for the domestic market. Industry performance is being improved through inter-trade grouping,

but competitiveness needs to pick up.

Similarly, cattle and sheep farming are in need of development, especially to meet the annual demand of 800,000 sheep for Tabaski celebrations (Wolof for Eid al-Adha), and for the manufacturing of leather and leather goods. Driven by internal and external demand, the sector reported double-digit growth: 10.2% in 2014 and 10.3% in 2013. Exports of hides and skins increased by 84% between 2012 and 2013. Although milk production has risen, due mainly to recent artificial insemination campaigns to improve breeds, the entire industry requires structuring to reduce imports of milk powder. There is interest from leading international companies such as the Candia group, which is associated with Senegalese company Kirène. Founded in 2000, Kirène has grown rapidly to make a name for itself in a mineral water market dominated by exports. ■

AGRO-INDUSTRIAL CLUSTERS TO PROMOTE LOCAL PROCESSING For successful industrialisation of agricultural products aimed at increasing the added value of local production, the Senegal Emergence Plan defines the creation of three agro-industrial parks (as part of the Accelerated Agriculture Program in Senegal, PRACAS) and three others for seafood processing. These are planned as Public-Private Partnerships. Initially, and before the end of 2015, the state will create sectoral incentive frameworks. Thereafter, it must secure investor access to land, facilitate access to credit and ensure upstream and downstream integration. The first agro-industrial park, in Dakar, and the first seafood processing park, in Joal, about 100 km southeast of the capital, will be commissioned by 2018. The other Special Economic Zones should be commissioned before 2023. The agro-industrial parks require financing estimated at 515 billion CFA francs, for 18,000 jobs while that of the seafood processing parks is estimated at around 255 billion CFA francs (10,000 jobs).

INVESTING SENEGAL 2015

59

25% hausse de la production de sucre et confiseries en 2014

60

COMPANIES AND MARKETS

LAND USE PLANNING

New economic centres Decentralising economic activity and employment will decongest Dakar and build local capacity.

Today, 80% of economic activity is concentrated in Dakar, which represents just 0.3% of the territory.

IN SEARCH OF A NEW BALANCE Today, nearly 25% of the population and 80% of economic activity is concentrated in Dakar, which represents just 0.3% of the territory. Spread economic activities, infrastructure and the workforce out into other parts of the country has become a matter of urgency. A

INVESTING SENEGAL 2015

comprehensive programme that goes beyond a decentralisation policy is being put into place. The emergence of new development centres entails taking into consideration issues such as housing, sanitation and natural resource usage.

And a strengthening of local authorities technical and financial capacity.

COMPANIES AND MARKETS LAND USE PLANNING

SOCIAL HOUSING: SPEEDING UP SUPPLY Flagship Project No. 6 of the Senegal Emergence Plan (PSE) is dedicated to accelerating the supply of social housing to respond to a demand estimated at between 10,000 and 15,000 dwellings per year. This response includes kickstarting a building materials production sector and a local construction industry which, in the medium-term, would foster the emergence of export companies.

The project also aims to lower costs by using local materials in buildings.

Flagship Project No. 6 requires funding estimated at 490 billion CFA francs. Its success is based on strong private sector involvement through PPPs.

A POLITICAL PROJECT To achieve this, the government is undertaking a review of the legal and regulatory framework of the sector, including the introduction of a Property Development Code. It intends to introduce tax incentives, facilitate access to land (time, cost, and simplification of procedures) by developing social housing plots, and contribute to the training of skilled workers. Aims and Means contracts (COM) will be concluded with

SICAP (Société Immobilière du Cap-Vert), a state property development company, and the Société Nationale des HLM, the state social housing body, while the financial resources of the Banque de l Habitat du Sénégal (BHS) are being consolidated. By 2023, 3% to 5% of the population should have access to mortgages, but between now and then, the first urban development centre must be completed by 2018.

INTERNATIONAL BUSINESS CENTRE Flagship Project No. 20 (Business Park) of the PSE aims to make Senegal the destination of choice for the headquarters of major companies in West Africa. It plans to build a district for international companies and organisations that will benefit from the advantages linked to Special Economic Zones. By 2017, it will be equipped with turnkey office space, including all upstream and downstream services, from banking to restaurants through luxury accommodation, leisure activities and an administrative single window.

The project ambition is to accommodate 50 company headquarters and 2,000 to 3,000 high-income households within a decade. ■

INVESTING SENEGAL 2015

61

15,000 HOMES A YEAR Social housing demand

62

COMPANIES AND MARKETS

SERVICES

Telecommunications driving growth Digital applications, tourism and modern commerce make up a very attractive package bursting with development potential.

Mobile internet has made giant steps with the arrival of 3G.

DYNAMIC INTERNET AND MOBILE ACTIVITY

49% Internet penetration rate

Along with financial services, telecommunications, which grew by 8% in 2014, 17.1% in 2013 and 6.1% in 2012, continues to drive the Senegalese tertiary sector. The mobile phone penetration rate has gone through the roof, reaching 106% in September 2014.

INVESTING SENEGAL 2015

Mobile internet has made giant steps with the arrival of 3G and 4G, contributing substantially to the sector value added and promoting increased competition between operators. The state also plans to enhance the digital dividend resulting from the transition from broadcasting to digital by the end of 2015. Significant progress is still to be made in landline

COMPANIES AND MARKETS SERVICES

63

Internet where the penetration rate is low. Telecommunications will maintain its momentum in 2015, in conjunction with continued innovation in mobile telephony and the Internet.

BUILDING A DIGITAL ECONOMY Building a truly digital economy would have a ripple effect on other sectors.

Several measures are being implemented to maximise the impact of ICT in the economy and make it an engine of growth, starting, technically, through the promotion of high-speed links. The regulatory framework needs to evolve to be able to take into consideration and encourage technological developments.

Finally, the introduction of major national projects (e-education, e-health, etc.) will develop new content and promote widespread use of ICT in business and the development of new activities in university towns.

UNDENIABLE OUTSOURCING STRENGTHS Flagship Project No. 19 of the PSE provides for the creation of two zones dedicated to outsourcing services. Ready to use, integrated, and linked to a tax incentive framework, they will attract international offshore services and the emergence of new local players to make the country a new outsourcing centre in Francophone Africa, like Morocco and Tunisia in North Africa. Its infrastructure and human skills have enabled Senegal to position itself in the market for services such as Business Process Outsourcing (BPO). The country is set to become an African leader in this field.

ROOM FOR IMPROVEMEN IN TOURISM Tourism accounts for almost 75,000

jobs and is one of Senegal s main sources of foreign exchange. However its contribution to GDP (less than 7%) is too small compared to its enormous potential. Currently, the sector is struggling to overcome issues such an undiversified and uncompetitive offer, low quality service and lack of promotion as a destination in source markets, where no serious marketing studies have ever been carried out. The seaside tourist offer (Saly, Cap Skirring) suffers from lack of investment and insufficient diversification, even though there is significant potential to be developed and enhanced, such as that achieved in Pointe Sarène or Joal. In addition, high airport taxes and fees, mandatory visas and the slowdown in demand due to the global economic crisis, have diverted tourists from Senegal.

A SURGE IN BUSINESS TOURISM Senegal s geographic location puts Dakar in a privileged position as a meeting point for the international business community, in particular business traffic from Europe and Africa. The opening of the new Blaise Diagne International Airport in 2015 will create new opportunities. Dakar s hosting

INVESTING SENEGAL 2015

106% Mobile phone penetration rate

64

COMPANIES AND MARKETS SERVICES

this promising field in terms of training, trade or transport. Six regional Hotel and Tourism Training Centres will be created.

The World Bank is prepared to support the creation of at least three of them. The tourism sector in Senegal benefits from a simplified VAT (10% instead of 18%).

BECOMING A TOP 5 AFRICAN DESTINATION

7% Tourism s contribution to GDP

of the 15th Summit of La Francophonie in November 2014, in a brand new conference centre, allowed the capital and its large hotels to modernise and develop. New international players are in the running, like Sheraton and Azalaï.

Several measures are planned to promote national and international investment in

Flagship Project No. 23 of the PSE aims to place Senegal in the Top 5 African tourist destinations, with 3 million visitors a year, six times more than today. The state hopes to establish three to six integrated and clearly targeted tourist zones in ten years.

This involves, for example, revitalising Saly and developing Pointe Sarène and Joal, honing the cultural offer in SaintLouis, and building business tourism in Dakar and ecotourism in the Niokolo Koba National Park. South African partners are participating in the repopulation of this park, whose offer in terms of hospitality and leisure is still undeveloped ■

FROM STREET VENDORS TO HYPERMARKETS The retail sector is dominated by the informal sector in Senegal. Poorly organised, the offer lacks structure and diversification, and even competition in some segments. The PSE s Flagship Project No. 10 addresses these shortcomings with the aim of promoting the development of modern retail and the establishment of wholesale markets for the distribution of local products. To achieve this, the state will introduce, before the end of 2016, an incentive-based regulatory framework for commercial planning in specified areas. Flagship Project No. 10 also provides for the building of two to four wholesale markets, primarily in the southeast and centre of the country and in Dakar, each with an agricultural and craft product marketing platform, and support for the development of logistics companies (land, warehouses, etc.). Access to land will be facilitated for modern trade zone projects.

INVESTING SENEGAL 2015

FACTFILE

SERVICES AIR TRAFFIC STATISTICS

Aircraft movements Passengers Cargo (tonnes)

2010

2011

2012

2013

2014 (p)

44,174

41,505

31,785

35,906

31,785

1,733.423

1,812.469

1,786.092

1,941.586

31,785

24,423

24,593

25,774

28,022

31,785

Data: ANSD ‒ (e) estimated according to statistics from first 9 months of 2014

TOURISM STATISTICS 2010

2011

France

194,600

43.7%

United States

17,500

3.9%

15,600

3.5%

111,300

25%

Visitors from:

Belgium Africa 2012 Data

MOBILE TELEPHONE MARKET

Mobile lines Orange Sonatel Mobiles

2011

2011

2013

Sept. 2014

9,325.828

11,470.646

13,133.772

14,351.857

65.23%

62.06%

56.82%

55.52%

Tigo

25.5%

23.02%

22.03%

24.19%

Expresso

9.26%

14.92%

21.15%

20.29%

76.62%

94.24%

96.80%

106.24%

Penetration rate

Data: ARTP (Regulatory Authority for Telecommunications and Posts)

INTERNET MARKET

Total users Internet mobile

2011

2011

2013

Sept. 2014

341,703

628,621

2,294.036

6,675.513

55.1%

71,2%

86.9%

93.6%

High speed landline

24%

15,2%

4.7%

1.5%

Low speed landline

17.7%

13,6%

1.4%

0.3%

Penetration rate

2.8%

5,2%

16.91%

49.42%

Data: ARTP

USEFUL ADDRESSES ●

●

MINISTRY OF COMMUNICATION AND THE DIGITAL ECONOMY Tel.: (+221) 33 889 17 15 www.mcten.gouv.sn MINISTRY OF TOURISM AND AIR TRANSPORT Tel.: (+221) 33 822 73 66 www.tourisme.gouv.sn

●

●

REGULATORY AUTHORITY FOR TELECOMMUNICATIONS AND POSTS (ARTP) Tel.: (+221) 33 869 03 69 www.artpsenegal.net ORANGE/SONATEL Tel.: (+221) 33 839 12 00 www.sonatel.sn www.orange.sn

●

●

EXPRESSO Tel.: (+221) 30 100 00 www.expressotelecom.sn TIGO Tel.: (+221) 33 869 74 20 www.tigo.sn

66

COMPANIES AND MARKETS

HEALTH & EDUCATION

No growth without human development

Š SYLVAIN CHERKAOUI POUR JA

The state continues to strongly support health and education to ensure the country has quality human resources.

In 15 years, there has been a marked improvement in life expectancy at birth.

43.5% of Senegalese are under 14 years of age

DEMOGRAPHIC DIVIDEND Senegal has a real opportunity to accelerate economic growth in the coming years with an expected increase in the number of Senegalese people of working age, given its young population

INVESTING SENEGAL 2015

today (43.5% under 14 years of age), combined with declining fertility and mortality rates.

But substantial efforts are still needed to leverage this demographic dividend. In recent years, the country has improved its

COMPANIES AND MARKETS HEALTH & EDUCATION

67

performance in health, education and training, but results remain insufficient despite public efforts. Private sector contribution to these areas, already significant, is forecast to grow strongly.

IMPROVING HEALTH For twenty years, the country has improved the life expectancy of the population (around 60 years old), but it could do more to reach the level of countries like Morocco (almost 70 years old) and Ghana (over 60 years old). Infant and child mortality remains high, although it fell from 139‰ in 1997 to 72‰ in 2011, due, in particular, to improved immunisation coverage.

Significant progress has also been recorded in access to safe drinking water (99.6% in urban areas, 81.2% in rural areas), but the results for access to sanitation are still low (62.4% and 35.6%). Senegal has not yet achieved the standards recommended by the World Health Organisation (WHO) in terms of coverage in health infrastructure and qualified staff.

INCREASING HEALTH INSURANCE Only one in five Senegalese has access to public or private health insurance.

Formal health insurance systems only offer health coverage to families in which the head of the household is employed in the modern sector, currently only 20%. This led the state to implement a Universal Health Coverage programme (CMU) to ensure, through mutualisation, people s access to a minimum package of care. The number of functional mutual health insurance schemes increased from 80 in 2003 to 237 in 2011, of which 217 are community-based schemes and 20 national level schemes.

DAKAR MEDICAL CITY Private health services in Senegal have contributed to raising the standard of technical facilities in the country, with the introduction of scans, magnetic resonance imaging (MRI) and assisted reproduction. This expertise is the basis for the creation of "Dakar Medical City," one of the Flagship Projects of the Senegal Emergence Plan (PSE). It aims to make the capital a regional referral centre for even the most complex health care ‒ primary, secondary and tertiary ‒ by attracting an additional 10,000 patients per year. Private and public service agreements with institutions in the sub-region will be introduced to achieve this.

OVERFLOWING PUBLIC UNIVERSITIES Senegalese higher education is experiencing rapidly increasing student numbers and, despite the building of new universities (Bambey, Thiès, Ziguinchor), Dakar s Cheikh Anta Diop University is overwhelmed. The number of students was estimated at 122,970 in 2012 and will have almost doubled by 2018, to reach 223,800. Yet, in relation to its national wealth, Senegal invests more than twice that of the average sub-Saharan African country in its education system

INVESTING SENEGAL 2015

20 mutuelles d'envergure nationale

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COMPANIES AND MARKETS HEALTH & EDUCATION

the best in Africa, account for almost 30% of the demand and is set to grow. Only 5% of students choose technical education and vocational training, due to the lack of adequate structures.

© SYLVAIN CHERKAOUI POUR JA

ON COURSE FOR 2025

Senegal's private institutions of higher learning are some of the best in Africa.

223,800 students in Senegal by 2018

but managing the flow of students in public institutions remains a problem.

An increasing number of private higher education institutions will help relieve this situation. The boom in private institutions of higher education in Senegal dates back to the mid-2000s. These private institutions, some of which are among

The Strategic Plan for Education and Training ‒ also called the Quality, Fairness and Transparency Improvement Programme (Paquet 2012-2025) ‒ puts the focus on science and technology in primary and high schools as well as on the professionalisation of sectors, including through public-private partnerships. It aims to achieve 50% science graduates and increase enrolment in tertiary vocational training by 50%. It is in this context that new specialist vocational high schools are being established, with more strategically-focused streams adapted to the economic potential of area. Research will finally feature on the syllabus, in order to enhance agricultural productivity, food processing and ICT. ■

AFRICAN REFERENCE OF HIGHER EDUCATION Senegal enjoys a solid reputation in private higher education. Four of its schools rank amongst the top six in the Francophone Africa "Business School" Ranking, compiled annually by Jeune Afrique. The objective of Flagship Project No. 22 of the PSE is to make Dakar, which hosts 80% of Senegalese universities, the regional reference for higher education in key economic sectors (mining, tourism, finance, business, etc.).

One of the main ways to achieve this is to develop partnerships with the world s top schools and companies, something which has already been achieved for business schools. Within ten years, the goal is to have established a "regional campus of reference" in Dakar and to accommodate 20% to 30% of foreign students by 2025. In addition to the superior quality of teaching and the reputation of the schools, political stability is an advantage for foreign students.

INVESTING SENEGAL 2015

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Your trip

The Pullman Teranga and its pool.

Le Toukouleur restaurant in the heart of the Plateau district.

HOTELS IN DAKAR KING FAHD PALACE This is one of the most prestigious hotels in Dakar. Built in 1991 in partnership with the Kingdom of Saudi Arabia, it covers nearly 35 acres at Almadies Point, an exclusive residential area on the westernmost side of the African continent. Located opposite the US Embassy, this 5-star hotel has three wings and rooms offering stunning views of the ocean, huge pool and hotel golf course. The conference centre hosts conferences throughout the year.

Pointe des Almadies Tel.: (+221) 33 869 69 69 www.kingfahdpalacehotels.com

RADISSON BLU One of the latest luxury hotels to open on the West coast of Dakar, now easily accessible thanks to the new highway.

Elegant, minimalist and contemporary,

it offers a 180° panorama of the ocean below, and features an outdoor pool, a spa, two restaurants and a 500 m² conference room. It offers 180 rooms, suites and fully-equipped apartments.

Route de la Corniche Ouest Tel.: (+221) 33 869 33 33 www.radissonblu.com/hotel-dakar

PULLMAN TERANGA This is one of Dakar s best-known buildings, with its striking 70s architecture. In the heart of the city, its ten floors overlook the Plateau, the capital s most vibrant district, and the Eastern coast road and port. The décor has been tastefully redone to create a more typical atmosphere in this establishment, one of the oldest in Dakar. Its 230 rooms have views of the very lively Place de l Indépendance, or the sea.

Rue Colbert Tel.: (+221) 33 889 22 00 www.pullmanhotels.com

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The ultra-modern Rysara Hotel.

RYSARA HÔTEL Particular attention has been paid to the décor of this ultra-modern and new hotel. It is located on Avenue des Jambaars, in the city centre but far enough away from the busy Plateau district so as to be calm. It offers 15 spacious rooms decorated with simplicity and taste. They are equipped with a TV, minibar and free high-speed ADSL. 8, avenue des Jambaars Tel.: (+221) 33 822 60 60 www.rysarahotel.sn

RESTAURANTS, BARS, CLUBS LE TOUKOULEUR The simple and warm decor is a comfortable crossover between Africa and the East. In the heart of the Plateau, Le Toukouleur serves international cuisine, particularly French and Italian, prepared with fresh local produce, including crab and grouper (thiof).

Just 4 You, one of the most exciting music scenes in Dakar

Rue Moussé-Diop Tel.: (+221) 33 821 51 93

LE BIDEEW One of the nicest terraces in the city centre, in the busy Plateau district.

This popular restaurant is great for a lunch date or a drink at any time of the day, relaxing under the natural arbour formed by the immense kapok tree in the garden. Large selection of grilled meats and fish (fillet of thiof, shrimp, etc.).

40 rue Joseph Gomis Tel.: (+221) 33 823 19 09

JUST 4 YOU A garden restaurant created in a lovely green, airy space, it is one of the most exciting music scenes in Dakar. People come here for dinner, drinks and/ or to listen to the Senegalese and international artists that perform here (Salif Keita, Koffi Olomide, Bembeya Jazz, Tiken Jah Fakoly, etc.).

Avenue Cheikh Anta Diop Tel.: (+221) 33 824 32 50

LE CHARLY Located inside the lovely Sunugal Village Hotel, made up of spacious bungalows, in the Almadies Point district close to Ngor beach. The terrace overlooks the Ngor road, where most of the fashionable nightclubs are. When the mood picks up in the neighbourhood, go to Le Charly for real cocktails served in the trendy designer bar.

Route de Ngor Tel.: (+221) 77 438 03 50

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Gorée Island.

24 HOURS OR MORE

ALMADIES POINT

© JACQUES DU SORDET POUR LES EDITIONS DU JAGUAR

Almadies Point is located on the

GORÉE ISLAND

north-western end of the Cap Vert

Gorée Island is probably Dakar s

peninsula and is the westernmost tip

favourite and most famous tourist

of Africa. This is where Dakar dwellers

attraction, a place of history and a

go to escape the hustle and bustle

memorial to the Atlantic slave trade.

of the city, including wrestlers who

The Estrées Fort sheds light on the

train there from sun up. It s the place

European occupation and struggle

to eat seafood, with waves lapping at

for control of this strategic little piece

your feet: prawns, black grouper, red

of land and is now the IFAN (Institut

carp, squid, sea urchins, sea cicadas

Fondamental d'Afrique Noire) history

and oysters, then laze on a lounger

museum. Other points of interest on the

before taking a dip in the sea. Getting

island are historic buildings such as the

to the sea means making one s way

Castle, which overlooks the island on

around banks of pebbles and rocks,

its southern tip, the Relais de l Espadon,

but it s worth it. Almadies Point is also

former residence of the French governor

a surfers paradise, where the waves

and the Maritime Museum, constructed

grow bigger and bigger as the days

on the site of an old Dutch West India

wears on. Parts of the 60s cult surf

Company factory. The Church of St.

documentary, Endless Summer were

Charles Borromeo, completed in 1830,

shot here, on Ngor Island, which is a

rubs shoulders with one of the country s

perfect spot to end the day. The tiny

oldest stone mosques. Gorée Island,

island is charming, as is its beach,

with its dirt roads, bougainvillea, palm

known by surfers as one of the surf

trees and colonial mansions, most of

world s best kept secrets.

which are being beautifully restored, is the perfect place to relax on Dakar s

LE LAC ROSE

coast. No cars are allowed on the island,

Lake Retba, known as Lac Rose (Pink

so peace and quiet is guaranteed.

Lake) is not always pink, say the

© RENAUD VAN DER MEREEN POUR LES EDITIONS DUJAGUAR

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Senegalese, and to see it at its rosiest

ocean. The locals extract the salt

you just have to be there at the time

which is sold to fishing industries

on the right day, during the right

or for export. The lake is now only

weather conditions (plenty of sun,

about 3 km² all round, whereas it

around noon). It s one of the most

used to be 30 km². Its distinct pink

visited natural sites in the country,

colour is caused by the Dunaliella

made popular by the Paris-Dakar rally

salina bacteria, which is attracted by

because, for many years, the finish

the lake s salt content. The bacteria

line was on its banks and the world

produces a red pigment in order to

was fed enchanting aerial views taken

absorb the sunlight, thus giving the

from circling helicopters. Located

lake its unique colour. Spend the day,

30 km or so northeast of Dakar, Lake

going horse- or camelback riding

Retba is a saltwater lagoon (over

or hiking around the lake, or stay

380g/l of salt per litre), quite shallow

overnight in one of the many camps

and just a stone's throw from the

and hotels.

© JACQUES DU SORDET POUR LES EDITIONS DU JAGUAR

© JACQUES DU SORDET POUR LES EDITIONS DU JAGUAR

Beer and seafood at the beach.

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PRACTICAL INFORMATION ●

VISA

A biometric visa is required for stays of less than 90 days for citizens of countries where Senegalese nationals have to have a paid visa. For citizens of other countries, a passport is sufficient (an identity card for ECOWAS citizens). ●

USEFUL LOMÉ NUMBERS International dialling code:221 CENTRAL POLICE STATION Tel.: 33 823 25 29 SOS MÉDECINS (DOCTORS) Tel.: 33 889 15 15

HEALTH

Yellow fever vaccination is recommended but not mandatory.

Vaccinations against hepatitis A and B, as well as typhoid fever are also recommended.

SUMA ASSISTANCE (MOBILE MEDICAL

CLIMATE

DAKAR INTERNATIONAL AIRPORT

Senegal is in the tropics and is subject to two distinct seasons. The dry season, from November to June, during which it rarely rains. The temperature ranges between 22° and 30° during the day. The rainy season, called wintering, lasts from July to October. Daytime temperatures may vary from 27° to 38°.

Tel.: 33 869 50 50

UNIT) Tel.: 33 865 18 18

AIRLINES

www.aeroport-dakar.com AIR FRANCE Tel.: 33 839 77 77 www.airfrance.fr AIR SÉNÉGAL Tel.: 800 800 888

SECURITY The "Land of Teranga" (land of welcome, in Wolof) is renowned for the warmth and hospitality of its people. There are no safety issues in Dakar, provided one follows some basic rules valid for any large city: don t go out alone at night, avoid carrying large amounts of cash or valuables but be sure to carry ID.

BUSINESS HOURS Senegal is in GMT zone, so keeps time with London.

Administrative offices open from 7.30 am to 1.00 pm and from 1.30 pm to 4.00 pm, banks from 8.30 am to 11 am and from 2.30 pm to 4 pm.

www.senegalairlines.aero ASKY Tel.: 33 889 84 85 www.flyasky.com ETHIOPIAN AIRLINES Tel.: 33 823 55 52 www.ethiopianairlines.com KENYA AIRWAYS Tel.: 33 823 00 70 www.kenya-airways.com ROYAL AIR MAROC Tel.: 33 849 47 47 www.royalairmaroc.com SOUTH AFRICAN AIRWAYS

CURRENCY As with all African

Tel.: 33 889 0089

Franc Zone countries, the CFA franc is the currency of Senegal. It has a fixed exchange rate to the Euro: 1 euro = 655.96 CFA francs 10,000 CFA francs = 15 euros

www.flysaa.com TURKISH AIRLINES Tel.:33 823 44 44 www.turkishairlines.com