Senegal: Investing

FDI in Figures | Why You Should Choose to Invest in Senegal | Procedures Relative to Foreign Investment | Investment Opportunities

FDI in Figures

Senegal has a proactive policy towards FDI. At the end of the 90s, there was an FDI boom in the direction of Senegal. France is historically one of the countries that invested the most in Senegal. However, the effects of the crisis of 2008-2009 caused a drop of about 20% in the flows of FDI. The Senegalese economy remains largely dependent on European growth.

Senegal has a large stock of FDI, mainly of French origin. For the last three years, the flow of foreign investment into Senegal has remained around 200 million EUR annually.

In 2012, FDI should be driven by large-scale projects for the development of infrastructure and the country's power grid.

Country Comparison For the Protection of Investors

	Senegal	Sub-Saharan Africa	الولايات المتحدة	Germany
Index of Transaction Transparency*	6.0	4.8	7.0	5.0
Index of Manager’s Responsibility**	1.0	3.4	9.0	5.0
Index of Shareholders’ Power***	2.0	5.0	9.0	5.0
Index of Investor Protection****	3.0	4.4	8.3	5.0

Source: Doing Business- Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	272	208	237
FDI Stock (million USD)	1,171	1,378	1,615
Performance Index*, Ranking on 141 Economies	104	88	-
Potential Index**, Ranking on 141 Economies	127	-	-
Number of Greenfield Investments***	9	10	-
FDI Inwards (in % of GFCF****)	6.7	7.6	-
FDI Stock (in % of GDP)	8.8	10.8	-

Source: UNCTAD - Last Available Data.

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Why You Should Choose to Invest in Senegal

Strong Points: The country's main strong points are:
- A strategic geographical position;
- Competitive production costs;
- A cheap and skilled labor force;
- A healthy and competitive economy;
- A reformed legal and taxation framework; and
- Privileged access to regional and international markets.
Weak Points: The country's main weaknesses are:
- The poor and bad condition of the infrastructures;
- A slow and corrupt administration;
- Security;
- Low company productivity; and
- Low diversity of activities.
Government Measures to Motivate or Restrict FDI: The Senegalese government has put into place various incentive measures for investments. Below are some of these measures:
- Increased protection for investments;
- Defining priority sectors for investment;
- Delivering license certificates in 10 days; and
- Respect of the rules of the Environmental Code (document in French).
For more information, Agency for the promotion of investment in Senegal website.

Procedures Relative to Foreign Investment

Freedom of Establishment: There is a great amount of freedom of investing in Senegal in all the sectors: agribusiness, textiles, new technologies, fisheries, tourism mining. Foreign companies and investors have the same possibilities.
Acquisition of Holdings: Foreigners can have a 100% stake in a company.
Obligation to Declare: The World Association of Investment Promotion Agencies (WAIPA) in the country gives information on the authorizations required for setting up an establishment.
Competent Organization For the Declaration: Agency for promotion of investments in Senegal
Requests For Specific Authorizations: Specific authorizations required in the country can be consulted at the Agency for the promotion of foreign investments.

Learn more about Foreign Investment in Senegal on Globaltrade.net, the Directory for International Trade Service Providers.

Investment Opportunities

Investment Aid Agency: Agency for the promotion of investment in Senegal
Tenders, Projects and Public Procurement: Tenders Info, Tenders in Senegal
Globaltenders, Tenders & Projects from Senegal
UNDP - United Nations Development Programme, Tenders (in French)
DgMarket, Tenders Worldwide
Other Useful Resources: Information on investments on the Senegalese Government website

Any Comments About This Content? Report It to Us.

Learn more about Investing in Senegal on Globaltrade.net, the Directory for International Trade Service Providers.