7 reasons to invest in Senegal

1 - a stable and open country
2 - a healthy and competitive economy
3 - quality human resources
4 - Modern and efficient infrastructure
5 - a renovated legal and tax framework
6 - a privileged access to the regional and
     international markets
7 - an exceptional quality of life

  A stable and open country

A strong democratic tradition:-
In Africa, Senegal has the uniqueness to experience a peaceful political life, thanks to the solidity of its institutions and a strong demographic culture from a long historical process. Several political parties exist in Senegal and an organized civic community takes part in the life of the Nation. With the political favor of political change of power, a new constitution, strengthening citizenship and devoting recognition of new political and social rights to Senegalese and all those living in the country.

A network of broad and open partnership:-
Senegal enjoys strong confidence on the international scene where it is respected and listened to. The new foreign policy looks towards the consolidation of these assets and a close quality relationship with foreign and local investors, in the diplomatic representations around the world.

The private sector, engine of the economy:-
Senegal, in the past few years has been engaged in a vast programme of privatization of the public companies in major sectors of the economy. Investors of great repute are now present in strategic sectors like water, telecommunications, energy, tourism, transport. These economic reforms in certain fields led to the setting-up of regulation bodies charged with ensuring a healthy competition between economic operators.

A more operational support for investments:-
Since the structural adjustment programmes of the eighties to nineties, Senegal has immersed itself in a process of improving the business climate. It is in this context that measures which led to the creation of the single counter, revision of the code of investments and the "reshaping" of all the investment promotion devices, especially through the adoption of duty free export company status were adopted. To make the Single Counter single more powerful, the reforms initiated by APIX were structured around the following points:

• Reducing approval files to the code of the investments with replacement of feasibility studies by technical data sheets.

• 
  Substitution of immatriculation forms by a single consistent and simplified card.

A healthy and competitive economy

The Senegalese economy remains dominated by the tertiary sector which contributes 60% of the formation of the GDP. The primary and secondary activities contribute each one for 20%.

Rated "B+/stable/B"
Senegal is the first country to be rated stable B+/Stable/ B in West Africa by the prestigious international agency, Standard & Poors, for three consecutive years.

This excellent grade allotted to Senegal is a palpable index of the performance levels. It confirms the good image of the country and consolidates political and social stability, thus limiting country-investment risk in a considerable way.

Restoration of the financial capacity of the State
Thanks to a rigorous management of public finance, the State of Senegal gradually restored its financial standing. The policy of stabilization of public finance recorded good results. The State has even carried out budget surpluses which offer investment diversification possibilities, especially in the social sectors.

Quality Human Resources

High level of professional training and instruction:-
Since colonial times the first African university which trained the majority of the great leaders of the continent existed in Senegal. Distinguished African Statesmen attended the William Ponty Ecole Normal Superieure at Sébikotane.
Senegal invested very early in Senegalese and African management training.
The country has a good number of highly competent experts in a wide range of fields.

Besides, several Senegalese executives are attested to by serious references in European or American universities.

Ambitious programs to rationalize the education chart

• Senegal is the first country in Africa to have defined a model of taking responsibility for infancy through the setting up of establishments for introduction and approval of new technologies, the famous "toddler cabins". A schedule for the construction of 28.000 boxes is planned.

• In elementary, average or secondary teaching, the plans initiated focuses around increasing schooling rates generally and the professionalisation of schools and colleges with a particular accent on the quality of training.

• For technical and the vocational training, will be about promotion the modernization of training while implementing multipurpose resource centers, sufficiently flexible to meet the needs for pre-qualification and training of girls and boys in the cities and in the country.

• Concerning higher education, the programs aim especially at the adaptation of the training to the market needs, by the reinforcement of scientific and technical research. There is also the development of the university chart with the progressive installation of the regional university colleges to bring students closer to their media.

Leadership as regards intellectual services to the companies
The Senegalese education system is today characterized by the existence of two big national reference universities and several big university training schools. These ensure training in disciplines like information technology, sciences, medicine, economics/administration, management, marketing….

The students receive bilingual instruction and courses via the satellite. The majority of the big schools function in partnership with eminent European or American universities and deliver certificates from these training. This expertise is very present in state of art companies and multinationals represented in Dakar.

A fixed rate of exchange, a common currency
CFA franc is fixed against the Euro at the rate of 1 Euro= 655,957 F CFA (1FF = 100 FCFA). Senegal shares a common currency with the 8 countries of the UEMOA Community of which it is a member. A Central Bank (BCEAO) is in charge of managing the monetary policy of the zone.

Modern and powerful infrastructures

• Senegal has a big road network of 14.500 km. Roads are used for more than 90% of traffic of goods and services.

• The road sector has today undergone a significant reorganization with the creation of a Road Council (RC) and an autonomous Road Works Agency  (AATR) on one hand, and the reorganization of the Public Work Management, on the other.

• A second sectoral Transport program (PST2) at a cost of 165 billion Francs CFA is in progress of which 70% is devoted to the road sector.

• Several projects were launched in 2004 concerning the construction and rehabilitation of the network, like the construction of bridges. Urban exchangers and development of crossroads will be carried out by 2005 to improve urban mobility in a notable manner. The road elongation project of the Northern slip roads is in an advanced stage.

• The Urban Mobility Development Programme financed by the World Bank.

The railroad

The railway network covers 1057 km of rail line of including 905 km representing the main network and 152 km of minor roads. It is composed of two main lines: the Dakar – Kidira line (Malian border) and the Thiès - Saint-Louis line, which is currently not being exploited commercially.

Following tender bids, the Canadian group Canac-Getma was retained to ensure the integral management of the Dakar-Bamako line. On the basis of a concession contract, the Group embarked on the investment of around forty billion for bringing it up to standards and for maintenance of the network.

Finally, the ultimate aim is the development as well as the progressive restructuring of the railway network which will have to move from a metric gauge to a standard gauge system called "great gauge"

Airports
Senegal has 3 international airports: Dakar, Saint-Louis and Ziguinchor. However 15 airports are theoretically opened to public air traffic. The Léopold Sédar Senghor International airport at Dakar manages most of the traffic because it can receive all the kinds of planes including the large transport aircrafts.

With a regular average growth of 7% per annum for over a decade, and a passenger traffic of 1.2 million people for 35 000 flights per year, The Dakar airport is today a platform of utmost importance in the region. It is the first UEMOA airport in terms of passenger traffic and is placed at eighth rank in Africa after Johannesburg and the airports of the Maghreb.

Air Senegal International (ASI), created in partnership with Morocco in 2001 today serves 17 destinations starting from Dakar. ASI and South African Airways came together to achieve by sharing, two Johannesburg – Dakar-New York flights per week. Similarly ASI ensures two daily round trips between Paris and Dakar and two weekly Lyon-Marseilles flights. ASI traffic doubled in one year to reach 25 000 passengers, workforce has tripled in 2 years and counts 400 employees.

The Port of Dakar
The Port of Dakar benefits from an exceptional geographical position because it is located on the highest point on the West African coast, it is a true crossroad for a number of sea routes between Europe, North and South America and the African continent.
The terrestrial field of the port covers a surface of 3 million 260 thousand square meters with:

• 10 kilometers of quay

• 40 stations with quay for ships drawing 11 meters maximum

• 80.900 m2 of quay leveled for short duration storage

• 170.600 m2 of plain area (park with containers)

• 60.597 m2 of covered area

The Dakar Port is basically used by container ships, cargo liners, carriers, Tankers, fishing vessels. Big companies are established there to offer a wide range of services and various harbor facilities. The port  also has:

• infrastructures reserved for transit towards the countries of the mainland (Mali, Burkina Fasso).

• A naval repair infrastructure sheltering one of the most important repair yards in the entire West African coast.

• Railway infrastructure connected to the national and international rail network comprising two main lines open to transport of goods.

The Port of Dakar is engaged in an important modernization programme with the construction of a loop line of 1.2 km for the container Terminal, of a distribution platform, a third container Terminal, infrastructure for fruit and vegetables, and a harbor station. Completion of the Bargny ore port will put the Dakar Port in the scheme of a real 3rd millennium Port.

Telecommunications
Senegal has invested, in the recent years more than any other African country in the sector of telecommunications. In 1994, Senegal was classified at the head of the sub-Saharan African countries by the International Union of telecommunications for the rate of telephone line penetration and the quality of the service.

In the field of telecommunications, Senegal is in the position of an uncontested leader in West Africa with an increasing modernization of its technological means: operation of under-water fiber – optic links connecting Africa, Europe, America and Asia; development of network IP (Internet Protocol); acquisition of ADSL technology covering the entire territory by optical fiber; securing of transmission thanks to the network of loops SDH (Synchronous DIGITAL Hierarchy) which surrounds the country.

Mobile telephony has seen terrific progress in Senegal. At the beginning of 2001, the number of mobile lines exceeded that of fixed lines. Today the number of mobile subscribers is estimated at 700.000, making 4.8 % rate of telephone usage. The same for the 2nd half of 2004, the national Company of Telecommunications (Sonatel) will not exercise monopoly of exploitation any more, on fixed, national and international Telephony.

A legal and renewed framework
Senegal undertook big scale reforms to liberalize its economy and to ensure effectiveness and transparency .It still has many advantages to guarantee the safety and the success of the investments under the most favorable conditions.

Great advantages are granted the investors through various instruments of support, incentives and accompaniment to the creation and development of their activities. The system works in the following way:

The tax and customs operations
With the recent tax reform, the General Tax Code brings our system closer to the international standards by providing the basis for the lowering of the marginal rate of tax on the capital substantially.
Indeed the lowering of the taxation is initiated thanks to the license reform, with the reduction of the rate of duties on companies (which goes from 35% to 33%) and to the extension of accelerated mode of payment.

As for the code of the customs, it envisages a whole array of economic modes intended to facilitate, under certain conditions, the operations of:

The Code of the investments

Within the framework of the constant amelioration process of the business environment in order to stimulate private investment, the State of Senegal promulgated a new code of investments.

The new code answers to the following objectives :

- Improvement of the competitiveness of Senegal in terms of incentives offered to the
  investors
- Consistency with the tax reform
- Employment creation
- Decentralization of the production activities
- Intensification of the existing industrial fabric

Major innovations
The new code is unique because of a set of innovations aimed at boosting private investment in strategic sectors, among which:

institution of an investment tax credit for investments of an amount equal to 40 % of the investments in fixed assets, over a period of five (05) years period and a maximum, for each financial year, to 50 % of the taxable profit for the new companies and 25 % for extensions;

Enlargement of the application field of the code to strategic sectors (tele services, industrial parks, cyber-villages, commercial complexes)

Lifting of the ceiling of the amount of investments projected in the services;

Encouragement of high intensity activities of manpower and incentives for the creation of employment in other regions apart from Dakar.

demarcation between investment phase and that of exploitation, which makes it possible for the investor to enjoy the exploitation advantages entirely for the period envisaged of five (05) years and for the Administration to collect all information relating to the realization of the approved program and starting of the activities;

Respect of the provisions of the Environment Code;

Abolition of the requirement for own capital stocks.

Investment Code

TITLE I: DEFINITIONS AND AREA OF APPLICATION

ARTICLE 1: DEFINITIONS

For the purposes of this Code :

1. Company: Any transformation and/or distribution production unit, of goods and services, for the purpose of profit be it in legal form, or that of a physical or legal entity.
2. New Company: Any newly created economic entity engaged in the process of carrying out an eligible investment programme, with a view to start operations
3. Expansion: Any approved investment programme, initiated by an existing company and which engenders:
   
   - Increase of at least 25% of the production capacity or of fixed assets
   
   - or an investment in production infrastructure of at least 100 million F CFA
    
4. Investment: Capital used by any person, physical or legal entity, for the acquisition of personal property, material and otherwise and to provide initial establishment costs as well as working capital requirements which are absolutely necessary for the creation or expansion of companies.
    
5. Working Capital Requirement: Part of the investment necessary for carrying out finance of the running expenses of the company.
    
6. Investor: Any person, physical or legal entity of Senegalese nationality or otherwise, carrying out investment operations on Senegalese territory according to the conditions specified in the framework of this Code.

ARTICLE 2 : Eligible Sectors

This Code applies to all companies engaged in one of the following sectors:

• agriculture, fishing, livestock farming and storing of vegetable, animal or halieutic based products;

• production and transformation manufacturing activities;

• Extraction or transformation of mineral substances;

• Tourism, recreation and tourist industry, other hotel services;

• Cultural activities (books, disc, cinema, documentation centres, audio-visual production centres etc.)

• Services engaged in the following sub-sectors:

1. Health

2. Education and Training

3. Assembly and Maintenance of industrial equipment

4. Tele-services

5. Air and Sea Transport

        - Airport, Rail and Harbour infrastructure;
        - Construction of commercial complexes, industrial parks, tourist zones, cyber villages
          and craft centres

Trade activities defined as products bought on as is basis from outside the company are specifically excluded from the area of application of this Code.

The eligible activities with specific codes or the status of export free company are also excluded from the area of application of this code.

Items allowed under specific conditions are also excluded from the approved investment programmes of the Investment Code.

Besides, locally acquired second hand items are not taken into account in the amount of tax credit granted by the Code of Investments.

ARTICLE 3: Treaties and Accords with other States

The provisions of this Code do not pose any obstacle to the privileges and guarantees from the treaties and accords concluded or in the process of being signed between the Republic of Senegal and other States.

TITLE II: GUARANTEES, RIGHTS, LIBERTIES AND OBLIGATIONS OF THE COMPANY

ARTICLE 4: Guarantees and Protection of Ownership

In the conditions considered by the applicable laws and regulations, private ownership of all movable and non movable goods, material or otherwise, is protected, in all legal and commercial aspects, its composition and break-up, communication and contracts concerning it.

The company is particularly protected against any nationalization, expropriation or requisition measure across the entire national territory, except for the sake of public utility, legally considered. Where appropriate, the company will benefit from a fair and pre fixed compensation.

ARTICLE 5: Guarantee of access to foreign currency

The acquisition of the necessary foreign currency for the activities of the company is not limited to Senegal. The company is, as a consequence, guaranteed that no restriction can be imposed on it, for its foreign currency requirements, especially for:

- making its normal and running expenses;
- finance its equipment and provision of various services, especially those undertaken with
  physical or legal entities outside Senegal.

These payments, as well as the transfer operations, content of the following articles 7 and 8, however remain subject to the necessary justification required by the exchange regulations in force in Senegal

ARTICLE 6: Free Transfer of Capital

The liberty of the company to transfer income on all kinds of products, as a result of their exploitation, transfer of its active factors or its liquidation, is certified as conforming to the laws in force.

The same guarantee is extended to investors, entrepreneurs or associates, physical or legal entities, non citizen of Senegal, concerning their share of profits, the income from the sale of their share, retraction of contribution in kind, their share in splitting the bonus after liquidation.

ARTICLE 7: Guarantee of Transfer of Remuneration:

The liberty to transfer all or some of the remuneration, be it of a legal nature and the amount expressed in local currency or foreign currency, is also guaranteed to any member of the personnel of the company, third country national in a position to justify, if required, the legality of his presence in Senegal.

ARTICLE 8: Guarantee of Access to Raw Material

The liberty to free access of raw material in its natural or semi-processed state, produced all across the national territory is guaranteed. Deals or practices endangering competition are barred by law.

ARTICLE 9: Equal Treatment

Physical or legal entities to whom Article One applies, may, within the framework of laws currently in force, acquire all rights of any nature involving property ownership, concessions and administrative authorization and participate in government contracts on the open market.

ARTICLE 10: Regardless of the nationality, of the physical or legal entities to whom Article One of this Code apply, receive, under the provisions of title III, the same treatment in view of rights and obligations resulting from Senegalese legislation and concerning the exercise of activities defined in article 2 above.

In this regard, foreign physical or legal entities receive equal treatment to Senegalese nationals under the provisions of reciprocity and without prejudice to rules concerning all foreign nationals or result from provisions of treaties and agreements to which the Republic of Senegal is party.

ARTICLE 11: The foreign physical and legal entities receive the same treatment under the provisions of the treaties and agreements to which the Republic of Senegal is party.

ARTICLE 12: Settlement of disputes

All disputes arising as a result of interpretation or application of this Code to which no amicable solution could be reached are settled by the competent Senegalese Courts according to the laws and regulations of the Republic.

Disputes between foreign physical or legal entities and the Republic of Senegal concerning application of this Code are settled according to reconciliation proceedings and arbitration following:

- either common agreement between the two parties

- or Agreement and Treaties concerning the protection of investments, signed by the Republic of Senegal and the State of which the investor is a national.
 

ARTICLE 13:Rights and Liberties of the Company

Subject to respecting its obligations, as specified in the following article, the company enjoys full and total economic and competitive liberty. It is particularly free to:

- acquire goods, fees and royalties of any kind, necessities for its activities, such as landed
  property, movable property, fixed assets, commercial, industrial or forest;

- to avail of those acquired royalties and goods;

- to be part of any professional organization of its choice;

- to choose its technical, industrial, commercial, legal, social and financial management
  methods;

- to choose suppliers and service providers as well as partners;

- to participate in tender bids on the open market, across the entire territory;

- to choose its management policies on human resources and to freely recruit its
  administration personnel.

ARTICLE 14: Obligations of the Company

All companies are bound to respect the following general obligations across the entire territory of Senegal :

- conform to the legislation of Senegal, especially with regard to the laws and regulations
  governing the creation of and the functioning of companies; respect of public order;
  consumer and environmental protection;

- observe the rules and norms already imposed on the products, in its country of origin, in
  such a way that all the national regulations specified above are complied with;

- provide all information deemed necessary, to ensure adherence to the requirements of this
  code.

TITLE III : PREFERENTIAL REGIMES

ARTICLE 15 : Priority objectives

The priority objectives are:

a) the creation of new companies
b) creation of employment
c) establishment of companies in the interior regions
d) the development of existing companies
 

ARTICLE 16: Nature of the special privileges granted within the framework of this Code.

Only customs, financial and social privileges specified in articles 18 and 19 hereafter can be accorded to the companies during the investment and exploitation phases.

ARTICLE 17: Eligibility Requirements to special privileges

All investors can claim the special privileges granted within the framework of this Code, on condition of the following:

• The amount of investment planned for, understood by this Code, to be equal or higher than on hundred million (100 000 000) F CFA for production activities of eligible goods and services with the exception of those for which a specific ceiling has been fixed by decree;
   

• Concerning the system for new companies, the investment planned for should allow for the creation of a new activity not resulting from any or other legal modifications of an entity already having exploited assets specific to the targeted activity and whose acquisition is provided for in the framework of the programme for which the application has been made.

ARTICLE 18: Special privileges granted to the investor during the realisation phase of the investment. These privileges cover a period of 3 (three) years as follows:

- Exemption from customs duty on importation of equipment and material that is neither produced nor manufactured in Senegal and which are specifically manner meant for production or usage within the framework of the approved programme;

The modalities for exemption of spare parts of tourism vehicles, when specified in the approved programme, and commercial vehicles will be fixed by decree;

- Exemption from value added tax due on equipment and materials that are not manufactured in Senegal and which are specifically meant for production or usage within the approved programme following the modalities that are specified by decree.

- Exemption from value added tax billed by local suppliers on goods, services and work required for the execution of the approved programme

ARTICLE 19: Privileges accorded during the exploitation phase

Operational requirements for new companies:

- Exemption from an all inclusive contribution borne by Employers for five years.

If the jobs created within the framework of the approved investment programme are higher than 200 or at least 90% of the jobs created are outside the Dakar region, this exemption is extended up to eight days.

Advantages attached to taxable profits:

Under taxable profits, new approved companies are authorised to deduct from the taxable amount of profit a part of investment, the nature of which shall be defined by decree.

For new companies, the amount of authorised deduction is fixed at 40% of the amount of approved investment. For every financial year, the amount of deductions should not exceed 50% of the taxable profit.

These deductions can be spread over 5 successive financial years, at the end of which, the balance and the authorised abatement not used is neither chargeable nor reimbursable.

Expansion Programmes:

- Exemption from an all inclusive contribution borne by Employers for five years.

If the jobs created within the framework of the approved investment programme are more than 100 or at least 90% of the jobs created are outside the Dakar region, this exemption is extended up to eight days.

Under taxable profits, the approved expansion projects are authorised to deduct from the taxable amount of profit a part of its investments the nature of which shall be defined by decree.

For the approved expansion projects the amount of authorised deductions is fixed at 40% of the amount of approved investment. For every financial year, the amount of deductions should not exceed 25% of the taxable profit.

These deductions can be spread over 5 successive financial years, at the end of which, the balance and the authorised abatement not used is neither chargeable nor reimbursable.

Concerning physical entities, the reduction extended by this Article is not concurrent with the requirements for reduction of investment taxes provided for in the general Tax Code.

b) Other Privileges

For both new companies and expansion projects, the workers recruited starting from the date of establishment of exploitation privileges after notification from the investor of the initiation of his activities, are assimilated into workers contracted as staff to execute the work borne out of an increase in activities according to the work regulations.

Thereafter, the companies can sign with the recruited workers, starting from the date of approval, work contracts for a specific period, within a limited time frame of five years.
 

ARTICLE 20: Approval request file

Any investor, desirous of benefiting from specific privileges provided for in this Code, has to deposit an approval request file with APIX or the competent authority appointed for the purpose.

This file should necessarily contain all precise information on the investor, information on the programme, especially the nature, the size, as well as all information necessary for issuance of approval thereafter.

Besides this file, in case of extension the company should provide a tax certificate.
 

ARTICLE 21: Preparation and Issuance of the Approval

The approval request is prepared and the response given, in writing to the investor within a period not exceeding 10 working days, starting from the date of deposit of the request with APIX or the competent authority.

If, at the end of this period, no response is given, the approval is considered granted. In this case, the receipt of deposit of the request is deemed authentic and stands for approval. The competent authority is therefore bound to issue the approval.

The approval has to be in writing, with the name, date and signature of the competent authority. It also has to be detailed, complete and precise, and specifically indicate the special privileges granted.

The approval is issued in two phases:

- Approval with the privileges accorded during the carrying out phase.

- Approval with the privileges accorded during the exploitation phase.

On the contrary, the notification made by APIX or by the competent authority to the investor has to include all the privileges that will be accorded to it during the realisation stage as well as that of exploitation.

Refusal to issue the approval has to be in writing and made, expressly pointing out the nature of non conformity of the application to the conditions put forth for eligibility to the special privileges accorded in the framework of this Code.

ARTICLE 22: Obligations of the investor benefiting from an Approval:

Besides the general obligations instituted by Article 14, preceding, any investor benefiting from an Approval is bound to satisfy the following obligations:

- At the end of each year, report to APIX or the competent authority developments concerning the project

- Declare to APIX or the competent authority, the date of initiation of the activity whose plan was approved and submit a summary of the work realised.

- Permit the competent authority to proceed with monitoring of conformity of the activity

- Send to APIX or the competent authority, a copy of the statistical information that all companies are legally bound to submit to the National Statistical Service.

- Ensure the company accounting system, complies with the accounting system, adopted in the framework of the West African Accounting System (SYSCOA).

ARTICLE 23: Expiry period and Conditions for withdrawal of the Approval:

The approval and the special privileges that it offers, expires at the end of the period stated in Articles 18 and 19 of this Code. Failure on the part of the investor to fulfill any of the obligations, could lead to withdrawal of the approval. This withdrawal could precede a grace period of ninety (90) days maximum, during which the investor is expected to regularise the situation.

The approval withdrawal, once pronounced, immediately renders payment of customs duties and taxes due, from which the investor was exempt, as a result of approval, without prejudice to possible legal action and sanctions.

ARTICLE 24: Sanctions for non compliance with eligibility requirements

Failure to comply with even one of the approval conditions of the preferential regime engenders suspension of the corresponding special privileges for the financial year during which the conditions were not fulfilled.

If non fulfillment of the admission conditions affects the character of the new company, the process of withdrawal of the approval, following the procedure mentioned here below is initiated.

ARTICLE 25: Obligations of approved companies

Over and above, compliance with the legal or regulatory provisions governing their activities and the conditions and obligations provided for under the terms of the approval order, approved companies should, according to the regime under which they are subject:

- Strictly observe the approved investment programmes and activities; any substantial modification to the said programme should have prior permission from the authority concerned with granting the approval;

- Comply with national and international quality standards applicable to goods and services, being dealt in

- Conform to national environmental norms applicable to their activities

- Communicate to the CUCI- Central Information Collection Centre, their financial statements at the end of each financial year

- Give employment priority to Senegalese nationals having the same competence and organise training and promotion of Senegalese nationals within the company.

TITLE IV: APPROVAL MODALITIES AND APPLICATION PROCEDURES, FINAL STATEMENTS

ARTICLE 26: Non extension of privileges

No company can claim privileges linked to one or more preferential regimes unless it is approved in the conditions provided for in this Code, nor expect those privileges to be applied to it unless the eligibility requirements are satisfied.

The duration of granted privileges to an approved company to one or more preferential regimes can neither be extended at the time of approval nor at the end of the period during which the company availed of those privileges.

ARTICLE 27: Expiry Period and Approval Withdrawal Conditions

The approval and special privileges offered expire at the end of the period mentioned in Article 23 of this Code. Failure of the Investor to fulfill any of the obligations, could lead to withdrawal of the approval. This withdrawal could precede a grace period of ninety (90) days maximum, during which the investor is expected to regularise the status.

The approval withdrawal, once pronounced, immediately renders payment of customs duties and taxes due, from which the investor was exempt, as a result of the approval, without prejudice to possible legal action and sanctions.

The authority in charge of granting the approval of this Code gives the company a formal notice to take necessary measures to correct the irregularity created by bankruptcy.

If no satisfactory response is received within ninety (90) days, from the date of sending the formal notice, the competent authority decides after having undertaken an inquiry whose report shall be communicated to the company, total or partial withdrawal of the approval.

Withdrawal decision is made by an order setting the effective date of withdrawal.

ARTICLE 28: Appeal against a withdrawal decision is only suspensive if the appeal is made to the competent Senegalese courts, within sixty (60) days, latest from the date of withdrawal notification order.

ARTICLE 29: Modification of the Code:
Modification procedure of this Code is the same as that which preceded its adoption.

ARTICLE 30: Transitional Measures:

Law 87.25 dated 18 April 1987 on the Investment Code, application clauses as well as all former provisions of the Code are hereby repealed.

However, granted before the enforcement of this code shall remain in force until the end of the approved period. They may also be admitted on request, to the regime of this Code. The request may be made within six months following the enforcement of this Code.
 

ARTICLE 31: Decrees and circulars will determine as required, the modalities of enforcement of this law which will be executed as Law of the land and shall be published in the official gazette.

This Law shall be enforced as the Law of the Land.

Dakar 6 February 2004

By the President of the Republic

Abdoulaye WADE

For the Prime Minister

Senior Minister, Minister for Interior

And Local Government

In charge of the Interim

Macky SALL

The Mode of Duty free export regime

The application field of the Duty free export company status covers agriculture in the broad sense, industry and teleservices. To be approved the company must justify a potential to export at least 80% of its turnover.

The agreement on the Duty free export company status guarantees:

The free transfer of the funds necessary for the realization of investment and of commercial and financial operations destined for the countries out of the free zone

The free transfer of salaries of foreign employees

The free transfer of dividends of foreign shareholders

The recruitment of foreign personnel without restriction

Establishment of the International Center for the settlement of the disputes relating to investments (CIRDI)

Special privileges are granted to the companies in addition to these guarantees. They have a duration of 25 years, renewable, starting from the date.

Law 2004-11 amending law EFE 95-34

The new law on BOT
Voted by the Parliament of Senegal on April 13, 2004, the new law on BOT fills a legal gap in the law for until then, it was not formally regulated as regards public/private partnership for the financing, the realization and exploitation of infrastructure in public interest.

The law on BOT henceforth governs the legal framework allowing practice of this new partnership. It is applicable to all the contracts known as "Construction, Exploitation, Transfer" CET by which the State, a local authority, a public establishment or company (called contracting authority) entrusts a third (known as operator of the project), whole or part, of the design, the financing, the realization and exploitation of a public interest infrastructure, consequently the private operator is remunerated primarily by royalties paid by the users.

The new law favors transparency in the selection procedures while guaranteeing proper execution of contractual engagements. Thus all the CET contracts are subjected to the principles of advertising and competition. It may be noted that the work of the tender bid commission created for these markets, is subject to statements made public.

The law on BOT also organizes at the same time the conditions for the working of the Council of infrastructure which must play a proper role of regulation and mediation within the framework of this partnership. This council comes in support in particular for construction from broad and durable consensus in the field of infrastructures. Only specific allocations of monitoring of the control of the projects and prevention of incidents or litigations likely to rub off execution of the contracts are conferred to it.

BOT LAW of 13 February 2004

A preferential access to regional and international markets

• Senegal is member of the West African Economic and Monetary Union (WAEMU)

• An economic union of 8 West African countries: Benin, Burkina Faso, Cote d’Ivoire, Guinea Bissau, Mali, Togo, Niger, Senegal;

• A market of 70 million consumers based on freed movement of goods and services;

• A market which is based on a common market policy with a common external tariff (tce);

• A regional money market with a secure Stock Market. Senegal is also member of the Economic community of the West African States (CEDEAO), characterized by a market of 200 million consumers (15 Member States). Created in 1975, the CEDEAO has the role of promoting economic integration in all the fields of economic activity

Senegal is at the same time member of the African union which replaced OAU and which aims at improving living conditions through the co-operation and the solidarity among countries of the continent

Senegal created along with Mauritania and Mali, the OMVS: the “Organization for the Development of River Senegal”. With Gambia, Guinea Bissau and Guinea Conakry, it sets up OMVG, the “Organization for the Development of the Gambia river”.

In respect of the multilateral agreements on trade and the principles of O.I.T.

Senegal offers an exceptional site offering a preferential access:

• For the European Market (ACP Agreements UE/);

• For the American market (law on the Africa Growth and Opportunities Act);

The Africa Growth and Opportunities Act (AGOA)

It gives 36 countries African countries, south of the Sahara, of which Senegal is a member, the opportunity to increase their exports to the American market, of more than 6000 products, exempt from customs duties ( 17.5% on average), for a period of 8 years.

This law promulgated in 2000 today represents the most important initiative taken by the United States for Africa.

It is especially interesting in that it for the first time offers Senegalese textile products, an advantageous opening on the American market which thus becomes more accessible to the textile and manufacturing companies in Senegal.

The geographical position of Senegal, halfway between Europe, Asia and America, as well as the open policy of the authorities of the countries, combined with this new preference scheme, are as appealing to the Western, Eastern industrialists as to all the continents.

Sticking to its open tradition, the State of Senegal implemented steps aimed at encouraging exploitation of AGOA opportunities by the local and foreign economic operators.

Law on the Canadian Initiative

Following the implementation of the initiative of access to the markets of the Government of Canada on January 1, 2003, exporters of certain countries including Senegal, now have an access to the Canadian market without setting up of quotas and exempted from customs duty.

The customs duties and quotas were eliminated for more than 880 products primarily in the textile and agro-alimentary sector.
 

Canadian Initiative

Good Relations with multilateral organizations

Senegal maintains excellent relations with the World Bank and the International Monetary Fund.

In Senegal, the World Bank is engaged in financing of programs aiming at reducing poverty in the fields of education, health, as well as in the infrastructure field, urban development, electricity production and distribution of potable water

The IMF finances a poverty reduction programme and reinforcement of the abilities. That also includes privatization on the basis of a transparent process of certain public companies.

Taking into account the good performances carried out by the country in the field of the macroeconomic reforms and the results obtained, the WB and the IMF recently declared Senegal eligible for the debt cancellation initiative for the poor heavily indebted countries, which makes it possible for the government to release more resources for financing of education and health.

Trade partners throughout the world

In 1999, 27 % of exports were destined for African countries, mainly within WAEMU. 43% for Europe (of which 37% went to France) and 21% for Asia. As for imports close 60% came from Europe of which the half was from France. Asia contributed for approximately 20%.

An exceptional quality of life

A charming country, open to the World

Located at the extreme western point of the continent, Senegal sideswipes the Atlantic Ocean and is located at the confluence of Europe, Africa and the two Americas. It is at the crossroads of the air and maritime main routes.

With an a surface area of 196.840 km2, Senegal is bordered by Mauritania in the North, Mali in the East, Guinea Conakry and Guinea Bissau in the South, and Gambia in the West.

Its coastline stretches more than 500 km. Its Capital city Dakar (550 km2) is a peninsula located at the extreme west of the Country.

Three rivers cross Senegal from East to West: River Senegal (1700 km) in the North, River Gambia (750 km) and River Casamance (300 km) in the South. Water bodies such as the Lake Guiers supplement the water resources of the country.

Country of Teranga

The population of Senegal is evaluated at 10,580,307 habitants. More than 25% of this population is concentrated in the area of Dakar.

The other concentration centre is the middle of the country (the groundnut basin) with more than 35% of the population. The East of the country is sparsely populated

The population is young: 55% of Senegalese below 20 years.

Senegal has about twenty ethnic groups of which the main ones are Wolof (43 %), Pulaar (24%), and Sérèr (15%)

Foreigners account for approximately 2% of the population. They are mainly in the Capital, Dakar where they are engaged in trade activities, industry, professions and international organizations. They are also in the North and the South of the country, mainly nationals of the bordering countries.

Senegal is a secular, democratically advanced country. The constitution guarantees equality to the citizens. Political dialogue is very open and here and religious faiths coexist peacefully.


There exists in Senegal a dynamic and independent private press which is developing side by side with the State media. Freedom of association is formally recognized. Today one counts about thirty publications - all categories put together. Public and private radios are expanding in Senegal.

A feature characteristic of the Senegalese is that of its legendary welcoming and hospitable nature, from which the epithet, Téranga Country, Wolof word whose meaning aptly describes these truly Senegalese virtues, is derived.

Senegal is a country that easily grows on you and it is almost impossible for a foreign visitor to resist the charm of the country. The climate is pleasant almost all through the year. The Senegalese are helpful, available and likes to share whatever they have with others. They take good care of themselves and are always well dressed.

Senegal has been independent since 1960 and its political organization is based on the French model of separation of powers. The President of the Republic is elected by universal suffrage for five years (new constitution). The National Assembly is made up of 120 members also elected for five years. Senegal has eleven administrative areas of which the administrative centres correspond to the main towns: Dakar, Diourbel, Fatick, Kaolack, Kolda, Louga, Matam, Saint- Louis, Tambacounda, Thiès, Ziguinchor.

Senegal has GMT time. The official language is French which is used everywhere in the administration and which is familiar to the majority of Senegalese. Among the six national languages, wolof is the most widespread (spoken by about 80% Senegalese) besides Diola, Sérère, Pulaar, Soninké and Mandingue.
 

Health as an essential component of the quality of life

Senegal has provided Africa with the best of doctors. The first AOF Faculty of Medicine was established in Dakar comprising great health professionals of the health who are today working in hospitals of the developed countries (in Europe and in the United States)

The technical plan of the hospitals is being gradually improved and there exists in Dakar and in the majority of the towns in the interior, private medical clinics, which offer quality care equal to that of the best referral medical centres of the world.

Resolution of the health problems is at the core of the liberal Government’s concern whose slogan is "to make it possible for all Senegalese to have access to health care be they in the city or in the country". Particular stress is put on prevention.

The Health development plan (PNDS) of which the first phase, the national Plan for Health development (PDIS) is launched, is at an advanced level of execution. It seeks laudable goals like the reduction of infant mortality, reduction in maternal mortality and knowledge of fertility, thanks to the improvement of the medical coverage and the quality of the services offered.

Hospital and pharmaceutical reform is also a priority. A new statute will confer on hospital the legal status and autonomy of management, while enabling it to put forth quality improvement objectives and the safety of care, by putting in place reliable hospital management devices.
 

Art and culture, aids to economic development

Senegal very early appreciated the role of art and culture in development. Already, under the mandate of First President Léopold Sédar Senghor, a favorable environment was created to support artists and to promote all culture professions.

For Senegalese culture to shine brilliantly, a coherent and innovative programme of the cultural sector concerning literature, music, theatre, and cinema was initiated, where this field of activities will find methods of renewing and revitalizing themselves.

Every two years, a big international rendezvous is dedicated to art and culture through the hosting by Dakar of the Biennial contemporary African art event. In the same way Senegalese fashion is starting to be universally appreciated through the impetus of talented dressmakers and designers.

To experience the country, is to also visit its art galleries museums, its single architectural sites which are under the protection of UNESCO like the Kermel market, the Ministry for Foreign Affairs, the Sandaga market or the Dakar Station. It is also to taste its good cuisine, especially, its famous fish rice, the secret and art of which is only known to the country. It is also to appreciate its craft industry and its glass paintings, to discover the richness of the objet d’art by making a trip to the museums of Dakar and Saint- Louis.

Labor

In Senegal, legal labour relations are based on the general conditions stipulated in the laws and regulations in force. These are the Labour and Social Security Code, the national inter-professional collective labour agreement or the collective labour agreements pertaining to each profession.

Employers' Obligations

• Employers are free to recruit workers of Senegalese nationality but are required to inform the Labour Ministry.

• The recruitment of expatriate workers shall be subjected to prior authorisation and their employment contract shall be submitted to the Labour Ministry for information and endorsement.

• Employers must keep legal books comprising the employer's register, the employer's book and the payroll.

• Workers must be registered with the various social bodies, namely :

• Senegalese Pensions Scheme (IPRES)

• Social Security Fund (CSS)

• Health Contingency Fund (PMI)

Types of employment contracts

There are two main types of contracts: fixed-term contract (CDD) and permanent contract (CDI):

• fixed-term contract (CDD) : a contract is said to be fixed-term when the duration is specified in advance by the two parties or when it contains a period, i.e. a future and established factor the occurrence of which terminates the contract;

• 
  permanent contract (CDI) : a contract which does not specify any period or whose duration is not stated is referred to as a permanent contract.

The Labour law also provides for the hiring contract with probationary period.

Public holidays

HOW TO INVEST
 

Go top^