Guidance
Overseas Business Risk – Senegal Contents
1. Political and Economic 2. Human Rights
3. Bribery and Corruption 4. Terrorism Threats
5. Safety and Security Advice 6. Intellectual Property
7. Organised Crime
8. UK Trade and Investment Contact 9. Useful Links
1. Political and Economic
Senegal is one of the most stable countries in Africa, and has considerably strengthened its democratic institutions since its independence in 1960.
Macky Sall, the former prime minister of Senegal, won the 2012 Presidential elections against incumbent President Abdoulaye Wade.
Although violent protests preceded the first round of voting, the electoral process was peaceful.
There is still a strong French business presence. But the country is very open to companies from other countries in Europe, North America, Asia and Africa and many are doing well in Senegal. There is a small but growing British presence too, with significant investments in the agriculture, mining, energy and services sectors.
Though initially projected at 4.9%, growth in 2014 has been revised downwards at 4.5% because of the expected negative impacts of the Ebola virus outbreak on the tourism sector (0.2 percentage points of gross domestic product [GDP]) and of delayed rainfall on the agriculture sector (0.2 percentage points of GDP). It was, however, stronger than in 2013 (3.5%) and is projected at 4.6% in 2015, driven by a revival of the
primary sector and the vitality of activities in the secondary and tertiary sectors. Associated with the execution of the “emerging Senegal plan”
(Plan Sénégal Emergent – PSE), this dynamism should continue and growth is projected at 5.0% in 2016.
The PSE is an ambitious programme which aims to achieve sustainable growth of 7% by 2018 and seeks to turn Senegal into an emerging economy by 2035. The Plan focuses on increasing productivity in the agricultural sector, developing transport infrastructure, reforming the energy sector and reinvigorating the tourism industry. This new development strategy should find expression in basic structural reforms designed to raise the potential for growth and to stimulate creativity and private initiative. The first set of 14 of the 27 flagship projects and 5 of the 17 major reforms of the PSE has been launched in 2014.
The transport infrastructure is good and improving. The port of Dakar is the second largest in francophone West Africa (after Abidjan), a new airport is due to open to commercial traffic by 2017 and an extensive road-building programme is underway. Significant investments are planned in the railway sector. The telecommunications system is also of high quality.
The World Bank report Doing Business 2015 ranked the country among the world’s top ten business environment improvers. Senegal made starting a business easier by reducing the minimum capital requirement and by reducing the time for processing building permit applications.
Minority investor protection was strengthened by introducing greater requirements for disclosure of related-party transactions to the board of directors; by making it possible for shareholders to inspect the documents pertaining to related-party transactions and to appoint auditors to conduct an inspection of such transactions; and by making it possible for shareholder plaintiffs to request from the other party, and from witnesses, documents relevant to the subject matter of the claim during the trial.
Senegal slightly improved its ranking in the World Economic Forum Global Competitiveness Index, going from 113th place to 112th between 2013 and 2014. Its ranking for 2012 was 117 out of 144 countries.
2. Human Rights
Senegal’s human rights record is generally good. A wide variety of domestic and international human rights groups generally operate without government restriction, investigating and publishing their findings on human rights cases.
The constitution and law provide for freedom of association, allow workers to form and join unions, and the government generally respects this right in practice. Senegal has a vibrant and free media. Radio is the most important medium of mass information and source of news due to the high illiteracy rate.
Some of the most significant human rights challenges include long pre- trial detention, overcrowding in prisons, and children’s rights.
3. Bribery and Corruption
Bribery is illegal. It is an offence for British nationals or someone who is ordinary resident in the UK, a body incorporated in the UK or a Scottish partnership, to bribe anywhere in the world.
In addition, a commercial organisation carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere.
The Senegalese government under President Macky Sall has taken a significant number of steps towards combating corruption and improving good governance, including the establishment of several anti-corruption agencies; such as the Ministry for the Promotion of Good Governance, the National Anti-Corruption Office, the National Commission on Restitution and Recovery of Ill-gotten Assets, and the Court of Repression of Economic and Financial Crime. The body of laws criminalising corruption is well-established in the country. Senegal has joined several international conventions such as the United Nations Convention against Corruption (UNCAC) and the African Union Convention on Preventing and Combating Corruption. In 2014, Senegal was ranked 69th of 175 countries in Transparency International’s Corruption Perception Index (CPI) a rise of 8 places compared with 2013.
However corruption remains a problem in many institutions. Companies that are asked for illegal payments should inform the British Embassy.
Read the information provided on our Bribery and corruption page.
4. Terrorism threat
Read further information in the Terrorism section of our Senegal travel advice.
5. Safety and Security Advice
Read the information provided the safety and security section of our Senegal travel advice.
6. Intellectual Property
The legal framework governing intellectual property is based on the regulation of the African Intellectual Property Organisation (AIPO) and the World Intellectual Property (WIPO), of which Senegal has been a member since 1962 and 1970 respectively.
As a result of the increased importance attached to intellectual property, the Senegalese government created the Agency for Intellectual Property and Technological Innovation. Senegal has also implemented a number of laws relating to intellectual and industrial properties, copyrights and cyber criminality.
Read the information provided on our Intellectual Property page.
7. Organised Crime
Drug trafficking – of cannabis and cocaine – is the most common form of organised crime. Money laundering is also a growing threat in Senegal, and is facilitated by booming real estate. Criminal gangs from other parts of West Africa are responsible for much of the organised crime in Senegal.
Child exploitation for the purpose of begging for alms is another form of organised criminal activity tied to religious, social and cultural practices, which complicates the implementation of control measures.
Read the information provided on our organised crime page.
8. UK Trade and Investment contact
Saliou Seck - UK Trade & Investment Officer | British Embassy, 20, Rue du Dr. Guillet X Avenue Pasteur | Dakar | Email: [email protected] | Tel: (221) 33 823 73 92
9. Useful Links
http://investinsenegal.com/-Investor-Services-.html
http://investinsenegal.com/Useful-Resources.html
