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U.S. Department of State
Senegal Country Commercial Guide
Office of the Coordinator for Business Affairs
COUNTRY COMMERCIAL GUIDE
SENEGAL
This Country Commercial Guide (CCG) presents a comprehensive look at
Senegal's commercial environment through economic, political and market
analyses.
The CCGs were established by recommendation of the Trade Promotion
Coordinating Committee (TPCC), a multi-agency task force, to consolidate
various reporting documents prepared for the U.S. business community.
Country Commercial Guides are prepared annualy at U.S. Embassies through
the combined efforts of several U.S. governement agencies.
---------------------
I. EXECUTIVE SUMMARY
---------------------
OVERVIEW
--------
WITH ITS CAPITAL CITY OF DAKAR LOCATED ON THE WESTERNMOST POINT OF
AFRICA, SENEGAL IS A GATEWAY TO THE CONTINENT. IT HAS SOME OF THE BEST
COMMERCIAL FACILITIES IN WEST AFRICA, WITH EXCELLENT INTERNATIONAL AND
DOMESTIC TRANSPORTATION LINKS. ALTHOUGH ITS INDUSTRIAL BASE IS SMALLER
THAN THAT OF RIVAL COTE D'IVOIRE, MANY COMPANIES USE SENEGAL AS A
REGIONAL CENTER OF WEST AFRICAN OPERATIONS. SENEGAL IS ALSO KNOWN AS
AFRICA'S MOST POLITICALLY STABLE COUNTRY--A FUNCTIONING MULTI-PARTY
DEMOCRACY HAS BEEN IN PLACE SINCE INDEPENDENCE FROM FRANCE IN 1960.
AFTER YEARS OF STAGNATION, SENEGAL'S ECONOMY IS SHOWING SIGNS OF A
TURNAROUND. ANNUAL GDP GROWTH HAS IMPROVED FROM A NEGATIVE RATE OF 0.8
PCT IN 1993 TO 2.3 PCT IN 1994. IN 1995, THE TARGET RATE OF GROWTH IS
4.5 PCT. THE DOMESTIC ECONOMY IN THIS SMALL, SEMI-ARID COUNTRY REMAINS
HEAVILY DEPENDENT ON AGRICULTURE, AND THUS THE AMOUNT OF RAINFALL, WHICH
MAY VARY CONSIDERABLY FROM YEAR TO YEAR. PEANUTS, FISH, AND CALCIUM
PHOSPHATES ARE THE MAJOR EXPORTS. TOURISM AND SERVICES ARE ALSO
IMPORTANT FOREIGN EXCHANGE EARNERS.
SINCE THE DEVALUATION OF THE CFA FRANC IN EARLY 1994, THE GOVERNMENT HAS
IMPLEMENTED A SERIES OF ECONOMIC POLICY REFORMS TO ENHANCE
COMPETITIVENESS. SUPPORTED BY THE INTERNATIONAL MONETARY FUND, THE
WORLD BANK, AND OTHER DONORS INCLUDING FRANCE, JAPAN, AND THE U.S.,
SENEGAL IS PHASING OUT MOST QUANTITATIVE RESTRICTIONS ON IMPORTS,
DISMANTLING MONOPOLIES, LIBERALIZING THE LABOR MARKET, AND PRIVATIZING
SEVERAL IMPORTANT STATE-OWNED INDUSTRIES.
COMMERCIAL ENVIRONMENT
----------------------
THE SENEGALESE ARE GENERALLY WELL-DISPOSED TOWARD AMERICANS, AND ARE
ACTIVELY SEEKING U.S. TRADE AND INVESTMENT. IN THE PAST, THE COUNTRY'S
HISTORIC TIES TO FRANCE AND ITS RELATIVELY SMALL DOMESTIC MARKET HAVE
LIMITED U.S. BUSINESS RELATIONSHIPS HERE. ALSO, U.S. BUSINESSES SHOULD
BE AWARE THAT DOMESTIC CREDIT IN SENEGAL IS EXTREMELY TIGHT AND
INDIGENOUS SENEGALESE FIRMS ARE TYPICALLY SMALL AND UNDERFINANCED.
FRANCE REMAINS SENEGAL'S LARGEST TRADING PARTNER, ALTHOUGH ITS SHARE HAS
BEEN DECLINING SINCE THE CFA DEVALUATION. IN 1994, FRANCE HAD A 30 PCT
SHARE OF THE USD 1.14 BILLION IMPORT MARKET, FOLLOWED BY NIGERIA WITH 19
PCT, AND THE UNITED STATES WITH 8.1 PCT. THE UNITED STATES RUNS A
SIGNIFICANT SURPLUS IN BILATERAL TRADE, EXPORTING ABOUT USD 60 MILLION
PER YEAR TO SENEGAL. MAJOR U.S. EXPORTS INCLUDE RICE, WHEAT,AND OTHER
AGRICULTURAL COMMODITIES, AS WELL AS PETROLEUM PRODUCTS, COMPUTER
EQUIPMENT, USED CLOTHING, AND COSMETICS.
MAJOR BUSINESS OPPORTUNITIES
----------------------------
ALTHOUGH SENEGAL OFFERS A RELATIVELY LIMITED INTERNAL MARKET FOR U.S.
BUSINESS, NEW EMPHASIS ON THE USE OF MARKET FORCES TO REGULATE THE
ECONOMY, THE LIBERALIZATION OF IMPORTS, AND CONSIDERABLE OPPORTUNITIES
IN TELECOMMUNICATIONS AND IN POWER GENERATION COULD SPELL INCREASED
OPPORTUNITIES FOR SALES OF U.S. PRODUCTS IN SENEGAL. OTHER BEST
PROSPECTS FOR U.S. BUSINESS IN SENEGAL INCLUDE FISHING, MINING, FOOD
PROCESSING AND PACKAGING EQUIPMENT, USED CLOTHING, PHARMACEUTICALS,
TOURISM, AGRI-BUSINESS, AND FOOD (ESPECIALLY CEREAL CROPS).
EMBASSY ASSISTANCE
------------------
EMBASSY DAKAR IS DEDICATED TO OFFERING ASSISTANCE AND COUNSEL TO
AMERICAN BUSINESS PERSONS WISHING TO EXPLORE SENEGAL'S STABLE AND
FAVORABLE ENVIRONMENT FOR INVESTMENT. EMBASSY DAKAR ALSO HAS A "PARTNER
POST" RELATIONSHIP WITH THE OVERSEAS STAFFS OF THE DEPARTMENTS OF
COMMERCE AND AGRICULTURE IN ABIDJAN.
COUNTRY COMMERCIAL GUIDES ARE AVAILABLE ON THE NATIONAL TRADE DATA BANK
ON CD-ROM OR THROUGH THE INTERNET. PLEASE CONTACT STAT-USA AT 1-800-
STAT-USA FOR MORE INFORMATION. TO LOCATE COUNTRY COMMERCIAL GUIDES VIA
THE INTERNET, PLEASE USE THE FOLLOWING WORLDWIDE WEB ADDRESS: WWW.STST-
USA.GOV. CCGS CAN ALSO BE ORDERED IN HARD COPY OR ON DISKETTE FROM THE
NATIONAL TECHNICAL INFORMATION SERVICE (NTIS) AT 1-800-533-NTIS.
--------------------------------
II. ECONOMIC TRENDS AND OUTLOOK
--------------------------------
SENEGAL IS A SEMI-ARID COUNTRY LOCATED ON THE WESTERNMOST POINT OF
AFRICA WITH A POPULATION ESTIMATED AT 8 MILLION IN 1994. ITS ECONOMY IS
DOMINATED BY AGRICULTURE, PARTICULARLY BY PEANUT PRODUCTION. THE MODERN
SECTOR INCLUDES FISHING, PHOSPHATES, TOURISM, AND CHEMICAL INDUSTRIES.
SENEGAL'S ECONOMY IS HIGHLY VULNERABLE TO DECLINING RAINFALL,
DESERTIFICATION AND CHANGES IN WORLD COMMODITY PRICES. HISTORICALLY,
POPULATION GROWTH OF NEARLY 3 PCT HAS ROUGHLY MATCHED GDP GROWTH. THE
COUNTRY STILL DEPENDS HEAVILY ON FOREIGN ASSISTANCE, WHICH IN 1994
REPRESENTED ABOUT 42.8 PCT OF THE GOVERNMENT'S BUDGET, OR CFA 272.2
BILLION (USD 544 MILLION AT THE AVERAGE EXCHANGE RATE IN 1994).
IN THE 1980S, SENEGAL WAS ONE OF THE FIRST COUNTRIES IN AFRICA TO EMBARK
ON A STRUCTURAL ADJUSTMENT PROGRAM UNDER THE TUTELAGE OF THE IMF AND THE
WORLD BANK. THE MACROECONOMIC POLICY AND STRUCTURAL REFORMS CONDUCTED
HELPED REDUCE FINANCIAL AND STRUCTURAL IMBALANCES AND ACHIEVED SOME
PROGRESS IN LIBERALIZING THE ECONOMY. BUDGET AND BALANCE OF PAYMENT
IMBALANCES WERE REDUCED, AND INFLATION WAS HELD TO A LEVEL OF ABOUT 2
PCT PER YEAR. REAL GDP GREW BY SOME 3.6 PCT PER YEAR ON AVERAGE, BUT
PER CAPITA INCOME ROSE BY ONLY ABOUT 1 PCT PER YEAR.
UNFORTUNATELY, IN THE EARLY 1990S, SENEGAL FACED MAJOR FINANCIAL AND
STRUCTURAL DISEQUILIBRIA, AND THE RATE OF ECONOMIC GROWTH BECAME LOW AND
ERRATIC. IN EARLY 1993, SENEGAL CAME VERY CLOSE TO FINANCIAL COLLAPSE.
POLITICAL CONSIDERATIONS RELATED TO THE PRESIDENTIAL AND LEGISLATIVE
ELECTIONS LED THE GOVERNMENT TO POSTPONE ADJUSTMENT EFFORTS INCLUDING
THE ADOPTION OF A REVISED LABOR CODE AND AN ACTION PLAN FOR REFORMS IN
THE AGRICULTURAL SECTOR. AS A RESULT, NEGOTIATIONS FOR FURTHER BUDGET
SUPPORT FROM THE INTERNATIONAL MONETARY FUND (IMF) AND THE WORLD BANK
WERE CANCELLED. THE ABSENCE OF BASIC MACROECONOMIC REFORM AGREEMENTS
LED TO THE SUSPENSION OF FINANCIAL SUPPORT FROM OTHER MAJOR DONORS SUCH
AS FRANCE, THE EUROPEAN UNION, AND JAPAN. TO ARREST THE DETERIORATION,
IN LATE AUGUST 1993, THE GOVERNMENT IMPOSED A PACKAGE OF INTERNAL
AUSTERITY MEASURES WHICH CONTAINED THE BUDGET DEFICIT. HOWEVER, THESE
MEASURES WERE NOT SUFFICIENT TO RESTORE ECONOMIC GROWTH AND
COMPETITIVENESS. IN JANUARY 1994, SENEGAL AND THE 13 OTHER COUNTRIES OF
THE CFA FRANC ZONE DEVALUED THEIR COMMON CURRENCY BY 50 PCT AGAINST THE
FRENCH FRANC.
MAJOR TRENDS AND OUTLOOK
------------------------
THE DEVALUATION OF THE CFA FRANC WAS AN EXPLICIT CONDITION SET BY THE
IMF AND THE WORLD BANK FOR RESUMPTION OF FINANCING FOR ECONOMIC
ADJUSTMENT. IN MARCH 1994, SENEGAL WAS THE FIRST CFA FRANC ZONE COUNTRY
TO SIGN A STAND-BY AGREEMENT AFTER THE DEVALUATION. SUBSEQUENTLY, IN
AUGUST 1994, THE GOVERNMENT NEGOTIATED A NEW THREE YEAR EXTENDED
STRUCTURAL ADJUSTMENT FACILITY (ESAF) WITH THE IMF FOR USD 192 MILLION.
ONE YEAR OF TOUGH NEGOTIATIONS HAVE LED TO THE WORLD BANK'S APPROVAL OF
SENEGAL'S PRIVATE SECTOR COMPETITIVENESS PROGRAM (PASCO). OF THE USD 40
MILLION TOTAL, USD 30 MILLION WAS DISBURSED UNDER THE PASCO DURING THE
FIRST QUARTER OF 1995. SENEGAL'S AGRICULTURAL STRUCTURAL ADJUSTMENT
PROGRAM WAS ALSO APPROVED BY THE BANK'S BOARD IN LATE MAY 1995. OF USD
45 MILLION, USD 23 MILLION WAS DISBURSED IN LATE JUNE. THE PASCO AND
THE PASA ARE CURRENTLY THE TWO MAJOR ECONOMIC POLICY REFORM PROGRAMS
SUPPORTED BY THE BANK.
MACROECONOMIC INDICATORS SHOW THAT SENEGAL HAS TURNED IN RESPECTABLE
PERFORMANCE IN MEETING THE TARGETS SET UNDER THE IMF'S ESAF PROGRAM:
ANNUAL GDP GROWTH HAS IMPROVED FROM A NEGATIVE RATE OF 0.8 PCT IN 1993
TO 2.3 PCT IN 1994, COMPARED TO AN OBJECTIVE OF 2.5 PCT. INFLATION WAS
REPORTED TO BE 33 PCT COMPARED TO A TARGETTED 39 PCT, AND THE FISCAL
DEFICIT WAS HELD TO 5.5 PCT OF GDP.
IN APRIL 1995, PARIS CLUB OFFICIAL CREDITORS GRANTED SENEGAL AN 11TH
DEBT RESCHEDULING, POSTPONING CFA 87 BILLION (USD 174 MILLION) IN
OFFICIAL DEBT PAYMENTS. CREDITORS GRANTED SENEGAL THE MOST GENEROUS
"NAPLES TERMS," WHICH MAY INCLUDE 67 PCT REDUCTION IN THE PUBLIC DEBT.
LONDON CLUB CREDITORS ALSO POSTPONED AN ESTIMATED CFA 22 BILLION (USD 44
MILLION) IN PAYMENTS TO PRIVATE SECTOR ENTERPRISES. SENEGAL IS SEEKING
SOME ADDITIONAL FOREIGN AID COMMITMENTS WITH THE DONOR CONSULTATIVE
GROUP MEETING TO BE HELD IN PARIS IN JULY 1995, THE FIRST SUCH MEETING
SINCE 1987.
DURING 1994 AND 1995, SENEGAL HAS MADE SOME ENCOURAGING PROGRESS IN THE
IMPLEMENTATION OF STRUCTURAL POLICIES AIMED AT CREATING A BETTER
REGULATORY FRAMEWORK FOR PRIVATE SECTOR DEVELOPMENT. MEASURES
IMPLEMENTED TO DATE INCLUDE:
-- THE ELIMINATION OF BARRIERS TO FREE DOMESTIC TRADE (PRICE
LIBERALIZATION OF SOAP, MILK, COFFEE, SOFT DRINKS, CEMENT, TOMATO PASTE
AND FRESH TOMATOES;
-- THE ABOLITION OF MONOPOLISTIC AGREEMENTS IN THE FOLLOWING INDUSTRIES:
CEMENT, TEXTILES, WHEAT FLOUR, TOMATO PASTE, PACKING MATERIALS, AND
FERTILIZERS;
-- THE PREPARATION OF A LIST OF 15 MAJOR PUBLIC ENTERPRISES TO BE
PRIVATIZED DURING THE NEXT THREE YEARS;
-- THE ELIMINATION OF EXPORT SUBSIDIES;
-- THE ABOLITION OF THE REQUIREMENT FOR PRIOR GOVERNMENT AUTHORIZATION
TO LAY OFF WORKERS DURING ECONOMIC DOWNTURNS.
AS THE ECONOMY ADAPTS TO THESE CHANGES, NEW OPPORTUNITIES SHOULD APPEAR
AND DIVERSIFICATION OF SUPPLY SOURCES IS LIKELY TO OCCUR.
PROSPECTS FOR 1995
------------------
GOVERNMENT OBJECTIVES ARE TO REACH A REAL GDP GROWTH RATE OF 4.5 PCT IN
1995, FOLLOWED BY 5.5 PCT IN 1996; TO LIMIT THE AVERAGE INFLATION RATE
TO 8 PCT IN 1995 AND TO 3.5 PCT IN 1996; AND TO REDUCE THE EXTERNAL
CURRENT ACCOUNT DEFICIT, EXCLUDING OFFICIAL TRANSFERS, TO 8.5 PCT IN
1995 AND TO 7.5 PCT IN 1996. THE GOVERNMENT HAS ALSO PLANNED TO
UNDERTAKE SOME IMPORTANT REFORM MEASURES BY THE END OF 1995 INCLUDING
THE PRIVATIZATION OF "SONACOS," THE PEANUT OIL PARASTATAL, AND
LIBERALIZATION OF RICE, WHEAT, AND WHEAT FLOUR IMPORTS. POTENTIAL
OBSTACLES TO ACHIEVING ECONOMIC GROWTH AND PROSPERITY INCLUDE POPULATION
GROWTH OF ALMOST 3 PCT PER YEAR, AND PERSISTENT HIGH UNEMPLOYMENT.
MAJOR ECONOMIC SECTORS
----------------------
FISHERIES
---------
THE FISHING SECTOR IS ONE OF THE MOST ECONOMICALLY IMPORTANT IN SENEGAL.
IT PRODUCES 8.5 PCT OF GDP, EMPLOYS 200,000 PERSONS AND ACCOUNTED FOR
27.3 PCT OF TOTAL EXPORTS IN 1994 (USD 240 MILLION). IN 1995, THE
SECTOR IS EXPECTED TO YIELD CFA 127 BILLION (USD 254 MILLION), AN
INCREASE OF 6 PCT OVER 1994 IN DOLLAR TERMS. FAVORABLE WORLD PRICES,
MARKET DIVERSIFICATION, AND COMPETITIVE PRICING AS A RESULT OF THE CFA
DEVALUATION HAVE HELPED BOOST SENEGALESE FISHING. HOWEVER, AN AGING AND
OUTMODED FLEET, THE THREAT OF OVERFISHING, AND STIFF COMPETITION FROM
SOUTH ASIA CONTINUE TO HAMPER THE DEVELOPMENT OF THE FISHING SECTOR.
MINING
------
MINING OUTPUT CONSISTS MAINLY OF CALCIUM PHOSPHATE, ALTHOUGH PLANS TO
DEVELOP GOLD AND IRON ORE ARE UNDERWAY. IN 1994, PHOSPHATE AND
PHOSPHATE PRODUCTS ACCOUNTED FOR 19 PCT OF TOTAL MERCHANDISE EXPORT
EARNINGS (USD 162 MILLION). NEW MARKETS IN ASIA AND AFRICA HAVE
COMPENSATED FOR THE REDUCTION OF EUROPEAN DEMAND. THE GOVERNMENT
PREDICTS THAT EARNINGS FROM PHOSPHATES WILL REMAIN STABLE IN 1995.
PHOSPHATE MINING ACCOUNTS FOR LESS THAN 2 PCT OF SENEGAL'S GDP AND
EMPLOYS OVER 2,000 PEOPLE.
PEANUTS
-------
PEANUT PRODUCTION ENGAGES 42 PCT OF CULTIVATED LAND AND PROVIDES INCOME
FOR MORE THAN ONE MILLION PERSONS. THE SECTOR CONTINUES TO SUFFER FROM
A SHRINKING MARKET, AND PRODUCTION IS FALLING DUE TO SOIL DEPLETION AND
THE UNCERTAINTY OF RAINFALL. EXPORTS OF PEANUT PRODUCTS REACHED USD 27
MILLION IN 1994 AND REPRESENTED ONLY 3.1 PCT OF TOTAL EXPORT EARNINGS.
PETROLEUM
---------
NO OIL IS PRODUCED IN SENEGAL, BUT THE COUNTRY IMPORTS BOTH CRUDE AND
REFINED PETROLEUM PRODUCTS. THE SOCIETE AFRICAINE DE RAFFINAGE (SAR)
OIL REFINERY OWNED BY THE GOVERNMENT AND A CONSORTIUM OF DISTRIBUTORS
HAS A CAPACITY OF 1.2 MILLION TONS PER YEAR. IT ACTS AS A SERVICE
OPERATION FOR ITS SHAREHOLDERS (ELF AQUITAINE, TOTAL, SHELL, AND MOBIL).
PART OF ITS OUTPUT IS EXPORTED TO MALI, MAURITANIA AND THE GAMBIA.
TOURISM
-------
THE TOURISM INDUSTRY HAS COME TO PLAY AN IMPORTANT ROLE IN THE ECONOMY.
THE HIGH SEASON IS DECEMBER-FEBRUARY, WHEN SENEGALESE WEATHER IS AT ITS
MOST ATTRACTIVE. FRENCH TOURISTS MAKE UP THE BULK OF ARRIVALS, BUT
EFFORTS ARE BEING MADE TO ATTRACT VISITORS FROM NORTH AMERICA AND OTHER
EUROPEAN COUNTRIES. ABOUT 346,000 TOURISTS CAME TO SENEGAL IN 1994.
FOREIGN INVESTMENT IN HOTELS IS DOMINATED BY THE FRENCH.
GOVERNMENT ROLE IN THE ECONOMY
------------------------------
THE GOVERNMENT IS STILL FAR AND AWAY THE COUNTRY'S LARGEST EMPLOYER AND
CONSUMER AND PLAYS A DOMINANT ROLE IN MUCH OF SENEGAL'S ECONOMIC
ACTIVITY. DESPITE MEASURES TO PRIVATIZE STATE-OWNED COMPANIES, IT STILL
HAS MAJORITY PARTICIPATIONS IN THE TELECOMMUNICATIONS, TRANSPORT,
MINING, AND THE ELECTRIC POWER INDUSTRIES. ALTHOUGH THE GOVERNMENT IS
TRYING TO CREATE AN ENABLING ENVIRONMENT FOR PRIVATE SECTOR DEVELOPMENT,
THERE IS STILL NOTICEABLE HESITANCY FROM THE PRIVATE SECTOR TO UNDERTAKE
NEW INVESTMENT.
IN IMPLEMENTING KEY ECONOMIC REFORMS, THE GOVERNMENT IS COMMITTED TO
PRIVATIZE 15 ENTERPRISES DURING THE NEXT THREE YEARS. THE PRIVATIZATION
PROGRAM INCLUDES THE FOLLOWINGS PARASTATALS: SONACOS (PEANUT OIL),
SONEES (WATER), SENELEC (ELECTRCITY), SONATEL (TELECOMMUNICATIONS), AND
SSPT (PHOSPHATES). SO FAR PROGRESS HAS BEEN SLOW. IT IS NOT CLEAR WHAT
THE SOURCES OF FINANCING FOR THE SALE OF THE 15 COMPANIES TO BE
PRIVATIZED WOULD BE FOR LOCAL INVESTORS.
STRUCTURALLY, THE GOVERNMENT'S 1995 BUDGET PRIORITIES REMAIN THE SAME AS
IN PREVIOUS YEARS. ITS INVESTMENT PROGRAM FOCUSES PARTICULARLY ON
AGRICULTURE, ON PUBLIC SOCIAL SERVICES GROUPED AS THE "FOURTH SECTOR"
(PUBLIC HEALTH, EDUCATION, WATER SUPPLY), AND ON THE REHABILITATION AND
MAINTENANCE OF EXISTING INFRASTRUCTURE.
BALANCE OF PAYMENTS
-------------------
DURING 1994, SENEGAL'S BALANCE OF PAYMENTS IMPROVED SLIGHTLY. THE
MERCHANDISE TRADE DEFICIT DECREASED BY NEARLY 32.8 PCT. IN 1994, TOTAL
EXPORT EARNINGS WERE STRONG ENOUGH TO COVER 75 PCT OF IMPORTS, COMPARED
TO 63 PCT IN 1993. EXCEPTIONALLY HIGH LEVELS OF FINANCIAL ASSISTANCE
FROM DONORS AND THE PARIS CLUB DEBT RESCHEDULING LIMITED THE CURRENT
ACCOUNT DEFICIT TO THE EQUIVALENT OF 1.0 PCT OF GDP IN 1994, AND CLOSED
THE FINANCING GAP.
INFRASTRUCTURE SITUATION: GOODS/SERVICE DISTRIBUTION
-----------------------------------------------------
SENEGAL HAS A GENERALLY WELL-DEVELOPED BUSINESS INFRASTRUCTURE,
ESPECIALLY WHEN COMPARED TO OTHER COUNTRIES IN THE REGION.
THE AIRPORT AT DAKAR-YOFF IS ONE OF THE PRINCIPAL INTERNATIONAL AIRPORTS
IN WEST AFRICA AND CAN HANDLE ALL TYPES OF AIRCRAFTS ON ITS TWO RUNWAYS.
DAKAR-YOFF AIRPORT SERVES MORE THAN 24 INTERNATIONAL AIRLINES, HANDLES
APPROXIMATELY 1.5 MILLION PASSENGERS PER YEAR, AND MOVES MORE THAN
20,000 METRIC TONS OF INTERNATIONAL AIR FREIGHT. THERE ARE DIRECT
FLIGHTS TO EUROPE AND NORTH AMERICA, AND FREQUENT FLIGHTS TO OTHER
AFRICAN COUNTRIES. SECONDARY AIRPORTS ARE LOCATED IN THE REGIONS OF
SAINT LOUIS, TAMBACOUNDA, AND ZIGUINCHOR.
SENEGAL'S RAIL NETWORK, WHILE SOMEWHAT ANTIQUATED, CARRIES MORE THAN 3
MILLION TONS OF CARGO PER YEAR. IT LINKS SENEGAL'S MAJOR CITIES TO THE
CAPITAL, AND PROVIDES SERVICE BETWEEN SENEGAL AND MALI.
DAKAR'S PORT HAS MORE THAN 9,000 METERS OF QUAYS AND 43 BERTHS, OF WHICH
40 ARE SUITABLE FOR SHIPS UP TO 40,000 MT. THE PORT IS ONE OF THE FEW
IN AFRICA WITH A FLOATING DRY DOCK, A CONTAINER TERMINAL, AND CONTAINER
SERVICE. IT HAS A FISH PIER WITH SITES RESERVED EXCLUSIVELY FOR COLD
STORAGE AND REPAIR, AND MAINTENANCE OF FISHING FLEETS. HOWEVER, PORT
CHARGES ARE HIGH AND SERVICE IS INEFFICIENT; THE VOLUME OF TRANSIT TRADE
FOR MALI HAS FALLEN AS FIRMS IN MALI HAVE CHOSEN TO BRING IN A GROWING
PERCENTAGE OF THEIR TARDE VIA ROAD FROM COTE D'IVOIRE.
---------------------------
III. POLITICAL ENVIRONMENT
---------------------------
BILATERAL RELATIONSHIP WITH THE UNITED STATES
---------------------------------------------
SENEGAL ENJOYS AN EXCELLENT RELATIONSHIP WITH THE UNITED STATES. THE
GOVERNMENT OF SENEGAL IS KNOW AND RESPECTED FOR ITS ABLE DIPLOMATS AND
HAS OFTEN BEEN SUPPORTIVE OF THE U.S. IN THE UNITED NATIONS, INCLUDING
IN TROOP CONTRIBUTIONS FOR PEACEKEEPING ACTIVITIES. SOME 200 SENEGALESE
STUDENTS COME TO THE U.S. EACH YEAR FOR STUDY. THE U.S. AGENCY FOR
INTERNATIONAL DEVELOPMENT PROVIDES APPROXIMATELY 30 MILLION DOLLARS PER
YEAR IN ASSISTANCE.
SYNOPSIS OF POLITICAL SYSTEM
----------------------------
SENEGAL IS A REPUBLIC WITH AN ELECTED PRESIDENT, ABDOU DIOUF, WHO HAS
BEEN IN OFFICE SINCE 1981. THE COUNTRY HAS A UNICAMERAL LEGISLATURE
WHICH HAS BEEN CONTROLLED BY THE PRESIDENT'S SOCIALIST PARTY SINCE
INDEPENDENCE FROM FRANCE IN 1960.
PRESIDENT DIOUF AND THE SOCIALIST PARTY AGAIN WON PRESIDENTIAL ELECTIONS
IN FEBRUARY 1993 AND LEGISLATIVE ELECTIONS IN MAY 1993, GAINING 84 OF
120 NATIONAL ASSEMBLY SEATS. THE OPPOSITION PARTIES, LED BY THE
SENEGALESE DEMOCRATIC PARTY, WON 27 SEATS. THOUGH DIOUF AND THE
SOCIALISTS CLEARLY HAD MAJORITIES, BOTH ELECTIONS WERE MARRED BY
ACCUSATIONS OF FRAUD AND IRREGULARITIES.
PRESIDENT DIOUF'S MANDATE RUNS TO THE YEAR 2000. MUNICIPAL ELECTIONS
WILL BE HELD IN LATE 1995.
POLITICAL ISSUES AFFECTING BUSINESS CLIMATE
-------------------------------------------
DESPITE ECONOMIC DIFFICULTIES, BUSINESSES DO NOT PERCEIVE ANY IMMEDIATE
INSTABILITY IN THE POLITICAL SITUATION. THERE IS CONCERN FOR THE MEDIUM
TERM ABOUT THE GROWING PRESSURES OF POPULATION GROWTH, URBAN
UNEMPLOYMENT, AND THE RECENT ACTIVITY OF SEPARATISTS IN THE SOUTHERN
CASAMANCE REGION.
IN MARCH 1995, PRESIDENT DIOUF ENLARGED HIS GOVERNMENT TO INCLUDE FOUR
OPPOSITION PARTIES. ABDOULAYE WADE, FOR MANY YEARS THE MOST INFLUENTIAL
OPPOSITION FIGURE, AND HIS SENEGALESE DEMOCRATIC PARTY (PDS) TOOK FIVE
MINISTERIAL PORTFOLIOS OUT OF A TOTAL OF 34 SEATS. WADE ACCEPTED THE
POST OF MINISTER OF STATE WITHOUT PORTFOLIO, REPORTING DIRECTLY TO
PRESIDENT DIOUF. OPPOSITION PARTIES TEND TO BE PERSONALITY-DRIVEN AND
THEIR APPROACH TO ECONOMIC MATTERS DOES NOT DIFFER PERCEPTIBLY FROM THAT
OF THE RULING SOCIALIST PARTY. THE RULING SOCIALIST PARTY RETAINS ITS
STRENGTH, ESPECIALLY IN THE COUNTRYSIDE.
SENEGAL'S HUMAN RIGHTS RECORD IS POSITIVE. THE SENEGALESE ARMY IS NON-
POLITICAL AND HIGHLY PROFESSIONAL. WHILE THE JUDICIARY IS IN NEED OF
STRENGTHENING AS AN INSTITUTION, THERE IS DE FACTO AND DE JURE RESPECT
FOR CIVIL LIBERTIES, INCLUDING FREEDOM OF SPEECH AND PRESS, ASSOCIATION,
MOVEMENT, AND RESPECT FOR THE RIGHT OF CITIZENS TO CHANGE THEIR
GOVERNMENT.
-----------------------------------------
IV. MARKETING U.S. PRODUCTS AND SERVICES
-----------------------------------------
DISTRIBUTION AND SALES CHANNELS
-------------------------------
THE CAPITAL CITY DAKAR IS THE HUB OF ECONOMIC ACTIVITY AND THE LARGEST
CONSUMER MARKET IN SENEGAL. ABOUT 38 PCT OF THE POPULATION LIVES IN
URBAN AREAS AND 25 PCT IS CONCENTRATED IN DAKAR.
DISTRIBUTION OCCURS BOTH BY MODERN AND BY TRADITIONAL SYSTEMS. THE
MODERN SECTOR IS DOMINATED BY A FEW LARGE FRENCH-OWNED IMPORT-EXPORT
FIRMS THAT COVER ALL ASPECTS OF TRADE FROM IMPORTING TO RETAILING, BUT
THEIR NUMBER IS DECREASING. EXISTING ALONGSIDE THESE COMPANIES ARE
EXTREMELY COMPETITIVE SMALL-SCALE TRADERS SPECIALIZING IN THE WHOLESALE
AND RETAIL DISTRIBUTION OF FABRICS AND CONSUMER GOODS. IN THE PAST,
LEBANESE MERCHANTS WERE THE INTERFACE BETWEEN FRENCH TRADING COMPANIES
AND THE LOCAL POPULATION. NOW, THEY ARE GRADUALLY BEING REPLACED BY
SENEGALESE MERCHANTS SELLING POPULAR CONSUMER GOODS SUCH AS TEXTILES AND
ELECTRONICS.
A LIMITED NUMBER OF LARGER RETAIL STORES SUCH AS SUPERMARKETS DEAL IN
MOSTLY IMPORTED GOODS, BUT THE EFFECTS OF DEVALUATION AND DECLINING
PURCHASING POWER ARE THREATENING THEIR EXISTENCE.
THE TRADITIONAL OR INFORMAL SECTOR IS IN VIBRANT EXPANSION IN SENEGAL.
IT INCLUDES AROUND 30,000 SMALL BUSINESSES EMPLOYING 57,000 PERSONS. A
SIZEABLE PORTION OF DOMESTIC TRADE IS CARRIED OUT BY INFORMAL TRADERS IN
MUNICIPAL AND STREET MARKETS. SANDAGA, A SPRAWLING UNREGULATED MARKET
IN THE HEART OF DAKAR, IS THE CAPITAL'S PRINCIPAL DISTRIBUTION CENTER
FOR MANUFACTURED GOODS RANGING FROM TEXTILES, FOOTWEAR, AND COSMETICS TO
HIGH-TECH STEREO EQUIPMENT. INFORMAL STREET VENDORS MAKE UP A DYNAMIC,
IF SOMEWHAT MARGINALIZED, SUB-COMPONENT OF THE INFORMAL SECTOR.
TO PROMOTE THE SALE OF U.S. PRODUCTS, U.S. COMPANIES ARE ADVISED TO
PROVIDE BROCHURES AND MARKETING LITERATURE IN FRENCH.
AGENTS AND DISTRIBUTORS
-----------------------
THE SPECIFIC TYPE OF REPRESENTATION THAT A U.S. FIRM ESTABLISHES IN
SENEGAL MUST BE TAILORED TO FIT THE INDIVIDUAL REQUIREMENTS OF THE
PRODUCT AND ITS POTENTIAL MARKET. U.S. FIRMS MAY EMPLOY THE SERVICES OF
AN AGENT, APPOINT A DISTRIBUTOR OR DEALER, AND/OR ESTABLISH A DIRECT
SALES BRANCH OR SUBSIDIARY. PREFERABLY, THE AGENT OR THE DISTRIBUTOR
SHOULD BE A LOCAL BUSINESSMAN/FIRM, FLUENT IN FRENCH AND AWARE OF
SENEGAL'S BUSINESS PRACTICES. UNLESS THE U.S. EXPORTERS REQUIRES AN
EXCLUSIVE DEALERSHIP/DISTRIBUTIONSHIP, IT IS VERY COMMON TO SEE A
DISTRIBUTOR REPRESENTING SEVERAL PRODUCT LINES.
U.S. BUSINESSMEN MAY APPROACH THE U.S. EMBASSY IN DAKAR THROUGH THE
DEPARTMENT OF COMMERCE AND ITS DISTRICT OFFICES IN THE UNITED STATES TO
REQUEST AN AGENT/DISTRIBUTOR SEARCH.
FRANCHISING
-----------
FRANCHISING DOES NOT EXIST IN SENEGAL. UNDER-CAPITALIZATION OF MANY
LOCAL COMPANIES HINDERS THE DEVELOPMENT OF THIS FORM OF PARTNERSHIP.
DIRECT MARKETING
---------------
IDENTIFICATION OF MARKETS BY COMPANIES LARGELY UNFAMILIAR WITH
SENEGALESE CULTURE AND THE LOCAL BUSINESS ENVIRONMENT SERIOUSLY
CHALLENGES DIRECT MARKETING EFFORTS.
JOINT VENTURES/LICENSING
------------------------
THE SENEGALESE INVESTMENT CODE PROVIDES INCENTIVES FOR JOINT VENTURE
BUSINESS OPERATIONS. HOWEVER, JOINT VENTURE PARTNERSHIPS SHOULD SPECIFY
THE RESPONSIBILITY OF EACH PARTY SINCE MANY LOCAL ENTREPRENEURS EXPECT
THAT ALL COSTS WILL BE BORNE BY THE FOREIGN INVESTOR. ALTHOUGH
INCREASINGLY INTERESTED IN JOINT VENTURE ACTIVITIES, SENEGALESE
ENTREPRENEURS TYPICALLY HAVE LITTLE EQUITY TO OFFER.
STEPS TO ESTABLISHING AN OFFICE
-------------------------------
ESTABLISHING A BUSINESS IN SENEGAL AND QUALIFYING FOR INVESTMENT
INCENTIVES HAS BEEN SIMPLIFIED THROUGH CREATION OF THE "GUICHET UNIQUE,"
OR ONE-STOP-WINDOW. THIS IS AN OFFICE OF THE MINISTRY OF FINANCE. IT
CENTRALIZES ALL THE PAPERWORK REQUIRED FOR THE CREATION OF A BUSINESS IN
SENEGAL. MOST BUSINESSES CAN BE SET UP WITHIN 30-45 DAYS.
THE MOST COMMON LEGAL FORMS OF INCORPORATION ARE THE LIMITED LIABILITY
COMPANY (SOCIETE A RESPONSABILITE LIMITEE - SARL) AND THE STOCK
CORPORATION (SOCIETE ANONYME - SA). ALL SARLS MUST HAVE A MINIMUM PAID-
UP CAPITAL OF CFAF 500,000 (APPROX USD 1,000) AND AT LEAST TWO
SHAREHOLDERS. THE MINIMUM CAPITAL REQUIRED TO CREATE A STOCK
CORPORATIONS IS CFAF 2M (APPROX USD 4,000) WITH A MINIMUM OF 7
SHAREHOLDERS.
IT IS RECOMMENDED THAT COMPANIES CONSULT WITH THE COMMERCIAL SECTION OF
THE U.S. EMBASSY FOR GUIDANCE AND ASSISTANCE. THE EMBASSY CAN PROVIDE
NAMES AND POINTS OF CONTACT TO ENSURE PROPER REGISTRATION.
SELLING FACTORS/TECHNIQUES
--------------------------
MOST LOCAL DISTRIBUTORS OF IMPORTED MERCHANDISE EXPECT THEIR SUPPLIERS
TO PROVIDE ADVERTISING AND PROMOTIONAL SUPPORT, PARTICULARLY WHEN
INTRODUCING A NEW PRODUCT OR BRAND NAME. SALES PROMOTION MATERIAL AND
TECHNICAL DOCUMENTATION SHOULD BE IN FRENCH. THERE IS NO MAIL ORDER
MARKETING OR TELEMARKETING.
PACKAGING IN SMALL AND REUSABLE CONTAINERS IS AN IMPORTANT SELLING
FACTOR FOR CONSUMER GOODS SUPPLIERS.
ADVERTISING AND TRADE PROMOTION
-------------------------------
THE SENEGALESE MARKET IS NOT A SOPHISTICATED ONE, THEREFORE U.S.
COMPANIES DO NOT NEED TO USE ADVANCED MARKETING TECHNIQUES TO SELL THEIR
PRODUCTS. TELEVISION IS THE MOST EFFECTIVE MEDIUM OF ADVERTISING AND
THE COSTS ARE RELATIVELY MODEST: A SIXTY-SECOND SPOT ON TELEVISION
DURING PEAK HOURS (7:30 PM-9:30 PM) COSTS CFAF 498,000 (APPROX. USD
860). ADVERTISING IS AVAILABLE IN OTHER MEDIA AS WELL - NEWSPAPERS,
MAGAZINES, BILLBOARD, AND RADIO. SPONSORING A SPORTS TEAM, LOCAL BANDS
AND MUSIC STARS IS ANOTHER EFFECTIVE TACTIC: MARLBORO, FOR INSTANCE,
SPONSORS THE SENEGALESE STAR YOUSSOU NDOUR. THE ADVICE OF LOCAL MARKET
RESEARCH ORGANIZATIONS SHOULD BE SOUGHT BEFORE EMBARKING ON A PUBLICITY
CAMPAIGN. CONTACT INFORMATION FOR SENEGALESE MEDIA IS LISTED IN
APPENDIX E.
THERE ARE HALF A DOZEN NEWSPAPERS PUBLISHED REGULARLY IN SENEGAL, BUT
THE READING PUBLIC IS RELATIVELY LIMITED AND CONFINED TO DAKAR. THE
QUASI-OFFICIAL LE SOLEIL (50,000 CIRCULATION) IS A DAILY. THE MAJOR
POPULAR INDEPENDENT NEWSPAPERS INCLUDE SUD QUOTIDIEN (20,000 TO 40,000
DAILY CIRCULATION), WAL FADJRI (15,000 DAILY), THE SATIRICAL CAFARD
LIBERE (12,000 WEEKLY) AND LE TEMOIN (7,000 WEEKLY). NATIONAL
NEWSPAPERS ARE IN FRENCH WITH A WEEKLY INSERT IN ETHNIC LANGUAGES.
VARIOUS TRADE ORGANIZATIONS PUBLISH BULLETINS AND NEWSLETTERS SUCH AS
THAT OF THE DAKAR CHAMBER OF COMMERCE, "CICES-INFO" FROM THE SENEGALESE
TRADE CENTER AND THE PERIODICAL "ENTREPRENDRE" ISSUED BY THE NATIONAL
COUNCIL OF BUSINESS LEADERS.
SEVERAL EUROPE-BASED MAGAZINES ENJOY A WIDE CIRCULATION, INCLUDING JEUNE
AFRIQUE, PARIS MATCH, L'EXPRESS, LE POINT, L'EVENEMENT DU JEUDI, AS WELL
AS THE EUROPEAN EDITIONS OF TIME MAGAZINE AND NEWSWEEK.
PRICING PRODUCT
---------------
PRICE IS THE MOST IMPORTANT FACTOR IN SELLING IN SENEGAL, FOLLOWED
CLOSELY BY LIBERAL CREDIT TERMS AND
FINANCING PACKAGES.
SALES SERVICE/CUSTOMER SUPPORT
------------------------------
AFTER-SALES SUPPORT AND SERVICE IS CRITICAL FOR SOPHISTICATED AND HEAVY
INDUSTRIAL EQUIPMENT SUCH AS COMPUTER HARDWARE AND SOFTWARE,
PHOTOCOPIERS, TELECOMMUNICATIONS BIG TICKET ITEMS, AND INDUSTRIAL
MACHINERY. HOWEVER, PRODUCT RECALLS ARE VIRTUALLY UNKNOWN IN SENEGAL.
SELLING TO THE GOVERNMENT
-------------------------
GOVERNMENT PURCHASING IS A SIGNIFICANT FACTOR IN SENEGAL. NEARLY ALL
SUCH PURCHASING IS DONE THROUGH COMPETITIVE BIDDING. THIS INCLUDES
MAJOR INFRASTRUCTURE PROJECTS FINANCED BY INTERNATIONAL LENDING
ORGANIZATIONS SUCH AS THE WORLD BANK AND THE AFRICAN DEVELOPMENT BANK
(AFDB).
PROSPECTIVE BIDDERS MAY LEARN OF UPCOMING WORLD BANK PROJECTS BY
SUBSCRIBING TO THE WORLD BANK'S MONTHLY OPERATIONAL SUMMARY.
DESCRIPTIONS OF NEWLY APPROVED AFDB PROJECTS ARE ALSO AVAILABLE ON A
SUBSCRIPTION BASIS. FOR FURTHER INFORMATION ON AFDB PROJECTS, U.S.
COMPANIES MAY CONTACT MS. BARBARA WHITE, PROJECT MANAGER AFDB, OFFICE OF
FINANCE, U.S. DEPARTMENT OF COMMERCE, WASHINGTON, D.C. 20230.
PARASTATALS ARE ALSO BIG PURCHASERS OF EQUIPMENT AND SUPPLIES. CALLS
FOR BIDS ARE PUBLISHED IN THE LOCAL NEWSPAPERS. THE U.S. EMBASSY IN
DAKAR MONITORS REQUESTS FOR TENDER AND REPORTS TO THE U.S. DEPARTMENT OF
COMMERCE THOSE WHICH MAY BE OF INTEREST TO U.S. SUPPLIERS. BID
SPECIFICATIONS ARE IN FRENCH AND BIDDERS ARE REQUIRED TO SUBMIT
PROPOSALS IN FRENCH.
U.S. FIRMS CAN BID WITH THE ASSISTANCE OF A LOCAL AGENT IN ORDER TO
COMPLY WITH THE RULES AND PROCEDURES ANNOUNCED BY PARASTATALS. THE
OFFICIAL TENDERS COMMISSION ("COMMISSION DES MARCHES") IS AN
INTERMINISTERIAL WATCHDOG FOR ALL GOVERNMENT AND PARASTATAL INVITATIONS
TO BID.
PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT
---------------------------------------------
SENEGAL MAINTAINS STANDARD INTELLECTUAL PROPERTY PROTECTION SAFEGUARDS,
AND INVESTORS DO NOT REPORT PROBLEMS IN THIS AREA. SENEGAL IS A
SIGNATORY TO THE BERNE COPYRIGHT CONVENTION. IT IS ALSO A MEMBER OF
THE AFRICAN ORGANIZATION OF INTELLECTUAL PROPERTY (OAPI), A GROUPING OF
THIRTEEN FRANCOPHONE AFRICAN COUNTRIES. OAPI IS A COMMON FRAMEWORK FOR
INTELLECTUAL PROPERTY PROTECTION. THEREFORE, RIGHTS REGISTERED IN ONE
MEMBER COUNTRY ARE VALID IN ALL. PATENT VALIDITY IS TWENTY YEARS.
REGISTERED TRADEMARKS ARE PROTECTED FOR TWENTY YEARS AT EACH
REGISTRATION, RENEWABLE WITHOUT LIMIT.
REDRESS FOR INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS CAN BE SOUGHT
THROUGH THE SENEGALESE COURT SYSTEM. HOWEVER, THE LEGAL PROCEDURE IS
VERY SLOW.
NEED FOR A LOCAL ATTORNEY
-------------------------
ONCE THE DECISION TO OPEN A BUSINESS IN SENEGAL IS MADE, THE U.S.
BUSINESSMAN WILL REQUIRE LEGAL COUNSEL AND A "NOTAIRE" (A NOTARY -- IN
FRENCH PRACTICE, A PROFESSION WHICH IS MUCH MORE INFLUENTIAL THAN IN THE
UNITED STATES) FOR ALL THE LEGAL FORMALITIES THAT LEAD TO THE CREATION
OF THE BUSINESS. THE EMBASSY HAS AVAILABLE A LIST OF LAWYERS AND
NOTARIES. IT IS ADVISABLE THAT U.S. FIRMS APPROACH FIRMS SPECIALIZING
IN FINANCIAL AND TAXATION ADVISORY SERVICES. WELL-QUALIFIED
REPRESENTATIVES OF MAJOR U.S. AND INTERNATIONAL AUDITING AND BUSINESS
CONSULTING FIRMS ARE LOCATED IN SENEGAL.
---------------------------------------------------
V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
---------------------------------------------------
WHEN AVAILABLE, THE STATISTICS BELOW ARE GIVEN THROUGH 1993. THEY DO
NOT REFLECT THE EFFECTS OF THE CFA FRANC DEVALUATION.
BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES
------------------------------------------------------
RANK OF SECTOR: 1
NAME OF SECTOR: TELECOMMUNICATIONS PRODUCTS AND SERVICES
ITA INDUSTRY CODE: TEL/TES
ALTHOUGH TOTAL MARKET SIZE DECLINED FROM 1992 TO 1993, THE MARKET FOR
TELECOMMUNICATIONS IS EXPECTED TO INCREASE: THE NATION'S DEMAND FOR
TELECOMMUNICATIONS PRODUCTS AND SERVICES IS GROWING RAPIDLY, NOT ONLY
BECAUSE OF MAINLY URBAN POPULATION GROWTH AND COMMERCIAL EXPANSION, BUT
ALSO BECAUSE OF THE SURGE IN NEW COMMUNICATIONS TECHNOLOGY NOW AVAILABLE
WORLDWIDE.
DATA TABLE (USD MILLIONS)
1992 1993
TOTAL MARKET SIZE 7.3 5.2
TOTAL LOCAL PRODUCTION 0 0
TOTAL EXPORTS 0 0
TOTAL IMPORTS 7.3 5.2
IMPORTS FROM THE U.S. 0.7 0.6
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.
INFRASTRUCTURE INVESTMENTS IN THE SECTOR HAVE INCREASED SIGNIFICANTLY.
FROM CFAF 5 BILLION (USD 10 MILLION) IN 1990 THEY CLIMBED TO CFAF 12.7
BILLION (USD 25.4 MILLION) IN 1993. SONATEL, SENEGAL'S
TELECOMMUNICATIONS PARASTATAL, IS ACTIVELY SEEKING IMPROVEMENT OF ITS
TELECOMMUNICATIONS CAPABILITIES, CREATING POTENTIAL OPPORTUNITIES FOR
INTERESTED U.S. FIRMS. FURTHER, THE PROSPECT OF SONATEL'S PRIVATIZATION
BODES WELL FOR U.S. TELECOMMUNICATIONS FIRMS. UPCOMING SONATEL PROJECTS
INCLUDE BIG TICKET ITEMS SUCH AS FULLY DIGITIZING ITS EXISTING
TELECOMMUNICATIONS NETWORK, INSTALLATION OF A FIBER OPTIC NETWORK, AS
WELL AS THE INSTALLATION OF A MODERN CELLULAR PHONE SYSTEM.
FRENCH TELECOMMUNICATIONS COMPANIES HAVE A COMPETITIVE EDGE IN THE
MARKET BECAUSE FRANCE, THROUGH THE VERY ACTIVE CAISSE FRANCAISE DE
DEVELOPPEMENT (CFD), OFFERS TIED AND CONCESSIONAL FUNDING TO THE
SENEGALESE GOVERNMENT FOR THE MODERNIZATION OF THE TELECOMMUNICATIONS
SECTOR. EMBASSY RECOMMENDS THAT U.S. FIRMS WORK WITH MULTILATERAL
AND/OR BILATERAL FINANCIAL INSTITUTIONS TO GAIN MARKET SHARE. THE
AFRICAN DEVELOPMENT BANK, THE EUROPEAN INVESTMENT BANK, AND THE WEST
AFRICAN DEVELOPMENT BANK ARE INVOLVED IN FINANCING SONATEL PROJECTS.
RANK OF SECTOR: 2
NAME OF SECTOR: POWER GENERATION
ITA INDUSTRY CODE: ELP
COMMERCIAL AND INVESTMENT OPPORTUNITIES RANGE FROM THE ACQUISITION OF
SMALL DIESEL PLANTS, TO SUPPLYING GAS TURBINES, REHABILITATING THE
ANTIQUATED POWER PLANTS AND SELLING ELECTRIC METERS.
THE 1994-1998 TOTAL INVESTMENT PROGRAM FOR POWER GENERATION IS ESTIMATED
AT USD 320M. SENELEC, SENEGAL'S POWER PARASTATAL IS ACTIVELY SEEKING
UPGRADES TO ITS EXISTING POWER GENERATION CAPABILITIES IN ORDER TO MEET
A RAPIDLY GROWING DEMAND FOR INCREASED CAPACITY. THE INVESTMENT PROGRAM
OF INTEREST TO U.S. COMPANIES COVERS THE FOLLOWING AREAS:
-- SUPPLY OF 50 MW OF ELECTRICITY THROUGH A BUILD, OWN, TRANSFER (BOT)
ARRANGEMENT
-- REHABILITATION OF POWER PLANT BOILERS
-- EXTENSION OF EXISTING POWER PLANTS
-- REINFORCEMENT OF THE REGIONAL POWER CENTERS THROUGH THE ACQUISITION
OF SMALL DIESEL PLANTS WITH A CAPACITY OF 2.2 MW
-- ACQUISITION OF TWO LOW-SPEED DIESEL PLANTS BUDGETED FOR USD 73
MILLION, IN 1998
-- CONSTRUCTION OF THE MANANTALI DAM, A JOINT PROJECT INVOLVING THE
COUNTRIES OF SENEGAL, MALI AND GUINEA, IN 2002
SUPPLIER CREDIT AS WELL AS FINANCING FROM FOREIGN BANKING AND
DEVELOPMENT INSTITUTIONS GIVE A COMPETITIVE EDGE TO FOREIGN FIRMS.
RECENTLY, FRANCE GRANTED A USD 6.9 MILLION LOAN ON VERY SOFT TERMS - 25
YEARS, 3.25 PCT INTEREST RATE, 5-YEAR GRACE PERIOD - FOR THE
REHABILITATION OF A POWER PLANT.
DATA TABLE: N/A
RANK OF SECTOR: 3
NAME OF SECTOR: GOLD MINING/IRON ORE MINING
ITA INDUSTRY CODE: OGS
SENEGAL'S GOLD MINING INDUSTRY IS "HIGHLY PROSPECTIVE." THE SABODALA
MINE IN EASTERN SENEGAL HAS PROVEN GOLD RESERVES OF 2.6 MILLION TONS OF
ORE YIELDING 17 TONS OF METAL GOLD WITH AN AVERAGE GOLD GRADE OF 5
GRAMS/TON. (SOUTH AFRICAN MINES HAVE A GOLD GRADE AVERAGING 3
GRAMS/TON.) THE CURRENT LEVEL OF COMMITMENT TO ESTABLISHING MINES IN
SENEGAL BY FOREIGN FIRMS BODES WELL FOR THE GROWTH OF THE SECTOR. A
NUMBER OF COMPANIES FROM SOUTH AFRICA (RANDGOLD, ANGLO-AMERICAN
CORPORATION, AND GOLDEN STAR), GREAT BRITAIN (SAMAX), AUSTRALIA, AND
CANADA (AGEM) HAVE ENTERED THE FIELD. PRODUCTION MAY START IN 1996.
LARGE RESERVES OF IRON ORE ALSO EXIST IN THE EASTERN PART OF THE
COUNTRY. AN ESTIMATED 650 MILLION TONS OF OXIDE ORE HAVE BEEN
IDENTIFIED AND MIFERSO, SENEGAL'S PARASTATAL IRON ORE MINING COMPANY
FORECASTS YEARLY PRODUCTION OF 12 MILLION TONS. HOWEVER, FINANCING FOR
THIS HUGE PROJECT IS THE STUMBLING BLOCK FOR A COUNTRY STRAPPED FOR
FUNDS. AN ESTIMATED USD 772.6 MILLION IS NEEDED FOR MINE EXPLORATION,
THE CONSTRUCTION OF A RAILWAY (311 KILOMETERS), AND A MINERAL PORT.
DATA TABLE: N/A
RANK OF SECTOR: 4
NAME OF SECTOR: USED CLOTHING
ITA INDUSTRY CODE: TXT
SENEGAL'S RAPIDLY GROWING POPULATION AND LOW PER CAPITA INCOME HAS
CREATED A HUGE DEMAND FOR USED CLOTHING. THIS NEED IS NOT LIKELY TO
SUBSIDE IN THE NEAR FUTURE AND OFFERS SOME INTERESTING OPPORTUNITIES FOR
U.S. FIRMS ALREADY ENTRENCHED IN THE INDUSTRY. PARTICULARLY IN DEMAND
BY THE SENEGALESE ARE LOW-COST ACTIVE WEAR PRODUCTS SUCH AS SPORTS
CLOTHING AND SHOES, AS WELL AS CASUAL/DRESS JEANS AND RELATED OUTERWEAR.
HOWEVER, IN ORDER TO PROMOTE THE LOCAL TEXTILE INDUSTRY, STATE
AUTHORITIES HAVE IMPOSED AN ANNUAL QUOTA OF 2,000 MT ON USED CLOTHING
IMPORTS.
DATA TABLE (USD MILLIONS)
1992 1993
TOTAL MARKET SIZE 2.5 2.8
TOTAL LOCAL PRODUCTION 0 0
TOTAL EXPORTS 0 0
TOTAL IMPORTS 2.5 2.8
IMPORTS FROM THE U.S. 1 1.2
THE ABOVE STATISTICS ARE UNOFFICIAL ESTMATES.
RANK OF SECTOR: 5
NAME OF SECTOR: COMPUTERS/PERIPHERALS
ITA INDUSTRY CODE: CPT
ALTHOUGH ADVANCED BY MOST AFRICAN STANDARDS, SENEGAL FINDS ITSELF
LAGGING BEHIND IN COMPUTER TECHNOLOGY AND IS ACTIVELY SEEKING U.S.
INVOLVEMENT IN THIS AREA. FRANCE IS THE LARGEST EXPORTER OF COMPUTERS,
WITH 21 PCT OF THE MARKET, FOLLOWED CLOSELY BY THE U.S. HOWEVER, IT
SHOULD BE NOTED THAT A LARGE PORTION OF FRENCH EXPORTS CONSIST OF RE-
EXPORTED U.S.-MADE EQUIPMENT. CONSEQUENTLY, DIRECT SALES OF U.S.
EQUIPMENT BY U.S. FIRMS TO SENEGAL ARE TO BE ENCOURAGED SINCE FRENCH
FIRMS MARK UP THE PRICE OF RE-EXPORTED U.S. EQUIPMENT MAKING THEM MORE
EXPENSIVE FOR THE SENEGALESE.
DATA TABLE (USD MILLIONS)
1992 1993
TOTAL MARKET SIZE 4.8 2.6
TOTAL LOCAL PRODUCTION 0 0
TOTAL EXPORTS 0 0
TOTAL IMPORTS 4.8 2.6
IMPORTS FROM THE U.S. 0.7 0.5
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.
RANK OF SECTOR: 6
NAME OF SECTOR: FOOD PROCESSING AND PACKAGING EQUIPMENT
ITA INDUSTRY CODE: FPP
THE DEVALUATION OF THE CFA FRANC FOLLOWED BY AN INCREASE IN IMPORT
PRICES ARE THE DRIVING FORCE BEHIND AN INCREASING INTEREST IN CREATING
IMPORT-SUBSTITUTION INDUSTRIES. THEREFORE, THERE IS A NEED FOR FOOD
PROCESSING MACHINERY AND EQUIPMENT. A NUMBER OF LOCAL BUSINESSMEN IN
THIS SECTOR EXPRESSED A STRONG INTEREST FOR A RECENT TDA ORIENTATION
VISIT TO THE U.S. FOR INSTANCE, SENEGAL'S LARGEST PACKAGING COMPANY IS
ACTIVELY SEEKING AN ELECTRIC WELDING LINE TO MEET FDA QUALITY CONTROL
STANDARDS. A MAJOR FISH PROCESSING FACTORY IS LOOKING FOR DOWNSTREAM
INTEGRATION BY BEGINNING CANNING OPERATIONS.
THE DECREASE IN DISPOSABLE INCOME OF SENEGALESE CONSUMERS HAS LED LOCAL
MANUFACTURERS TO EXPLORE MICRO-PACKAGING IN ORDER TO REDUCE THE PRICE OF
DISCRETE PURCHASES OF THEIR PRODUCTS. U.S. INVESTORS KNOWLEDGEABLE IN
THE MANUFACTURE OF CARDBOARD, PAPER, PLASTIC AND METAL CONTAINER
PRODUCTS WOULD BE A WELCOME ADDITION TO THIS UNDER-DEVELOPED INDUSTRY.
LOCAL TECHNICAL CAPABILITIES TO PRODUCE QUALITY PACKAGING ARE VERY
LIMITED AND IN NEED OF IMPROVEMENT.
AS PROBLEMS WITH SOLID WASTE INCREASE, THERE IS A NEED FOR U.S.
TECHNOLOGY CAPABLE OF COLLECTING, RECYCLING AND REPRODUCING FOOD
PACKAGING CONTAINERS LOCALLY.
DATA TABLE: N/A
RANK OF SECTOR: 7
NAME OF SECTOR: MARINE FISHERIES PRODUCTS
ITA INDUSTRY CODE: MFI
ALTHOUGH IT IS ONE OF SENEGAL'S BIGGEST FOREIGN EXCHANGE EARNERS, THE
FISHING INDUSTRY SUFFERS EXTENSIVELY FROM THE DEGRADATION OF ITS
EXISTING FLEET OF FISHING VESSELS AND SUPPORT FACILITIES. THE FISHING
SECTOR'S PRINCIPAL CHALLENGE IS TO MODERNIZE AND REEQUIP ITS OUTMODED
AND INEFFICIENT FLEET, ALONG WITH ITS FISH PRODUCT PROCESSING
FACILITIES. FINANCING FOR THIS MASSIVE INDUSTRY IS SCARCE AND THUS, IN
THE PAST, SENEGAL RELIED PRINCIPALLY ON FRANCE AS ITS TRADITIONAL
TRADING PARTNER. AS FRANCE LOOKS CLOSER TO HOME, U.S. INVESTMENT
THROUGH LEASING OR JOINT VENTURE OPERATIONS COULD LEAD TO MANY
OPPORTUNITIES INCLUDING THE SALE OF NEW AND USED FISHING VESSELS AND
SUNDRY SUPPORT EQUIPMENT, AS WELL AS ITEMS USED IN FISH PRODUCT
PROCESSING.
DATA TABLE: N/A
RANK OF SECTOR: 8
NAME OF SECTOR: COSMETICS/TOILETRIES
ITA INDUSTRY CODE: COS
U.S. COSMETICS ARE A HIGHLY REGARDED AND SOUGHT AFTER PRODUCT IN WEST
AFRICA. U.S. FIRMS GARNER A 16 PCT SHARE OF THE COSMETIC MARKET IN
SENEGAL. THE OTHER PRINCIPAL COMPETITOR IS FRANCE. HIGH ON THE LIST OF
PRODUCTS SOUGHT BY SENEGALESE CONSUMERS ARE HAIR, FACIAL AND SKIN CARE
PRODUCTS. LOCAL DISTRIBUTION COULD PROVE PROFITABLE TO U.S. INVESTORS.
DATA TABLE (USD MILLIONS)
1992 1993
TOTAL MARKET SIZE N/A N/A
TOTAL LOCAL PRODUCTION N/A N/A
TOTAL EXPORTS N/A N/A
TOTAL IMPORTS 3.4 3.6
IMPORTS FROM THE U.S. 0.7 0.6
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.
RANK OF SECTOR: 9
NAME OF SECTOR: TRAVEL AND TOURISM
ITA INDUSTRY CODE: TRA
TRAVEL AND RESORT OPERATORS MAY FIND AN ACTIVE MARKET IN SENEGAL.
RECENTLY, THE SENEGALESE GOVERNMENT ANNOUNCED THE SALE OF 17 GOVERNMENT-
OWNED HOTELS, INCLUDING ONE ON GOREE ISLAND AS WELL AS IN THE CASAMANCE
AND PETITE COTE TOURIST REGIONS. KNOWN FOR ITS MILD CLIMATE, ENDLESS
BEACHES AND GREAT SPORT FISHING, SENEGAL HAS LONG BEEN HIGHLY REGARDED
AS A EUROPEAN TOURIST DESTINATION. AS U.S. INTEREST IN WEST AFRICA
INCREASES, SO MIGHT THE OPPORTUNITIES FOR U.S. COMPANIES SEEKING NEW
TRAVEL DESTINATIONS.
DATA TABLE: N/A
RANK OF SECTOR: 10
NAME OF SECTOR: USED AND RECONDITIONED EQUIPMENT
ITA INDUSTRY CODE: USD
DATA TABLE: N/A
U.S. FIRMS INTERESTED IN JOINT VENTURE INVESTMENT IN SENEGAL'S TEXTILE
INDUSTRY MAY FIND OPPORTUNITIES IN THE PROCUREMENT OF OPEN-END
SPINNING/WEAVING FACTORIES. THERE IS ALSO A HUGE DEMAND FOR USED
EQUIPMENT IN THE FOOD AND RICE PROCESSING INDUSTRY.
RANK OF SECTOR: 11
NAME OF SECTOR: PHARMACEUTICALS
ITA INDUSTR CODE: DRG
AFTER THE DEVALUATION OF THE CFA FRANC, SENEGAL'S GOVERNMENT IS TAKING
STEPS TO MAKE PHARMACEUTICAL PRODUCTS CHEAPER AND MORE READILY AVAILABLE
TO LOCAL CONSUMERS. THE GOVERNMENT INTRODUCED LEGISLATION WHICH WILL
ALLOW PHARMACEUTICAL COMPANIES TO IMPORT AND DISTRIBUTE GENERIC
PHARMACEUTICAL PRODUCTS ON THE LOCAL MARKET. THE SENEGALESE MARKET FOR
PHARMACEUTICALS IS DOMINATED BY FRENCH FIRMS. U.S. FIRM WARNER
LAMBERT/PARKE DAVIS, SIPOA (A JOINT VENTURE BETWEEN RHONE POULENC AND
U.S. COMPANY ROHRER), AND VALDAFRIQUE SHARE THE LOCAL PRODUCTION OF
PHARMACEUTICALS. DIRECT SALES OF U.S. PHARMACEUTICALS TO SENEGAL DO NOT
EXIST: WARNER LAMBERT/PARKE DAVIS DAKAR IS A SUBSIDIARY OF PARKE DAVIS
FRANCE.
DATA TABLE (USD MILLIONS)
1993 1994
TOTAL MARKET SIZE N/A 44
TOTAL LOCAL PRODUCTION N/A 4.8
TOTAL EXPORTS N/A 4
TOTAL IMPORTS N/A 43.2
IMPORTS FROM THE U.S. 0 0
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.
BEST PROSPECTS FOR AGRICULTURAL GOODS
-------------------------------------
RANK OF SECTOR: 1
NAME OF SECTOR: RICE
PS&D COMMODITY HEADING: RICE, MILLED (0422110)
SENEGAL IS ONE OF THE LARGEST RICE IMPORTERS IN THE WORLD. RICE
REPRESENTS 42 PCT OF THE SENEGALESE FOOD BASKET. THE RECENT RICE IMPORT
LIBERALIZATION COUPLED WITH A DRASTIC REDUCTION IN LOCAL PRODUCTION WILL
LIKELY BOOST RICE IMPORTS, HENCE OFFER OPPORTUNITIES TO U.S. RICE
EXPORTERS ALREADY ACTIVE IN THIS MARKET. FURTHER, U.S. EXPORTERS COULD
INCREASE THEIR MARKET SHARE IF THE U.S. GOVERNMENT MAINTAINS THE
REGIONAL PRIVATE SECTOR GSM-102 PROGRAM.
DATA TABLE (IN TMT)
1993 1994
TOTAL MARKET SIZE 540 500
TOTAL LOCAL PRODUCTION 177 100
TOTAL EXPORTS 0 0
TOTAL IMPORTS 363 400
IMPORTS FROM THE U.S. 89 90
RANK OF SECTOR: 2
NAME OF SECTOR: WHEAT
PS&D COMMODITY HEADING: WHEAT (0410000)
WHEAT IMPORTS TO SENEGAL ROSE 3 PCT FROM 1993 TO 1994 TO MEET INCREASED
CONSUMPTION DUE TO POPULATION GROWTH AND URBANIZATION. PER CAPIT WHEAT
CONSUMPTION IS ESTIMATED AT 20 KG AND COMES THIRD AFTER RICE AND MILLET.
MARKET LIBERALIZATION SHOULD LEAD TO OPPORTUNITIES FOR U.S. COMPANIES IN
THIS SECTOR, WHICH IS NOW ESSENTIALLY CONTROLLED BY FRENCH INTERESTS.
THE GSM-102 EXPORT CREDIT GUARANTEE PROGRAM APPLIES TO SENEGAL.
DATA TABLE (IN TMT)
1993 1994
TOTAL MARKET SIZE 185 190
TOTAL LOCAL PRODUCTION 0 0
TOTAL EXPORTS 0 0
TOTAL IMPORTS 185 190
IMPORTS FROM THE U.S. 9 10
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES.
-----------------------------------
VI. TRADE REGULATIONS AND STANDARDS
-----------------------------------
TRADE BARRIERS
--------------
IN SENEGAL, TRADE IS NOW GENERALLY SUBJECT TO TARIFF RATHER THAN VOLUME
CONTROLS. TRADE CONDITIONS (TARIFF LEVELS, DUTY-FREE ACCESS) ARE
AFFECTED BY MEMBERSHIP IN THE REGIONAL FREE TRADE AREAS, THE WEST
AFRICAN ECONOMIC AND MONETARY UNION (UEMOA) AND ECONOMIC COMMUNITY OF
WEST AFRICAN STATES (ECOWAS), AND BY ASSOCIATION WITH THE EUROPEAN
UNION. IN 1994, THE GOVERNMENT PHASED OUT MOST QUANTITATIVE
RESTRICTIONS ON IMPORTS, DISCONTINUED EXPORT SUBSIDIES, ELIMINATED
NUMEROUS PRICE CONTROLS, REDUCED TARIFF BARRIERS, AND DISMANTLED SOME
MONOPOLISTIC AGREEMENTS. SENEGAL IS EXPECTED TO TAKE FURTHER MEASURES
TO LIBERALIZE ITS IMPORT SYSTEM AND TO RATIONALIZE ITS SYSTEM OF
EFFECTIVE PROTECTION SOON.
TARIFFS AND IMPORT TAXES
------------------------
FOLLOWING THE CFA FRANC DEVALUATION, TARIFFS AND IMPORT TAXES WERE
SIMPLIFIED:
- GENERAL CUSTOMS DUTIES WERE REDUCED TO A FLAT RATE OF 10 PCT OF CIF
VALUE EXCEPT FOR PRODUCTS IMPORTED FROM THE WEST AFRICAN ECONOMIC
COMMUNITY (ECOWAS).
- THE AD VALOREM FISCAL DUTY SCHEDULE WAS SIMPLIFIED TO FOUR LEVELS.
THERE IS A 10 PCT DUTY ON "SOCIAL AND STRATEGIC GOODS" (E.G.,
PHARMACEUTICALS, RICE, AND WHEAT) AND CAPITAL GOODS AND INPUTS FOR
INDUSTRY. ALL IMPORTED CONSUMER GOODS NOT PRODUCED LOCALLY ARE SUBJECT
TO THE ORDINARY FISCAL DUTY OF 20 PCT, WHILE THOSE COMPETING WITH LOCAL
PRODUCTION ARE SUBJECT TO A 30 PCT RATE. LUXURY GOODS ARE SUBJECT TO A
50 PCT FISCAL DUTY.
- THE CUSTOMS STAMP CHARGE WAS STANDARDIZED AT 5 PCT OF CIF VALUE ON ALL
IMPORTED PRODUCTS, EXCEPT THOSE SPECIALLY EXEMPTED; AND THE VALUE ADDED
TAX (VAT) WAS SIMPLIFIED FROM FIVE CATEGORIES TO TWO CATEGORIES ASSESSED
AT 10 AND 20 PCT.
CUSTOMS VALUATION
-----------------
SENEGAL HAS ADOPTED THE HARMONIZED SYSTEM NOMENCLATURE, EFFECTIVE JULY
8, 1995. PREVIOUSLY, THE COUNTRY USED THE BRUSSELS TARIFF NOMENCLATURE.
IMPORT LICENSES
---------------
THE IMPORT OF SOME PRODUCTS SUCH AS POTATOES, ONIONS, AND BANANAS IS
SUBJECT TO PRIOR AUTHORIZATION. SEVERAL MONOPOLIES ON GOODS IMPORTS
HAVE BEEN ELIMINATED, AND LIBERALIZATION OF RICE IMPORTS IS EXPECTED BY
FEBRUARY 1996.
EXPORT CONTROLS
---------------
THERE ARE NO RESTRICTION ON EXPORTS FROM SENEGAL. AN EXPORT DUTY OF 20
PCT REMAINS SUSPENDED, AND THE EXPORT SUBSIDY WAS ELIMINATED IN FEBRUARY
1994.
IMPORT/EXPORT DOCUMENTATION
---------------------------
DOCUMENTS REQUIRED WHEN EXPORTING TO SENEGAL INCLUDE THE FOLLOWING:
-- TWO COPIES OF THE COMMERCIAL INVOICE, WHICH SHOULD SHOW THE EXPORTER
AND IMPORTER, AS WELL AS THEIR ADDRESSES; THE GOODS BEING IMPORTED; THE
WEIGHT, CIF VALUE AND QUANTITY OF GOODS IMPORTED; AND A COMPLETE
DESCRIPTION OF THE MERCHANDISE. THIS SHOULD BE IN FRENCH OR ACCOMPANIED
BY A FRENCH TRANSLATION TO AVOID MISINTERPRETATION AT THE CUSTOMS ENTRY
POINT. (IN THE PAST, FOR EXAMPLE, SENEGALESE CUSTOMS OFFICIALS MISTOOK
A DATE OF MANUFACTURE FOR AN EXPIRATION DATE, WHICH CONSIDERABLY DELAYED
A SHIPMENT.)
-- A PROFORMA INVOICE. THIS SHOULD CONTAIN THE SAME INFORMATION AS THE
COMMERCIAL INVOICE BUT MUST BE CERTIFIED BY A CHAMBER OF COMMERCE.
-- A CERTIFICATE OF ORIGIN IS NECESSARY FOR ALL IMPORTED GOODS.
BEGINNING IN LATE 1992 THE GOVERNMENT SET UP AN IMPORT INSPECTION
PROGRAM ADMINISTERED BY THE MULTINATIONAL SOCIETE GENERALE DE
SURVEILLANCE (SGS) IN AN EFFORT TO LIMIT FRAUD AND TAX LOSSES ON
IMPORTED GOODS. THIS SYSTEM IS STILL IN PLACE, AND THE AUTHORITIES HAVE
RENEWED THE CONTRACT. PRIOR TO SHIPPING, IMPORTERS MUST PROVIDE CUSTOMS
OFFICIALS WITH DOCUMENTATION LISTING THE QUANTITY, QUALITY, AND PRICE OF
THE PRODUCTS SUBJECT TO CUSTOMS DUTIES. IMPORT PROCEDURES INCLUDE THE
FOLLOWING:
O IMPORTERS MUST DEPOSIT A PRELIMINARY IMPORT DECLARATION SEVEN DAYS
PRIOR TO SHIPPING IMPORTED GOODS HAVING A VALUE EQUAL TO OR GREATER THAN
USD 2000.
O AUTOMATIC APPROVAL OF THE PRELIMINARY IMPORT DECLARATION IS OBTAINED
BY SUBMITTING 3 COPIES OF THE PRO FORMA BILLS OF LADING WITH THE
DECLARATION.
O A PRELIMINARY IMPORT DECLARATION IS VALID FOR 6 MONTHS AND CAN BE
EXTENDED FOR 3 MONTHS. PRELIMINARY IMPORT DECLARATIONS MUST BE
CANCELLED AND REISSUED IF THERE IS A CHANGE IN SUPPLIER, AN INCREASE IN
THE VALUE OF THE ORDER BY MORE THAN 10 PCT, OR A MODIFICATION IN THE
QUANTITY OF THE ORDER.
O ANY PAYMENT FOR IMPORTED GOODS GREATER IN VALUE THAN CFA 500,000 (USD
1000) MUST BE MADE THROUGH AN APPROVED SENEGALESE BANK OR FINANCIAL
INSTITUTION.
O ANY FOB IMPORT VALUE EQUAL TO OR GREATER THAN CFA 1.5 MILLION (USD
3000) MUST BE INSPECTED BY SGS IN THE SUPPLIER'S COUNTRY PRIOR TO
SHIPPING. (SGS HAS IN AT LEAST ONE CASE DENIED PERMISSION FOR THE
IMPORT OF U.S. FOODSTUFFS, ALLEGING PREDATORY PRICING.)
O PRESENTATION OF A CERTIFICATE OF VERIFICATION OF INSPECTION IS
OBLIGATORY.
TEMPORARY ENTRY
---------------
GOODS IMPORTED FOR RE-EXPORT ARE SUBJECT TO A TEMPORARY ADMISSION SYSTEM
AND ARE NOT ASSESSED FOR ANY PAYMENT OF CUSTOMS DUTIES. THIS SYSTEM HAS
BEEN ABUSED IN THE PAST, AND CUSTOMS OFFICIALS MAY BE PARTICULARLY
DEMANDING IN ENFORCING REGULATIONS.
LABELING AND MARKING REQUIREMENTS
---------------------------------
THERE ARE NO NON-STANDARD REQUIREMENTS FOR LABELING OR MARKING.
PROHIBITED IMPORTS
------------------
PROHIBITED IMPORTS INCLUDE NARCOTICS, MUNITIONS, PORNOGRAPHIC MATERIALS,
MATCHES, EXPLOSIVES AND PASSENGER TRANSPORT VEHICLES NOT SPECIFICALLY
LICENSED FOR IMPORT.
STANDARDS
---------
SENEGAL HAS SIGNED THE TOKYO ROUND AGREEMENTS OF THE GENERAL AGREEMENT
ON TARIFFS AND TRADE (GATT), WHICH PREVENT THE USE OF NATIONAL STANDARDS
TO HAMPER FREE TRADE.
FREE TRADE ZONES/WAREHOUSES
---------------------------
THE DAKAR INDUSTRIAL FREE TRADE ZONE WAS ESTABLISHED IN 1974 TO
ENCOURAGE FOREIGN INVESTORS TO SET UP INTENSIVE EXPORT-ORIENTED
COMPANIES. ITS STATUTE WAS WRITTEN TO EXPIRE AFTER TWENTY-FIVE YEARS,
UNTIL 1999, AND MAY LEGALLY BE RENEWED OR ENDED.
BONDED WAREHOUSES EXIST FOR GOODS TO BE RE-EXPORTED TO NEIGHBORING
COUNTRIES. GOODS IMPORTED UNDER THE WAREHOUSE SYSTEM BENEFIT FROM TOTAL
SUSPENSION OF DUTIES AND TAXES FOR 12 MONTHS RENEWABLE.
SPECIAL IMPORT PROVISIONS
-------------------------
QUANTITATIVE RESTRICTIONS ARE APPLIED TO USED CLOTHING AND USED
AUTOMOBILES. IMPORTS OF MEDICINES AND PHARMACEUTICALS ARE SUBJECT TO
PRIOR APPROVAL BY THE MINISTRY OF HEALTH.
MEMBERSHIP IN FREE TRADE ARRANGEMENTS
-------------------------------------
SENEGAL IS A MEMBER OF THE ECONOMIC COMMUNITY OF WEST AFRICAN STATES
(ECOWAS), THE WEST AFRICAN ECONOMIC AND MONETARY UNION (UEMOA), THE LOME
CONVENTION, AND THE GATT.
------------------------
VII. INVESTMENT CLIMATE
------------------------
INVESTMENT BARRIERS
-------------------
THE GOVERNMENT OFFICIALLY WELCOMES FOREIGN INVESTMENT, BUT A HEAVY TAX
BURDEN COMBINED WITH HIGH FACTOR COSTS HAVE BEEN OBSTACLES. FOR
EXAMPLE, THE PRICE OF ELECTRICITY IS ONE OF THE HIGHEST IN WEST AFRICA.
THE PRICE OF WATER, TELECOMMUNICATIONS, AND LABOR COSTS ARE ALSO HIGH
COMPARED TO OTHER CFA FRANC ZONE AFRICAN COUNTRIES. BANKS ARE
OVERLIQUID, BUT ARE REPORTEDLY UNWILLING TO LEND TO ANY BUT THE BEST
CREDITS OR TO TAKE LONG TERM RISK.
OPENNESS TO FOREIGN INVESTMENT
------------------------------
SENEGAL OFFERS TAX HOLIDAYS AND TAX-FREE EXPORT PROCESSING ZONES TO
ENCOURAGE FOREIGN INVESTMENT. THERE IS NO DISCRIMINATION AGAINST
BUSINESS CONDUCTED OR OWNED BY FOREIGN INVESTORS. IN FACT, THERE ARE NO
BARRIERS REGARDING 100 PCT OWNERSHIP OF BUSINESSES BY FOREIGN INVESTORS
IN MOST SECTORS AREAS. THE GOVERNMENT HAS STOPPED ITS PRACTICE OF
PARTICIPATING IN FOREIGN INVESTMENT PROJECTS. HOWEVER, INDUSTRIES SUCH
AS RAILROADS, ELECTRICAL PRODUCTION, TELECOMMUNICATIONS AND POSTAL
SERVICES REMAIN UNDER THE CONTROL OF PARASTATALS.
SENEGAL'S INVESTMENT CODE PROVIDES EQUITABLE TREATMENT OF FOREIGN AND
LOCAL FIRMS (ALSO GUARANTEED BY ITS BILATERAL INVESTMENT TREATY WITH THE
U.S.). FREE TRANSFER OF CAPITAL AND PROFITS IS GUARANTEED, AND THERE
ARE SPECIAL INCENTIVES TO COMPANIES WILLING TO LOCATE OUTSIDE THE DAKAR
REGION.
THE GOVERNMENT HAS RECENTLY UNDERTAKEN A SERIES OF MEASURES IN ITS
EFFORTS TO ATTRACT FOREIGN INVESTMENT. THESE INCLUDE LIBERALIZATION OF
ITS INVESTMENT CODE, DISMANTLEMENT OF MONOPOLIES, AND CREATION OF FREE
POINTS (FACTORIES WITH DUTIES-FREE STATUS FOR INPUTS) THROUGHOUT THE
COUNTRY. FURTHER, IT HAS PRIVATIZED A NUMBER OF ITS PARASTATALS AND HAS
ESTABLISHED A "ONE STOP WINDOW" TO ALLEVIATE THE ADMINISTRATIVE BURDEN
NORMALLY ASSOCIATED WITH ESTABLISHING NEW ENTERPRISES. AT THE
INSISTENCE OF THE INTERNATIONAL FINANCIAL INSTITUTIONS THE GOVERNMENT
REVISED ITS LABOR CODE TO PERMIT LAYOFFS WHEN ENTERPRISES FACE ECONOMIC
DOWNTURNS.
SENEGAL'S INVESTMENT CODE DEFINES ELIGIBILITY FOR INVESTMENT INCENTIVES
ACCORDING TO A FIRM'S SIZE AND TYPES OF ACTIVITIES, THE AMOUNT OF THE
POTENTIAL INVESTMENT, AND THE LOCATION OF THE PROJECT. TO QUALIFY FOR
INCENTIVES, THE INVESTMENT MUST BE OF AT LEAST CFA 5 MILLION (USD 10000)
AND MUST CREATE A MINIMUM OF THREE JOBS. ENTERPRISES OPERATING IN
"PRIORITY" SECTORS ARE ELIGIBLE FOR INVESTMENT CODE ADVANTAGES. THESE
SECTORS INCLUDE: AGRICULTURE, FISHING, ANIMAL-REARING AND RELATED
INDUSTRIES, MANUFACTURING, TOURISM, EXPLORATION AND MINING, BANKS AND
FINANCIAL INSTITUTIONS, TRADING COMPLEXES, AND CULTURAL ACTIVITIES. ALL
BENEFIT FROM THE "COMMON REGIME" WHICH INCLUDES EXONERATION FROM DUTIES
ON IMPORTS OF GOODS NOT PRODUCED LOCALLY (2 YEARS FOR SMALL AND MEDIUM
SIZED FIRMS AND 3 YEARS FOR ALL OTHERS). ALSO INCLUDED IS EXONERATION
FROM DIRECT AND INDIRECT TAXES FOR THE SAME PERIOD.
EXONERATION FROM THE MINIMUM PERSONAL INCOME TAX AND FROM THE BUSINESS
LICENSE TAX IS GRANTED TO INVESTORS WHO USE LOCAL RESOURCES FOR AT LEAST
65 PCT OF THEIR TOTAL INPUTS WITHIN A FISCAL YEAR. ENTERPRISES AGREEING
TO LOCATE IN LESS INDUSTRIALIZED AREAS OF SENEGAL BENEFIT FROM
EXONERATION OF THE LUMP SUM PAYROLL TAX OF 3 PCT, WITH THE EXONERATION
RUNNING FROM 5 TO 12 YEARS DEPENDING ON THE LOCATION OF THE INVESTMENT.
THE INVESTMENT CODE PROVIDES FOR EXEMPTION FROM INCOME TAX, DUTIES AND
TAXES, PHASED OUT PROGRESSIVELY OVER THE LAST THREE YEARS OF THE
EXONERATION PERIOD. INCENTIVES ARE AUTOMATICALLY GRANTED TO INVESTMENT
PROJECTS MEETING THE ABOVE CRITERIA.
THE ESTABLISHMENT OF A ONE-STOP WINDOW ("GUICHET UNIQUE") AT THE
MINISTRY OF FINANCE WAS DESIGNED TO REDUCE DELAYS IN EXAMINING AND
APPROVING PRIVATE INVESTMENT PROGRAMS. APPLICATIONS FOR AUTHORIZATION
ARE EXAMINED WITHIN A ONE MONTH PERIOD AND ABSENT OBJECTIONS WITHIN THAT
PERIOD ARE CONSIDERED APPROVED. ALL SERVICES PROVIDED BY THE WINDOW ARE
FREE.
CONVERSION AND TRANSFER POLICIES
--------------------------------
PRESENTLY THERE ARE NO RESTRICTIONS ON THE TRANSFER OR REPATRIATION OF
CAPITAL AND INCOME EARNED, OR INVESTMENTS FINANCED WITH CONVERTIBLE
FOREIGN EXCHANGE. THOUGH INDIVIDUALS ARE LIMITED IN THE AMOUNT OF
FOREIGN CURRENCY THEY MAY OBTAIN FOR TRIPS OUTSIDE OF SENEGAL,
COMMERCIAL TRANSFERS ARE NORMALLY CARRIED OUT RAPIDLY AND IN FULL BY
LOCAL BANKING INSTITUTIONS. THE CFA FRANC, USED BY SENEGAL AND OTHER
ZONE COUNTRIES WAS DEVALUED IN EARLY 1994 BUT REMAINS PEGGED TO THE
FRENCH FRANC AT THE RATE OF 100 CFA EQUALS 1FF. CURRENTLY 1 USD EQUALS
ABOUT CFA 500.
EXPROPRIATION AND COMPENSATION
------------------------------
IN RECENT HISTORY, THERE HAVE BEEN NO MAJOR EXPROPRIATIONS IN SENEGAL.
DURING THE PERIOD 1973-75, THE GOVERNMENT BOUGHT OUT FOREIGN INTERESTS,
MOSTLY FRENCH, IN A NUMBER OF AREAS IN ORDER TO FORM PARASTATALS. IN
EACH CASE, ADEQUATE COMPENSATION WAS PAID TO THE AFFECTED FOREIGN
INVESTORS. THIS PRACTICE WAS ABANDONED AND MANY OF THE FIRMS INVOLVED
HAVE SINCE BEEN RE-PRIVATIZED.
DISPUTE SETTLEMENT
------------------
SENEGAL IS A MEMBER OF THE INTERNATIONAL CENTER FOR THE SETTLEMENT OF
INVESTMENT DISPUTES (WASHINGTON CONVENTION). THERE HAVE BEEN NO RECENT
MAJOR INVESTMENT DISPUTES IN SENEGAL. THE INVESTMENT CODE PROVIDES FOR
SETTLEMENT OF DISPUTES VIA DUE PROCESS OF THE LAW PRESCRIBED IN THE
SENEGALESE JUDICIAL SYSTEM. IF REQUIRED, ARBITRATION IS CARRIED OUT
ACCORDING TO AGREEMENTS CONCERNING THE PROTECTION OF INVESTMENTS BETWEEN
SENEGAL AND THE STATE OF ORIGIN OF THE PRIVATE PERSON OR LEGAL ENTITY.
IN THE ABSENCE OF SUCH AGREEMENTS, ARBITRATION IS GOVERNED BY THE MODEL
RULES ON ARBITRAL PROCEDURE ADOPTED BY THE UNITED NATIONS INTERNATIONAL
LAW COMMISSION IN 1958 AND COMMENDED TO MEMBER STATES BY UNITED NATIONS
GENERAL ASSEMBLY RESOLUTION NUMBER 1262.
PERFORMANCE REQUIREMENTS/INCENTIVES
-----------------------------------
IN ORDER TO QUALIFY FOR INVESTMENT INCENTIVES, SMALL- AND MEDIUM-SIZED
FIRMS ARE REQUIRED TO INVEST AT LEAST CFA 5 MILLION (USD 10,000), EMPLOY
AT LEAST 3 SENEGALESE NATIONALS FULL-TIME, AND KEEP REGULAR ACCOUNTS IN
A STANDARD FORMAT. FURTHER, A NEW FIRM OR AN EXISTING FIRM REQUESTING
AN EXTENSION OF SUCH INCENTIVES MUST BE AT LEAST 20 PCT SELF-FINANCED;
30 PCT SELF-FINANCING IS REQUIRED FOR OTHER TYPES OF FIRMS. LARGE
FIRMS (THOSE WITH AT LEAST CFA 200 MILLION IN EQUITY CAPITAL OR USD
400,000) ARE REQUIRED TO CREATE AT LEAST 50 FULL-TIME POSITIONS FOR
SENEGALESE NATIONALS, TO CONTRIBUTE HARD CURRENCY EQUIVALENT TO AT LEAST
CFA 100 MILLION (APPROX. USD 200,000) AND TO KEEP REGULAR ACCOUNTS IN
CONFORMITY WITH SENEGALESE STANDARDS. FURTHER, FIRMS MUST REPORT ON
COMPANY PRODUCTS, PRODUCTION, EMPLOYMENT AND CONSUMPTION OF RAW
MATERIAL.
RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT
--------------------------------------------
IN ADDITION TO THE TRADITIONAL GUARANTEES OFFERED TO INVESTORS, E.G.,
FREE TRANSFER OF CAPITAL AND INCOME, AS WELL AS EQUAL TREATMENT (FOREIGN
AND DOMESTIC PRIVATE ENTITIES ARE PERMITTED TO ESTABLISH AND OWN
BUSINESSES AND TO ENGAGE IN MOST FORMS OF REMUNERATIVE ACTIVITY), OTHER
ADVANTAGES GRANTED COVER BOTH A FIRM'S INVESTMENT AND OPERATION. LOCAL
MAJORITY OWNERSHIP IS NOT NECESSARY. OF THE STATE-OWNED FIRMS RECENTLY
PRIVATIZED, SEVERAL WERE SOLD IN PART OR IN WHOLE TO FOREIGN ENTITIES.
PROTECTION OF PROPERTY RIGHTS
-----------------------------
THE SENEGALESE LEGAL SYSTEM ENFORCES PRIVATE RIGHTS. SENEGAL IS A
MEMBER OF THE AFRICAN ORGANIZATION OF INDUSTRIAL PROPERTY (OAPI), WHICH
HAS ESTABLISHED AMONG ITS MEMBER STATES A COMMON SYSTEM FOR OBTAINING
AND MAINTAINING PROTECTION FOR PATENTS, TRADEMARKS AND INDUSTRIAL
DESIGNS. SENEGAL HAS BEEN A MEMBER OF THE WORLD INTELLECTUAL PROPERTY
ORGANIZATION SINCE ITS INCEPTION AND IS A MEMBER OF THE BERNE COPYRIGHT
CONVENTION. LOCAL STATUTES RECOGNIZE RECIPROCAL PROTECTION FOR AUTHORS
OR ARTISTS WHO ARE NATIONALS OF COUNTRIES ADHERING TO THE 1971 PARIS
CONVENTION ON INTELLECTUAL PROPERTY RIGHTS.
-- PATENTS ARE PROTECTED FOR TWENTY YEARS. AN ANNUAL CHARGE IS LEVIED
DURING THIS PERIOD. TRADE SECRETS AND COMPUTER CHIP DESIGNS ARE
RESPECTED.
-- REGISTERED TRADEMARKS ARE PROTECTED FOR A PERIOD OF TWENTY YEARS.
TRADEMARKS MAY BE RENEWED INDEFINITELY BY SUBSEQUENT REGISTRATIONS.
-- AS FOR COPYRIGHTS, SENEGAL IS A SIGNATORY TO THE BERNE COPYRIGHT
CONVENTION. THE SENEGALESE OFFICE OF AUTHORS RIGHTS, PART OF THE
MINISTRY OF FINANCE, HAS THE ROLE OF ENFORCING COPYRIGHT OBLIGATIONS.
REGULATORY SYSTEM: LAWS AND PROCEDURES
---------------------------------------
LEGAL, REGULATORY AND ACCOUNTING SYSTEMS CLOSELY FOLLOW FRENCH MODELS.
EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT
--------------------------------------------------
THERE IS NO SENEGALESE STOCK MARKET OR OVER-THE-COUNTER MARKET IN
SHARES; CREDIT TO INDUSTRY IS PROVIDED EXCLUSIVELY BY BANK LOANS OR
THROUGH SPECIAL LINES OF CREDIT FROM BILATERAL DONORS OR INTERNATIONAL
INSTITUTIONS. CREDIT IS AVAILABLE WITHOUT DISCRIMINATION BUT THE TIGHT
MONETARY POLICY OF THE WEST AFRICAN CENTRAL BANK MAKES IT PROHIBITIVELY
EXPENSIVE FOR ALL BUT THE HIGHEST YIELDING PROJECTS. THE CURRENT
COMMERCIAL COST OF FUNDS IS 17-20 PCT, PLUS A BANKING OPERATING TAX OF 2
PCT.
THERE IS NO SYSTEM TO ENCOURAGE AND FACILITATE PORTFOLIO INVESTMENT.
POLITICAL VIOLENCE
------------------
NO MAJOR POLITICAL VIOLENCE HAS BEEN REPORTED SINCE FEBRUARY 1994 WHEN A
PLANNED OPPOSITION PARTY RALLY TURNED INTO A RIOT THAT BROUGHT ABOUT THE
DEATHS OF 8 PEOPLE (INCLUDING SIX POLICEMEN) AND CAUSED CONSIDERABLE
PROPERTY DAMAGE IN DOWNTOWN DAKAR. THE ENTRY OF THE PRINCIPAL
OPPOSITION PARTY INTO THE GOVERNMENT IN MARCH 1995 HAS BROUGHT ABOUT A
STABLE ENVIRONMENT TO PURSUE ECONOMIC REFORMS. THE UNIONS, TO DATE,
HAVE REMAINED CALM.
SENEGAL IS STILL SOMEWHAT AT ODDS WITH ITS NEIGHBORS. TO THE SOUTH,
SENEGAL MUST MANAGE A VIOLENT CASAMANCE SEPARATIST MOVEMENT ON ITS
TERRITORY, ALONG WITH GUINEA-BISSAU'S GOVERNMENT. IN THE GAMBIA, THERE
HAS BEEN A MILITARY JUNTA IN POWER SINCE JULY 1994, WHOSE ECONOMIC
POLICIES HAVE DISRUPTED THE FLOW OF BOTH GOODS AND PEOPLE. WITH
MAURITANIA, TO THE NORTH, THERE IS A CONTINUING PROBLEM WITH REFUGEES.
TO THE EAST, MALI AND SENEGAL SUFFER FROM CROSS-BORDER CATTLE RAIDS BY
CRIMINAL ELEMENTS OF BOTH COUNTRIES. DIPLOMATIC NEGOTIATIONS ARE
ONGOING TO ACHIEVE PEACEFUL RESOLUTIONS TO THESE PROBLEMS.
THE MOST SERIOUS RISKS INVOLVE THE CASAMANCE SEPARATISTS IN THE SOUTHERN
REGION OF SENEGAL. DESPITE THE CEASE FIRE AGREEMENT OF MAY 1993 BETWEEN
THE GOVERNMENT AND SEPARATIST GROUPS, INCREASING VIOLENCE HAS BEEN
REPORTED RECENTLY. FACTIONS OF THE FORCES OF THE DEMOCRATIC MOVEMENT OF
THE CASAMANCE (MFDC) HAVE BEGUN ATTACKS ON VILLAGES. IN APRIL, FOUR
FRENCH TOURISTS DISAPPEARED IN THE REGION, AND ARE BELIEVED DEAD. THE
EMBASSY'S OFFICIAL TRAVEL POLICY PROHIBITS RECREATIONAL U.S. GOVERNMENT
EMPLOYEE TRAVEL TO THE AREA.
BILATERAL INVESTMENT AGREEMENTS
-------------------------------
SENEGAL AND THE UNITED STATES SIGNED A BILATERAL INVESTMENT TREATY IN
DECEMBER, 1983. THE TREATY PROVIDES FOR MOST FAVORED NATION TREATMENT
FOR INVESTORS, FOR INTERNATIONALLY RECOGNIZED STANDARDS FOR COMPENSATION
IN THE EVENT OF EXPROPRIATION, FOR FREE TRANSFER OF CAPITAL AND PROFITS,
AND FOR PROCEDURES FOR DISPUTE SETTLEMENT. SENEGAL HAS SIGNED SIMILAR
AGREEMENTS FOR PROTECTION OF INVESTMENT WITH FRANCE, SWITZERLAND,
DENMARK, FINLAND, SPAIN, ITALY, THE NETHERLANDS, SOUTH KOREA, ROMANIA
AND JAPAN. SENEGAL HAS CONCLUDED TAX TREATIES WITH FRANCE, MALI AND THE
FRENCH-SPEAKING AFRICAN MEMBER STATES OF THE ORGANIZATION COMMUNE
AFRICAINE ET MALGACHE.
THERE IS NO TAX TREATY BETWEEN THE UNITED STATES AND SENEGAL.
OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS
--------------------------------------------
THERE IS NO ACTIVE OPIC INVESTMENT INSURANCE COVERAGE IN SENEGAL.
GOVERNMENT OFFICIALS STATE THAT SENEGAL IS PLANNING TO BECOME A MEMBER
OF THE MULTILATERAL INVESTMENT GUARANTEE AGENCY (MIGA), AN ARM OF THE
WORLD BANK.
LABOR
-----
UNSKILLED AND SEMI-SKILLED LABOR IS ABUNDANT IN SENEGAL, BUT THERE ARE
RELATIVELY FEWER TRAINED WORKERS IN THE FIELDS OF ENGINEERING,
INFORMATION SYSTEMS, AND MANAGEMENT.
RELATIONS BETWEEN EMPLOYEES AND EMPLOYERS ARE GOVERNED BY THE LABOR
CODE, COLLECTIVE BARGAINING AGREEMENTS, COMPANY REGULATIONS AND
INDIVIDUAL EMPLOYMENT CONTRACTS. THERE ARE TWO POWERFUL INDUSTRY
ASSOCIATIONS THAT REPRESENT MANAGEMENT'S INTERESTS: THE NATIONAL COUNCIL
OF BUSINESS LEADERS (CNP), AND THE NATIONAL EMPLOYERS' ASSOCIATION
(CNES). THE PRINCIPAL LABOR UNIONS ARE: THE NATIONAL CONFEDERATION OF
SENEGALESE WORKERS (CNTS), WHICH IS AFFILIATED WITH THE RULING SOCIALIST
PARTY, AND THE NATIONAL ASSOCIATION OF SENEGALESE UNION WORKERS (UNSAS).
THE RECENT CFA FRAN DEVALUATION HAS UNEXPECTEDLY MADE LABOR UNIONS
SOMEWHAT MORE REASONABLE THAN IN THE PAST, BUT HIGH LABOR COSTS AND LOW
PRODUCTIVITY MAY MEAN CONTINUED USE OF CAPITAL-INTENSIVE TECHNOLOGIES IN
NEW INVESTMENT.
FOREIGN TRADE ZONES/FREE PORTS
------------------------------
THE DAKAR INDUSTRIAL FREE TRADE ZONE, A GOVERNMENT-OWNED AND OPERATED
FREE TRADE ZONE, WAS ESTABLISHED IN 1974 FOR EXPORT ORIENTED FIRMS,
WHETHER OWNED BY FOREIGNERS OR NATIONALS OF SENEGAL. ENTERPRISES
OPERATING WITHIN THE ZONE HAVE COMPLETE FISCAL AND DUTY EXEMPTION FOR
ALL ACTIVITIES (EXCEPT PAYROLL TAXES), FREE TRANSFER OF ALL PROFITS,
ROYALTIES AND DIVIDENDS, AND FREE RECRUITMENT OF FOREIGN PERSONNEL.
THEY ARE EXEMPT FROM DUTIES ON THE IMPORTATION OF GOODS AND EQUIPMENT,
RAW MATERIAL, AND FINISHED AND SEMI-FINISHED PRODUCTS. FIRMS WITHIN THE
ZONE ALSO QUALIFY FOR THE ADVANTAGES STEMMING FROM SENEGAL'S MEMBERSHIP
IN THE ECONOMIC COMMUNITY OF WEST AFRICAN STATES (ECOWAS) AND ITS STATUS
UNDER THE LOME CONVENTION WITH THE EUROPEAN COMMUNITY.
THERE ARE NINE FIRMS OPERATING IN THE DAKAR FREE TRADE ZONE, THE LARGEST
OF WHICH, A SUBSIDIARY OF WARNER LAMBERT/PARKE-DAVIS, IS U.S. OWNED.
ZONE FIRMS REPORT THAT TAX AUTHORITIES REGULARLY CONTEST THE ADVANTAGES
EMBODIED IN LAW AND REGULATIONS, AND ADVOCATE A REINFORCEMENT AND
EXTENSION OF THE LAW GOVERNING THE ZONE TO CLARIFY THE RULES OF THE
GAME. DISCUSSIONS BETWEEN THE GOVERNMENT AND INDUSTRY HAVE BEEN GOING
ON SINCE 1994, AND THE PARLIAMENT MAY VOTE ON A NEW LAW REGARDING THE
ZONE LATE THIS YEAR. THE ZONE'S CURRENT STATUTE EXPIRES IN 1999.
IN APRIL 1991, IT BECAME POSSIBLE TO CREATE "FREE POINTS" (FIRMS
EXEMPTED FROM TAXES AND DUTIES) OUTSIDE THE ZONE. ENTERPRISES GRANTED
THIS STATUS HAVE TAX AND FISCAL ADVANTAGES SIMILAR TO THOSE FIRMS
OPERATING WITHIN THE ZONE. APPROVAL FOR FREE POINT STATUS IS GRANTED
FOR A PERIOD OF 20 YEARS AND IS RENEWABLE. TO DATE THIS STATUS HAS BEEN
USED PRINCIPALLY TO ASSIST EXISTING FIRMS EXPERIENCING FINANCIAL
DIFFICULTIES.
THERE IS NO FREE PORT IN SENEGAL. SINCE DAKAR SERVES AS A POINT OF
ENTRY PORT FOR MALI, BONDED WAREHOUSES EXIST FOR GOODS TO BE SURFACE-
SHIPPED TO MALI.
CAPITAL OUTFLOW POLICY
----------------------
IN AN EFFORT TO MAINTAIN PARITY BETWEEN THE CFA FRANC AND THE FRENCH
FRANC, THE WEST AFRICAN CENTRAL BANK (BCEAO) CONDUCTS A TIGHT MONETARY
POLICY INTENDED TO REDUCE CAPITAL OUTFLOW BY LIMITING LIQUIDITY. IN
AUGUST 1993, MEMBER COUNTRIES SUSPENDED REPURCHASE OF CFA BANKNOTES
ABROAD, A MEASURE MEANT TO STEM CAPITAL FLIGHT FROM THE REGION'S BANKS.
THIS MEASURE ALSO DISCOURAGES PORTFOLIO INVESTMENT OUTSIDE OF THE ZONE.
FOREIGN DIRECT INVESTMENT STATISTICS
------------------------------------
IT REMAINS DIFFICULT TO OBTAIN RELIABLE DIRECT INVESTMENT STATISTICS.
FRANCE STILL SUPPLIES THE BULK OF SENEGAL'S FOREIGN INVESTMENT.
FOLLOWING THE CFA FRANC DEVALUATION, SOME INVESTMENT PROJECTS ARE
AWAITING NEW LEGISLATION ON THE DAKAR INDUSTRIAL FREE TRADE ZONE.
ADDITIONAL INVESTMENTS BY THREE AMERICAN FIRMS IN PHARMACEUTICALS,
CHEMICALS, AND PETROLEUM MARKETING WILL SIGNIFICANTLY INCREASE THE
RECORDED LEVEL OF THE U.S. INVESTMENT IN SENEGAL, WHICH NOW STANDS AT
ABOUT USD 35-40 MILLION. THERE IS LIMITED GERMAN INVESTMENT IN HOTELS
AND TOURIST FACILITIES, AND SOME JAPANESE, SOUTH KOREAN AND TAIWANESE
INVESTMENT IN FISHING. MOST DIRECT INVESTMENT IS MADE TO UPDATE OR
REPAIR ANTIQUATED FACILITIES.
SENEGAL'S ONLY SIGNIFICANT DIRECT INVESTMENT ABROAD IS ITS SHARE OF THE
MULTINATIONAL AIRLINE "AIR AFRIQUE," WHICH CONTINUES TO SUFFER MAJOR
FINANCIAL PROBLEMS.
MAJOR FOREIGN INVESTORS
-----------------------
NO PUBLISHED FIGURES ARE AVAILABLE ON FOREIGN INVESTORS. SIGNIFICANT
FRENCH INTERESTS INCLUDE THE MIMRAN GROUP (BANKING, SUGAR, AND WHEAT),
THE HERSANT GROUP (PRINTING), AND THE BOLLORE GROUP (TOBACCO AND
SHIPPING). AMERICAN INVESTMENT, WHICH CONTRACTED IN RECENT YEARS, IS
EXPANDING AGAIN AT MOBIL OIL SENEGAL, WARNER LAMBERT/PARKE-DAVIS
(PHARMACEUTICALS), AND COLGATE/NSOA (CHEMICALS).
----------------------------------
VIII. TRADE AND PROJECT FINANCING
----------------------------------
BANKING SYSTEM
--------------
SENEGAL IS A MEMBER OF THE WEST AFRICAN ECONOMIC AND MONETARY UNION
(UEMOA). THE SEVEN MEMBER COUNTRIES USE THE CFA FRANC, ISSUED BY THE
WEST AFRICAN CENTRAL BANK. THE EXCHANGE RATE IS 100 CFA FRANCS EQUALS 1
FRENCH FRANC. PARITY AND FIXED CONVERTIBILITY ARE GUARANTEED BY THE
FRENCH TREASURY.
THERE ARE EIGHT COMMERCIAL BANKS IN OPERATION IN SENEGAL. THE LARGEST
ONES ARE PREDOMINANTLY FRENCH. CITIBANK, THE ONLY U.S. BANK PRESENT IN
THE COUNTRY, IS ALSO VERY ACTIVE. OTHER FINANCIAL INSTITUTIONS SUCH AS
INSURANCE COMPANIES, A VENTURE CAPITAL FIRM AND A LEASING COMPANY ARE
ALSO PRESENT HERE.
FOREIGN EXCHANGE CONTROLS
-------------------------
THERE IS FREE CONVERTIBILITY OF THE CFA FRANC VIA THE BANKING SYSTEM FOR
COMMERCIAL TRANSACTIONS. THE RATE VARIES DAILY ACCORDING TO THE FRENCH
FRANC-U.S. DOLLAR RATE. TRANSFERS ARE MADE THROUGH THE WEST AFRICAN
CENTRAL BANK. CFA FRANC BANKNOTES ARE NOT LEGAL TENDER OUTSIDE OF THE
UEMOA. TRAVELERS MAY EXCHANGE FOREIGN CURRENCY FOR CFA FRANCS WITHOUT
LIMIT AT COMMERCIAL BANKS. TRAVELERS MAY OBTAIN LIMITED BUT ADEQUATE
AMOUNTS OF FRENCH FRANCS OR OTHER FOREIGN CURRENCIES OR TRAVELERS CHECKS
AT BANKS UPON PRESENTATION OF A VALID AIRLINE TICKET.
GENERAL FINANCING AVAILABILITY
------------------------------
THE MONETARY POLICY OF THE WEST AFRICAN CENTRAL BANK IS EXTREMELY TIGHT.
SINCE THE DEVALUATION OF THE CFA FRANC, THE CENTRAL BANK HAS REDUCED ITS
DISCOUNT RATE THREE TIMES, FROM 14.5 PCT TO 10 PCT. HOWEVER, THE COST
OF CREDIT IS STILL TOO HIGH (AROUND 17 PCT). THEREFORE, INDUSTRY'S
DEMAND FOR LOANS IS LOW AND SENEGALESE BANKS REMAIN OVERLIQUID.
FINANCING EXPORTS/METHODS OF PAYMENT
------------------------------------
U.S. EXPORTERS SHOULD REQUIRE AN IRREVOCABLE LETTER OF CREDIT DRAWN ON
ONE OF THE MAJOR BANKS. EXIMBANK FINANCING IS NOT AVAILABLE FOR SALES
TO THE SENEGALESE GOVERNMENT OR TO SENEGALESE PARASTATALS.
PROJECT FINANCING
-----------------
THE AFRICAN DEVELOPMENT BANK (AFDB) AND THE WORLD BANK FINANCE PROJECTS
DEALING WITH INFRASTRUCTURE. THE U.S. TRADE DEVELOPMENT AGENCY ALONG
WITH THE AFDB OFFERS FUNDS FOR FEASIBILITY STUDIES.
LIST OF SENEGALESE BANKS AND THEIR U.S. CORRESPONDENTS
------------------------------------------------------
CITIBANK DAKAR IS THE ONLY U.S.-OWNED BANK IN SENEGAL. MOST OF THE
LARGEST COMMERCIAL BANKS ARE SUBSIDIARIES OF FRENCH BANKS, MANY OF WHICH
HAVE REPRESENTATIVE OFFICES IN THE UNITED STATES:
--CREDIT LYONNAIS SENEGAL IS AFFILIATED WITH CREDIT LYONNAIS OF FRANCE,
WHICH HAS A REPRESENTATIVE OFFICE IN NEW YORK.
--SOCIETE GENERALE DE BANQUES DU SENEGAL (SGBS) IS AFFILIATED WITH THE
SOCIETE GENERALE DE BANQUES OF FRANCE, WHICH HAS A REPRESENTATION IN NEW
YORK. ITS FOREIGN CORRESPONDENTS INCLUDE: SOCIETE GENERALE FRANCE, AND
BANCA NATIONAL DEL LAVORO.
--BANQUE INTERNATIONALE POUR LE COMMERCE ET L'INDUSTRIE DU SENEGAL
(BICIS) IS AFFILIATED WITH THE BANQUE NATIONALE DE PARIS. ITS FOREIGN
CORRESPONDENTS INCLUDE: BARCLAYS BANK, BNP FRANCE, DRESDNER BANK, AND
BANQUE BRUXELLES LAMBERT.
--BANQUE SENEGALO-TUNISIENNE (BST) CHANNELS ITS INTERNATIONAL OPERATIONS
THROUGH CREDIT COMMERCIAL DE FRANCE.
--BANQUE DE L'HABITAT DU SENEGAL (BHS) SPECIALIZES IN HOUSING. BHS HAS
A BRANCH IN NEW YORK WHICH TARGETS THE GROWING SENEGALESE COMMUNITY IN
THE U.S.
--CAISSE NATIONALE DE CREDIT AGRICOLE (CNCA) PROVIDES CREDIT TO SMALL-
SCALE RURAL ENTERPRISES. IT IS AFFILIATED WITH FRANCE'S CREDIT
AGRICOLE.
--------------------
IX. BUSINESS TRAVEL
--------------------
SENEGAL IS SERVED BY A NUMBER OF INTERNATIONAL AIRLINES, INCLUDING
DIRECT SERVICE FROM NEW YORK VIA AIR AFRIQUE.
THE UNITED STATES EMBASSY OFFERS ASSISTANCE AND COUNSEL TO U.S. BUSINESS
TRAVELERS VISITING SENEGAL. THEY SHOULD CONTACT THE COMMERCIAL OFFICER
WELL IN ADVANCE BY FAX AT (221) 22-29-91 OR BY PHONE AT (221) 23-42-96.
CORRESPONDENCE MAY BE SENT BY DOMESTIC U.S. MAIL TO THE ECONOMIC-
COMMERCIAL SECTION, U.S. EMBASSY DAKAR, DEPARTMENT OF STATE, WASHINGTON,
D.C. 20521-2130, OR BY INTERNATIONAL AIRMAIL TO B.P. 49, DAKAR, SENEGAL
(TRANSIT TIME: VARIABLE, ABOUT 10 DAYS) OR BY AN INTERNATIONAL AIR
EXPRESS COMPANY (TRANSIT TIME: 3-4 DAYS).
BUSINESS TRAVELERS MAY ALSO CONSULT WITH THE COMMERCE DEPARTMENT'S
INTERNATIONAL TRADE ADMINISTRATION (ITA) DESK OFFICER BY TELEPHONE AT
202-377-4388.
BUSINESS CUSTOMS
----------------
SENEGAL HAS INHERITED FRENCH COMMERCIAL TRADITIONS. BUSINESS PRACTICES,
ACCOUNTING METHODS AND LEGAL PROCEDURES DERIVE FROM THE FRENCH SYSTEM.
BUSINESS CORRESPONDENCE, CATALOGS AND ADVERTISING MATERIALS SHOULD BE
PREPARED IN FRENCH.
ACCUSTOMED TO CONDUCTING BUSINESS OVER THE TELEPHONE OR BY FAX, AMERICAN
BUSINESS PERSONS MAY FIND THAT LOCAL DECISION-MAKING OPERATES AT A
SLOWER PACE THAN IN THE UNITED STATES. REPEATED PERSONAL CONTACTS ARE
OFTEN NECESSARY TO ESTABLISH A WORKING RELATIONSHIP WITH BUSINESS
PARTNERS.
TRAVEL ADVISORY AND VISAS
-------------------------
A PASSPORT IS REQUIRED FOR ENTRY. U.S. CITIZENS DO NOT NEED A VISA FOR
STAYS OF LESS THAN 90 DAYS. EVIDENCE OF A VACCINATION FOR YELLOW FEVER
MAY BE REQUIRED AT THE PORT OF ENTRY. FOR FURTHER INFORMATION,
TRAVELERS MAY CONTACT THE EMBASSY OF THE REPUBLIC OF SENEGAL, 2112
WYOMING AVENUE, N.W., WASHINGTON, D.C., 20008, TELEPHONE: (202) 234-
0540.
CURRENT TRAVEL INFORMATION ABOUT SENEGAL AND OTHER COUNTRIES IS
AVAILABLE BY TELEPHONE AT (202) 647-5225, VIA THE CONSULAR AFFAIRS
BULLETIN BOARD AT TELEPHONE (202) 647-9225 OR VIA FAX AT (202) 647-3000.
THE DEPARTMENT OF STATE'S CONSULAR INFORMATION SHEET OF APRIL 25, 1995,
NOTED THE FOLLOWING:
COUNTRY DESCRIPTION: SENEGAL IS A DEVELOPING WEST AFRICAN COUNTRY.
FACILITIES FOR TOURISTS ARE WIDELY AVAILABLE ALTHOUGH OF VARYING
QUALITY.
AREAS OF INSTABILITY: SEPARATISTS IN THE CASAMANCE AREA OF SOUTHERN
SENEGAL HAVE AGAIN BECOME ACTIVE. A SERIES OF VIOLENT INCIDENTS HAS
RESULTED IN THE DEATHS OF SOME SENEGALESE CITIZENS. AS A RESULT, THE
U.S. EMBASSY IN DAKAR HAS ADVISED U.S. CITIZENS TO AVOID TRAVEL TO
SOUTHERN SENEGAL SOUTH OF THE CASAMANCE RIVER EXTENDING FROM THE
ATLANTIC OCEAN EAST TO THE TOWN OF TANAF INCLUDING ZINGUINCHOR AND CAP
SKIRRING. ROADS IN THE CASAMANCE ARE POOR, AND DRIVING CAN BE EXTREMELY
HAZARDOUS, PARTICULARLY AT NIGHT. TRAVEL ONLY ON THE MAJOR
(HARDSURFACED) ROUTES. IN ADDITION, ROAD TRAVEL BETWEEN MAURITANIA AND
SENEGAL IS RESTRICTED TO SEVERAL DESIGNATED BORDER CROSSING POINTS.
LONG DELAYS AT THE BORDER ARE NORMAL.
MEDICAL FACILITIES: MEDICAL FACILITIES ARE LIMITED, PARTICULARLY IN
AREAS OUTSIDE THE CAPITAL, DAKAR. MALARIA IS PRESENT IN SENEGAL AND
TRAVELERS MAY WISH TO START THINKING MEFLOQUINE, A PRESCRIPTION
MEDICATION, ONE WEEK BEFORE ARRIVAL. FOR ADDITIONAL HEALTH INFORMATION,
TRAVELERS CAN CONTACT THE CENTER FOR DISEASE CONTROL'S INTERNATIONAL
TRAVELERS HOTLINE (404) 332-4559.
INFORMATION ON CRIMES: STREET CRIME IN SENEGAL POSES MODERATE RISKS FOR
VISITORS. MOST REPORTED INCIDENTS INVOLVE PICKPOCKETS, PURSE SNATCHERS
AND STREET SCAM ARTISTS, WALLETS, JEWELRY AND OTHER VALUABLES ARE
SUBJECT TO THEFT, ESPECIALLY DURING TIMES OF INTERNATIONAL MEETINGS OR
EVENTS WHICH DRAW LARGE CROWDS.
THE LOSS OR THEFT ABROAD OF A U.S. PASSPORT SHOULD BE REPORTED
IMMEDIATELY TO LOCAL POLICE AND TO THE NEAREST U.S. EMBASSY OR
CONSULATE. THE PAMPHLETS "A SAFE TRIP ABROAD" AND "TIPS FOR TRAVELERS
TO SUB-SAHARAN AFRICA" PROVIDE USEFUL INFORMATION ON PROTECTING PERSONAL
SECURITY WHILE TRAVELING ABROAD AND ON TRAVEL IN THE REGION IN GENERAL.
BOTH ARE AVAILABLE FROM THE SUPERINTENDENT OF DOCUMENTS, U.S. GOVERNMENT
PRINTING OFFICE, WASHINGTON D.C. 20402.
DRUG PENALTIES: U.S. CITIZENS ARE SUBJECT TO THE LAWS OF THE COUNTRY IN
WHICH THEY ARE TRAVELING. PENALTIES FOR POSSESSION, USE OR TRAFFICKING
IN ILLEGAL DRUGS ARE STRICT AND CONVICTED OFFENDERS CAN EXPECT JAIL
SENTENCES AND FINES.
HOLIDAYS
--------
JANUARY 1 (NEW YEAR'S)
APRIL 4 (INDEPENDENCE DAY)
FIRST MONDAY IN APRIL (EASTER MONDAY)
MAY 1 (INTERNATIONAL LABOR DAY)
AUGUST 15 (ASSUMPTION DAY)
NOVEMBER 1 (ALL SAINT'S DAY)
DECEMBER 25 (CHRISTMAS DAY)
IN ADDITION, THE FOLLOWING HOLIDAYS ARE OBSERVED ACCORDING TO THE
RELIGIOUS CALENDARS: KORITE (FEBRUARY), TABASKI (MAY), MAWLUD (AUGUST),
ASCENSION AND PENTECOST (MAY).
BUSINESS INFRASTRUCTURE
-----------------------
SENEGAL HAS A RELATIVELY WELL-DEVELOPED INFRASTRUCTURE COMPARED TO OTHER
COUNTRIES OF WEST AFRICA. AS THE LONGTIME CAPITAL OF FRENCH WEST
AFRICA, DAKAR WAS FAVORED IN RECEIVING TRANSPORTATION AND COMMUNICATIONS
FACILITIES. THE COUNTRY HAS THE SECOND-LARGEST PORT IN AFRICA, AN
INTERNATIONAL AIRPORT AT DAKAR AND INTERNATIONAL CLASS HOTELS.
TRANSPORTATION IN DAKAR: TAXIS (BLACK-YELLOW IN COLOR) ARE CHEAP,
NUMEROUS AND AVAILABLE EVERYWHERE IN DAKAR. ALL OF THEM ARE METERED.
COMMUNICATIONS: INTERNATIONAL CALLS TO MOST COUNTRIES CAN BE DIALED
DIRECTLY. THE COUNTRY CODE IS 221. CABLE, TELEX AND FAX SERVICES ARE
AVAILABLE. DAKAR IS ON GREENWICH MERIDIEN TIME, FIVE TIMES ZONE AHEAD
OF EASTERN STANDARD TIME (EST). DAYLIGHT SAVINGS TIME IS NOT OBSERVED
IN SENEGAL.
BANKS: OPEN MONDAY THROUGH FRIDAY FROM 8:30 AM TO 12 NOON AND FROM 1:30
PM TO 3 PM. CITIBANK IS THE ONLY U.S. BANK PRESENT IN SENEGAL.
LANGUAGE: THE PRINCIPAL LANGUAGE OF INTERNATIONAL BUSINESS IN SENEGAL
IS FRENCH. FEW BUSINESS PERSONS IN SENEGAL CAN COMMUNICATE COMFORTABLY
IN ENGLISH. PROFESSIONAL INTERPRETATION IS AVAILABLE BUT IS VERY
EXPENSIVE -- TYPICALLY USD 400-500 PER DAY FOR BUSINESS MEETINGS.
HEALTH: THE GENERAL LEVEL OF HEALTH IS GOOD. MALARIA IS A LEADING
CAUSE OF DEATH IN THE COUNTRYSIDE. MALARIA PROPHYLAXIS IS RECOMMENDED
SINCE THERE IS A HIGH INCIDENCE OF CHLOROQUINE-RESISTANT MALARIA IN
SENEGAL; TRAVELERS SHOULD BEGIN TAKING A RECOMMENDED ANTIMALARIAL DRUG
AT LEAST TWO WEEKS BEFORE ARRIVAL. YELLOW FEVER IMMUNIZATION DURING THE
PREVIOUS 10 YEARS IS MANDATORY TO ENTER SENEGAL.
FOOD: THE SENEGALESE DIET IS BASED ON RICE, MILLET SERVED WITH FISH,
MEAT AND VARIOUS SAUCES. TRAVELERS SHOULD DRINK ONLY BOTTLED WATER,
WHICH IS AVAILABLE AT MOST FOOD STORES, HOTELS AND RESTAURANTS. FRUITS
AND VEGETABLES SHOULD BE PEELED OR COOKED.
THERE ARE NUMEROUS FIRST CLASS RESTAURANTS IN DAKAR. THEY OFFER
EXCELLENT FISH AND FRENCH CUISINE AS WELL AS INTERNATIONAL SPECIALTIES.
--------------
X. APPENDICES
--------------
A. COUNTRY DATA - SENEGAL
--------------------------
-----------------------------------------------------
- 1994 1995 1996
- (E) (P) (P)
-----------------------------------------------------
1. PROFILE
-----------
- POPULATION (MILLIONS) 8.0 8.4 8.6
- POPULATION GROWTH (PCT) 3.0 3.1 3.1
- RELIGIONS MOSLEM 95 PCT
- CHRISTIAN 4 PCT
- (ROMAN CATHOLIC 3.5)
- ANIMISTS 1 PCT
- GOVERNMENT SYSTEM PRESIDENTIAL
- LANGUAGES FRENCH, WOLOF, PUULAR,
- SERER, MANDINGO, DIOLA
- WORK WEEK MONDAY THROUGH FRIDAY
2. DOMESTIC ECONOMY
--------------------
- GDP (USD BILLIONS) 4.3 4.6 5.0
- GDP GROWTH RATE (PCT) 2.3 4.5 5.5
- GDP PER CAPITA (USD) 506 536 550
- GOVERNMENT SPENDING
- AS PERCENT OF GDP (PCT) 29.5 29.2 30.0
- INFLATION (PCT) 36.0 8.0 3.5
- UNEMPLOYMENT (MILLIONS) 4.0 4.2 4.3
- FOREIGN EXCHANGE
- RESERVES (USD M) N/A N/A N/A
- AVERAGE EXCHANGE
- RATE FOR USD 1.00 500 N/A N/A
- DEBT SERVICE RATIO 18.9 17.7 17.2
- U.S. ECONOMIC/MILITARY
- ASSISTANCE (USD MILLIONS) 30.4 25.6 25.6
3. TRADE (USD MILLIONS)
-----------------------
- EXPORTS (FOB) 744 855 1007
- IMPORTS (FOB) 1040 1118 1271
- U.S. EXPORTS (FAS) 84.0 N/A N/A
- U.S. IMPORTS (CIF) 11.7 N/A N/A
- U.S. SHARE (PCT) 8.1 N/A N/A
- IMPORTS OF AGRICULTURAL GOODS
-------------------------------
- TOTAL FROM WORLD 262.0 283.7 325.7
- TOTAL FROM THE U.S. 36.5 38.0 39.5
- U.S. SHARE (PCT) 14.0 13.4 12.1
- AGRICULTURAL GOODS
- TRADE BALANCE WITH U.S. -34.0 -34.2 -35.0
-----------------------------------------------------
NOTES: (E) = ESTIMATE, (P) = PROJECTED, N/A = NOT AVAILABLE.
SOURCES: GOVERNMENT OF SENEGAL MINISTRY OF FINANCE, DAKAR CHAMBER OF
COMMERCE, WEST AFRICAN CENTRAL BANK, IMF, EMBASSY ESTIMATES, U.S.
DEPARTMENT OF AGRICULTURE.
-----------------------------
E. U.S. AND COUNTRY CONTACTS
-----------------------------
MINISTRY OF TRADE, HANDICRAFTS AND INDUSTRIALIZATION
MR. IDRISSA SECK, MINISTER
BUILDING ADMINISTRATIF, 7TH FLOOR
DAKAR, SENEGAL
TEL: (221) 22-50-33/22-95-42
FAX: (221) 23-11-43
EXTERNAL TRADE BUREAU
(DIRECTION DU COMMERCE EXTERIEUR)
MRS. AMINATA SALL, DIRECTOR
122, AVE FELIX EBOUE
DAKAR, SENEGAL
TEL: (221) 21-57-25
SENEGALESE CENTER FOR EXTERNAL TRADE (CICES)
MRS. AMINATA MBAYE, DIRECTOR
ROUTE DE L'AEROPORT
B.P. 8166 DAKAR YOFF
TEL: (221) 20-17-50/23-10-70
FAX: (221) 35-07-12
NOTE: CICES PROMOTES SENEGAL'S EXPORT PRODUCTS AND COORDINATES
SENEGAL'S PARTICIPATION IN TRADE FAIRS.
CHAMBERS OF COMMERCE
--------------------
DAKAR CHAMBER OF COMMERCE AND INDUSTRY
MR. LAMINE NIANG, PRESIDENT
1, PLACE DE L'INDEPENDANCE
DAKAR, SENEGAL
TEL: (221) 23-71-89
FAX: (221) 23-93-63
BUSINESS UNIONS AND ASSOCIATIONS
--------------------------------
THERE ARE A NUMBER OF BUSINESS UNIONS AND ASSOCIATIONS IN SENEGAL. THE
MOST SIGNIFICANT ARE:
THE NATIONAL COUNCIL OF BUSINESS LEADERS
CONSEIL NATIONAL DU PATRONAT (CNP)
MR. YOUSOUPHA WADE, PRESIDENT
TEL: (221) 21-58-03
FAX: (221) 32-48-26
NOTE: THE CNP INCLUDES MOST OF THE PROMINENT BUSINESSMEN IN THE
COUNTRY.
THE NATIONAL EMPLOYERS' ASSOCIATION
CONFEDERATION NATIONALE DES EMPLOYEURS DU SENEGAL (CNES)
MR. MANSOUR KAMA, PRESIDENT
41, RUE AMADOU ASSANE NDOYE
DAKAR, SENEGAL
TEL: (221) 21-76-62
FAX: (221) 22-96-58
UNACOIS
MR. MOUSTAPHA DIOP, PRESIDENT
96, RUE A.K. BOURGI X JARAAF MAMADOU PAYE
DAKAR, SENEGAL
TEL: (221) 21-60-48
NOTE: UNACOIS IS THE NATIONAL ASSOCIATION OF SMALL SENEGALESE
IMPORT/EXPORT BUSINESSES.
COUNTRY ADVERTISING AGENCIES
----------------------------
IMPACT STRATEGIES
MRS. MARIE MBOUP, DIRECTOR
5, PLACE DE L'INDEPENDANCE
IMMEUBLE SDIH
DAKAR, SENEGAL
TEL/FAX: (221) 22-43-12
NELSON MCCANN ERIKSON
MR. PHILIP ELBEZ
41, RUE A. ASSANE NDOYE X DR. THEZE
DAKAR, SENEGAL
TEL: (221) 22-12-69
FAX: (221) 22-11-93
PUBLISEN
MR. BOUBACAR DIALLO, DIRECTOR
1, RUE GALANDOU DIOUF
DAKAR, SENEGAL
TEL/FAX: (221) 22-13-64
COUNTRY COMMERCIAL BANKS
------------------------
CITIBANK
2, PLACE DE L'INDEPENDANCE
MICHEL ACCAD, GENERAL MANAGER
B.P. 3391
DAKAR, SENEGAL
TEL: (221) 23-29-81
FAX: (221) 23-88-17
BANQUE INTERNATIONALE POUR LE COMMERCE
ET L'INDUSTRIE DU SENEGAL (BICIS)
CLAUDE RUFFIN, MANAGING DIRECTOR
2, AVENUE ROUME
B.P. 392
DAKAR, SENEGAL
TEL: (221) 23-10-33
FAX: (221) 23-37-07
COMPAGNIE BANCAIRE DE L'AFRIQUE DE L'OUEST (CBAO)
ABDOUL MBAYE, GENERAL MANAGER
PLACE DE L'INDEPENDANCE
B.P. 129
DAKAR, SENEGAL
TEL: (221) 23-10-00
FAX: (221) 23-20-05
SOCIETE GENERALE DE BANQUES (SGBS)
MR. POUPET, GENERAL MANAGER
B.P. 323 DAKAR
TEL: (221) 23-10-60
FAX: (221) 23-90-36
CREDIT LYONNAIS
MR. BERARDENGO, GENERAL MANAGER
BOULEVARD PINET LAPRADE X HUART
B.P. 56
DAKAR, SENEGAL
TEL: (221) 23-10-08
FAX: (221) 23-84-30
U.S. CHARTERED ACCOUNTING FIRMS
-------------------------------
COOPERS & LYBRAND
A.A. DIEYE, CORRESPONDENT
CABINET AZIZ DIEYE & ASSOCIATES
2, PLACE DE L'INDEPENDANCE
DAKAR, SENEGAL
TEL: (221) 21-85-88/21-86-71
FAX: (221) 21-95-74
DELOITTE & TOUCHE
BLAISE DIADHIOU, REPRESENTATIVE
CABINET ACG
4, RUE MALENFANT
B.P. 3191
DAKAR, SENEGAL
TEL: (221) 22-11-38
FAX: (221) 22-11-75
PRICE WATERHOUSE & COMPANY
MAYORO WADE, CORRESPONDENT
64, RUE WAGANE DIOUF
B.P. 1686
DAKAR, SENEGAL
TEL: (221) 23-97-77
FAX: (221) 23-85-79
U.S. EMBASSY TRADE PERSONNEL
----------------------------
CAROL R. KALIN, ECONOMIC OFFICER
JAMES D. WHEELER, COMMERCIAL OFFICER
MAMADOU LAMINE GASSAMA, ECON/COML SPECIALIST
YOUHANIDOU WANE, COMMERCIAL ASSISTANT
U.S. EMBASSY DAKAR
DEPARTMENT OF STATE
WASHINGTON, D.C. 20521-2130
TEL: (221) 23-42-96
FAX: (221) 22-29-91
WASHINGTON-BASED U.S. GOVERNMENT COUNTRY TRADE CONTACTS
-------------------------------------------------------
COMMERCE DEPARTMENT DESK OFFICER FOR SENEGAL
INTERNATIONAL TRADE ADMINISTRATION
MR. PHILIP MICHELINI, DESK OFFICER
ROOM 2037, DEPARTMENT OF COMMERCE
WASHINGTON, D.C., 20230
TEL: (202) 482-4388
STATE DEPARTMENT COMMERCIAL COORDINATOR
BUREAU FOR AFRICAN AFFAIRS
DR. ADA ADLER, COMMERCIAL COORDINATOR
ROOM 5202, DEPARTMENT OF STATE
WASHINGTON, D.C., 20520
TEL: (202) 687-3502
FAX: (202) 736-4583
-------------------
F. MARKET RESEARCH
-------------------
AVAILABLE AND UPCOMING DOC/ISAS AND IMIS
----------------------------------------
94 DAKAR 09566: SENELEC, THE SENEGALESE NATIONAL POWER COMPANY
94 DAKAR 07851: SENEGAL: THE NATIONAL TELECOMMUNICATIONS COMPANY'S
PROFILE AND THE MARKET FOR TELECOMMUNICATIONS
94 DAKAR 08727: SENEGAL: THE MICROWAVE COMMUNICATIONS MARKET
94 DAKAR 06794: SENEGAL: THE MARKET FOR CELLULAR COMMUNICATIONS
95 DAKAR 05696: SENEGAL: TEXTILE INDUSTRY OUTLOOK
UPCOMING REPORTS
----------------
SENELEC (ELECTRIC POWER): PROSPECTS FOR PRIVATIZATION
SONATEL (TELECOMMUNICATIONS): PROSPECTS FOR PRIVATIZATION
SENEGAL: THE TOURISM INDUSTRY
SENEGAL: THE AGRI-BUSINESS INDUSTRY
SENEGAL: PHARMACEUTICALS AND THE CFA FRANC DEVALUATION
------------------------
G. TRADE EVENT SCHEDULE
------------------------
NOVEMBER 1995: THE AGRI-BUSINESS TRADE FAIR (SPONSORED BY THE EUROPEAN
UNION)
DECEMBER 1996: THE DAKAR INTERNATIONAL TRADE FAIR
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