Guidance

Overseas business risk: Senegal

Updated 16 June 2017

1. Political and economic

Senegal is one of the most stable countries in Africa, and has continued to strengthen its democratic institutions since its independence in 1960. The current President, Macky Sall was elected in 2012 and the next Presidential election is due in 2019 with legislative elections in 2017.

Although French companies maintain a strong presence in this former French colony, Senegal is keen to encourage a broader range of trade and investment partners. There is a relatively small but growing British presence, with significant investments in oil and gas exploration, agriculture, mining, energy and the services sector.

Official statistics put economic growth in 2016 at 6.6%, with 6.8% expansion in 2017, well above Senegal’s trend growth rate, and not far off the 7% targeted for 2018 by the Plan Sénégal Emergent (PSE).

The PSE aims to turn Senegal into an emerging economy by 2035. It focuses on increasing agricultural productivity, developing transport infrastructure, reforming the energy sector and reinvigorating the tourism industry.

The transport infrastructure is improving. The port of Dakar is the second largest in francophone West Africa (after Abidjan). The government hopes to open a new airport to commercial traffic in December 2017. An extensive road-building programme is underway. The government also has ambitious plans for the railway sector.

Senegal ranks 147th (out of 190 economies) in the 2017 ease of doing business index compiled by the World Bank, with a score that is close to the Sub-Saharan Africa (SSA) average and lower than all fast growing SSA countries.

The Mo Ibrahim Index of African Governance (IIAG) ranked Senegal 10th out of 54 countries in 2016 and 1 of the 3 that improved their position in the 4 categories of the index.

Continued public and private sector investment in the electricity sector to diversify sources, reduce costs, and improve distribution and reliability will address an important impediment to doing business in Senegal.

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 and allowing workers to form and join unions. 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. Moreover, it is an offence for British nationals or someone who is ordinarily 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 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 2016, Senegal was ranked 61 of 176 countries in Transparency International’s Corruption Perception Index (CPI). This ranked Senegal as the 7th Sub-Saharan African country in the index.

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

Please read the information provided in the Terrorism section of the Foreign, Commonwealth & Development Office travel advice for Senegal.

5. Organised crime and safety and security advice

Drug trafficking – of cannabis and cocaine – is an issue in Senegal and West Africa more generally. Money laundering is also a growing threat to Senegal, and is facilitated by booming real estate. Criminal gangs from other parts of West Africa are often involved in 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.

Please read the information provided in the safety and security section of the Foreign, Commonwealth & Development Office travel advice for Senegal.

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 Organisation (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. Contact

For more information regarding conducting business in Senegal, contact the Department for Business and Trade (DBT) team in the country.

8. Useful link

• Senegalese Business Creation Support Bureau