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Summary

Identity card Investment Policy

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1- Identity Card

Independance	August 20, 1960
Political Regime	Presidential with a bicameral parliament composed by an Assembly and a Senate
President of the Republic	Abdoulaye WADE
Administrative Division	12 regions (Dakar, Thiès, Kaolack, Saint-Louis, Ziguinchor, Louga, Diourbel, Fatick, Kolda, Tambacounda, Matam et Kédougou) ; 35 departments ; 92 Administrative districts; 43 Communal districts; 67 Municipalties and 324 Rural communities.
Surface	196 720 Km2
Capital city	Dakar
Population	11,4 millions inhabitants
Border countries	Mauritania in the North, Mali in the East, Guinée and Guinée Bissau in the South.
Geographical location	Latitude North 12°30 and 16°30 Longitude West 11°30 and 17°30
Weather	Sahelian : Rainy season from june to october with a peak in August and September, and variable according to the latitude (less rains in the North compared with the South), the monsoon period Temperatures are usually at their maximum but at the minimum in January During the winter season in Europe, Senegal becomes an appreciated tourist destination owing to its vecinity with the european continent and its own tourist potential
Gross Domestic Product (GDP)	353.019 F CFA
GDP rate of Growth in 2006	+3,6 %
Representative ethnic groups	Wolofs (43 %) Pulaars (24 %) Séréres (15 %)
Telecommunications	Senegal has a good telecommunications system (fixed line, mobile phone, Internet and ADSL Television) among the best rated in the subregion with two operators whose services are operational (Orange and Tigo) and a third one (Sudatel) which is being implanted.
Economy	Senegal is the third subregional economy after Nigeria and Ivory Coast. The main sectors of activity are fishing, phosphates, groundnut and tourim. Oil and mining exploration is very active. The sector of services notably banks, insurance, education and information and communication technologies somehow witness development. The setting up of a fast growth strategy (SCA) expresses the political will of the authorities to boost growth by setting conditions favourable to wealth creation. International standard business environment, identification of growth focal areas or clusters, upgrading of infrastructures and re-planning of the territory. The creation of a special economic zone which will have the status of a free zone aims at offering companies an investment context particulary favourable to their development
Air transport	Due to privileged geographical position, the international Airport Léopold Sédar Senghor is served , practically, all the biggest airliners in the world. The building of International Airport Blaise Diagne in Diass is planned in the short term.
Land Transport	The transport network is developping with the policy of infrastructures upgrading to improve urban mobility. The building of a toll motorway between Dakar and Diamniadio is one of the leading project in that field.
Rail Transport	The railway network is hampered by its obsolescence even if the line Dakar-Bamako is still working.
Seaborne Transport	Senegal has the most important port (Dakar Port Autority) of the subregion owing to its geographical position. The management of the containers terminal was granted to Dubai Port World who committed themselves to make important investments notably in the building of the " Port of the Future ". The building of the mineral port of Bargny is contemplated as part of the integrated project of the Falémé iron or exploitation granted to Mittal Group.

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2- Investment

2.1- Incentive Policy

Senegal has a legal and institutional purview for investment enticing whose main components are

• The creation of the Agency for the Promotion of Investment and great works (APIX), since July 2000, whose mission consists of:
  • looking for identifying investors ;
  • promoting senegalese potentials to attract investments ;
  • welcoming and baking investors ;
  • facilitating administratives procedures and proceedings ;
  • making technological, commercial and economic information available ;
  • assisting in partnership venture.
  A Single Office has been created whose objective is to ensure the execution of all the administrative steps in company creation or modification, the compliance with the investment code and the status of export geared free entreprise and the follow-up of the approved projects.
• The setting up of the Presidential Council for Investment (CPI), which is an advisory body which meets twice a year and whose objective is to reinforce the dialogue between the President of the Republic and investors, in order to accelerate the identification and implementation of the reforms necessary for the improvement of business environment. CPI is a small staffed structure composed by about 30 company managers distributed as follows one third of senegalese investors, one third of foreign investors not yet established in Senegal and one third of foreign investors not yet established in Senegal
• The creation of the agency for the development of Small And Medium Enterprises (ADEPME) in 2001, whose mission is to welcome and inform promoters and operators about the various backing services to enterprises. It offers them a whole lot of practical information on the creation and for the development of an enterprise , local and international financing and financial intermediation sources accessible to small and medium enterprises
• The creation of the Senegalese Agency for the Promotion of Exportations (ASEPEX) by decree n° 2005-108 dated February 15,2005. ASEPEX mission is to encourage countinous and sustainable development and to promote senegalese exportations. This transversal mission covers the whole of the economic sectors with a potential international export, as stipulated in the Exportation Developpement Strategy (STRADEX)

2.2- Investment Legal Framework

To encourage and facilitate investments through incentive Framewok systems, Senegal has issued an Investment Code and a Status of Free Entreprise geared towards Exportation (EFE).

The Investment Code (Act n° 2004-06 dated February 2004) was adopted with a view to enciting and stimulating private investment. The approbation granted to petitioners offers advantages notably in the form of tax and customs duties exemption.

The status of free enterprise geared to exportation; provided for by Act N°2004-11 dated january 27, 2004 is granted to industrial or agricultural entreprises (broadly peaking including horticulture, forestry, husbandry, fishing and fish-farming) implanted in Sénégal and which intend the totality of their production for exportation. The scope of application also covers teleservices.

Approbation to the status of free entreprise geared to exportation also confers or investors advantages notably in the form of freedom to transfer funds necessary for the implementation of tthe investment and didvidends to foreign shareholders, and also to hire foreign staff without any restriction.

It is to be noted that Senegal has ratified many international conventions to do with foreign investments, notably the one that govers the Multilateral Agency for Investments Guarantees (AMGI) whose vocation is to provide the best guarantees to investment bye encouraging foreign investement in developping countries or that othe one which institued the International Center for the Settlement of Disputes related to Investements (CIRDI), which offers the possibility of setting disputed claims between States and foreign investrs throuhg mediation and conciliation.

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