SENEGAL COUNTRY REPORT

ABOUT SENEGALOfficially known as the Republic Of Senegal

country in West Africa.

economical and political capital is Dakar.

westernmost country in the mainland of the Old World, or Eurafrasia.

The climate is Sahelian, but there is a rainy season.

TIMELINE OF SENEGAL8th century - Present-day Senegal is part of the Kingdom of Ghana.

1677 - French take over island of Goree from the Dutch, the start of nearly 300 years of French oversight.

1756-63 - Seven Years' War: Britain takes over French posts in Senegal, forms colony of Senegambia. France regains its holdings during American Revolutionary War of 1775-83.

1960 - Senegal becomes an independent country.

TIMELINE OF SENEGAL2000 - Opposition leader Abdoulaye Wade wins second round of presidential elections, ending 40 years of Socialist Party rule.

2004 - Casamance Movement of Democratic Forces (MFDC) and government sign pact aimed at ending secessionist struggle in the southern province of Casamance. Violence continues, however until rebel leader Salif Sadio declares a unilateral ceasefire in 2014.

2012 - Macky Sall wins presidential elections and his coalition wins the parliamentary elections. MPs abolish the upper house, the Senate, and the post of vice president in an effort to save money for flood relief. Critics say the aim is to weaken the opposition.

FAST FACTS OF SENEGAL 1. Population - 13.1 million

2. Area - 196,722 sq Km

3. Major Languages - French (official), Wolof

4. Life expectancy - 59 years (men) & 61 years (women)

5. Currency - CFA (Communaute Financiere Africaine) franc

6. President: Macky Sall

GEOGRAPHY OF SENEGAL

GEOGRAPHY OF SENEGAL The capital of Senegal, Dakar, is the westernmost point in Africa.

The country, slightly smaller than South Dakota, surrounds Gambia on three sides and is bordered on the north by Mauritania, on the east by Mali, and on the south by Guinea and Guinea-Bissau.

Senegal is mainly a low-lying country, with a semidesert area in the north and northeast and forests in the southwest.

The largest rivers include the Senegal in the north and the Casamance in the southern tropical climate region.

CURRENCY SENEGAL

CURRENCY OF SENEGALWest African CFA franc

CFA (Communaute Financiere Africaine) franc

It is abbreviated as (XOF)

CURRENCY OF SENEGAL

POLITICS & CULTURE SENEGAL

POLITICSSenegal has a quasi-democratic political culture

Local administrators are appointed by, and responsible to, the president.

centralisation of power in the executive.

In 2008, Senegal finished in 12th position on the Ibrahim Index of African Governance.

On 19 September 2012, lawmakers voted to do away with the senate to save an estimated $15 million.

CULTURE

Senegal is well known for the West African tradition of storytelling, which is done by griots, who have kept West African history alive for thousands of years through words and music.

The griot profession is passed down generation to generation and requires years of training and apprenticeship in genealogy, history and music. Griots give voice to generations of West African society.

DEMOGRAPHICS SENEGAL

POPULATION OF SENEGAL

Population 13,635,927 (July 2014 est.)

Population growth rate2.48% (2014 est.)

AGE STRUCTURE OF SENEGAL 0-14 years: 42.5% (male 2,908,431/female 2,880,258)

15-24 years: 20.5% (male 1,388,530/female 1,401,109)

25-54 years: 30.4% (male 1,892,403/female 2,253,576)

55-64 years: 3.8% (male 225,942/female 289,920)

65 years and over: 2.9% (male 179,444/female 216,314) (2014 est.)

DEPENDENCY RATIOS IN SENEGAL total dependency ratio: 86.5 %

youth dependency ratio: 81 %

elderly dependency ratio: 5.5 %

potential support ratio: 18.2 (2014 est.)

MEDIAN AGE OF SENEGAL

total: 18.4 years

male: 17.5 years

female: 19.3 years (2014 est.)

DEMOGRAPHICS Birth rate 35.09 births/1,000 population (2014 est.)

Death rate 8.65 deaths/1,000 population (2014 est.)

Net migration rate -1.66 migrant(s)/1,000 population (2014 est.)

Urbanization urban population: 42.5% of total population (2011)

rate of urbanization: 3.32% annual rate of change (2010-15 est.)

SEX RATIO OF SENEGAL at birth: 1.03 male(s)/female 0-14 years: 1.01 male(s)/female 15-24 years: 0.99 male(s)/female 25-54 years: 0.84 male(s)/female 55-64 years: 0.94 male(s)/female 65 years and over: 0.85 male(s)/female total population: 0.94 male(s)/female (2014 est.)

INFANT MORTALITY RATE IN SENEGAL

total: 52.72 deaths/1,000 live births

male: 58.91 deaths/1,000 live births

female: 46.35 deaths/1,000 live births (2014 est.)

LIFE EXPECTANCY AT BIRTH

total population: 60.95 years

male: 58.94 years

female: 63.02 years (2014 est.)

Total fertility rate 4.52 children born/woman (2014 est.)

Contraceptive prevalence rate 13.1% (2010/11)

HIV/AIDS - adult prevalence rate 0.5% (2012 est.)

HIV/AIDS - people living with HIV/AIDS 42,800 (2012 est.)

HIV/AIDS - deaths1,900 (2012 est.)

MAJOR INFECTIOUS DISEASES

degree of risk: very high

food or waterborne diseases: bacterial and protozoal diarrhea, hepatitis A, and typhoid fever

vectorborne diseases: dengue fever, malaria, and yellow fever

water contact disease: schistosomiasis

respiratory disease: meningococcal meningitis

animal contact disease: rabies (2013)

RELIGIONS

Muslim 94% (most adhere to one of the four main Sufi brotherhoods),

Christian 5% (mostly Roman Catholic),

indigenous beliefs 1%

LITERACY RATE

Literacy definition: age 15 and over can read and write

total population: 49.7%

male: 61.8%

female: 38.7% (2009 est.)

EXPENDITURES

Education expenditures5.6% of GDP (2010)

Health expenditures 6% of GDP (2011)

GROSS DOMESTIC PRODUCT (GDP) SENEGAL

SENEGAL GDP- COMPOSITION BY SECTOR

agriculture: 14.9%

industry: 22.7%

services: 62.4% (2013 est.)

SENEGAL GDP (PURCHASING POWER PARITY)

$27.72 billion (2013 est.)

$26.65 billion (2012 est.)

$25.74 billion (2011 est.)

GDP - PER CAPITA (PPP)

$2,100 (2013 est.)

$2,000 (2012 est.)

$2,000 (2011 est.)

GDP GROWTH RATE

MARKET SIZE

Small internal market

Senegal acquired "Least Developed Country (LDC)"[ Government of Senegal (2001).] status in 2001.

CONSUMER DEMAND1.CRUDE PETROLEUM2.REFINED PETROLEUM3.RICE 4.WHEAT5.TECHNOLOGY6.AUTOMOBILES7.ETC.

MACROECONOMIC POLICIES SENEGAL

INDUSTRIALIZATION POLICY

Over 1961-69, opted for import substitution policies aiming at favouring the emergence of dynamic comparative advantages.

Tariff and non-tariff barriers protected large enterprises which were created by mobilizing large amounts of (often public) capital.

By 1970, an alternative policy emphasized the development of small and medium business through the creation of the National Company for Industrial Research and Development (SONEPI) in 1969, followed by the Dakar Industrial Free Trade Zone (ZFID) in 1974.

FISCAL POLICY Fiscal policy in 2012 was marked by a slowdown.

budget deficit, estimated at 7% in 2012 against 6.6% in 2011, would have been higher (8%)

Government spending is high.

delays in non-priority capital expenditure.

Fiscal policy was slightly expansionary in 2012.

MONETARY POLICY

Senegal is a member of WAEMU, the eight-country group that uses a single currency, the West African CFA franc. main objective is to ensure price stability and safeguard purchasing power, is conducted within the monetary union. Monetary conditions in Senegal and the wider WAEMU community were marked by the reduction of required reserve ratios from 7% to 5% in March 2012 decisions by the Central Bank of West African States (CBWAS) pushed down interest rates for loans of all maturities, with the notable exception of lending

MONETARY POLICY

In Senegal, lending rates stood at an average of between 4.97% and 11%, depending on the borrower.

Increasing Money supply in the country.

INFLATION

Inflation was contained at 2.5% in 2012 (down from 3.4% in 2011), despite higher food prices (cereals) and higher non-alcoholic drink prices.

Forecasts predict inflation will be below the WAEMU ceiling of 3%

DEBT POLICY

Senegal continued to diversify its debt instruments in 2012 in terms of the concessional level, maturity and interest rates by issuing debt securities on regional and international markets. The government gives priority to concessionary financing and neither contracts nor guarantees external loans on non-concessional terms. It consults the IMF in advance whenever it does not stick to these criteria. The government plans to use remaining funds from the IMF programme for non-concessional loans (USD 200 million) and the programme for semi-concessional loans to finance infrastructure investment.

DEBT POLICY

The most recent analysis of debt sustainability concluded that Senegal is at low risk. Aware of the inherent risk of a rapid rise in debt, the government created its first medium-term debt strategy led by the Treasury’s new public debt division (Direction de la dette publique). This new strategy, based on detailed study, calls for a reshaping of debt by reducing short-maturity instruments for domestic debt.

DEBT POLICY

FOREIGN TRADE POLICY

Tariff and non-tariff barriers to protect domestic industries.

Slowly liberalizing economy.

Good future for investments in Senegal.

TRADE SENEGAL

ECONOMY The fishing sector has replaced the groundnut sector as Senegal's export leader.

The industrial fishing operations struggle with high costs, and Senegalese tuna is rapidly losing the French market to more efficient Asian competitors.

Phosphate production, the second major foreign exchange earner for Senegal

Receipts from tourism, the fourth major foreign exchange earner, have picked up since the January 1994 devaluation.

TRADE UNIONS IN SENEGAL1.National Confederation of Senegalese Workers (CNTS)

2.Dakar Dem Dikk Workers Democratic Union (Dakar Public Transport workers)

3.Democratic Union of Senegalese Workers (UTDS)

4.National Union of Autonomous Trade Unions of Senegal (UNSAS)

5.General Confederation Of Democratic Workers Of Senegal (CGTDS)

STOCK EXCHANGE

Senegal's corporations are included in the Bourse Régionale des Valeurs Mobilières SA (BRVM), a regional stock exchange serving the following eight West African countries, and located in Abidjan, Cote d'Ivoire.

REGIONAL AND INTERNATIONAL ECONOMIC GROUPINGS1.World Trade Organization2.International Monetary Fund3.Organization of African Unity (OAU)/Africa Union4.The Franc Zone5.The Lomé Convention6.Economic Community of West African States (ECOWAS)7.WEST AFRICAN ECONOMIC AND MONETARY UNION (WAEMU)8.Union économique et monétaire Ouest Africaine (UEMOA)9.The African Groundnut Council10.the Organisation pour la mise en valeur du fleuve Sénégal

MAJOR INDUSTRIES IN SENEGAL

telecommunications

transport services

construction,

boosted by the relatively large flow of public and private investment.

MAJOR PORTS IN SENEGAL

1.Port of Kaolack2.Port of Dakar3.Port of Ziguinchor4.Port of Rufissque5.M'Bao Oil Terminal6.Port of Karabane7.Port of Saint Louis8.Port of Lyndiane

EXPORTS OF SENEGAL

IMPORTS OF SENEGAL

TRADE BALANCE OF SENEGAL

EXPORT DESTINATIONS

IMPORT DESTINATIONS

LABOUR LAWS SENEGAL

LABOUR LAWSQ) Fixed-term contracts prohibited for permanent tasks? ANS) YesQ)Maximum length of a single fixed-term contract (months) ANS) 24 monthsQ)Maximum length of fixed-term contracts, including renewals (months) ANS) 24.0Q)Ratio of minimum wage to value added per worker ANS) 1.1

LABOUR LAWS Equal remuneration for work of equal value? No Gender nondiscrimination in hiring? No Paid or unpaid maternity leave mandated by law?

Yes Minimum length of maternity leave (calendar days)?

98.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes On-the-job training? No

LABOUR LAWS

Q)Incentives for employing workers under age 25? ANS) Yes

Q) Maximum number of working days per week ANS) 6.0

Q)Premium for night work (% of hourly pay) ANS) 38.0

Q)Premium for work on weekly rest day (% of hourly pay)ANS) 0.0

LABOUR LAWS Paid annual leave for a worker with 1 year of tenure (working days) 24.0

Paid annual leave for a worker with 5 years of tenure (working days) 24.0

Paid annual leave for a worker with 10 years of tenure (working days) 25.0

Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 24.3

LABOUR LAWS Premium for overtime work (% of hourly pay) 10.0

Restrictions on night work? 0.0

Whether nonpregnant and nonnursing women can work the same night hours as men Yes

Restrictions on weekly holiday? 1.0

Restrictions on overtime work? Yes

LABOUR LAWS Unemployment protection after one year of employment? No

Minimum contribution period for unemployment protection (months)? n.a.

Can employee create or join union? Yes

Administrative or judicial relief for infringement of employees' rights? Yes

Labor inspection system? Yes

TAX STRUCTURE SENEGAL

PERSONAL INCOME TAX

CORPORATE INCOME TAX

Senegalese companies are taxed on the basis of the territoriality principle. As a result, companies carrying on a trade or business outside Senegal are not taxed in Senegal on the related profits. Foreign companies developing activities in Senegal are subject to Senegalese corporate tax on Senegalese-source profits only.

CORPORATE TAX RATES

The corporate income tax rate is 30%. The minimum tax (impôt minimum forfaitaire, or IMF) payable equals 0.5% of the annual turnover. The minimum tax may not be less than XOF500,000 or more than XOF5 million.

Unless otherwise stipulated in a double tax treaty, the profits realized in Senegal by branches of foreign companies that have not been reinvested in Senegal are deemed to be distributed and are accordingly subject to a 10% withholding tax.

CAPITAL GAINS Capital gains are generally taxed at the regular corporate tax rate. The tax, however, can be deferred if the proceeds are used to acquire new fixed assets in Senegal within three years or in the event of a merger (or other corporate acquisition).

If the business is totally or partially transferred or discontinued, only one-half of the net capital gain is taxed if the event occurs less than five years after the start-up or purchase of the business, and only one-third of the gain is taxed if the event occurs five years or more after the business was begun or purchased.

ADMINISTRATION The tax year is the calendar year. Companies must file their tax returns by 30 April of the year following the tax year.

Corporate tax must be paid in two installments (each equal to one-third of the preceding year’s tax) by 15 February and 30 April. The 15 February installment may not be less than the amount of the minimum tax. The balance must be paid by 15 June.

Late payments are subject to interest at a rate of 5% of the tax due. Each additional month of delay results in additional interest of 0.5%.

DIVIDENDS PAID Dividends paid are subject to a 10% withholding tax.

Dividends distributed by a Senegalese parent company that consist of dividends received from a Senegalese subsidiary that is at least 10% owned are not subject to dividend withholding tax on the second distribution.

FOREIGN TAX RELIEFS

In general, foreign tax credits are not allowed; income subject to foreign tax that is not exempt from Senegalese tax under the territoriality principle is taxable net of the foreign tax. However, the tax treaty with France provides a tax credit for French tax paid on dividends.

INVESTMENT DECISIONS SENEGAL

WHY WE SHOULD CHOOSE TO INVEST IN SENEGAL ?

1. A strategic geographical position2. Competitive production costs3. A cheap and skilled labor force4. A healthy and competitive economy5. A reformed legal and taxation framework6. Privileged access to regional and international

markets.7. Foreigners can have a 100% stake in a company.

CHALLENGES WHILE INVESTING IN SENEGAL

1. The poor and bad condition of the infrastructures;

2. A slow and corrupt administration;3. Increased protection for investments by

government4. Security;5. Low company productivity; and6. Low diversity of activities.

SECTORS FOR INVESTMENTS IN SENEGAL

1.AGRIBUSINESS 2.POWER 3.TEXTILES4.IT INDUSTRY 5.FISHERIES 6.TOURISM7.MINING