Five Reasons to Invest in Senegal’s Rising Economy

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Competitive Economy

Senegal is the second-largest economy in French-speaking West Africa. After slowing to 4.8% in 2022, the GDP in Senegal is projected to jump to 8.3% in 2023 and then to 10.5% in 2024.

The country is seen as a political exception in Africa, with many international organizations and multinationals choosing Dakar, the capital, as their regional base. It was the first country in West Africa to receive a “B+/B” rating from the leading index provider and data source of independent credit ratings, Standard & Poor’s, for three consecutive years and holds a BB- rating with a stable outlook from financial research company Moody’s, thanks to its macroeconomic stability, easy access to foreign currency, moderate debt levels, and support from the international financial community.

The country maintains controlled inflation, increases financial revenues, and is among the continent’s top five fastest growing economies.

Attractive Business Climate

Senegal’s government has made major efforts to improve the country’s business climate, resulting in simpler processes for launching and running enterprises. Faster company formation, faster import/export operations, quick ownership transfers, and online tax returns and payments are among the key enhancements driving a positive business climate in the country. Senegal has also implemented investment protection measures with a number of partner countries around the world, ensuring legal certainty, capital and return repatriation, expropriation guarantees, and compensation provisions.

These initiatives illustrate Senegal’s commitment to fostering a business-friendly environment and promoting private-sector-led economic growth.

Skilled Labour

Senegal has a youthful population seeking decent employment opportunities. With an average age of approximately 22 years and over 42% of the population under 15 years old, the youth demographic is prominent.

Recognized for the quality of its higher education programs and attracting a large number of foreign students from all over Africa every year, Senegal has recently created several specialized Master’s degrees focused on renewable energy.

Modern Infrastructure

Senegal’s transportation infrastructure has advanced significantly, including a well-maintained road network and continuous urban mobility enhancements.

Major initiatives like toll motorways and national road repairs are improving access to critical routes. Modernization of the railway system is underway, with projects such as the Dakar-Bamako railway and the Dakar Regional Express Train boosting connections. The cutting-edge Blaise Diagne International Airport acts as a regional and international mobility hub, relieving congestion in Dakar and promoting the development of a second economic center. Furthermore, the Dakar Autonomous Port benefits from its strategic location at the crossroads of key marine routes.

Comprehensive Legal and Fiscal Frameworks

Senegal has established a legal and fiscal framework to encourage investment and foster economic growth. The Investment Code provides various benefits, including customs duty exemptions, VAT payment suspensions, and reduced Corporate Income Tax (CIT) rates for eligible investments. Agriculture, industry, and power companies with substantial export potential can attain Free Export Company status, granting them a reduced CIT rate and exemptions from specific taxes. Moreover, Senegal offers the Special Economic Zone, which provides preferential tax treatment and specific advantages for companies in the mining and petroleum sectors.

International investors are welcome to attend MSGBC Oil, Gas, & Power 2023, which will be held in Nouakchott, Mauritania, on November 21-22 under the patronage of both Senegal’s and Mauritania’s Heads of State, HE Macky Sall and HE Mohamed Ould Ghazouani. The event will bring together professional panels focusing on expanding investment prospects in the MSGBC area.

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Onur Yilmaz

Onur Yilmaz

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