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Beijing Tuesday, November 03 rd 2009

Business Environment in Senegal. Beijing Tuesday, November 03 rd 2009. AGENDA. SENEGAL AT A GLANCE STRATEGIC VISION BUSINESS ENVIRONMENT KEY BUSINESS OPPORTUNITIES MAJOR INFRASTRUCTURE PROJECTS APIX, A CATALYST BODY. I. SENEGAL AT A GLANCE. SENEGAL AT A GLANCE. SENEGAL.

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Beijing Tuesday, November 03 rd 2009

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  1. Business Environment in Senegal Beijing Tuesday, November 03rd 2009

  2. AGENDA • SENEGAL AT A GLANCE • STRATEGIC VISION • BUSINESS ENVIRONMENT • KEY BUSINESS OPPORTUNITIES • MAJOR INFRASTRUCTURE PROJECTS • APIX, A CATALYST BODY

  3. I. SENEGAL AT A GLANCE

  4. SENEGAL AT A GLANCE SENEGAL

  5. SENEGAL AT A GLANCE • Capital City : Dakar • Area : 196,190 km² • Population : 12,8 million • GDP per capita : $ 1171 • Above 5% GDP growth over the last 10 years • CFA Franc, pegged to Euro (655.9 f = 1 Euro) • . • Natural resources • Fish, Phosphates, Iron ore, Natural gas, Marble, Gold • Major Industries • Agriculture / Fish processing / Tourism • Phosphate mining and fertilizer production • Petroleum refining & Construction materials

  6. II. STRATEGIC VISION

  7. Senegal, emerging nation in 2015 Regional integration UEMOA, CEDEAO, NEPAD Private sector : ENGINE FOR GROWTH Major infrastructure projects in PPP Political change in 2000 FUNDAMENTALS OF VISION

  8. THE VISION EMERGING SENEGAL 2015

  9. EMERGING SENEGAL 2015 STRATEGIC OBJECTIVES • Integrate the TOP 10 FDI Recipients in Africa • Investment Rate: 30% of GDP • Growth Rate: 7- 8% • Territory urban planning • Reaching the Millenium Development Goals • 100 000 new jobs per year

  10. EMERGING SENEGAL: KEY INDICATORS • Investment rate: 30% of Gross Domestic product (GDP) • Economic growth of 7- 8% • GDP/capita : 1 500 $US • Integrate the Top 10 FDI recipients in Africa

  11. EMERGING SENEGAL A PROCESS STRUCTURED AROUND TWO COMPONENTS Implementation of a world class business environment 1 Accelerated Growth Strategy 2 Identification and promotion of high potential economic and social clusters

  12. III. BUSINESS ENVIRONMENT

  13. SENEGAL’S KEY SUCCESS FACTORS Political Stability An open and booming economy Quality of human resources Modern and Structuring Infrastructure An improving business environment A preferential access to regional and international markets

  14. 1. Political Stability • Long tradition of democracy • Soundness of institutions • Tradition of tolerance (A Christian president was in office for 20 years in a country with a 90% Muslim population) • No ethnic or religious violence

  15. 2. An open and booming economy Average economic growth rate > 5% since 1994, 6,4% in 2004 Inflation below 2% since 1997 Stable and convertible currency pegged to the Euro Consistent B+/Stable B rating by Standard & Poor’s over the past 3 years

  16. 3.Quality of Human resources 50% of the national budget allocated to Education and Health Large number of prestigious public and private schools Large number of high level managers and experts educated overseas or locally HIV prevalence rate < 1%

  17. 4.Modern and Structuring Infrastructure • A modern port in expansion: Deep water port, direct access 24h/24, international lines (Grimaldi, Delmas, Maersk line…) • Modern and reliable telecommunication network : 3000 km of optic fibre, 100% digital, international bandwidth 4.2 Gb/s • 14 500 km of roads, 1060 km of railway , 3 international airports • Containers Terminal operated by Dubai Port World

  18. 5. An improving business environment An annual Presidential Investment Council (PIC) to identify and implement key reforms Outstanding fiscal incentives granted to major projects (over 500 million US $), incentives directly negotiated between the investor and the relevant Ministry Simplified administrative procedures through a One-Stop Shop < 48 hours for company incorporation <10 days for the Investment Code < 21 days for the Free Export Company Status ISO 9001- Version 2008 Certification

  19. 6. A preferential access to regional and international markets WAEMU(West African Economic and Monetary Union) Economic union of 8 West African Countries / 80 Million Consumers using the same currency (F CFA) ECOWAS(Economic Community of West African States) Community of 15 States / Market of 230 Million consumers EU/ACP Cotonou Agreement to access the European market

  20. INCENTIVE PACKAGE • KEY PRINCIPLES • No discrimination between nationals and foreigners • No limitation in employing expatriates • Guarantees & Protection of property rights • Guarantee of the provision of foreign exchange • Guarantee of transfers of capital & earnings • Fiscal and non fiscal benefits

  21. INCENTIVE PACKAGE • INVESTMENT CODE • Exemption from import duties on the production equipment and material • Suspension of VAT on the production equipment and material and VAT invoiced by local suppliers on goods, services & works etc. • 50% Reduction of taxable income over 5 years up to 40% of eligible investment (Tax Credits) • FREE EXPORT COMPANY STATUS • For industrial, agricultural & Tele-services companies which export at least 80% of their production • Exemption from customs duties and stamps for production and transportation equipment, wage taxes, business license taxes, etc. • Exemption from all forms of taxes based on salaries • Securities income deducted from distributed dividends • Corporate tax at 15% instead of 25%.   

  22. IV. KEY BUSINESS OPPORTUNITIES

  23. KEY BUSINESS OPPORTUNITIES • Agriculture and agribusiness • Tourism, arts & crafts, and culture industries • ICT and Tele-services • Light manufacturing and Pharmaceutical Industries • Seafood products and aquaculture • Mining • Energy • Infrastructure development

  24. AGRIBUSINESS • Emerging cluster • Stable climate, fit for off-season production • Recurring climate dysfunctions in northern countries and the Mediterranean area • Closeness to the European and US markets • 240 000 Ha of irrigable land available in the northern Delta valley

  25. High potential for investments Key activities Peanut Rice Corn Cassava Counter-season fruits and vegetables Biofuels(Jatropha, Ethanol etc.)

  26. A RANGE OF CONFIRMED OPPORTUNITIES • Papaya, Sweet corn, Banana, Hot pepper, Sweet potato, Lime, Gombo, etc. • Biological farming (Mangoes etc.) • Green beans: Bobby, fin, X-fin, etc. • Cherry tomatoes • Aromatic herbs • Green Asparagus, Sweet peas and other counter-season products

  27. ICT & TELESERVICES

  28. ICT & TELESERVICES • High quality of telecommunications infrastructure (4.2 Gb/s bandwidth ADSL, VSAT, RNIS, FRAME RELAY services available) • Quality and competitive labour (English/French/Arabic and several foreign languages spoken) • Existence of pioneer ICT Companies ( PCCI, CALL ME, AFRICATEL AVS etc.) • High growth in outsourcing • Closeness to markets – GMT Time Zone

  29. KEY OPPORTUNITIES IN ICT • Cybervillages • Call Centers • Business Process • Outsourcing • Computer factory • Software development • Computer engineering • Data management and • processing • Telecom integrators

  30. TOURISM, ARTS & CRAFTS AND CULTURAL INDUSTRIES

  31. TOURISM, ARTS & CRAFTS AND CULTURAL INDUSTRIES • Wide variety of natural and cultural assets • Craftsmen and artists know-how • Welcoming and secure environment to enjoy an “African experience”   • Country’s brand image overseas (musicians, visual artists etc.) •   Closeness to Europe and North and South America

  32. SEAFOOD AND AQUACULTURE

  33. SEAFOOD AND AQUACULTURE • Wide range of species highly prized on international markets • High potential for the development of fish farming •  Very Modern infrastructures offering quality service (unloading, preservation and exportation)

  34. OTHER BUSINESS OPPORTUNITIES

  35. OPPORTUNITIES IN THE MINING SECTOR • Matam’s Phosphates : • 700 Km from Dakar and 65 km southeast of the city Matam • A geological reserve of over 40.5 million tons of phosphates • Suitable for direct use in agriculture • Marble, Iron Ore in the southeastern part of the country(Tambacounda, Kedougou etc.) • 750 million tons of high quality ore in the Falémé area • Production level of around 12 million tons /year

  36. BUSINESS OPPORTUNITIES IN ENERGY SECTOR

  37. Coal Power Plant Of Sendou Realization in two phases : • First phase : 1st trimester 2011 • Capacity : 125 MW • Second phase :1st trimester 2012 • Capacity : 125 MW

  38. V. MAJOR INFRASTRUCTURE PROJECTS

  39. To correctSpace, Economic and Demographic imbalancies Current situation Dakar concentrates: • 0.3 % of total territory • 25 % of the population • 80 % of economic activities

  40. MAJOR INFRASTRUCTURE PROJECTS • Upgrading infrastructure through major projects • A proactive vision towards emerging Senegal 2015 • Complete urban and land planning as a stategic issue : Territory redevelopment • A well balanced demographic allocation of wealth • Selection of structuring projects

  41. MAJOR INFRASTRUCTURE PROJECTS • Regional and continental integration in line with NEPAD objectives • Innovative funding schemes • A secure legal and institutional framework • PPP regulatory framework : BOT law adopted in 2004 • Infrastructure Council created in 2004 • New public procurement Code adopted in 2007 • Sound competition and openness in all procedures

  42. Nouvelle Ville Major Infrastructure projects

  43. Highway Dakar – Diamniadio * Blaise Diagne International Airport* Containers Terminal of the Port of the Future (DP World)* Integrated Special Economic Zone (JAFZA)* Dakar Business City New Capital City * Under construction Major Infrastructure projects

  44. HighwayDakar-Diamniadio 36 km from Dakar to Diamniadio 2 x 3 or 2 x 2 lanes Relocation of 3 000 households Cost: 634 millions US $ Public-Private Financing Completion in 2012 2 connected operations : • rehabilitation of floodable areas of Dakar suburbs • resettlement of 2 000 households

  45. International Blaise Diagne Airport • Diass: 47 km from Dakar city center • 4 100 ha connected to networks • 3 millions passengers forecasted • Best standards and outstanding Infrastructure • Sub regional hub for transportation • Creation of AIBD Company • FRAPORT, in charge of the management of AIBD

  46. Port of the Future • The objective is to build up Dakar as the main west African region dispatching port • Extension of Dakar port containers terminal • Global standard logistic Plateform • Dedicated Oil and commodities Wharf

  47. Integrated Special Economic Zone On a 1st phase 650 ha out of a 10.000 ha allocated area to host economic activities Industrial Park, trade and services areas and logistic plateform Tax incentives: settlement of 1000 companies; creation of 100000 jobs planned Fully harmonized integration of existing settlements

  48. Dakar Business City 800 ha released on the site of present L. S. Senghor Airport A highly modern real estate program District of business, financial pole Infrastructure, equipment and top of the range services; Private Partnership to alleviate state load and faster commercialization of implementation areas

  49. Nouvelle Ville project (new capital city) Located 120 km North East from Dakar 5 000 ha, 200 000 inhabitants, extensible to 20 000 ha, 1 million inhabitants Urban Center concentrating administrative pole, living areas, infrastructure and tourist area Master Plan design completed, economic feasibility studies in progress

  50. VI. APIX: A CATALYST BODY

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