Doing business

Senegal

Print the page Click to print the page

Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Private Limited Company FCFA 1,000,000 divided into shares of FCFA 5,000 minimum.	Minimum 2 partners. Maximum 50 partners. Liability is limited to the amount contributed.
Public limited company FCFA 10,000,000 divided into shares of FCFA 10,000 minimum.	Minimum 7 shareholders. Liability is limited to the amount contributed.

Business setup procedures

Setting up a company	Senegal	Sub-Saharan Africa
Procedures (number)	4.0	8.9
Time (days)	8.0	45.2

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Senegal.
Agency for Development and Coaching for Small and Medium Enterprises (ADEPME)
The competent organization: The National Agency for the Promotion of Investment and Major Projects (APIX).

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	272	208	237
FDI stock (millions USD)	1,170.6	1,378.1	1,615.3
Performance Index*, ranking on 141 economies	104	88	-
Potential Index**, ranking on 141 economies	127	-	-
Number of Greenfield investments***	9	10	-
FDI inwards (in % of GFCF****)	6.7	7.6	-
FDI stock (in % of GDP)	8.8	10.8	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Senegal

Strong points: The country's main strong points are:
- A strategic geographical position;
- Competitive production costs;
- A cheap and skilled labor force;
- A healthy and competitive economy;
- A reformed legal and taxation framework; and
- Privileged access to regional and international markets.
Weak points: The country's main weaknesses are:
- The poor and bad condition of the infrastructures;
- A slow and corrupt administration;
- Security;
- Low company productivity; and
- Low diversity of activities.
Government measures to motivate or restrict FDI: The Senegalese government has put into place various incentive measures for investments. Below are some of these measures:
- Increased protection for investments;
- Defining priority sectors for investment;
- Delivering license certificates in 10 days; and
- Respect of the rules of the Environmental Code (document in French).
For more information, Agency for the promotion of investment in Senegal website.

Procedures relative to foreign investment

Freedom of establishment: There is a great amount of freedom of investing in Senegal in all the sectors: agribusiness, textiles, new technologies, fisheries, tourism mining. Foreign companies and investors have the same possibilities.
Acquisition of holdings: Foreigners can have a 100% stake in a company.
Obligation to declare: The World Association of Investment Promotion Agencies (WAIPA) in the country gives information on the authorizations required for setting up an establishment.
Competent organization for the declaration: Agency for promotion of investments in Senegal
Requests for specific authorizations: Specific authorizations required in the country can be consulted at the Agency for the promotion of foreign investments.

Finding assistance for further information

Investment aid agency: Agency for the promotion of investment in Senegal
Other useful resources: Information on investments on the Senegalese Government website