Senegal. Country Profile

Transcription

1 Senegal Country Profile

2 Contents Country Overview 1 Clearing Systems 4 Foreign Exchange Controls 5 Taxation 6 Citi Solutions and Services 7

3 Country Overview Banking Holidays in Senegal New Year Next day after Mawlid al-nabi (Birthday of Prophet Muhammad PBUH)* Senegal Independence Day Easter Monday Independence Day Labour Day Ascension Whit Monday Assumption Day Eid al-fitr (Ramadan ends)/korité* Eid al-adha/tabaski (Festival of Sacrifice)* All Saints Day (Toussaint) Islamic New Year Next day after Achoura (10 Muharram)/Tamkharite* Christmas Day/Noël January 24 January 4 April 1 April 4 April 1 May 9 May 20 May 15 August 08 August 15 October 1 November 4 November 13 November 25 December Key Facts Capital City Dakar Population 12.9 million (July 2012 est.) Currency Communaute Financiere Africaine ( CFA ) Currency SWIFT Code XOF Exchange Rate (XOF per USD) (2012) GDP PPP USD 1,900 (2012 est.) GDP Growth Rate 3.7% (2012 est.) Exports USD billion (2012 est.) Imports USD billion (2012 est.) Inflation Rate 1.5% (2012 est.) Source: *Muslim Holiday dates may vary but we will keep you updated accordingly Senegal Country Profile 1

4 Country Overview Banking System Banks in Senegal Senegal s banking system consists of a set of banks and other financial institutions interacting with the Central Bank of West African States (BCEAO) which is the banking authority. Local and international banks represented in Senegal can be categorised as follows: Universal banks Regional banks Corporate banks Specialised banks Bank and Non-Bank Financial Sector As of December 2006, there were 93 banks and 22 financial institutions operating in the UEMOA zone, with 17 banks and three financial institutions located in Senegal. Although relatively few Senegalese use banking services, the country has around 20 operating banks. The West African Economic and Monetary Union (Union Économique et Monétaire Ouest-Africaine, UEMOA) includes, along with Senegal, Guinea-Bissau, Mali, Benin, Togo, Côte d Ivoire, Burkina Faso and Niger. All use a common currency, the Communauté Financière Africaine, ( CFA ) franc. Member states retain their own finance ministries, but work together to create regional policy. Senegal is one of the powerhouses of the UEMOA zone, with 25% of banking assets concentrated here, and the country s banks account for about a third of regional profits. The robust banking sector is reflected in the relatively lower interest rates that are found in Senegal: the average is about 11.4% across all products, compared with 12.5% for the region. Credit in Senegal adds up to just 17% of GDP, and while that is low according to global standards, it is good for West Africa. The ratio of deposits to GDP is 34%, over double the UEMOA average. Profits for the Senegalese banking sector reached CFA146bn (USD m) in 2007, the most recent date for which figures were available, up 9% from At present the penetration rate for banking products is just 6%, but the UEMOA has ambitious plans to raise the penetration rate regionally to 20% by 2014*. *Source: The Central Bank of West African States (BCEAO) is the common central bank of the eight member states which form the West African Monetary Union (WAMU). The BCEAO is a public institution whose headquarters is located in Dakar, Senegal. Besides the sole right of monetary signs issue which it enjoys throughout the member states of the Union, the Central Bank is responsible for the pooling of the Union foreign exchange reserve; The management of the monetary policy of WAMU member states The keeping of the accounts of the member states Treasury The definition of the banking law applicable to banks and financial establishments The official language of the Central Bank is French. The West African Monetary Union is characterised by the recognition of a common monetary unit, the Franc of the African Financial Community (FCFA), which is issued by the Central Bank of West African States (BCEAO). The organisations regulating the administration of WAMU are: The Conference of Heads of State The Council of Ministers The Banking Commission 2 Senegal Country Profile

5 Country Overview The Central Bank The Savings and Financial markets Regional Council Citi in Senegal Citi entered Senegal in 1975 under the name Citibank N.A. Dakar. It first began operations at Hotel Téranga and moved one year later to 2, Place de l Indépendance where it is still located. Citi in Dakar offers a broad range of products and services such as Cash Management, Trade Services & Finance, and Treasury products such as Foreign Exchange. Citi Senegal complements a 15 country presence across Africa, making Citi a singular pan-african financial institution. The franchise employs approximately 40 people, who work in our corporate branch in Dakar which is also the capital city of Senegal. Senegal has a few international banks but Citi is the only US bank currently present in the country. At Citi in Senegal we are strategically placed to offer superior products and services to our key clients as a result of synergies we get by obtaining support to the more than 100 countries, where Citi is present. Head Office Address 2, Place de l Indépendance BP 3391 Dakar Sénégal Immeuble SDIH- 4 étage Main Tel: (221) Fax: (221) Location of Branches Dakar. Services Offered to Citi Clients Treasury Cash Management Liquidity Management Investments Loans Trade Buyer & Supplier Financing Agency and Trust Funds Services Direct Custody and Clearing Securities Services Corporate Finance Senegal Country Profile 3

6 Clearing Systems The clearing systems have been automated in Senegal and the other 8 West African Countries governed by the BCEAO (West African Central Bank). They are using the following main clearing systems: STAR-UEMOA: Système de Transfert Automatisé et de Règlement dans l UEMOA Real Time Gross Settlement (RTGS) system of BCEAO. This is used for same day value transfers, mainly for transfers above 50 Million FCFA. The cut off time for sending RTGS transactions is 17H30 SICA-UEMOA: System Interbancaire de Compensation Automatisée de l UEMOA Automated Clearing House of UEMOA. This system is used cheques clearing with value D+1 The branch cut-off time for manual transactions is 14:30 hrs and 15h30 for transactions initiated through CitiDirect. The instruments covered using these systems are cheques, trade bill of exchanges, domestic local currency transfers and Real Time Gross Settlement (RTGS). Citi is a full member of these clearing systems. Clearing takes place once a day between 10 am and am. The Central Bank releases the system on a daily basis from 12 noon for banks to access the clearing items for that day. Availability of funds is usually on the 3rd business day from the date of cheque deposit. Clearing Streams Clearing Stream (CS) Payment Type Payment Instruments BCEAO Central Bank Paper Cheques Other paper based instruments SICA (BCEOA Central Bank) Low Value Domestic Funds Transfer (ACH, GIRO, DFT, GIRO, Wire) Cross-border Funds Transfer Payroll, Standing Order STAR Banque Centrale des Etats de I Afrique des I Ouest (BCEAO) High Value Electronic Domestic Funds Transfer (ACH, GIRO, DFT, GIRO, Wire) Cross-border Funds Transfer Funds Availability Schedule Clearing System Cut-off Time Funding Date Client DR/ CR Date Client Value Date XOF/DFT (ELECTRONIC PAYMENT) 3:30 PM Value Date Value Date Same Day XOF/EFT (ELECTRONIC PAYMENT) 3:30 PM Value Date Value Date Same Day XOF/DFT (MANUAL PAYMENT) 2:30 PM Value Date Value Date Same Day XOF/EFT (MANUAL PAYMENT) 2:30 PM Next Day Value Date Same Day 4 Senegal Country Profile

7 Foreign Exchange Controls Due to the exchange control restrictions in Senegal, foreign currency is sometimes a scarce commodity. Due to our global presence and network and various alliances, Citi in Dakar is usually able to meet its client s foreign currency requirements within a short period by being able to source its foreign currency via its wide network of clients, correspondents and the Central Bank. As a result, Citi s clients enjoy the advantage of being able to transfer their foreign currencies (subject to proper documentation required by the regulators) within the shortest possible time Also as Citi is present in over 100 countries world-wide, we are able to restrict our clients use of correspondent banks and thereby reducing cross-border fees on receipts and disbursements A client can issue instructions from CitiDirect for funds to be transferred out of their domiciliary account to a beneficiary s account outside the UEMOA zone, subject to local foreign exchange regulations. These instructions are issued through the Cross-border Funds Transfer (CBFT) module of CitiDirect. The duration for the transfer will depend on the number of bank parties involved, the processing cut-off times for the off-shore bank parties as well as time zone of the beneficiary Operation of a USD account in Senegal will require prior approval from the BCEAO. A non-resident organisation is required to go via its bankers to make a formal request to the Central Bank to operate a foreign currency account. Especially for the NGOS/Donor organisations, one has to make sure that their approved document signed by the Senegalese authorities has indicated the need for the foreign currency account. It is however the BCEAO s discretion to grant or decline the approval of the foreign currency account A non-resident is also allowed to operate a convertible XOF account, which essentially is an account that receives only foreign currency that is converted into local currency. This account however can be used to transfer foreign currency without any documentation Outgoing Transfers in Foreign Currency and above CFA 500,000 are subject to a foreign exchange authorisation Foreign exchange authorisation requires the following documents to be presented in the event the foreign currency payment relates to an import: Copy of Invoice, FX Authorisation de Change (issued by the bank), Attestation d Importation (a Customs Document that should be stamped by customs authorities), Bill of Lading, DPI (the Import Declaration Form) generated from a system called Orbus Senegal Country Profile 5

8 Taxation The following taxes are applied to corporations: The Corporate Tax The Corporate Tax is taxable by companies and persons operating commercial businesses. The current rate of income tax is 25%. VAT (Value Added Tax) VAT (value added tax) is the tax required on all deliveries of goods to Senegal and services used or made in Senegal on behalf of a taxpayer of Senegal. The current rate is at 18%. The Tax on Banking Transactions The tax on banking transactions corresponds to VAT in the bank. It is a tax that applies to interest commission and other fees collected by banks and financial institutions authorised in Senegal on credits, loans, advances, commitments by signing and service operations carried out with natural or legal persons instead of VAT. This tax equals to 17%. 6 Senegal Country Profile

9 Citi Solutions and Services Citi in Senegal offers a full suite of transaction banking services to multinational and local corporate, public sector and financial institution clients. These services can be grouped under Account Services, Payables (local and cross-border), Receivables, Liquidity Management, Trade, Security and Fund Services and Delivery Channels. Account Services No restrictions on non-residents holding accounts. Resident Current Accounts Permitted in local currency (XOF). Resident Savings Accounts No distinction between savings and current accounts. Non-Resident Accounts Allowed in local currency (XOF). Foreign Currency Accounts For transfers within the West African Monetary Union ( WAMU ) zone no documentation is needed. Cross-border funds transfers outside WAMU have specific documentation requirements: Imported Products Invoice and foreign exchange authorisation Import declaration authorised by customs (DPI) Customs documents Bill of lading or AirwayBill Services: Invoice/contract & foreign exchange authorisation Payments to France: Invoice & foreign exchange authorisation, custom document with stamp Please note, full payment in advance is not authorised by FX regulations. Partial payments for up to 80% are allowed on presentation of basic documentation with the proof of the partial payment on the invoice. Currency Convertibility Depending on Currency availability. Interest & Overdrafts No rules or restrictions. Senegal Country Profile 7

10 Citi Solutions and Services Payments Citi offers clients payment solutions designed for both local and overseas payments. Clients use CitiDirect Online Banking and CitiConnect for Files for payments and can select any combination of services needed to meet both domestic and international payment needs. Multibank Transaction Initiation (MBTI) MBTI enables the concentration of funds into Citi accounts from third party local banks. Using CitiDirect, clients are able to instruct their local banks to move excess funds to Citi, either for investment purposes or to fund shortfalls. This also achieves the upstreaming required in an overlay structure for a regionalised or centralised treasury. The account statements and balances, upon which client instructions are based, are provided by Data Aggregation. Instructions are sent to the local bank across the SWIFT network on behalf of the client. Citi utilises message types MT101 for this purpose. The benefit of the dual capability of Data Aggregation and MBTI is that, once established, customers are able to utilise a single banking platform, CitiDirect, to control concentration, investments, and funding. Domestic Transfers Citi Senegal can provide clients with current accounts and access to CitiDirect electronic banking to allow simple initiation of domestic payments, in XOF and other major currencies as required. Clients can initiate payments to beneficiaries who hold their accounts with other banks in Senegal, or make Book-to-book payments to beneficiaries who also hold their accounts with Citi Senegal. Payroll Transfers The Payroll package is a range of banking services that are designed to meet Client s needs related to payments such as commissions, fees and other cash payments to your employees. The Payroll package comprises the following services: Opening and maintaining an account for payroll payments D+1 processing and credit to the beneficiary for instructions received via CitiDirect prior to cut-off time PayLink Cheques Printing and mailing of cheques with accompanying remittance advice for beneficiaries. Funds Transfer Real-time local currency high value payments. WorldLink Payment Services A complete solution that enables clients to issue cross-border electronic and check payments in more than 135 currencies, without the need to maintain foreign currency accounts. Global Clearing Foreign currency accounts domiciled off-shore at Citi branches providing high value and check payment solutions. Cross-border Funds Transfer Real-time foreign currency high value payments. 8 Senegal Country Profile

11 Citi Solutions and Services Receivables Citi provides clients with a wide range of receivables products, leveraging outsourced relationships where it does not have sufficient operational scale. Examples include Merchant Services and low value clearing instruments, such as cash and cheques. Cash Citi has an agency bank relationship with Caisses Nationales de Credit Agricole du Senegal ( CNCAS ), enabling clients to use its branch network for cash deposits. Cheques Through its agency bank relationship with CNCAS Citi s clients can use the branch network for check deposits. Incoming Funds Transfers Local accounts can be credited in real-time through the receipt of RTGS payments. Similarly low value ACH payments are credited overnight to local accounts. Incoming Foreign Funds Transfers Local accounts can be credited through the transfer of funds from abroad. The Foreign exchange market is currently free of restrictions on the purchase or transfer of foreign currency. SpeedCollect: Speed Collect is Citibank Senegal S.A. s branded sales collection product, which can be tailored to meet the specific collections needs of your company. Using our branch located in Dakar as well as the branch network of our correspondent bank CNCAS, we are able to efficiently manage the collection of your receivables. We also provide you with adequate up to date information on credits in your favour, to enable you to reconcile your accounts. Cash and Cheque Pick Ups: Citibank Senegal S.A. provides a cash and cheque pick up service for clients with large volumes in Dakar. We can pick up your cheques or cash from any location within Dakar, eliminating the need for the potentially hazardous transportation of your receivables to the bank. Teller Implants: For clients whose businesses generate large volumes of cash, cheque or draft transactions, Citibank Senegal S.A. can place representatives within your premises to accept such payments on your behalf. Collected funds are securely conveyed to Citibank Senegal S.A. and deposited in your account on a daily basis. This service is provided in Dakar.. Senegal Country Profile 9

12 Citi Solutions and Services Liquidity Management Netting Multilateral netting is allowed and settlement should be in local currencies for accounts with Citi. Term Deposits Term deposits in XOF are offered locally with interest paid at maturity. Citibank Online Investments A web-based portal offers time deposit investments across 18 currencies and can be linked to accounts in 22 countries. In addition, it provides investment opportunities in spectrum of more than 90 institutional funds, including US dollar denominated domestic (US registered), off-shore (non-us registered), tax exempt, tax efficient and government/treasury and non-dollar currency funds. Citibank Online Investments is available via single sign-on through both the CitiDirect Online Banking and TreasuryVision treasury management platforms. TreasuryVision TreasuryVision turns comprehensive forecast data into useful information. View forecasts at a global, regional or local level; by geography, business unit or legal entity; on a daily, weekly or monthly basis. CFF is a powerful and flexible tool providing users the ability to create a holistic forecast including data from banks, internal forecast and systems (e.g., ERP, TMS). Using customisable forecast templates, users can create short-, medium- and long-term forecasts and perform actual versus forecast comparisons. Cash forecasting analytics enable users to analyse all of their legal entity cash forecasts in a single, aggregated view across a variety of available parameters. 10 Senegal Country Profile

13 Citi Solutions and Services Trade Services Citi s suite of supply chain solutions mitigate risk and enable our clients to have access to the short-term capital they need to make their business function. Our pioneering work in export and agency finance (EAF), for example, has filled a critical gap in credit during the recent slowdown illustrating our ability to ensure credit flows even in today s times. Our working capital solution sets cover both the internal Trade Finance and outside EAF finance options for firms and are available to both corporate and FIs, and these solutions are complemented by a range of Trade Services. All of these solutions are grounded in our core strengths: global coverage, expert customisation, client responsive innovation, and unsurpassed execution. Citi offers a range of services from traditional letters of credit to our Open Account Trade Processing developing risk and working capital solutions that help corporations conduct, monitor, and control international commercial transactions as well as mitigate their associated risks: from issuing and paying letters of credit to handling settlement and administration of documentary collections. Other Trade Services include: Import Letter of Credit (L/C) Export Letter of Credit (Advising, Negotiation and Confirmation) Enhanced Open Account Importers and Exporters who regularly conduct business with each other can reduce the time and costs associated with letters of credit and documentary collections by taking advantage of Citi s efficient, electronic, data-enriched open account trade process. Citi not only effects payment for open account purchases, but also transforms and streamlines the entire reconcilement process between trading partners located virtually anywhere in the world. With Citi s Enhanced Open Account Trade Processing, clients benefit from our team s knowledge of local trade practices, regulations, market risks, and understanding of trade documents. Since we process a very high volume of trade transactions daily, we handle very cost effectively the straight-through processing of trade transactions. Trade Finance Guarantees (Performance and Financial) Risk Participation Documentary and Direct Collections Trade Outsourcing for Financial Institutions Channel-finance Export and Agency Finance (EAF) Long-term capital for CAPEX investments and financing cross-border trade flows. ECAs and Partnering for Growth ECAs are government agencies that promote employment and growth in their home countries by encouraging exports of goods and services. They guarantee bank finance and supplier finance, and/or provide direct loans, transforming usually non-investment-grade borrowers to AAA/AA assets, allowing commercial lenders to extend financing for longer tenors and larger amounts than would otherwise be possible. Senegal Country Profile 11

14 Tied Financing Citi offers Tied financing directly linked to procurement of goods. This is an excellent option when goods are primarily sourced from one or two countries. Clients benefits from competitive pricing, longer tenors, diversified funding sources and visibility to future investors. Some ECAs also have programs to support the issuance and confirmation of Letters of Credit and risk converge for Guarantees. Untied Financing Citi can also provide finance that is generally linked to a new investment. This option is best used when goods are sourced from a multitude of countries. Benefits include pricing, which is generally at market terms, long er tenors (over 10 years in many cases) and can often be available in local currency. 12 Senegal Country Profile

15 Citi Solutions and Services Securities and Funds Services (SFS) The Securities and Fund Services business consists of a number of products that serve investor, intermediary and issuer clients. These products are global custody, fund services, securities finance, direct custody and clearing, agency and trust and depositary receipts. Each of these products provides market leading, capital-intensive solutions that enable our clients to focus on their core competencies. Global Custody Offers institutional investors a single access point to the world s securities markets, providing securities safekeeping, settlements, administration and consolidated reporting for their global portfolios. Global custody insulates clients from market inefficiencies and is particularly suited to institutions without their own network management function. Securities Finance Enables clients to increase the return on their securities portfolios by lending their custody assets to approved counterparties for a fee. Fund services Provides operational, administrative and regulatory support to investment professionals including managers of mutual funds, closed-end funds, hedge funds, off-shore funds and pension funds, allowing clients to remain focused on their core activities - managing investments and attracting investors. Direct custody Provides securities services to institutional investors that prefer to have direct access to a local custodian in the various markets in which they invest. Our proprietary branch network enables us to uniquely deliver both domestic and cross-border custody solutions in 28 markets in EMEA, 47 globally. Agency and Trust Citi is a leading provider of multiple agency, fiduciary and depositary services covering a variety of capital market transactions including structured finance, medium term note and commercial paper programmes, M&A, escrow, project finance and loan administration. With professionals working in financial centres around the world such as New York City, London, Dublin, Frankfurt, Milan, Moscow, Dubai, Mumbai, Shanghai, Singapore and Hong Kong. Depositary Receipts Enable issuers to raise capital and/or broaden their shareholder base and as a depositary Citi issues and cancels depositary receipts in response to receiving or releasing the underlying shares and provides a full range of shareholder services, including registration and servicing of the depositary receipts, and custody and asset servicing of the underlying securities. Senegal Country Profile 13

16 Citi Solutions and Services Delivery Systems SWIFT Local Address: CITISNDA Messages Time Limits: Messages are acted upon the same day. Message Types accepted by Citi include: MT100, MT200, MT300, MT400, MT500, MT700 and MT900 series messages. CitiDirect Online Banking CitiDirect is the primary electronic banking platform utilised by clients to manage both local and global cash management products and services. CitiDirect offers also a new module that enables customers to authorise pending transactions and consult as well banking information from smart phone called CitiDirect BE mobile. There is a local Electronic banking client support in Senegal. Client Support: Tel: /54 CitiConnect for Files CitiConnect for Files is a single global data communications gateway providing clients with a variety of file-based capabilities enabling you to manage your global, regional and local payments and direct debit activities. Whether you want to automate cash management activity, execute global/regional shared service centre strategies, or implement greater levels of Straight through Processing, clients may accomplish this through our CitiConnect for Files solution. 14 Senegal Country Profile

17 Notes Senegal Country Profile 15

18 Citi Transaction Services Citibank, N.A. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world. The information contained in these pages is not intended as legal or tax advice and we advise our readers to contact their own advisors. Not all products and services are available in all geographic areas. Any unauthorised use, duplication or disclosure is prohibited by law and may result in prosecution. Citibank, N.A. is incorporated with limited liability under the National Bank Act of the U.S.A. and has its head office at 399 Park Avenue, New York, NY 10043, U.S.A. Citibank, N.A. London branch is registered in the UK at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB, under No. BR001018, and is authorised and regulated by the Financial Services Authority. VAT No. GB Ultimately owned by Citi Inc., New York, U.S.A.