Overview. Official language : French. Currency : CFA Franc

Size: px

Start display at page:

Download "Overview. Official language : French. Currency : CFA Franc"

Norma May
6 years ago
Views:

1 SENEGAL

2 Overview Strategic geographical position : Coastal country located in the extreme west of Africa, 5 hours from Europe; 7 hours from America and less than 10 hours from Asia Corruption Perceptions Index (2016) :7th in Africa and 64th out of 176 countries in the world ranking. Regional economic integration: Senegal is a member of the West African Economic and Monetary Union (WAEMU), composed of 8 countries that share the same currency (CFA). Senegal is also a member of the Economic Community of West African States (ECOWAS), characterized by the free movement of people and goods in an area of more than 300 million consumers. Rating agency : Moody's : Ba3, stable outlook (upgraded from B1, positive outlook in April 7, 2017). S & P : B +, stable outlook Official language : French Currency : CFA Franc Area : 196,722 km² 700 Km of coastline Population : 14.8 million and a potential of access to 80 million UEMOA and 300 million ECOWAS GDP (2016) : 14.5 trillion USD Real GDP Growth (2016) : 6.7% Natural Resources : Oil & Gas, Phosphates, Gold, Iron, Zircon

3 OPPORTUNITIES : PROSPERITY TRIANGLE OF DAKAR Objective Make the Great Dakar (which extends from downtown Dakar to Thiès and Mbour) the Shenzhen/Singapore/Dubai of West Africa, develop a modern city of 5 to 10 million as a special economic zone with a liberal economic governance. Challenges and opportunities Make Dakar the regional service/industry hub : o Headquarters of private enterprises operating in the subregion o Health : International Hospital of Dakar (EUR 44 million), Solutes production factory (EUR 10.3 million), Cardio-pediatric center (EUR 8 million), National center of oncology (EUR 23 million), Research institute of sciences, epidemiological surveillance and trainings (EUR 10 million), CHU Diamniadio (EUR 64 million)) o Business and leisure tourism : exhibition park, 5 star hotels o Higher education services : partnership with major universities and engineering schools o Integrated industrial platform o Digital technology park (EUR 70 million) Public infrastructure in progress Industrial park : Construction of 3 hangars of 7,200 m², 1 hangar of 3,200 m² and an administrative building offering 4910 m² in offices. Phase 2 : construction of 16 hangars over 40 ha. Finalization of the connectivity works and the consistency of the logistics services (Airport, Ports, Motorway, TER (regional express train),... Power stations and lines, Optical fibers, Water networks and sanitation).

4 Senegal : Reforms Matrix (1/4) Objective: Improve the general conditions for private investment (Domestic and Foreign) Macroeconomic framework Focus Areas Government action Indicators and targets Partners support Macroeconomic stability - Permanent reduction of fiscal deficit - Debt sustainability Reduce the fiscal deficit to 3% in 2019 IMF (ISPE ) World Bank, USAID, AfDB - Low inflation - Reduction of current account deficit European Union, Germany (GIZ), Luxembourg, Canada, France (AFD) Domestic resources mobilization - Modernization of tax and customs administrations - Rationalization of tax expenditures (transparency and ease of compliance). Bringing the tax burden to at least 20% of GDP in 2019 IMF: technical assistance OECD: technical assistance program on transfer pricing for west Africa Public investment management - Introduction of the precautionary reserve, which can be mobilized only for projects with feasibility studies proving their profitability; - Establishment of an integrated bank of projects describing their life cycle; 75% of new projects in the 2019 budget and 100% of the 2019 budget will come from the bank of projects and thus will have a complete ex ante evaluation IMF and World Bank African Development Bank United Nations System - Establishment of a public investment selection Committee. Performance of public services - Improve the access of citizens and stakeholders to economic and financial information; Improve from 10th to 8th in the Governance Mo Ibrahim rank IMF and World Bank - Upgrading of the public administration Improve to at least 50 in all percentile rankings of the WB Governance Indicators

5 Business framework Senegal : Reforms Matrix (2/4) Objective: Improve the general conditions for private investment (Domestic and Foreign) Focus Areas Government action Indicators and targets Partners support -Systematization and professionalization of the amicable settlement of disputes; Investors protection and disputes resolution - Operationalization of the commercial court (electronic referral, training of legal assistants, mediation); - Establishment of an electronic register of guarantees (integration of database on real security (graft) and mortgages (conservatives); -Use and dissemination of digital and mobile payment methods and facilitation of the triangular payments Reduction of trade dispute resolution timeframes : From 655 days to 180 days Fully operating Commercial Court implemented by 2019 Fully operating Electronic Register of Guarantees implemented by end 2019 IMF (zone of good gouvernance) -Reduction of transfer prices and interconnection costs -Dematerialization of contract registration and renovation of labor legislation - Accompany pilot countries in PPPs: financing preparatory studies required for technical structuring, financial and legal set-up, etc. Facilities for project preparation and use of standard clauses in PPP - Renovation of the Investment Code - Finalization and harmonization of the institutional and legal framework on PPPs; Double the share of FDI : from 3% of GDP in 2015 to 6% in World Bank - African Development Bank

6 Senegal : Reforms Matrix (3/4) Objective: Improve the general conditions for private investment (Domestic and Foreign) Business framework (suite) Focus Areas Government action Indicators and targets Partners support Simplification and dematerialization of contract registration rules and renovation of labor legislation; Establishment and dematerialization of the merged procedure for the declaration of social taxes; Improve from 142 (2017) to 132 (2019) in the Registering Property indicator in Doing Business World Bank (doing business team) Reforms / actions to strengthen governance and investment climate Simplification of land registration procedures (tenure, land title, etc.) and transfer of ownership; Dematerialization of procedures at the level of the high court of Dakar; Simplification and harmonization of taxes and charges levied by local authorities Improve from 144 (2017) to 134 (2019) in the Enforcing Contracts indicator in Doing Business Improve from 174 (2017) to 150 (2019) in the Paying Taxes indicator in Doing Business JICA (Technical assistance for the Senegal exports promotion agency (ASEPEX) to promote the simplified customs procedure) OECD: Framework for action on investment Electronic payment of fees for the administrative acts and taxes; Finalization and harmonization of the institutional and legal framework on the Public Private Partnerships;

7 Senegal : Reforms Matrix (4/4) Objective: Improve the general conditions for private investment (Domestic and Foreign) Financing framework Focus Areas Government action Indicators and targets Partners support Better preparation of projects (public, private and PPP) Establishment of a study fund for the preparation of investment projects : feasibility study and financial and economic evaluation of projects. Fully functioning projects bank by end G20 member countries Other partners Attract institutional investors to the regional financial market - Support to the regional pilot project for market development (in CFAF) for long-term bonds that could facilitate the financing of public infrastructure - Support to understand why private sector dose not come to Senegal Adaptation of the regulatory texts by 2019 Reduce the risk perception Risk mitigation fund: Finance or redefine projects by issuing bonds according to the projects or the projects portfolio for institutional investors and local institutional investors. Support working on a public payment guarantee scheme and an equity fund implementation Fully functioning mitigation fund, with a USD *** million initial capital, by end IMF / BCEAO G20 member countries

8 Senegal : Additional support PROPOSALS FOR MAKING THE COMPACT OPERATIONAL IN SENEGAL Subject to and with additional support from partners under the Compact, Senegal would Launch a transparent process for an international developer to build the Coastal/Charter City Identify an international electricity company to build up the generation and distribution of electricity in the zone independently of SENELEC Develop a scheme to promote employment for groups needing support: refugees (including from Syria), economic migrants, women rejoining the labor force and unemployed youth. Under the Compact Senegal would strengthen reforms that create space for SMEs and FDI including a tax regime where all pay taxes with a rapid refund for exports Scrap controls on who can invest in the SEZ so as to facilitate the emergence of SMEs from the informal sector

Contacts M. Pierre NDIAYE Directeur général de la Planification et des Politiques économiques Téléphone: (+221) 77 640 6232 - pndiaye@minfinances.sn M.

9 Contacts M. Pierre NDIAYE Directeur général de la Planification et des Politiques économiques Téléphone: (+221) pndiaye@minfinances.sn M. Papa Amadou SARR Directeur général des Services financiers et de la Compétitivité Téléphone: (+221) pasarr@minfinances.sn Site web: Ministère de la Promotion des investissements, des Partenariats et du Développement des téléservices de l État M. Mountaga SY Directeur général de l Agence nationale chargée de la promotion de l investissement et des grands travaux (APIX) Téléphone : (+221) info@apix.sn Site web:

Report to G20 Finance Ministers and Central Bank Governors on Compacts

Report to G20 Finance Ministers and Central Bank Governors on Compacts Washington, D.C., October 2017 Cote d Ivoire Policy Matrix stability Domestic revenue mobilization Public management environment and