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Senegal
Chamber of Commerce Country Factsheet Last update: 04.07.2018

Your advisors at the Chamber of Commerce

  • Thomas Bertrand
    +352423939337
  • Steven Koener
    +352423939379
Contact us: africa@cc.lu

Key Indicators

Area
196,722 km2
Population
14,668,522 (July 2017 est.)
Government type
Republic
Languages
French (official), Wolof, Pular, Jola, Mandinka, Serer, Soninke
GDP
$43.07 billion (2017 est.)
Growth rate
6.8% (2017 est.)
HDI
162
Capital
Dakar

 

Introduction

The French colonies of Senegal and French Sudan were merged in 1959 and granted independence in 1960 as the Mali Federation. The union broke up after only a few months. Senegal joined with The Gambia to form the nominal confederation of Senegambia in 1982. The envisaged integration of the two countries was never implemented, and the union was dissolved in 1989. The Movement of Democratic Forces in the Casamance has led a low-level separatist insurgency in southern Senegal since the 1980s. Several peace deals have failed to resolve the conflict, but an unofficial cease-fire has remained largely in effect since 2012. Senegal remains one of the most stable democracies in Africa and has a long history of participating in international peacekeeping and regional mediation. Senegal was ruled by a Socialist Party for 40 years until Abdoulaye WADE was elected president in 2000. He was reelected in 2007 and during his two terms amended Senegal's constitution over a dozen times to increase executive power and weaken the opposition. His decision to run for a third presidential term sparked a large public backlash that led to his defeat in a March 2012 runoff with Macky SALL, whose term runs until 2019. A 2016 constitutional referendum reduced the term to five years with a maximum of two consecutive terms for future presidents.

Source: The CIA World Factbook - Senegal

 

Macroeconomic indicators

Senegal’s economy is driven by mining, construction, tourism, fisheries and agriculture, which are the primary sources of employment in rural areas. The country's key export industries include phosphate mining, fertilizer production, agricultural products and commercial fishing and it is also working on oil exploration projects. Senegal relies heavily on donor assistance, remittances and foreign direct investment. Senegal reached a growth rate of 6.5% in 2015 and surpassed that in 2016-17, due in part to a buoyant performance in agriculture because of higher rainfall and productivity in the sector.

President Macky SALL, who was elected in March 2012 under a reformist policy agenda, inherited an economy with high energy costs, a challenging business environment, and a culture of overspending. President SALL unveiled an ambitious economic plan, the Emerging Senegal Plan (ESP), which aims to implement priority economic reforms and investment projects to increase economic growth while preserving macroeconomic stability and debt sustainability. Bureaucratic bottlenecks and a challenging business climate are among the perennial challenges that may slow the implementation of this plan.

Senegal is receiving technical support from the IMF during 2015-17 under a Policy Support Instrument (PSI) to assist with implementation of the ESP. The PSI implementation continues to be satisfactory as concluded by the IMF’s second review mission in March 2016. Investors have signaled confidence in the country through Senegal’s successful Eurobond issuances in recent years, including in 2014.

The government is focusing on 19 projects under the ESP to continue the structural transformation of the economy. These 19 projects include the Thies-Touba Highway, including the new airport- Mbour-Thies Highway. Senegal increased the national family allowances program and the community development emergency program in 2016. Electricity supply is a chief constraint for Senegal’s development. Electricity prices in Senegal are among the highest in the world. Power Africa, a program led by USAID and OPIC, plans to increase the current 500 MW of generating capacity to over 1,000 mW in the next three to five years. Recent gas discoveries on the Senegal-Mauritanian border, as well as just south of Dakar, will help alleviate some of the energy shortages.

Source: The CIA World Factbook - Economic Overview

IMF Statistics:

Subject descriptor20142015201620172018
Gross domestic product, constant prices
Percent change
4.3366.4856.6396.8476.954
Gross domestic product, current prices
U.S. dollars (Billions)
15.36213.66514.87016.17217.633
Gross domestic product per capita, current prices
U.S. dollars (Units)
1,056.569913.024965.2251,019.8181,080.233
Inflation, average consumer prices
Percent change
-1.0830.1291.0051.7881.788
Volume of imports of goods and services
Percent change
3.864-6.2396.5875.6996.114
Volume of exports of goods and services
Percent change
5.183-5.1652.5706.9124.961
Current account balance
U.S. dollars (Billions)
-1.373-1.033-1.244-1.326-1.395
Current account balance
Percent of GDP
-8.936-7.559-8.367-8.199-7.913
Colored cells are estimates
 

Source: IMF Statistics - Senegal

 

Luxembourg and the country

Existing conventions and agreements

Non double taxation agreement

On 10 February 2016, Luxembourg and Senegal signed an Income Tax Treaty. The Treaty will come into force after the two countries exchange ratification instruments. The provisions of the treaty will have effect from 1 January of the calendar year next following that in which the agreement enters into force.

Air Services agreement

None

Source: Administration des contributions directes

 

Further information

Foreign Trade

The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.

You can see the statistics on the website of the Statec.

 

Contact Points in Senegal

Embassy of Grand Duchy of Luxembourg in Dakar

Ambassador: Mrs Nicole BINTNER

Immeuble Lot 43, 2ème étage
Cité des jeunes cadres Lébous
Zone Toundoup Riya
N°YF23 Route de l’Aéroport Léopold
Sédar Senghor – Yoff
BP 11750 Dakar
Tel.: (+221) 33 869 59 59
Fax: (+221) 33 869 59 60
E-mail: dakar.amb(at)mae.etat.lu

Source: Ministry of Foreign Affairs of Luxembourg

 

Country risk as defined by Office du Ducroire for Senegal

Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.

Link: Ducroire Office - Country Risk for Senegal

 

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