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**COUNTRY COMMERCIAL GUIDE**

**Dakar, Senegal**

**2005**

Prepared March 2005

International Copyright

U.S. Commercial Service and the U.S. Department of State, 2005

All rights reserved outside the United States of America

Country Commercial Guides can be ordered in hard copy or on diskette
from the National Technical Information Service (NTIS) at
1-800-553-NTIS. U.S. exporters seeking general export information and
assistance or country-specific commercial information should consult
with their nearest Export Assistance Center or the U.S. Department of
Commerce's Trade Information Center at (800) USA-TRADE, or go to one of
the following web sites: [www.buyusa.com](http://www.buyusa.com/),
[www.export.gov](http://www.export.gov/), or
[www.tradeinfo.doc.gov](http://www.tradeinfo.doc.gov/).

**[Table of Contents]{.underline}**

######## 

######## 

######## 1. Executive Summary 5

Commercial Environment

Major Business Opportunities

Embassy Assistance

######## 

######## 2. Major Economic Trends and Outlook 7

Major Trends and Outlook

Principal Growth Sectors

Government Role in the Economy

Balance of Payments

Infrastructure Situation

######## 

######## 3. Political Environment 10

Nature of Political Relationship with the United States

Major Political Issues Affecting Business Climate

> Brief Synopsis of Political System, Schedule for Elections, and
> Orientation of Major Political Parties

######## 

######## 4. Marketing U.S. Products and Services 12

Distribution and Sales Channels

Agents and Distributors

######  Franchising

Direct Marketing

Joint Ventures/Licensing

Steps to Establishing an Office

Selling Factors/Techniques

Advertising and Trade Promotion

Pricing Products

Sales Service/Customer Support

Selling to the Government

Protecting Your Product from IPR Infringement

Need for a Local Attorney

## 

## **Leading Sectors for U.S. Exports and Investment 16**

> Best Prospects for Non-Agricultural Goods and Services

Best Prospects for Agricultural Goods

Significant Investment Opportunities

######## 

######## 6. Trade Regulations and Standards 26

Trade Barriers, Including Tariffs, Non-Tariff Barriers, and Import Taxes

Customs Valuation

Import Licenses

Export Control

Import/Export Documentation

Temporary Entry

Labeling and Marking Requirements

Prohibited Imports

Standards

Free Trade Zones/Warehouses

Special Import Provisions

Membership in Free Trade Agreements

###### 

###### **7. Investment Climate 30**

Openness to Foreign Investment

Right to Private Ownership and Establishment

Protection of Property Rights

Foreign Trade Zones/Free Ports

Performance Requirements/Incentives

Regulatory System: Laws and Procedures

Corruption

Labor

Efficient Capital Market and Portfolio Investment

Conversion and Transfer Policies

Expropriation and Compensation

Dispute Settlement

Political Violence

Bilateral Investment Agreement

OPIC and Other Investment Insurance Programs

Major Foreign Investors

######## 

######## 8. Trade and Project Financing 35

Banking System

Foreign Exchange Controls Affecting Trade

General Financing Availability

How to Finance Exports/Methods of Payment

Types of Available Export Financing and Insurance

Types of Projects Receiving Financing Support

> List of Senegalese Banks with Correspondent U.S. Banking Arrangements

######## 

######## 9. Business Travel 38

Business Customs

Travel Advisory and Visas

Holidays

Business Infrastructure

######## 

######## 10. Appendices 45

A: Country Data

B: Domestic Economy

C: Trade

**11. U.S. and Country Contacts 46**

12. **Market Research 56**

13. **Trade Events 57**

######## CHAPTER 1. EXECUTIVE SUMMARY

######## 

This Country Commercial Guide (CCG) presents a comprehensive look at
Senegal's commercial environment, using economic, political and market
analysis. Country Commercial Guides were established by recommendation
of the Trade Promotion Coordinating Committee (TPCC), a multi-agency
task force, to consolidate various reporting documents prepared for the
U.S. business community. Country Commercial Guides are prepared annually
at U.S. Embassies through the combined efforts of several U.S.
Government Agencies.

With its capital city of Dakar located on the westernmost point of
Africa, Senegal is a gateway to the continent. This semi-arid country
slightly smaller than South Dakota has some of the best transportation,
telecommunications and communication infrastructure in West Africa. Many
companies use Senegal as a regional center for their West Africa
operations. With continued instability in Cote d'Ivoire, there has been
some relocation of regional operations from Abidjan to Dakar over the
past four years. Senegal is one of Africa's most politically and
economically stable countries. Since independence from France in 1960,
Senegal has been a functioning democracy. Free and fair elections in
2000 brought President Abdoulaye Wade to power, ending 40 years of
Socialist Party rule.

Senegal's economy has grown consistently at rates close to 5 percent
since the mid-1990s, but due to a poor agricultural harvest in 2002,
growth fell to 2.4 percent down from 5.6 percent in 2001. With good
rains in 2003, growth revived to 6.3 percent. In 2004, real GDP growth
stood at 6.0 percent with 0.5 percent inflation. Monetary policy is
controlled by the regional central bank, the West African States Central
Bank (BCEAO), headquartered in Dakar.

Senegal's economy remains vulnerable to external factors; rainfall,
international tourist demand and variable commodity prices. Fish,
phosphates and peanuts (in the form of peanut oil) are major exports,
with tourism an important additional foreign exchange earner. A
significant Senegalese expatriate community also returns important
amounts of foreign exchange to Senegal in the form of remittances,
conservatively estimated at CFA 201 billion (USD 402 million) in 2004.
The Senegalese community in the United States (principally in
Washington, D.C. and New York) is the third largest contributor of
remittances, after overseas Senegalese in France and Italy.

Senegal has been progressively opening its economy since the 1994
devaluation of the CFA. In conjunction with the World Bank, several key
parastatal companies, including water, telecommunications, mining and
aviation, have been privatized, with foreign partners taking the
majority of ownership. The telecommunications sector in particular has
improved and grown significantly as a result. The Government announced
several additional privatizations of the national lottery and a business
park in early 2004. The privatization of groundnuts processing
parastatal SONACOS has been completed, and it is now owned by a Lebanese
consortium. The Government has released a telecommunications sectoral
letter, announcing the planned introduction of a third global operator
during the second quarter of 2005. Privatization of Senelec, the
national electricity provider, has been a prominent element of Senegal's
programs with the World Bank and IMF. Electrical shortages have hindered
economic development despite the arrival of new power from a
hydroelectric plant in Mali in the summer of 2002. When the 60 MW plant
in Kounoune, located on the outskirts of Dakar, comes on line later this
year, it is hoped that power shortages will be mostly alleviated. After
a re-nationalization in 2000 and a failed privatization in 2002, the
Government has indefinitely shelved plans to privatize Senelec pending
management reform and additional capital investments. The Government is
soliciting various bids for small-scale diesel generation projects and
intends to implement a new code regulating Build-Operate-Transfer
projects. Signaling the priority placed by the Wade administration on
attracting foreign investment, the Government created the Investment
Promotion Agency (APIX) in 2000. Foreign investment inflows are trending
up with Senegal receiving \$93 million in 2002. Despite its political
and economic stability, Senegal has significant developmental challenges
ahead, especially in raising education and health standards for its
people. In April 2004, Senegal achieved its Heavily Indebted Poor
Countries (HIPC) completion point, permitting Paris Club debt reduction
totaling \$488 million in net present value for the period of 2004-2010.

**Commercial Environment**

The Senegalese are generally well disposed towards Americans, and
actively seek U.S. trade and investment. In the past, the country's
historic ties to France and its relatively small domestic market have
limited U.S. commercial relationships here, but that is changing, albeit
slowly. U.S. investment in Senegal increased significantly in the late
1990s but has slowed since then. According to U.S. Department of
Commerce figures, U.S. exports to Senegal totaled \$101.8 million in
2003, up from \$74.6 million in 2002. It should be noted that these
official statistics do not include U.S. goods procured through Europe.
Credit access for importers in Senegal remains problematic. Senegalese
firms are often small and under-financed. The U.S. Export-Import Bank
(EXIM) offers loan guarantees for qualified Senegalese importers of U.S.
goods. U.S. exporters should contact EXIM's Washington offices to learn
more about the increasing number of U.S. commercial banks that are
lending directly to Senegalese companies to support purchases of U.S.
products.

France remains Senegal's largest trading partner, supplying
approximately 25 percent of Senegal's import needs. Other important
trading partners are Nigeria, Italy, Thailand, and Germany. Senegal
imported \$89.2 million from the U.S. in 2004 and exported merely \$3.0
million worth of products to the U.S., despite being eligible for
benefits under the African Growth and Opportunity Act (AGOA), passed by
Congress in 2000, whereby more than 6,000 products manufactured or
produced in Sub-Saharan Africa can be exported to the U.S. under duty
free status.

The U.S. Government approved Senegal's apparel visa system under the
AGOA framework in April 2002, and the country is aggressively vying for
foreign investors in the apparel sector in particular. Senegal's
AGOA-facilitated exports remain low, due in part to a non-competitive
textile sector and the overall lack of production capacity. With
agricultural exports focused primarily on Europe, Senegal has yet to
seriously assess phyto-sanitary requirements to systematically export
Senegal's produce to the U.S. While fresh green beans have been shipped
to the U.S. on an ad hoc basis, transportation and distribution
mechanisms need to be arranged to ensure regular exports to the U.S. Now
that the U.S. Department of Agriculture has opened an Animal and Plant
Health Inspection Service (APHIS) office in Senegal, the Government of
Senegal is hopeful that Senegal's agricultural producers will quickly
undertake the necessary pest risk assessments and meet all the necessary
phyto-sanitary requirements to export produce to the U.S. taking full
advantage of the AGOA benefits.

######## Major Business Opportunities

Although Senegal's domestic market is relatively small, its increasing
openness to foreign trade and investment and market forces means that
opportunities for U.S. companies are increasing. Senegal remains an
excellent choice for companies interested in doing business with other
countries in the region. The telecommunications market has been growing
steadily, and the Senegalese are keen users of information technology
and the Internet. Several American IT companies have made Senegal their
base for West African operations due to Senegal's excellent fiber optic
links and reliable telecommunications infrastructure. Other sectors
offering potential for U.S. companies are heavy duty-machinery and parts
for the construction and mining sectors, tourism, agricultural
commodities, packaged foods, used clothing and cosmetics.

The American Chamber of Commerce in Senegal was officially launched in
January 2005 and stands ready to assist U.S. and local companies seeking
to increase trade and investment between the U.S. and Senegal. AmCham
activities in Senegal, a listing of Board Members, and membership
information are available on the Chamber's website:
[www.amchamsen.org](http://www.amchamsen.org/)

**Embassy Assistance**

Recognizing the business opportunities for U.S. companies and the
potential for economic growth in Senegal, the U.S. Department of
Commerce has opened a new U.S. Foreign Commercial Service office in
Dakar. Opened in August 2004, this office is staffed by a Regional
Senior Commercial Officer, a Commercial Specialist and a Commercial
Assistant whose sole mission is to help promote U.S. exports to Senegal
and the region.

Information on the U.S. Foreign Commercial Service's products and trade
promotion services is available at:
[www.export.gov](http://www.export.gov/)

Country Commercial Guides are available from the National Trade Data
Bank's CD-ROM or via the Internet. Please contact STAT_USA at
1-800-STAT-USA (1-800-782-8872) for more information. Country Commercial
Guides can be accessed via the World Wide Web at
[http://www.stat-usa.gov](http://www.stat-usa.gov/);
<http://www.state.gov/>; and <http://www.mac.doc.gov/>. They can also be
ordered in hard copy or on diskette from the National Technical
Information Service (NTIS) at 1-800-553-NTIS (6847). U.S. exporters
seeking general export information should contact the U.S. Department of
Commerce at the Trade Information Center, 1-800-USA-TRADE.

######## Chapter 2. MAJOR ECONOMIC TRENDS AND OUTLOOK

#### Major Trends and Outlook

#### 

The former capital of French West Africa, Senegal is a semi-arid country
located at the western edge of Africa with a population estimated at
more than 10 million in 2004. Predominantly rural and with limited
natural resources, the country earns foreign exchange from fish,
phosphates, peanuts, tourism and services. Its economy is highly
vulnerable to variations in rainfall and changes in world commodity
prices. Senegal depends heavily on foreign assistance, which in 2004
represented about 25 percent of overall government spending (including
both current expenditures and capital investments), or CFAF 287.4
billion (\$575 million).

Since the January 1994 CFA franc devaluation, the International Monetary
Fund (IMF), the World Bank and other multilateral and bilateral
creditors have been supporting the Government of Senegal's (GOS's)
structural and sectoral adjustment programs. The broad objectives of the
adjustment programs have been to facilitate growth and development by
reducing the role of government in the economy, improving public sector
management, enhancing incentives for the private sector and reducing
poverty.

With its economic reform program on track, Senegal responded favorably
to many of the Heavily Indebted Poor Countries (HIPC) benchmarks under
the IMF/World bank PRGF (Poverty Reduction and Growth Facility)
programs. On April 19, 2004, the IMF and the World Bank acknowledged
Senegal's accomplishments by agreeing to a comprehensive debt reduction
package under the enhanced HIPC initiative. Of the HIPC total debt
relief \$488 million for 2004-2010, Senegal received debt cancellation
of \$94 million from Paris Club creditors in June 2004. Senegal's
continued good macro-economic performance in 2004, with a real GDP
growth rate of 6.0 percent, inflation at 0.5 percent, and an external
current account deficit (excluding official transfers) of 8.3 percent of
GDP, holds a fiscal deficit (excluding grants) of 2.2 percent of GDP.

Senegal's limited natural resources relative to its relatively high
population growth (2.7 percent) and unemployment rates, as well as its
rapid urbanization, could easily compromise the country's long-term
development prospects. In addition, with uncertain rainfall levels,
Senegal's continued reliance on agriculture, which occupies directly or
indirectly somewhere between 60 and 70 percent of the workforce, leaves
its economy fragile, and sustained growth difficult to achieve. These
factors make the pursuit of sound post-devaluation economic policies
crucial.

**Principal Growth Sectors**

*Fisheries*

The fishing sector remains Senegal's principal economic resource and
major foreign exchange earner. In 2004, the sector yielded approximately
CFA 187 billion (\$374 million) for a catch of approximately 430,000
tons**.** The Government estimates that the fishing sector employs more
than 200,000 people. Additionally, it generates significant temporary
employment in the informal sector, in particular through artisanal
fishing (use of small-scale traditional fishing canoes). Further
development of the fishing industry will depend on monitoring fishing
regulations and attracting new investment to maintain and upgrade the
existing fleet in order to increase catches. Over-exploitation and
scarcity of resources of high market value remain one of the most
important concerns of the fishing sector. In June 2002, Senegal and the
European Union signed a four-year fisheries agreement after months of
negotiations. The previous accord had ended December 31, 2001. The
agreement runs from July 1, 2002 to June 30, 2006, and provides for an
annual compensation of Euros 16 million (\$15 million), an increase of
25 percent in CFA terms over the amount received under the 1997-2001
agreement.

*Tourism*

The tourism industry continues to play an important role in the economy
as the Government has sought to diversify its sources of foreign
exchange. Senegal caters mainly to French, Spanish, Italian and German
tourists with some limited U.S. tourism concentrated on historic Goree
Island, a former way station for the slave trade between West Africa and
the United States. The peak of the tourist season is November-March,
when Senegal's climate is very attractive. In 2004, approximately
700,000 tourists came to Senegal, earning the country some CFA
141billion (\$282 million)**.** French investors dominate foreign
investment in hotels and other tourist facilities. While the end of the
Casamance rebellion may bring tourists back to the verdant Ziguinchor
and Cap Skirring region, Senegal urgently needs to address basic
infrastructure needs, particularly roads, and aging tourist facilities
if it is to maintain the industry at present levels.

*Mining and Petroleum\
*

Mining output consists mainly of calcium phosphates. Mining accounts for
less than two percent of Senegal's GDP, but contributes significantly to
export earnings and employs more than 2,500 people. In 2004, phosphates
and phosphate products accounted for 15 percent of total merchandise
export earnings at CFA 117 billion (\$234 million). Phosphate mining
could be expanded with the exploitation of the high-grade deposits of
calcium phosphate in Matam, located in northeastern Senegal. ICS, the
dominant producer of phosphates, greatly increased its production
capacity of phosphoric acid in recent years, and nearly all is exported
to India.

The National Assembly recently approved an updated mining code, which
has sparked renewed interest in this sector by foreign investors. While
there are plans to develop gold and iron ore mining operations, the lack
of adequate transportation links remains a crucial obstacle. Since
mid-2003, three companies have been engaged in gold exploration in the
southeastern part of Senegal \-- Ashanti Gold Fields, and South African
companies Randgold and IAM Gold. A Canadian-Saudi consortium was
recently awarded a three-year exploration contract at the Sabodola gold
site covering 230 square kilometers. Australian firm MDL was awarded a
five-year mining contract covering an area of 20 square kilometers at
Sabodola. Sabodola, located in southeastern Senegal, has proven
resources of 13 tons of gold.

Major investor groups from South Africa, China and the U.S. are taking a
close look at the development of the Faleme iron ore deposit, which is
expected to produce 12 millions tons a year. Senegal has commercially
significant deposits of tungsten, zirconium, marble, granite, copper,
chrome and nickel.

Higher crude prices and new technology have made Senegal's deep-water
oil fields increasingly viable commercially. In 2004, several firms
signed exploration agreements for 11 offshore tracts, including:
Dallas-based Hunt Oil; UAE companies Kampac Oil and Althani; Italian
company Edison; and Energy Africa,which is owned by Irish company
Tullow. Houston-based Fortesa Energy, in conjunction with Senegalese
Petrosen, developed several gas wells in the Thies region during the
'90s. Since 2002, Fortesa has been producing gas and selling it to
Senelec. Fortesa is continuing gas exploration and plans to drill 19
wells to a depth of 1,500-1,800 meters in a concession measuring one
million acres onshore. Other U.S., Australian and European firms are
reportedly negotiating for exploration rights.

*Peanuts*

Peanut production accounts for around 40 percent of cultivated land,
taking up two million hectares, and provides employment for as many as
one million people. Although the peanut sector's contribution to foreign
exchange earnings has dropped below those of fishing and mining, peanuts
continue to play an important role in the overall economy as the main
cash crop for many rural Senegalese farmers. The sector continues to
suffer from low production due to lack of inputs, uncertain rainfall,
and soil depletion. Exports of peanut products reached CFA 30 billion
(\$95.3 million) in 2004 and represented 4 percent of total export
earnings. In 2004, the GOS selected an investors group led by Advens, a
French-Lebanese company, to acquire the assets of Sonacos, the groundnut
processing parastatal.

**\
Government Role in the Economy**

The Government is still by far the country's largest employer and
consumer. For FY 2005, the Government of Senegal (GOS) projects total
expenditures of CFA 1,293.0 billion (\$2.58 billion), an increase of 9
percent over the 2004 budget. Over one third of its budget comes from
grants and other foreign transfers. The government's 2005 budget
priorities focus on education, health and public service infrastructure,
including water, roads, agriculture and the service sector. Senegal
depends on foreign aid to finance the public investment portion of its
budget.

After a timid start in the mid-90's, the government's privatization
program gained momentum with the successful privatization of the water
company, SONEES; the telecommunications company, SONATEL; the phosphate
mining company, SSPT; and the national airline, Air Senegal. Since then,
progress has been slow, and sometimes conflicting. The national
electricity company, SENELEC, was privatized in 1999, but the new
government of Abdoulaye Wade decided to end the partnership with the
French-Canadian consortium under mutually agreeable terms, and a buyout
occurred in December 2000. The Government of Senegal announced an
international tender in July 2001 to seek a new investor willing to
acquire a 51 percent share in Senelec, but that process failed.
Privatization now appears to be on hold as the Government upgrades
Senelec's inadequate power generation capacity. Since 2002, Senegal has
imported approximately 60 megawatts (MW) from the Manantali (Mali) dam.
In 2003, a 30 MW diesel plant at Cap des Biches came online. The World
Bank is underwriting the construction of a 60 MW plant expected to come
online in Kounoune in late 2005. A total generating capacity of 180 MW
will become available by increments of 60 MW in 2006 and 2008.

Since 2001, the Senegalese Government has undertaken a number of
initiatives to grow the economy. These initiatives have included: the
dissolution of Sonagraines, the company that purchased peanuts from
farmers, sold seed and other inputs, and supplied credits to farmers);
an increase in electricity prices; a revision of the pricing and
taxation system for petroleum products; the passage of a public
procurement code; and the establishment of a Presidential Investors
Council (PIC). Composed of foreign and domestic investors, the PIC is
designed to provide the President with useful feedback and
recommendations to improve the business environment and attract
investors. During 2003 and 2004, the National Assembly passed a series
of bills to enable the implementation of some of the regulatory changes
suggested by the PIC. The National Assembly also passed a
Build-Operate-Transfer project code and established the Infrastructure
Council to ensure transparent procurement practices for large projects.

**Balance of Payments**

Revenues from exports reached CFA 781billion (\$1.56 billion) in 2004
compared to CFA 764 billion (\$1.52 billion) in 2003. Imports reached
CFA 1,186.0 billion (\$2.37 billion) in 2004 compared to CFA 1,179.0
billion (\$2.35 billion) in 2003. The current account deficit (excluding
official transfers) decreased slightly from 8.5 percent of GDP in 2003
to 7.4 percent in 2004.

**Infrastructure Situation**

Senegal's transportation infrastructure is better developed than that of
most of its neighbors. Léopold Sédar Senghor (LSS) airport at Dakar-Yoff
is one of the principal international airports in West Africa and can
handle all types of aircraft on its two runways. LSS airport serves more
than 24 international airlines. Currently South African Airways operates
daily flights on its New York/Johannesburg route via Dakar under a code
sharing arrangement with Air Senegal International and Delta. Air France
and Air Senegal International operate daily direct flights between Dakar
and Paris. Sabena flies the Brussels /Dakar route five days a week. LSS
handles more than one million passengers per year and moves more than
24,000 metric tons of international airfreight.

Air Senegal was privatized in 2000, becoming Air Senegal International,
with Royal Air Maroc the new operator. Royal Air Maroc holds 51 percent
of shares, the Government of Senegal 20 percent, employees 5 percent,
and other private investors 24 percent. Air Senegal International
currently has a fleet of four airplanes: a Boeing 757 to serve the
Dakar-Paris route, a Boeing 737 and a Dash-8 to serve Senegal and the
sub-region, and a 20-seat twin engine for local routes. Air Senegal
International was named the best African Airline in 2003 by its peers
and has been steadily expanding service to the region and Europe.

The "Open Skies" agreement signed between the Government of Senegal and
the United States in January 2001 to pave the way for more direct
commercial flights between the two countries, has been approved and
ratified by the Senegalese National Assembly but has yet to enter into
force. Senegal is working with the FAA on achieving Category One status
for LSS Airport, which would permit Air Senegal International to offer
direct flights to the United States. Senegal has secondary airports
located in the regional cities of Saint Louis, Tambacounda, Kolda and
Ziguinchor and some 30 private runways, which must comply with the same
security regulations as public airports.

The Canadian/French consortium Canac/Getmar took over operation of the
Dakar-Bamako rail line in 2003, leading to some immediate improvements
in cargo carrying capacity. Senegal's national rail network is in an
advanced state of decay, leading to the cessation of services between a
number of regional cities. Improving the Dakar-Bamako rail line has long
been a goal of the Governments of Senegal and Mali in order to promote
intra-regional trade. The terms of the concession call for a 25-year
lease, with an option to renew for another 10-year period. Canac/Getmar
has 51 percent ownership and has committed to invest \$72.7 million over
the next five years to upgrade the railway and renew the rolling stock.
Canac was recently acquired by U.S. company Savage.

The Port Of Dakar has steadily improved its relatively modern maritime
infrastructure over the years. Dakar is the first major port-of-call
from Europe and is well served by major shipping lines. The Port serves
as an entrepot transshipment center for landlocked nations in West
Africa. The Port of Dakar has deep draft at 11 meters and a wide access
channel, which allows around-the-clock access. Facilities include a
tanker terminal, a container terminal, which is undergoing expansion,
and an eight-hectare yard area. The port complex also includes a grain
shipping facility, fishing port, phosphate terminal, and the region's
only floating dry-dock. In 2003, the Port handled a record ten million
tons. Infrastructure upgrades for 2005 include a doubling of the
container terminal handling space and dredging to 13 meters.

######## CHAPTER 3. POLITICAL ENVIRONMENT

#### Nature of Political Relationship with the United States

Senegal enjoys an excellent relationship with the United States. The
Government of Senegal is known and respected for its able diplomats and
has often been supportive of the United States, particularly in the
United Nations. Senegal has frequently contributed troops for
peacekeeping activities. About 200 Senegalese students come to the
United States each year for study. The U.S. Agency for International
Development has provided approximately 30 million dollars per year in
assistance in recent years. President Bush visited Senegal in July 2003.

**Major Political Issues Affecting Business Climate**

While businesses do not perceive instability from a political
perspective, there is concern in the medium term, about the growing
pressures associated with population growth and rapid, uncontrolled
urbanization. In 2004, the GOS and the separatist movement in the
southern region of Casamance set the framework for economic
reconstruction of the area and signed a truce.

Senegal has a multiparty democratic system, with more than 60 registered
political parties. Despite early concerns about violence, the
presidential elections held in February and March 2000 were largely
peaceful and considered free and fair by local and international
observers. Senegalese went peacefully to the polls twice in early 2001.
In January 2001, the voters overwhelmingly approved a new constitution
and in late April, they elected a new National Assembly. Local and
regional elections, held in May 2002, were well organized, free and
fair. There are no elections scheduled in Senegal until the next
legislative elections in 2006 and the next presidential election in
2007.

The victory of long-time opposition leader Abdoulaye Wade in 2000
resulted in the first peaceful transfer of power from one party to
another in 40 years. President Wade has been in office since April 1,
2000, and pressure is rising on the Wade Administration to deliver on
promises of increased foreign investment, delivery of major
infrastructure projects and enhanced economic growth. In response, the
Government is accelerating privatization and regulatory reform.

In 2003 and early 2004, the Government continued progress with the
following measures: 1) several bills enacting deregulatory measures
recommended by a public/private commission; 2) enactment of a
Build-Operate-Transfer mechanism for infrastructure projects; 3) moving
forward with the establishment of a Infrastructure Commission to oversee
the procurement of major projects; 4) an update of the legal code
dealing with money laundering and financial terrorism, including the
establishment of a Financial Intelligence Unit; 5) commitment to
establish a "Czar" for corruption-related issues; 6) an updated mining
code; and 7) further telecommunications deregulation.

The Senegalese military is non-political and highly professional. While
the judiciary needs strengthening as an independent institution, there
is generally de facto and de jure respect for civil liberties, including
freedom of speech and press, association and movement, and respect for
the right of citizens to change their government. The courts have
generally been very supportive of worker rights.

#### Brief Synopsis of Political System, Schedule for Elections, and Orientation of Major Political Parties

Senegal is a republic with an elected President, Abdoulaye Wade, elected
to office in March 2000. President Wade, leader of the Senegalese
Democratic Party (PDS), defeated Abdou Diouf, his long-time political
foe, who had held the Senegalese presidency since 1981. President Wade
was elected to a seven-year term, but under the terms of the newly
adopted constitution, future presidents will serve for five years and
will be limited to two terms. While the Senegalese political system
centralizes power in the Executive branch, particularly the Presidency,
recent constitutional changes have more clearly defined the roles of all
branches.

The country has a unicameral National Assembly, which had been
controlled by former President Diouf's Socialist Party (PS) since
independence from France in 1960. This changed dramatically in April/May
2001 when President Wade's PDS-led coalition won an overwhelming
majority in the National Assembly, controlling 91 of 120 seats. The next
closest party holds 11 seats. The term of office for Deputies is five
years, although the President now has the authority to dissolve
unilaterally the National Assembly and call for new elections once the
Assembly has been in office for two years. Local officials also serve
five-year terms.

During its 40 years in power, the PS governed Senegal in the African
Socialist mold, advocating a wide network of state-sponsored social
programs and the state's direct involvement in and close direction of
the economy. Limited natural resources and a faltering economy limited
the reach of this social network, and the failure of state-owned
companies to drive the economy and provide revenues to the Government
led to a gradual change toward a more market-oriented approach. In 1994,
the PS government began a program of economic reform to liberalize the
economy, opening the country's markets by eliminating price controls,
subsidies and monopoly arrangements, and by privatizing state-owned
enterprises. This program was by most accounts reasonably successful,
with several parastatals,, including the water, telephone and airline
companies, being privatized. In 2000, President Wade came to power with
a liberal, non-state interventionist philosophy that has not as yet been
clearly matched with concrete accomplishments.

######## CHAPTER 4. MARKETING U.S. PRODUCTS AND SERVICES

#### Distribution and Sales Channels

The capital city, Dakar, is the hub of economic activity and the largest
consumer market in Senegal. The Dakar metropolitan area contains 75
percent of Senegal's manufacturing base and 22 percent of its
population.

Distribution occurs both by modern and by traditional systems. The
modern sector is dominated by a few large French-owned import-export
firms that cover all aspects of trade from importing to retailing, but
their number is decreasing. Lebanese merchants play an important role in
the import-export business. Existing alongside these companies are
extremely competitive small-scale traders specializing in the wholesale
and retail distribution of various consumer goods. Senegalese merchants
selling popular consumer goods, such as textiles and electronics, are
gradually replacing Lebanese traders. A growing Chinese immigrant
community is making headway in Dakar's street markets. They have opened
shops on Dakar's thoroughfare and sell cheap consumer goods.

A very dynamic traditional or informal sector engages roughly 80 percent
of the workforce. Informal traders in municipal and street markets carry
out a sizable portion of domestic trade. Sandaga, a sprawling
unregulated market in the heart of Dakar, is the capital\'s principal
distribution center for manufactured goods ranging from textiles,
footwear and cosmetics to high-tech stereo equipment. Street vendors
make up a dynamic, if somewhat marginalized, sub-component of the
informal sector. In recent years, there has been a substantial build-up
of more formal merchandising space. The city's first large mall is
scheduled to open later this year. Franchise businesses and convenience
stores are expanding rapidly in Dakar, Thies and St. Louis.

#### Agents and Distributors

The specific type of representation that a U.S. firm establishes in
Senegal must be tailored to fit the individual requirements of the
product and its potential market. U.S. firms may employ the services of
an agent, appoint a distributor or dealer, and/or establish a direct
sales branch or subsidiary. Preferably, the agent or the distributor
should be a local business/firm, fluent in French and aware of
Senegal\'s business practices. If the product requires some servicing,
the U.S. exporter should make available a reasonable inventory of spare
parts to his agent or distributor. U.S. companies also should provide
brochures and marketing literature in French.

The U.S. Embassy's Foreign Commercial Section provides an array of
fee-based services to help U.S. companies identify suitable partners in
the region. Please contact the embassy's Commercial Section at
www.export.gov.

######### Franchising

Limited to international car rental agencies until recently, the
franchising market is slowly growing. A number of fast food and dry
cleaning franchises have successfully opened this past year.

#### Joint Ventures/Licensing

The Senegalese investment code provides incentives for joint venture
business operations. Joint venture partnerships should specify the
responsibility of each party since many local entrepreneurs expect that
all costs will be borne by the foreign investor. Although increasingly
interested in joint venture activities, Senegalese entrepreneurs
typically have little equity to offer. Joint venture partnership can
take any of the forms listed in the next section.

Senegalese law does not contain any specific provision for licensing.
The primary consideration is the formalization of a remittance procedure
for any fees and royalties to the licenser, in compliance with local tax
laws. In Senegal, licensing agreements are common in the tobacco, food
and soft drink industries. For instance, Philip Morris manufactures
products under license, as does Nestlé (for some products) and
Coca-Cola.

#### Steps to Establishing an Office

The "Guichet Unique, " or one-stop-shop, at the Government's Agency for
the Promotion of Investment and Infrastructure (APIX), is the first step
for foreign investors towards establishing a business in Senegal and
qualifying for investment incentives. Committed to simplifying the
registration process and to regaining an investor-friendly image for
Senegal, APIX has theoretically reduced the amount of time required for
the simple registration of a business from 60 to 10 days. APIX was
created in June 2000 by incoming President Wade, and is the linchpin of
Senegal's foreign investment promotion policy.

Foreign investors also need the assistance of a "notaire" in order to
register and incorporate their company under the newly created OHADA, a
regional initiative to harmonize commercial codes in Francophone Africa.
In French practice, the notaire or notary has completely different
functions from a U.S. notary. The notaire is a specialist in contracts
and legal documents. The most common legal forms of incorporation are as
the branch of a foreign company ("succursale"), the limited liability
company ("société à responsabilité limitée -- SARL") and the public
corporation ("société anonyme -- SA"). Once registered, a branch is
regarded as a Senegalese judicial entity.

All SARLs must have a minimum capital of CFA 1 million and at least one
shareholder. The minimum capital required to create a public corporation
is CFA 10 million with a minimum of one shareholder.

Other types of business structures include sole proprietorship, regional
office, local agency and distributorship.

#### Selling Factors/Techniques

Most local distributors of imported merchandise expect their suppliers
to provide advertising and promotional support, particularly when
introducing a new product or brand name. Sales promotion material and
technical documentation should be in French. There is no mail order
marketing.

#### Advertising and Trade Promotion

Although advertising has not yet achieved the sophistication typical of
European and North American markets, Senegal offers extensive
advertising outlets, including two national television channels that
carry local commercials, eight radio stations, and over 15 newspapers.
The Internet, billboards and phone messaging services offer additional
possibilities. Advertising is in either French or Wolof. There are no
English-language media outlets in Senegal. When companies are unfamiliar
with Senegalese culture and the local business environment, they can
sometimes experience difficulty in identifying customers to target for
direct marketing efforts.

Contact information for Senegalese media is listed in appendix D.

The reading public for Senegal's diverse press is largely limited to
Dakar and Thies. The quasi-official "Le Soleil" is a daily newspaper.
Other major popular independent newspapers include the dailies "Sud
Quotidien," "WalFadjri," the satirical "Cafard Libéré," "Le Témoin," "Le
Matin," and the economic weekly "Le Journal de l'Economie." National
newspapers are in French with an occasional insert in ethnic languages.
English language newspapers such as the "International Herald Tribune"
are also available at many newsstands.

Various trade organizations publish bulletins and newsletters such as
those of the Dakar Chamber of Commerce and the periodical
\"Entreprendre\" issued by the National Council of Business Leaders.

Several Europe-based magazines enjoy a wide circulation, including
"l'Intelligent Jeune Afrique," "L'Autre Afrique," "Paris Match,"
"L\'Express," "Le Point," "L\'Evènement du Jeudi," as well as the
European editions of "Time," "Newsweek" and "The Economist."

Improved economic performance since the mid-1990's has prompted a
resurgence of trade fairs and exhibitions. These are ideal venues for
U.S. companies to advertise their products. See Appendix E for a list of
upcoming events.

#### Pricing Products

U.S. exporters should price their products on a CIF (cost, insurance and
freight) basis. Liberal credit terms and a vast array of financing
packages, e.g., supplier credit, made available by European competitors
have disadvantaged U.S. firms. New-to-market U.S. exporters should
request an irrevocable confirmed letter of credit. In some cases, large
Senegalese importers have sources of foreign exchange outside Senegal
and can offer credit documents issued by non-Senegalese banks.

To help U.S. exporters formulate sound credit policies applicable to
local markets, credit information on individual Senegalese firms can be
obtained by requesting an International Company Profile (ICP) through
the U.S. Embassy's U.S. Foreign Commercial Service,
[www.export.gov](http://www.export.gov/).

#### Sales Service/Customer Support

After-sales support and service are critical for sophisticated and heavy
industrial equipment such as telecommunications products, industrial
machinery, computer hardware and photocopiers. Product recalls are
virtually unknown in Senegal.

#### Selling to the Government

Although government procurement has been reduced somewhat due to
privatization of key parastatals in the late 1990s, the Government is
still a significant customer and in some cases the largest. Nearly all
such purchasing is done through competitive bidding. This includes major
infrastructure projects financed by multilateral lending organizations
such as the World Bank and its affiliate the International Finance
Corporation (IFC), the African Development Bank (AfDB), the West African
Development Bank (BOAD) and the Islamic Development Bank (IDB). Calls
for bids are published in local newspapers, and occasionally
internationally. Information in French on some tenders can be found at
[www.apix.sn](http://www.apix.sn/).

Prospective bidders may learn of upcoming World Bank projects by
subscribing to the World Bank\'s monthly operational summary.
Descriptions of newly approved AfDB projects are also available on a
subscription basis. For further information on AfDB projects, U.S.
companies may consult the following website:
<http://www.buyusa.gov/afdb>.

The U.S. Foreign Commercial Service monitors requests for tenders and
reports to the U.S. Department of Commerce those that may be of interest
to U.S. suppliers. Bid specifications are usually in French, and bidders
also are required to submit proposals in French.

#### Protecting Your Product from IPR Infringement

Senegal is a signatory to the Bern Copyright Convention. It also is a
member of the African Organization of Intellectual Property (OAPI), a
grouping of 15 Francophone African countries, which has established
among its member states a common system for obtaining and maintaining
protection for patents, trademarks and industrial designs. Therefore,
rights registered in one member country are valid in all. Patent
validity is 20 years. Registered trademarks are protected for 20 years
at each registration, renewable without limit.

Senegal is a signatory to the World Trade Organization and its Trade
Related Aspects of Intellectual Property Agreement (TRIPS). Since
January 2000, Senegal is theoretically in full compliance with the TRIPS
accord, but has yet to deposit its instruments of ratification for WIPO
Copyright Treaty and the WIPO Performances and Phonograms. As in most
developing countries, IPR protection is inadequate. Senegal's criminal
law provisions do not provide for criminal procedures in case of
trademark counterfeiting or copyright piracy on a commercial scale. In
addition, because of budget constraints, Senegal's Copyright Office has
had difficulty enforcing sanctions against individuals who infringe
copyrights in the course of business, including hackers and distributors
of infringed copies. Nonetheless, the Copyright Office began vigorous
attempts against counterfeit media in 2001 and 2002, seizing items as
well as putting stickers on legal merchandise. It is currently
continuing these enforcement efforts. Microsoft began an anti-piracy
campaign in Senegal in early 2004 and reports some success in converting
users of pirated Microsoft products through deeply discounted licenses
for legitimate software.

U.S. businesses may contact OAPI Dakar's headquarters at:

Bureau Sénégalais des Droits d'Auteur (BSDA)

(Senegalese Copyright Office)

Mrs. Siby, Director

7, Rue Docteur Thèze

Tel: 221-889-01-86

Fax: 221-822-24-59

Ministère des Mines et de l'Industrie

Mr. Doudou Sagna, Chef Service Propriété Intellectuelle et de la
Technologie

(Chief, Intellectual Property and Technology Office)

122 Bis Avenue André Peytavin

Dakar, Senegal

Tel: 221-822-0443

Fax: 221-823-1404

######### Need for a Local Attorney

Once the decision to open a business in Senegal is made, the U.S.
businessperson will require legal counsel and a notaire for all the
legal formalities associated with the incorporation of a company. The
Embassy has available a list of lawyers and notaries. It is advisable
that U.S. firms approach firms specializing in financial and tax
advisory services. Well-qualified representatives of major U.S. and
international auditing and business consulting firms are located in
Senegal.

##### CHAPTER 5. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT

In 2004, total Senegalese imports were estimated to be \$2.37 billion,
with France the largest supplier, followed by Nigeria, Thailand, Spain
and the U.S. In 2004, U.S. exports to Senegal stood at \$98.8 million,
down from \$101.8 million in 2003. Senegal's exports to the U.S. dropped
from \$4.5 million in 2003 to \$3 million in 2004 although Senegal's
official statistics reflect slightly higher export figures to the U.S.
The Senegalese market is small by U.S. standards, but some companies see
it as a gateway to selling to West African Economic and Monetary Union
(WAEMU or UEMOA) member countries, with its common currency, the CFA
franc, pegged to the Euro and backed by the French Treasury.

When available, statistics below are given through 2004.

#### Best Prospects for Non-Agricultural Goods and Services

Rank of Sector: 1

Name of Sector: Telecommunications Products and Services

ITA Industry Code: TEL/TES

Sonatel, Senegal's telecommunications operator, continues to dominate
the market. Sonatel was privatized in 1997 with France Cables Radio, a
subsidiary of France Telecom, as the strategic partner. Liberalization
of some services accompanied privatization. Two companies now provide
cellular telephone services, and there is a competitive Internet
services market. As a result, there has been a boom of Internet-related
activities and services and in cell phone usage. The Government hopes
Senegal can become a haven for teleprocessing services, with its
advantageous geographic position, relatively good telecommunications
infrastructure and relatively low wages attracting businesses serving
the Francophone market. A number of joint ventures in the call center
and the telemarketing business have sprung up. Most of them service the
French market. Cellular service has grown significantly since its
introduction in the late 1990s. There are currently two cellular
companies: "Alizé," owned by Sonatel, and "Sentel," 75 percent owned by
Millicom International Cellular. Alize has roughly two thirds of the
cellular market, but Sentel is rapidly gaining market share.

An independent regulatory agency for the telecommunications sector --
the Agency for Telecommunications Regulation (ART) - was created in
early 2002. Besides regulating providers of telecommunications services,
the Agency assigns and controls spectrum. The long-awaited
telecommunications sector deregulation became effective July 2004, with
the release of a sectoral letter that outlines the IT policy for the
coming years. Telecommunications entrepreneurs who had hoped for a
sweeping deregulation will be facing a regime of guided deregulation
instead. Licensing guidelines for VOIP, broadband wireless, VSAT and
other value-added services are yet to be announced. One concrete step
seems to be the government's intention to seek a third vertically
integrated full-service provider. The tender announcement should be
issued before year-end.

Sonatel is a partner in the Alcatel SAT3-WASC-SAFE submarine fiber optic
cable network, which was completed in 2002. The Alcatel cable circles
Africa, and allows 11 African landing points, including Senegal, to
benefit from a high-capacity link to Europe and beyond. Two additional
fiber optic landings service Senegal. Senegal maintains one of the
continent's most advanced fiber optic backbones. Internet service is
widely available in Dakar and other towns either for private subscribers
or through Senegal's extensive network of "telecentres" and Internet
cafes. The ADSL broadband subscriber base is growing rapidly.

E-Commerce is at its early stages. Senegal's first experience with
E-Commerce was done through the Trade Point, an initiative of the United
Nations Conference on Trade and Development (UNCTAD) to facilitate
international trade. Trade Point Senegal, a para-public institution, is
using the Internet to promote matchmaking between Senegalese businesses
and international partners. Separately, there have been some sporadic
endeavors by private Senegalese-based entrepreneurs who have been
marketing Senegalese-made artisanal and folklore products via the
Internet. The African Growth and Opportunity Act (AGOA) should benefit
them. Senegal's good telecommunications infrastructure and growing
Internet market have laid the grounds for further development of
E-Commerce. Senegal is the rollout country for the "Digital Freedom
Initiative" (DFI), a public-private partnership coordinated by the U.S.
Department of Commerce. DFI volunteers are working with U.S. businesses
and the Senegalese Government to implement several Internet-based
initiatives such as an electronic payment system and basic IT training
for Senegalese merchants.

Data Table:

  ---------------------------- -------------- -------------- --------------
  Data Table                   2003           2004           2005 (E)

  Number of Fixed Lines        230,000        250,000        260,000

  Number of Cellular           782,423        1,028,061      1,500,000
  Subscribers                                                
  ---------------------------- -------------- -------------- --------------

Rank of Sector: 2

Name of Sector: Travel and Tourism/Aviation Services/Airport/Ground
Support Equipment

ITA Industry Code: TRA/AVS/APG

Known for its mild climate, attractive beaches and great sport fishing,
Senegal has long been highly regarded by European tourists. U.S.
tourists - often African-Americans - are increasing in numbers, drawn in
particular by the historic slave trading post of Goree Island. The
number of tourist arrivals in 2004 rebounded to 800,000 up from 442,500
in 2000.

As U.S. interest in West Africa increases, so might the opportunities
for U.S. companies catering to business travelers using Senegal as the
hub for the region. Senegal's capital city of Dakar, on the westernmost
point of the continent, is strategically located. Consequently, the
establishment of code sharing agreements between U.S. carriers and the
privatized Air Senegal International or European carriers established in
Senegal, could bode well for the development of tourism and
travel-related services between the United States and Senegal. Delta's
code sharing agreement with Air France on the Dakar-Paris route became
effective in April 2000. The Open Skies Agreement between the U.S. and
Senegal signed in January 2001 lays the bureaucratic foundation for a
direct route between the U.S. and Senegal by U.S. carriers. However, the
safety and security standards of the Dakar airport must meet the Federal
Aviation Administration and ICAO standards before new direct flights can
begin. Until the demise of Air Afrique in late 2001, Dakar served as a
point of last departure for flights to New York from Abidjan. South
Africa Airways offers a round-trip Delta-code share daily flight
Johannesburg/Dakar/New York. Air France, the new Sabena, Alitalia, TAP
and Iberia have regular flights between Europe and Dakar.

Rank of Sector: 3

Name of Sector: Gold and Iron-Ore Mining/Industrial Chemicals/Mining
Equipment

ITA Industry Code: OGS/ICH/MIN

After decades of relative inactivity, Senegal's minerals sector is
beginning to benefit from increased exploration and investment interest
spurred by the passage of legislation modernizing the mining code. In
2003 and early 2004, new investments were announced in gold, phosphate,
zirconium and marble.

Both trade and investment opportunities exist in this sector, dominated
by phosphate mining. Senegal has striven to strengthen the sector by
integrating upstream activities (phosphate rock mining) and downstream
(fertilizer and phosphoric acid) processing operations. These efforts
led to expansion plans, partly supported by a \$298,000 U.S. Trade and
Development Agency grant completed in 2000, for the Chemical Industries
of Senegal (ICS). ICS doubled its production capacity of phosphoric acid
from 330,000 to 660,000 metric tons (MT) in 2002.

Trade opportunities exist for the supply of sulfur to ICS, which in
recent years has imported an average of 500,000 MT per year. With the
ICS expansion, those numbers should increase.

Several investor groups are taking a close look at developing iron ore
deposits along the Faleme River, in eastern Senegal, as a result of the
current shortage of ferrous raw materials. South Africa's Kumba
Resources, majority owned by Anglo American, has signed an agreement for
pre-feasibility studies of the mine. U.S. investors are exploring the
possibility of forming a consortium to undertake rail construction and
rehabilitation from Faleme to Dakar, and construction of a deep-water
minerals port to facilitate the export of iron ore, phosphate, zirconium
and natural gas. Chinese investors are interested in financing the
entire \$950 million package in exchange for exclusive long-term rights
to the Faleme mine's output. Reserves are estimated at 800 million MT of
high-grade iron ore and Senegal\'s parastatal iron ore mining company,
MIFERSO, estimates yearly output could reach 12 million tons.

Other unexplored mineral deposits include marble, peat and diamonds.
Marble and peat reserves are estimated at 800,000 MT and 52,000 MT,
respectively, while no reliable data exist on the size of diamond
deposits. The lack of adequate road and railroad infrastructure in
Senegal's mining region hinders to some degree the development of these
mineral reserves.

Artisanal gold digging \-- small-scale mining activity \-- has a long
tradition in Senegal. By 2004, preliminary exploration results by
Randgold, IAM Gold, and Ashanti Gold Fields confirmed that the same
igneous extrusions producing rich gold deposits in Mali and Ghana appear
to be in the southeastern part of Senegal. A Canadian-Saudi consortium
was recently awarded a three-year exploration contract at the Sabodola
gold site covering 230 square kilometers. Australian firm MDL was
awarded a five-year mining contract covering an area of 20 square
kilometers at Sabodola. Located in southeastern Senegal, Sabodola has
proven resources of 13 tons of gold.

Expansion of phosphate mining operations has increased the market for
heavy duty-machinery and parts.

Rank of Sector: 4

Name of Sector: Used Clothing

ITA Industry Code: TXT

The country's rapidly growing population (2.7 percent per year) and low
per capita income have fuelled the demand for used clothing in Senegal.
Senegalese particularly want low-cost active wear products, such as
sports clothing and shoes, as well as casual-wear jeans and related
outerwear.

Local importers recognize the high quality of U.S.-graded used clothing.
U.S. exporters have established a long-standing presence in this market,
holding 40 percent of the import market. Dakar's Colobane Market is the
hub for clothing distributed to other markets in Senegal or re-exported
to Mali and Burkina Faso. The major players are the wholesalers who buy
their clothing directly from abroad and sell to a myriad of local
retailers. Wholesalers in Senegal are looking for U.S. exporters who can
deliver high quality and fashionable clothing with regular and timely
shipments.

  ------------------------------------------------------------------------
  Data Table (USD Millions)                                            
  --------------------------------------- -------------- ------------- ---
                                          2003           2004          

  Total Market Size                       5.7            4.2           

  Total Local Production                  0              0             

  Total Exports                           N/a            N/a           

  Total Imports                           5.7            4.2           

  Imports from the U.S.                   2.5            1.8           
  ------------------------------------------------------------------------

The above statistics are unofficial estimates.

Rank of Sector: 5

Name of Sector: Computers/Peripherals

ITA Industry Code: CPT

The Senegalese computer market is very competitive and growing. Total
imports reached \$20.4 million in 2004. All major U.S. brand names - via
their European branches - are well represented by local distributors
and/or agents. Consequently, 2004 statistics indicate that France is the
largest exporter of computers, with 47 percent of the market, although a
good portion of that consists of U.S. brands. Direct imports from the
United States accounted for seven percent of the market in 2004.

A Canadian/Senegalese joint venture has started to manufacture computers
locally.

  -----------------------------------------------------------------------
  Data Table (USD Millions)                                 
  ------------------------------------------- ------------- -------------
                                              2003          2004

  Total Market Size                           31            21.4

  Total Local Production                      1             1

  Total Exports                               0             0

  Total Imports                               30            20.4

  Imports from the U.S.                       3             1.4
  -----------------------------------------------------------------------

The above statistics are unofficial estimates.

Rank of Sector: 6

Name of Sector: Cosmetics/Toiletries

ITA Industry Code: COS

U.S. cosmetics are a highly regarded and sought-after product in West
Africa, especially hair and cosmetic products developed for the
African-American market. France is the largest supplier with 36 percent
of the market share.

The import figures from the United States are misleadingly low because
they do not account for imports from U.S.-affiliated companies that have
established manufacturing plants in Africa. Nor are cosmetics sourced
through Europe reflected in U.S. trade figures with Africa. The U.S.
company CARSONS has established a plant in Ghana and sells in Senegal
through an exclusive distributorship with a local importer. U.S. import
figures also do not take into account the large quantities of undeclared
cosmetics products carried in suitcases by Senegalese traders. High on
the list of products sought by Senegalese consumers are hair, facial and
skin-care products. Large quantities of counterfeit products from the
sub-region are available in the country. They are often marketed under
well-known U.S. brand names. Local production is dynamic and well suited
to low-income consumers. Local distribution could prove profitable to
U.S. vendors.

  ------------------------------------------------------------------------
  Data Table (USD Millions)                                
  ---------------------------------------- --------------- ---------------
                                           2003            2004

  Total Market Size                        N/A             N/A

  Total Local Production                   N/A             N/A

  Total Exports                            N/A             N/A

  Total Imports                            7.6             5.6

  Imports from the U.S.                    0.2             1
  ------------------------------------------------------------------------

Source: Ministry of Finance.

Rank of Sector: 7

Name of Sector: Heavy Equipment and Machinery -- Used

ITA Industry Code: XXX/XXXX

The housing development and construction boom in Dakar combined with a
massive program of infrastructure development initiated by the new
administration have fueled imports of heavy construction equipment.
Other large-scale infrastructure projects include the construction of a
new international airport (\$428 million), an international business
center, a toll road (\$40 million), an extension and modernization of
the Port of Dakar (\$58 million), an ore tanker port in Bargny on the
outskirts of Dakar and a refurbishment of the railway system.

Data Table: N/A

Rank of Sector: 8

Name of Sector: Electrical Power Systems

ITA Industry Code: ELP

Currently, the privatization of Senelec, the power utility, appears to
be on hold as the Government pursues management reforms and
infrastructure upgrades. Institutional reforms in the sector are
ongoing. The transmission and distribution of electricity are to remain
a Senelec monopoly while electricity generation, mainly on a
Build-Own-Operate (BOO) basis, is open to the private sector. Senelec
will remain the sole buyer of the electricity produced by independent
power producers.

Senelec's future strategic partner faces the challenge of meeting
Senegal's significant power-generation needs, growing at over 15 percent
per year. It is estimated that within the next ten years, Senelec will
exhaust approximately 45 percent of its present installed capacity of
350 MW. Senegal is now pursuing independent power producer (IPP)
Build-Operate-Transfer ventures. Since July 2002, additional capacity
from the Manantali dam in Mali (60 MW) has helped Senegal alleviate some
power shortages. Senegal's long-term needs for more electricity,
upgraded power plants and increased levels of rural electrification are
still unmet. In conjunction with the World Bank, Senelec is evaluating
tenders for the construction of an additional 180 MW in diesel
generation capacity.

Commercial opportunities exist in the replacement of Senelec's obsolete
generating capacity, in the development of independent power production,
and in rural electrification, although undoubtedly those opportunities
will depend a great deal on the outcome of the Senelec privatization.
The Senegalese Government wants to extend coverage of electricity in
rural areas; its goal is to increase rural electrification to 15 percent
by 2005. The Government hopes the private sector will play a pivotal
role in the promotion of rural electrification, through the granting of
concessions to run small and medium-sized power generating plants. The
use of solar energy has become very popular, albeit limited, in rural
areas.

Data Table: N/A

Rank of Sector: 9

Name of Sector: Medical Equipment and Related Supplies

ITA Industry Code: xxxxx

The \$18 million market for medical equipment is growing due to the
flurry of private clinics and private practices opening up in Dakar.
Senegal has become a medical hub for the sub-region, mostly for the
neighboring countries. Private citizens from Mauritania for instance
come to Dakar to receive medical treatment. In the public sector,
Senegal's poverty reduction strategy, which calls for an increase in
health spending out of the national budget, has stimulated the
construction of public hospitals and health centers, hence an increase
in the purchase of medical equipment. The public sector is the biggest
purchaser and user of medical equipment, which is heavily financed by
multilateral donors. The demand ranges from light medical supplies to
big-ticket items, such as imaging equipment, X-ray machines and
scanners. The Senegalese market is based on European standards: 50
cycles, 220 volts.

Data Table:

  ------------------------------------------------------------------------
  Data Table (USD Millions)                                
  ---------------------------------------- --------------- ---------------
                                           2003            2004

  Total Market Size                        13.4            18

  Total Local Production                   0               0

  Total Exports                            0               0

  Total Imports                            13.4            18

  Imports from the U.S.                    1.84            1.44
  ------------------------------------------------------------------------

Data Table: N/A

######### Best Prospects for Agricultural Goods

Name of Sector: Rice

PS&D Commodity Heading: Rice, Milled (0422110)

Rice is the main staple in Senegal. Senegal is the second largest rice
importer in Africa?, ahead of Cote d'Ivoire and behind Nigeria.
Senegal's imports reached 600 MT in 2004. Imported rice is consumed even
in rural areas, especially during the lean season before the harvest.
The preference is for 100 percent broken rice originating from Asia,
mainly Thailand and India. With a highly competitive domestic rice
market, Senegalese largely have been unwilling to pay the higher price
of U.S. medium-quality rice. However, as average income grows, rice
imports are gradually moving upscale with more consumers preferring
fragrant rice. Importers are beginning to brand their products in the
marketplace. During the era of the state monopoly on rice imports, the
GSM-102 export credit guarantee program previously provided a
competitive edge to U.S. rice. However, with market conditions
characterized by the over liquidity of local banks, the GSM-102 program
benefits U.S. exporters more than importers. Transaction costs linked to
the GSM-102 program are relatively expensive, and as a result the
program has not been used since the late 1990s. At the end of 2004, U.S.
NGO Counterparts began monetizing limited amounts of U.S. rice (under
15,000 tons). Through this program, the proceeds from the rice sales are
used for Counterparts' school-feeding projects, amongst others.

The U.S. Trade and Development Agency funded a \$136,000 grant to the
Dakar Port Authority for a feasibility study, completed in spring 2001,
for the construction of a bulk grain terminal. The Port of Dakar has
entered into a public-private partnership (PPP) with a French consortium
to build the terminal: construction is expected to begin later this
year. Once the bulk grain terminal is built, the United States will be
one of the few countries that could competitively supply bulk rice. The
terminal could also be used for soybean and wheat imports. The cost of
constructing the terminal is estimated at \$87.2 million. Opportunities
will exist for the supply of bulk grain handling equipment, bagging
equipment, and storage facilities.

+---------------------------------+-----------------+-----------------+
| Data Table (in MT?)             |                 |                 |
+=================================+=================+=================+
|                                 | 2003            | 2004            |
+---------------------------------+-----------------+-----------------+
| Total Market Size               | 873             | 840             |
+---------------------------------+-----------------+-----------------+
| Total Local Production          | 232             | 240             |
|                                 |                 |                 |
| (paddy)                         |                 |                 |
+---------------------------------+-----------------+-----------------+
| Total Exports \*                |                 |                 |
+---------------------------------+-----------------+-----------------+
| Total Imports \*\*              | 641             | 600             |
+---------------------------------+-----------------+-----------------+
| Imports from the U.S.           | 0               | 7.4             |
+---------------------------------+-----------------+-----------------+

\* Transshipment to neighboring countries.

\*\* Net Importations (excluding importations under bonded warehouse or
still in the port)

The above statistics are unofficial estimates.

Name of Sector: Wheat

PS&D Commodity Heading: Wheat (0410000)

For years, Senegal had two flourmills, with entrenched French interests.
Not surprisingly, they purchase 89 percent of their wheat from France.
The opening of a third flour and feed mill by a Senegalese
owner/operator in 2001 has created increased albeit small opportunities
for U.S. wheat. Based on the current world market situation, USDA is not
subsidizing wheat sales, while the European Union provides a special
export subsidy on sales to Senegal and a number of other countries in
Sub-Saharan Africa.

Demand for wheat flour is increasing, as the demand for bread increases
along with population growth. For the first time ever, Senegal has
imported 24 MT? of U.S. wheat, making the U.S. the second largest
supplier after France and before Argentina. U.S. wheat is used for
blending because of its high protein content compared to French soft
wheat. The percentage of U.S. or other high protein wheat varies from 10
to 20 percent, depending on the relative costs.

  -----------------------------------------------------------------------
  Data Table (in MT?)                                   
  ----------------------------------- ----------------- -----------------
                                      2003              2004

  Total Market Size                   271               248

  Total Local Production              0                 0

  Total Exports                       0                 0

  Total Imports                       271               248

  Imports from the U.S.               0                 24.4
  -----------------------------------------------------------------------

The above statistics are unofficial estimates.

Name of Sector: Corn

PS&D Commodity Heading: Corn (0440000)

Local production has dramatically increased following the government's
decision to encourage corn production, and thus reduce reliance upon
peanuts.

  -----------------------------------------------------------------------
  Data Table (in MT?)                                   
  ----------------------------------- ----------------- -----------------
                                      2003              2004

  Total Market Size                   166               494

  Total Local Production              78                460

  Total Exports                       0                 0

  Total Imports                       86                34

  Imports from the U.S.               0                 5.2
  -----------------------------------------------------------------------

The above statistics are unofficial estimates.

Name of Sector: Consumer Food Products

PS&D Commodity Heading: N/A

As Senegal's economy continues to grow, so too do the urban population
and the middle class. A niche market is growing for American-style snack
foods, breakfast cereals and other consumer products as more Senegalese
travel to Europe and to the United States. These grocery products are
sold in American-style convenience stores as well as in hotels and
restaurants. The EU, Turkey and South Africa currently dominate the
import market for packaged goods.

#### Significant Investment Opportunities

Senegal's Agency for the Promotion of Investment and Infrastructure
(APIX) plays a pivotal role in the Government's foreign investment
program. Created in April 2000, APIX's role is to attract foreign
investors and develop infrastructure projects. These projects, often
referred to as the "Grand Travaux", include the construction of a new
international airport (\$428 million), an international business center,
a toll road (\$40 million), an extension and modernization of the Port
of Dakar (\$58 million), an ore tanker port in Bargny on the outskirts
of Dakar and a refurbishment of the railway system. APIX's objective is
to increase the investment rate from its current level of 20.6 percent
to 30 percent. For these new projects, the Government hopes to attract
investors who can finance the above projects through
Build-Own-Operate-Transfer (BOOT) schemes. A new BOT code has been put
into place that offers greater transparency in bidding.

Before the creation of APIX, the Senegalese government's privatization
program was the essential component in the growth of foreign investment
in Senegal. After a timid start in 1995, the government's privatization
program gained momentum in the late 1990's. Major companies, such as the
water company, SONEES; the telecommunications company SONATEL; the
national airline, Air Senegal; and the peanut processing company,
SONACOS, were successfully privatized. The various privatization methods
used in Senegal range from the search for a strategic partner
(telecommunications and energy), the management concession approach with
operating and distribution responsibilities (water), to the consortium
with a single or multiple strategic partners and one or several national
investors (railway). The Senegalese Government can also sell shares via
the BRVM, the Abidjan-based West African Regional Stock market, created
in September 1998.

### *Power Generation*

While the privatization of Senelec has been on hold, Senegal faces an
urgent need to accelerate capital investment as power demand climbs.
Additional investment opportunities in the power sector exist in rural
electrification, the rehabilitation and/or replacement of Senelec's
antiquated plants. It is expected that within the next ten years,
Senelec will exhaust approximately 45 percent of its present installed
capacity of 350 MW.

### *Travel, Tourism and Transport*

Bright prospects exist for the hospitality industry, as Senegal is a
favorite destination for European tourists. In the transportation
sector, the Government hopes to modernize the railroad network, which
dates back to the colonial era. Plans are to replace the existing
railroad with a wider-railed network. The international rail route
between Dakar and Bamako is an outlet for freight traffic to other
African countries, but has been losing volume because it is slow and
inefficient, with numerous derailments. The concession of the
Dakar-Bamako route was granted to the Canadian/French group Canac/Getmar
in spring 2003. It agreed to invest \$72.7 million over the next five
years to upgrade the railway and renew the rolling stock. Canac was
recently bought out by U.S. company Savage.

The Government of Senegal, assisted by the World Bank, has inaugurated a
joint venture with the Indian car company Tata for the replacement of
the decrepit fleet of 3,000 public transportation buses. These 25-seat
Renault cars, commonly called "cars rapides" or "Diaga Ndiaye" average
20 years of age. They accommodate 65 percent of the city's public
transport users. A U.S. transportation company is actively looking at
creative financing schemes to lure the car rapides owners into
purchasing U.S. buses.

### *Airport Infrastructure*

### 

Because it wants to reinforce and improve its airport facilities,
Senegal is studying ways to build a new airport in Ndiass, about 55
kilometers outside Dakar. In November 2001, ABB made an unsolicited
offer for the airport project, however, financing such a huge investment
remains the key challenge. The Government of Senegal is considering
creative schemes to raise funds, such as increasing overflight fees,
landing fees, and parking fees. Passenger taxes would also be increased
to generate aggregate annual revenues of \$40 million.

### *Port Infrastructure*

The Port Authority of Dakar is dedicated to upgrading its port
facilities, in order to make Dakar the major transshipment hub for the
West African Economic and Monetary Union (WAEMU or UEMOA). Plans call
for equipment modernization and extensive development, which could spell
major sales, consulting and investment opportunities for U.S. firms. In
the absence of extensive financial resources necessary for such an
ambitious program, the Port is looking at BOOT schemes. The Port has
successfully undertaken a bond issuance of CFA 30 billion for the
expansion of the container terminal. The Port is currently engaged in
several major expansion projects, including the construction of a bulk
grain facility and a transfer station, road improvements and dredging of
the harbor to 14 meters. A U.S. company is looking at the feasibility of
rehabilitating the secondary port of Kaolak.

# *Fishing*

The Senegalese Government has put an emphasis on fish farming and
encourages the emergence of joint ventures. The Government signed a new
four-year fishing agreement with the European Union in June 2002, giving
significant catch opportunities to EU boats in return for cash payments
to the Government.

##### 

##### CHAPTER 6. TRADE REGULATIONS AND STANDARDS

#### Trade Barriers, Including Tariffs, Non-Tariff Barriers, and Import Taxes

In January 2000, Senegal put in place a new import tariff structure to
conform with the common external tariff (CET) scheme agreed upon by the
member states of the West African Economic and Monetary Union (WAEMU or
UEMOA). Under the new structure, Senegal lowered its highest tariff rate
and established four product categories with tariff rates of 0, 5, 10
and 20 percent. It also eliminated a separate customs stamp tax of five
percent, replacing it with a one percent "statistical fee." The new
tariff regime covers the following product categories for the four
tariff rates:

\-- Category 1 (zero rate): social, cultural and scientific goods,
agriculture inputs, capital goods and computer and data processing
equipment not available through local production.

\--Category 2 (five percent): raw materials, crude oil, and cereals for
industries.

\--Category 3 (ten percent): semi-finished products, intermediate goods,
other cereals, diesel and fuel oil.

\--Category 4 (20 percent) goods for final consumption, capital goods
and computer and data-processing equipment already available through
local production, new and used vehicles.

Despite its simplified tariff structure, Senegal continues to maintain
an array of other import taxes, some of which were also changed in
January 2000 to conform to the CET. In addition to the one percent
"statistical fee", the CET calls for a one percent "community solidarity
tax" (CST) to assist WAEMU member states, such as landlocked Niger, Mali
and Burkina Faso, which suffered revenue losses due to the CET. Other
special tariffs are also applied under the CET regime to protect
selected industries, although rates have been lowered in some cases and
a five-year phase out period is scheduled. These special tariffs include
the " taxe degressive de protection" and the "taxe conjoncturelle a
l'importation." The taxe degressive de protection is applied to imports
of finished products, such as tobacco, matches, tomato paste, candies,
batteries, powdered milk, candles, etc., that compete with local
production. With the exception of tobacco, the rate under the new regime
dropped from 20 to 15 percent. The cyclical or seasonal tax, called the
"taxe conjoncturelle a l'importation," protects local production of
vegetables, rice, onions, potatoes, etc., with a 10 percent levy applied
when world prices drop and threaten local producers.

When the various taxes are added to the new 20 percent import tariff
(under Category 4), tariffs can run to a maximum combined tax rate of 52
percent. This is down from the previous high of 62 percent. On top of
these duties, importers are also obliged to pay a unified 18 percent
value-added tax (VAT) at the port of entry.

######### Customs Valuation

Senegal implemented the WTO Agreement on Customs Valuation in July 2001,
which provides for a neutral and uniform system for the valuation of
goods for customs purposes. However, Senegal's 2001 designation as an
LDC (Less Developed Country) by the United Nations has incited officials
to continue to apply minimum reference prices for some imported products
that may hurt local industry.

In July 2001, the Government awarded Senegal's pre-shipment inspection
(PSI) program to a newcomer in the market, the Swiss-based Cotecna. The
PSI applies to all imported goods valued at CFA 3 million (\$6,000) and
higher. The Cotecna-approved value of such goods constitutes the basis
for customs valuation. U.S. exporters are urged to contact Cotecna's
U.S. office at [www.cotecna.com](http://www.cotecna.com/) to obtain the
list of goods exempted from PSI.

#### Import Licenses

## 

## There is no restriction on import licenses. See also "Special Import Provisions."

##  

## **Export Control** 

There are no restrictions on exports from Senegal.

**Import/Export Documentation**

*Documents required when exporting to Senegal include the following:*

1\. Two copies of the commercial invoice, which should identify the
exporter and importer, as well as their addresses; the goods being
imported; the weight, CIF value and quantity of goods imported; and a
complete description of the merchandise. This should be in French or
accompanied by a French translation, to avoid misinterpretation at the
customs entry point. (In the past, for example, Senegalese customs
officials mistook a date of manufacture for an expiration date, which
considerably delayed a shipment.)

2\. A Pro Forma Invoice. This should contain the same information as the
commercial invoice.

3\. A Certificate of Origin is necessary for all imported goods. Before
shipping, importers must provide customs officials with documentation
listing the quantity, quality and prices of the products subject to
customs duties.

*Import procedures include the following:*

1\. Importers must deposit a Preliminary Import Declaration seven days
before shipping imported goods having a value equal to or greater than
\$2,000.

2\. Automatic approval of the Preliminary Import Declaration is obtained
by submitting three copies of the Pro Forma Bills of Lading with the
declaration.

3\. A Preliminary Import Declaration is valid for six months and can be
extended for three months. Preliminary Import Declarations must be
canceled and reissued if there is a change in supplier, an increase in
the value of the order of more than ten percent, or a modification in
the quantity of the order.

4\. Any payment for imported goods greater in value than CFA one million
(\$2,000) must be made through an approved Senegalese bank or financial
institution.

5\. Any FOB import value equal to or greater in value than CFA three
million (\$6,000) must be inspected by the PSI company in the supplier's
country before shipping.

6\. Presentation of a clean report of findings issued by the PSI firm is
obligatory.

7\. The Pre-Shipment Inspection Certificate.

The following goods are exempted from PSI:

-   Imports with a total order FOB value equal to or below CFA 3 million

-   Objects of art, precious stones, and gold

-   Used personal and household effects, including one used vehicle

-   Arms and ammunition other than those for hunting and/or sport

-   Explosives and pyrotechnic products

-   Live animals

-   Perishable goods for human consumption neither frozen, nor deep
    frozen (meat, fish, vegetables and fruit)

-   Parcel post and samples

-   Scrap metals

-   Plants and flowers

-   Cinematographic films, exposed and developed

-   Current newspapers and periodicals, postal and fiscal stamps,
    stamped papers, bank notes and cheque books

-   Personal gifts

-   Crude oil

-   Donations offered by foreign governments to international
    organizations, charities or philanthropic organizations recognized
    as being helpful to the public

-   Bona fide gifts, imports for diplomatic entities and for United
    Nations organizations for their own use in Senegal

-   Vehicles, other than railway, and parts thereof (HS chapter 87 in
    the Senegal Tariff Book)

-   Cereals (HS chapter 10) imported by the public sector or approved by
    the public sector

-   Printed books, newspapers, pictures and all other items of HS
    Chapter 49

-   Imported goods after having been fixed/repaired in a foreign country

-   Parts and spare parts imported by airline companies

-   Counterfeit goods

-   Goods imported by certain importers which have a special exemption
    authorization from the Government

**Temporary Entry**

Goods imported for re-export are subject to a temporary admission system
and are not assessed customs duties. This system has been abused in the
past, and customs officials may be particularly demanding in enforcing
regulations.

**Labeling and Marking Requirements**

Senegal's labeling requirements are applicable to canned and preserved
food intended for human consumption. Such products must be marked in
French with the following information:

1\. Country of origin;

2\. Product manufacture date, specified by the day, the month and the
year;

3\. The expiration date, marked in the same manner as the date of
manufacture, preceded by the comment: "A Consumer de Preference Avant le
DD/MM/YY."

4\. Ingredients.

For other non-food consumer products, it is critical that the label be
written in French with the expiration date added.

**Prohibited Imports**

Prohibited imports include narcotics, munitions and war ammunition
(except collector's items), pornographic publications and hallucinogenic
drugs, except those authorized by the Ministry of Health.

**Standards**

Senegal's standards are derived from France's. Electricity used in the
country is 220 volts 50 cycles, and the system of measurement is metric.

**Free Trade Zones/Warehouses**

The Dakar Industrial Free Trade Zone (ZFID) was established in 1974 to
encourage foreign investors to set up intensive export-oriented
companies. Its enabling statute has been extended until 2016, but only
for those companies already established within the zone. Pfizer, the
U.S. pharmaceutical company, has a manufacturing plant in the ZFID.

Bonded warehouses exist for goods in transit to neighboring countries.
Goods imported under the warehouse system benefit from total suspension
of duties and taxes for 12 months, with the possibility of renewal.

**Special Import Provisions**

There is no quantitative restriction on imported goods. See also "
Import Licenses" above.

**Membership in Free Trade Arrangements**

Senegal is a member of the Economic Community of West African States
(ECOWAS), the WAEMU or UEMOA, the Cotonou Convention, and the World
Trade Organization. Senegal is also currently eligible for benefits
under the African Growth and Opportunity Act (AGOA).

######## CHAPTER 7: INVESTMENT CLIMATE

#### Openness to Foreign Investment

Senegal has in place several program for attracting foreign investment,
but non-transparent regulations combined with high factor costs have
been substantial obstacles to potential investors. There is no legal
discrimination against businesses run or owned by foreign investors.
There are no barriers regarding 100 percent ownership of businesses by
foreign investors in most sectors. In some key sectors, foreign
investors may have majority control, but may not acquire 100 percent
ownership. These sectors include electricity, telecommunications, mining
and water.

With World Bank assistance, Senegal continues to pursue privatization of
the remaining parastatals that once dominated Senegal's economy. In
2004, the Government selected an investors' group led by Advens, a
Lebanese company, to acquire the assets of Sonacos, a groundnut
processing parastatal. The sole remaining major parastatal is the
national power utility, Senelec. Senelec has undergone two failed
privatizations, and privatization has been suspended pending further
improvements in Senelec's balance sheet.

Senegal has a well-developed commercial code and legal framework.
However, few judges are conversant in commercial laws. Court cases are
time consuming, expensive, and rarely resolved expeditiously. Decisions
can be inconsistent and non-transparent.

While the Government does not screen investments, foreign investors are
encouraged to utilize Senegal's Investment Promotion Agency (APIX)
one--stop service for registration and obtaining approvals needed to
operate a business in Senegal. The Government of Senegal established
APIX in 2000 in order to attract foreign investors and simplify
administrative procedures within the business sector.

Following IMF and World Bank recommendations, the Government established
the Presidential Investors Council (PIC) in November 2002 to improve the
business climate and reduce obstacles to domestic and foreign private
investment. Approximately, 35 companies participate in the PIC,
including U.S. companies Pfizer, Microsoft and Cisco. The PIC has met
four times and has thus far made tax recommendations, which remain to be
implemented, and compiled numerous recommendations for deregulation, few
of which have been implemented. While the GOS has been successful in
reducing the number of days it takes to register a business, lengthy
delays persist handling the acquisition of land titles and the
installation of utilities.

The main body of law regulating foreign investments continues to be the
Investment Code. The Investment Code provides basic guarantees for the
repatriation of profits and capital and equality of treatment. It also
specifies tax and customs exemptions according to the size of the
investment, classification of the investor (SME versus a larger
corporation) and location (investments outside of Dakar receive longer
periods of exoneration from taxes).

No provisions in Senegalese law restrict local businesses from
partnering with foreign investors. The GOS allows foreign majority
ownership, but not 100 percent ownership in key strategic industries,
such as: electricity, telecommunications, mining and water. There is no
pattern of discrimination against foreign investors. Constraints for
investors are related to inefficient regulations, cumbersome
bureaucracies, restrictive labor laws\--that make it difficult to
dismiss for cause, and occasional disputes over customs valuation and
taxation.

**Conversion and Transfer Policies**

There are no restrictions on the transfer or repatriation of capital and
income earned or on investments financed with convertible foreign
exchange. However, the Government of Senegal does limit the amount of
foreign exchange individuals may obtain for trips outside Senegal.
Commercial transfers are normally carried out rapidly and in full by
local banking institutions. The African Financial Community franc (CFA),
used by Senegal and thirteen other African countries, was devalued by 50
percent in January 1994, but remains pegged to the Euro at the rate of
100 CFA equals 0.152 Euros. WAEMU countries presently maintain adequate
foreign reserves. The switch to a Euro-based peg from the French franc
in January 2002 was smooth and completely uneventful. The Central Bank
of West Africa (BCEAO) recently completed a "demonetization" campaign
for 1992-series currency. Those bills are no longer legal tender as of
December 31, 2004.

The parallel market for currency exchange is limited in Senegal.
Companies find that the import and export of funds can be accomplished
quickly and easily as commercial bank transactions.

**Expropriation and Compensation**

In recent history, there have been no major expropriations in Senegal.
During the period 1973-75, the government bought out foreign interests,
mostly French, in a number of sectors in order to form parastatals. In
each case, adequate compensation was paid to the affected foreign
investors. This practice has been abandoned and many of the firms
involved have since been re-privatized.

In 2000, the Senegalese government ended the management contract with
the French-Canadian consortium running Senelec, the electricity company.
The government and the consortium negotiated an acceptable outcome,
under which the Government of Senegal repurchased the 34 percent shares
held by the consortium for CFA 45.2 billion.

In September 2000, the Government of Senegal announced it was revoking
the license of Sentel, a cellular telephone service provider majority
owned by Millicom International Cellular (MIC), alleging failure to meet
certain contractual obligations. Sentel vigorously contested those
allegations. In August 2002, the government and Millicom International
signed an accord under which the company's original contract was
honored.

There have been several instances recently in which the GOS has revoked
mineral concessions or contracts to develop housing projects, alleging
failure to pay taxes or meet contractual obligations. Foreign investors
have generally failed to obtain compensation or damages through the
courts. In other cases, the Government has failed to intervene to
resolve disputes between foreign investors and firms with local
ownership or substantial local participation. The failure to provide
mediation or a decision in some cases suggests less-than equitable
treatment for foreign investors. There is no sign of discriminatory
treatment against U.S. investors.

**Dispute Settlement**

Senegal is a member of the International Center for the Settlement of
Investment Disputes (Washington Convention). U.S. companies entering the
Senegalese market should ensure that their contracts with third parties
contain a provision for international arbitration in case of a dispute.
The Investment Code provides for settlement of disputes via due process
of the law prescribed within the cumbersome, slow, and occasionally
non-transparent Senegalese judiciary. In 1998, Senegal established an
arbitration center administered by the Dakar Chamber of Commerce, but
the arbitration process is underused and untested. With USAID support,
the Government has boosted the training of judges in commercial law.
Senegal and the U.S. have a bilateral investment treaty, which allows
for international arbitration. Foreign investors have found it difficult
to fire employees for cause or malfeasance. Foreign firms are often sued
in the Senegalese courts by terminated employees who are frequently
awarded damages and returned to their former positions. Although these
decisions are sometimes overturned on appeal, the appeals process is
costly and time consuming. Senegal lacks commercial courts staffed with
trained judges. As a result, decisions are sometimes arbitrary and
inconsistent.

Senegal accepts binding foreign arbitration of investment disputes.
Foreign creditors receive equal treatment under Senegalese bankruptcy
law in making claims against assets. Monetary judgments are normally in
local currency. In 1995, the African Development Bank successfully
compelled the Government of Senegal to pay outstanding loans in dollars
despite a devaluation that effectively doubled arrears in terms of local
currency.

**Performance Requirements and Incentives**

Senegal's Investment Code provides incentives to companies willing to
relocate outside the Dakar region. The code defines eligibility for
investment incentive according to a firm's size and type of activity,
the amount of the potential investment and the location of the project.
In order to qualify for investment incentives, small and medium-sized
firms are required to invest at least CFA five million, employ at least
three Senegalese nationals full-time, and keep regular accounts in the
standard Senegalese format. Further, a firm or an existing firm
requesting an extension of such incentives must be at least 20 percent
self-financed. Self-financing of 30 percent is required for other types
of firms. Large firms (those with at least CFA 200 million in equity
capital) are required to create at least 50 full-time positions for
Senegalese nationals, to contribute the hard currency equivalent of at
least CFA 100 million, and to keep regular accounts that conform to
Senegalese standards. Further, firms must report details on company
products, production, employment and consumption of raw materials.

For investments above CFA 100 million (approximately USD 200,000) or
which lead to an increase of 25 percent in productive capacity, the
investment code excludes "trading activities, defined as activities of
resale in their exiting state of products bought from outside the
enterprise." Thus, mere trading companies will not receive any tax
breaks under the Investment Code.

New enterprises are eligible for five years exoneration from Senegal's
payroll tax and eight years for investments outside of Dakar. Investors
may also deduct up to 20 percent of retained investment over five years.

Eligible sectors for investment incentives include; agriculture,
fishing, animal-rearing and related industries, manufacturing, tourism,
mineral exploration and mining, banking, trading complexes and cultural
activities. All qualifying investments benefit from the "common regime,
" which includes two years of exoneration from duties on imports of
goods not produced locally for small and medium-sized firms, and three
years for all others. Also included is exoneration from direct and
indirect taxes for the same period.

Exoneration from the minimum personal income tax and from the business
license tax is granted to investors who use local resources for at least
65 percent of their total inputs within a fiscal year. Enterprises that
locate in less-industrialized areas of Senegal benefit from exemption of
the lump sum payroll tax of three percent, with the exoneration running
from five to 12 years, depending on the location of the investment. The
Investment Code provides for exemption from income tax, duties and other
taxes, phased out progressively over the last three years of the
exoneration period. Incentives are automatically granted to investment
projects meeting the above criteria.

#### Right to Private Ownership and Establishment

In addition to the traditional guarantees offered to investors, e.g.
free transfer of capital and income, and national treatment, private
entities---both foreign and domestic, are permitted to establish and own
businesses and to engage in most forms of remunerative activity. Foreign
nationals are permitted to buy and hold land; local majority ownership
is not necessary. Of the state-owned firms recently privatized in the
early 2000s, several were sold in part or in whole to foreign entities.

#### Protection of Property Rights

While property titling and land registration exist in Senegal, systems
are inconsistent from region to region. Senegal's housing financing
market is underdeveloped and few long-term mortgage-financing vehicles
exist. There is no secondary market for mortgages or other bundled
revenue streams. The judiciary is capable of adjudicating property
disputes, but judges have heavy caseloads and are often inexperienced in
this area.

The Senegalese civil code, based on the French model, enforces private
property rights. The code provides for equality of treatment and
non-discrimination against foreign-owned businesses.

Senegal is a member of the African Organization of Intellectual Property
(OAPI), a group of 15 Francophone African countries, which has
established among its member states a common system for obtaining and
maintaining protection for patents, trademarks and industrial designs.
Senegal has been a member of the World Intellectual Property
Organization (WIPO) since its inception and is a member of the Bern
Copyright Convention. Local statutes recognize reciprocal protection for
authors or artists who are nationals of countries adhering to the 1991
Paris Convention on Intellectual Property Rights.

I. Patents: Patents are protected for 20 years. An annual charge is
levied during this period. Trade secrets and computer chip designs are
respected.

II\. Trademarks: Registered trademarks are protected for a period of 20
years. Trademarks may be renewed indefinitely by subsequent
registrations.

Copyrights: Senegal is a signatory to the Bern Copyright Convention. The
Senegalese Copyrights office, part of the Ministry of Culture, attempts
to enforce copyright obligations. The bootlegging of music cassettes and
CDs is especially common and a concern of the local music industry.
However, the Copyright Office undertook actions in 2001, 2002 into 2003
to combat media piracy, including seizure of counterfeit cassettes and
CD/DVDs. However, despite an adequate legal and regulatory framework,
enforcement of intellectual property rights is weak to non-existent. The
Government lacks the resources or commitment to seize counterfeit goods.

There is no public comment process for proposed laws and regulations.
However, the national assembly debates most substantive legislation. The
GOS frequently holds public hearings and workshops to discuss proposed
initiatives and programs.

**Transparency of the Regulatory System**

In principle, the Government of Senegal favors free competition in the
market place. Senegal is reforming and developing its regulatory
framework as a part of its effort to attract private sector investment.
Measures implemented to date include the abolition of monopolistic
agreements in major industries, and suppression of the requirement for
prior governmental authorization to lay off workers during economic
downturns.

However, some foreign and domestic investors believe that the investment
climate in Senegal is worsening. Judicial, tax, customs and other
regulatory decisions are frequently inconsistent, tardy and
non-transparent. Few procurement decisions consistently follow GOS
guidelines mandating a free and transparent tender process. Labor laws
in particular are seen as a disincentive to investment by foreign
investors. The firing for cause or malfeasance of employees are
sometimes successfully challenged in the court, leading to the
reinstatement of the fired employee as well as the payment of damages.

The Government has created several regulatory agencies seeking foreign
investment. Faced with an increasingly liberalized electricity sector,
the government has created an electricity regulator body responsible for
approving investment plans for the power sector, preparing terms of
reference for tenders and monitoring prices. The Government also
established a telecommunications regulatory agency in early 2002. The
Government is moving slowly on further telecommunications deregulation
and the introduction of new products and services.

**Efficient Capital Markets and Portfolio Investment**

In general, domestic investment is hampered by an under-developed
financial sector. A few French-owned banks with conservative lending
guidelines and high interest and collateral requirements dominate bank
lending. Deposits on the central bank have nearly doubled in the past
five years to CFA 800 billion, indicating excessive liquidity and
insufficient loans in the commercial banking sector. Small and
medium--sized enterprises have little access to credit. Few firms are
eligible for long-term loans. Private bond issuances are an emerging
topic of some interest, but have yet to make a tangible impact on
investment in Senegal. The infrastructure for expanding business
lending, credit risk analysis, skilled commercial law legal specialists
and auditors etc. does not exist.

However, because the Senegalese banking sector is dominated by foreign
banks, U.S. investors may be able to take advantage of parent banks in
France and the United States. U.S. firms also have access to OPIC and
Ex-Im bank facilities.

In 1998, Senegal entered the world of capital markets with the
institution of the West African Regional Stock Exchange (BRVM),
headquartered in Abidjan with local offices in each of the member
countries of the West African Economic and Monetary Union (WAEMU/UEMOA).
The Regional Council for Savings and Investment regulates the UEMOA
securities exchange market. Implementation of the BRVM was initially
viewed as instrumental to Senegal's attempt to attract increased foreign
capital and to give private investors access to more diversified sources
of financing. However, just three Senegalese entities, ICS, Sonatel, and
the Port of Dakar, currently trade on the BRVM. Senegal has lagged
behind other West African countries in encouraging a secondary finance
market and private bond issuances.

Legal, regulatory and accounting systems closely follow French models.
Since January 1, 1998, the WAEMU countries present their financial
statements in accordance with the SYSCOA system, which is based on
Generally Accepted Accounting Principles in France.

There is no system to encourage and facilitate portfolio investment. As
of 1999, a Department of Treasury Regional Advisor based in Burkina Faso
has been assisting WAEMU member states, including Senegal, with the
introduction of private and governmental securities issuances.

**Political Violence**

Senegal is a free and functioning democracy with no history of a coup
d'Etat or a military government. There have been sporadic incidents of
civil disturbances over the past several years, but they have generally
taken place in the context of national elections or of student demands
for better conditions. Various groups involved in a once-active
separatist movement in the Casamance region recently signed a cease-fire
with the GOS.

**Corruption**

The potential for corruption is a significant obstacle for economic
development and competitiveness in Senegal, in spite of laws,
regulations, penalties, and agencies to combat it. Credible allegations
of corruption have been made concerning government procurement, dispute
settlement, and regulatory and enforcement agencies. Transparency
International downgraded Senegal in its most recent corruption index
ranking. Senegal was in 76^th^ place out of 133 countries in 2004.

Senegalese authorities have initiated reforms to strengthen the rule of
law, transparency, and anti-corruption programs. President Wade has made
numerous pronouncements against corruption. Customs has initiated an
action plan to combat fraud. Senegal is taking steps to improve the
legal and judicial environment, including enhanced training for
magistrates and commercial law practitioners, establishment of an
arbitration court, and new recovery and enforcement procedures
consistent with OHADA (a regional initiative to harmonize commercial
codes in West Africa). Senegal is a signatory of the UN Anticorruption
Convention.

Several governmental agencies are tasked with investigating allegations
of corruption and fraud. These include "L'Inspection Générale d'Etat," a
cabinet level office; "La Commission de Verification des Comptes," part
of the Ministry of Justice; and Cotecna SA, a pre-shipment inspection
contractor hired by the government. At a higher level, President Wade
has made the fight against corruption a high profile goal of his
government. A Presidential decree established a new Procurement Code in
May 2004 that mandates transparent bidding procedures. However, many
projects continue to be sole-sourced or receive exemptions from
following international tender procedures. The GOS has also approved a
decree for the establishment of a monitoring council for good governance
and anti-corruption measures but has yet to prosecute any cases.

**Bilateral Investment Agreement**

Senegal and the United States signed a Bilateral Investment Treaty in
December 1983. The treaty provides for most favored nation treatment for
investors, internationally recognized standards of compensation in the
event of expropriation, free transfer of capital and profits, and
procedures for dispute settlement, including international arbitration.
Senegal has signed similar agreements for protection of investment with
France, Switzerland, Denmark, Finland, Spain, Italy, the Netherlands,
South Korea, Romania, Japan, and Australia. Senegal has concluded tax
treaties with France, and the WAEMU member states. There is currently no
tax treaty and no imminent prospect of one between the United States and
Senegal.

**OPIC and Other Investment Insurance Programs**

The Overseas Private Investment Corporation (OPIC) insures U.S.
investment abroad against three types of political risks: currency
inconvertibility, expropriation and political violence. OPIC has
specialized insurance programs for financial institutions, leasing
arrangements, oil and gas projects and natural resources projects. OPIC
pays compensation for two types of losses: business income losses and
damage to tangible property. With the passage of the AGOA legislation in
2000, OPIC was mandated by the U.S. Congress to play a major role in the
initiative to expand U.S. investment and economic growth in Africa. OPIC
is looking actively for potential projects in Africa. Senegal is a
member of the Multilateral Investment Guarantee Agency (MIGA), an arm of
the World Bank. OPIC is not currently involved in U.S. investments in
Senegal. Ex-Im Bank has a Master Guarantee Agreement (MGA) with local
bank B.S.T (Banque Senegalo-Tunisienne).

The Embassy purchases several million U.S dollars in local currency each
year to meet expenses and provide exchange services. The exchange rate
is close to the prevailing financial institution rate. Several economic
projections suggest that during 2005, the CFA, due to its direct linkage
to the EURO, will appreciate against the Dollar, to approximately the
460 or 470 CFA level from its current exchange rate of 500 CFA to 1 US
Dollar.

**Labor**

Unskilled and semi-skilled labor is abundant in Senegal, but there are
relatively few highly trained workers in the fields of engineering,
information systems, and management. Opportunities for those workers are
not numerous, and as a result, many look outside Senegal for employment.

Relations between employees and employers are governed by the labor
code, collective bargaining agreements, company regulations and
individual employment contracts. There are two powerful industry
associations that represent management's interests: the National Council
of Employers (CNP), and the National Employers' Association (CNES). The
principal labor unions are the National Confederation of Senegalese
Workers (CNTS), affiliated with the former ruling Socialist Party, and
the National Association of Senegalese Union Workers (UNSAS), a
federation of independent labor unions. Labor issues are often high on
the list of complaints by investors.

#### 

#### Foreign Trade Zones/Free Ports

There are no foreign trade zones or free ports in Senegal. Bonded
warehouses exists for goods to be surface-shipped to Mali. Dakar's Free
Industrial Zone (ZFI) is largely inactive and stopped issuing new
licenses in 1999. Firms already located there may continue receiving
benefits until 2016. U.S. pharmaceutical company Pfizer, located in the
ZFID since 1983, manufactures malaria meds and antibiotics locally,
packages, distributes and exports product throughout Senegal and West
Africa. "Point Franc" status confers some of the same investment and
re-export benefits without an obligation to locate in a specific site.
Both the ZFID and "Point Franc" programs have been replaced with the
enterprise franche d'exportation (EFE), which reduces taxes and provides
for duty-free imports as mentioned above.

**Major Foreign Investors**

The dearth of reliable investment statistics makes it difficult to
provide a detailed breakdown of foreign direct investment in Senegal.
Even published statistics are not reliable. Foreign direct investment
inflows were estimated to be USD 93 million in 2003. This statistic is
highly variable from year to year. It also does not include several
hundred million dollars a year in remittances, from Senegalese living
abroad which fuel much of the growth in the real estate market, as well
as the capital investments in small and medium size businesses.

Although values of Senegalese subsidiaries or operations of foreign
investors are sketchy, it is estimated that France is overwhelmingly the
most important foreign investor, and French interests control many
sectors in the economy. Approximately 235 subsidiaries of French groups
are present in Senegal, accounting for 25 percent of all formal
enterprises. French investors are present in the major multinational
import-export firms, shipping companies, banking, food production,
mechanical engineering, tobacco, agribusiness, petroleum distribution,
industrial equipment, vehicles, chemicals and pharmaceuticals, tourism
and insurance. Privatizations in telecommunications and public utilities
have confirmed and increased the predominance of France as Senegal's
leading foreign investor. Bouygues is present in the water sector.
French telecommunications operator France Telecom is the operating
partner of SONATEL, Senegal's national telecommunication company.

Investments by Senegalese citizens of Lebanese origin are primarily in
light import-substituting industries such as food products, textiles,
chemicals, plastics and rubber. Swiss investment is concentrated in food
processing with the active presence of the multinational Nestle and
Alcyon (waste disposal company). Germany, Japan, and South Korea have
moderate investments in Senegal. Taiwan has become active in Senegal's
fish and canning industry as well as construction. India is a major
investor in Senegal's phosphates industry and purchases nearly all
phosphate output. Moroccan investment has substantially increased since
Royal Air Maroc took a strategic 51 percent interest in Air Senegal, the
National airline company (renamed Air Senegal International).

U.S. direct foreign investment in Senegal has increased from an
estimated USD 38 million in 1997 to approximately USD 180 million in
2002. Significant U.S. investors include Colgate-Palmolive, Exxon/Mobil,
Pfizer, and Citibank. Major U.S. direct investments include the USD 68
million GE Capital independent power production (IPP) gas turbine
project, Colgate-Palmolive's investment in a new toothpaste and glycerin
plant in 2000, and infrastructure upgrades by Senegal's number two
cellular phone service provider, Sentel (Sentel is owned by a
Nasdaq-listed, Luxembourg-based Corporation).

######## CHAPTER 8. TRADE AND PROJECT FINANCING

#### Banking System

Senegal's banking system is governed by the Central Bank of West African
States (BCEAO), a central bank common to the eight members of the West
African Economic and Monetary Union (WAEMU or UEMOA). Along with BCEAO,
the "Commission Bancaire" is a supranational supervisory entity created
in April 1990 to control financial institutions. The eight member
countries use the CFA franc issued by the BCEAO and pegged to the euro
at a rate of 100 CFA francs to 152 euro (or 1 euro equals 656 CFA
francs). Parity and fixed convertibility are guaranteed by the French
Treasury. BCEAO has an operating account at the French Treasury where it
is required to hold at least 65 percent of its foreign exchange
reserves. These institutional arrangements between the French treasury
and the central bank, combined with a prudent conduct of monetary policy
by BCEAO, have yielded several benefits to WAEMU. For one, it has
produced low inflation (0.5 percent in 2004). Currency convertibility
has also attracted foreign investment and increased trade.

Ten commercial banks operate in Senegal. The system is characterized by
the over liquidity of banks and their hesitancy to lend for medium and
long-term loans.

The largest commercial banks are predominantly French. Citibank, the
only U.S. bank, is also very active. Ecobank has an impressive network
spread throughout West and part of Central Africa. Other financial
institutions, such as insurance companies, a venture capital firm and a
leasing company, are also present here. The International Finance
Corporation (IFC), the private sector lending arm of the World Bank, has
an office in Dakar.

#### Foreign Exchange Controls Affecting Trade

Senegal lifted all restrictions related to foreign exchange controls in
1998. Foreign exchange payments are no longer submitted to the Ministry
of Finance for authorization, but are directly executed by Senegal's
commercial banks instead. There is free convertibility of the CFA franc
via the banking system for commercial transactions. The rate varies
daily according to the euro-U.S. dollar rate. CFA franc banknotes are
not legal tender outside of the WAEMU. Travelers may exchange foreign
currency for CFA francs without limit at commercial banks. Outgoing
travelers may obtain a maximum of CFA 6,000,000 in euros or other
foreign currencies or travelers checks, upon presentation of a valid
airline ticket at banks or at privately run foreign exchange bureaus.

#### General Financing Availability

The monetary policy of the BCEAO is extremely tight. However, since the
1994 devaluation of the CFA Franc, the central bank has reduced its
discount rate numerous times, from 14.5 to 5.50 percent, in order to
boost economic growth by increasing the credit to the economy. Banks
continue, however, to extend long-term credit only to a very limited
number of borrowers, relying instead on short-term collateral loans.
Interest rates are commonly around 13-15 percent. A common complaint
from local companies and business contacts is the lack of financing to
sustain the growth of the economy. The BRVM, the Abidjan-based West
African Regional Stock market, created in September 1998 with local
branches in each WAEMU member state, was expected to help alleviate the
lack of long-term resources to finance capital goods investment, but has
yet to have a significant impact in Senegal. Shares of three Senegalese
companies, ICS, the chemical processing company, Sonatel, the
telecommunications operator, and the Port of Dakar, are traded on the
BRVM.

In 2003, Standard and Poor's reconfirmed the "B+" long-term and "B"
short-term ratings it originally gave to Senegal for the first time in
December 2000. Senegal is one of only four African countries to have
such a rating. According to Standard and Poor's, a B long-term rating
means that the obligor currently has the capacity to meet its financial
commitments. Overall, Senegal is rated comfortable at the "B+" level
because its relatively high debt stocks are offset by relatively low
debt-servicing costs. Senegal's rating was supported by its membership
in the WAEMU and its affiliation with the regional central bank, BCEAO,
and by common currencies convertibility to the euro, along with cautious
domestic macroeconomic management. Its rating was constrained by the
country's low level of development and deficiencies in social and
physical infrastructure.

Medium to long-term public sector projects are financed by the
multilateral lending institutions, such as the World Bank, the African
Development Bank and European aid institutions.

#### How to Finance Exports/Methods of Payment

New-to-market U.S. exporters should request an irrevocable confirmed
letter of credit drawn on one of the major banks. Large Senegalese
importers often have sources of foreign exchange outside Senegal;
consequently, they can offer credit documents issued by non-Senegalese
banks.

#### Types of Available Export Financing and Insurance

The Export-Import Bank of the United States (Eximbank) is fully open for
private sector projects in Senegal, and is open for short and medium
term public sectors projects. Eximbank is actively seeking new business
in Senegal for its guarantee and direct export finance program. Contact
information for Eximbank can be found in Chapter XI; Exim's website is
www.exim.gov.

Eximbank's medium-term loans, guarantees and insurance support exports
of capital equipment. Private sector buyers can also use Eximbank
long-term loans and guarantees to commercial banks. Some U.S. commercial
banks provide Eximbank-guaranteed financing to foreign buyers and are
becoming more active in West Africa, including Senegal.

On a broader basis, Eximbank is studying ways to engage in partnership
with the African Development Bank and the IFC to co-finance public and
private sector projects. Eximbank has guaranteed loans from U.S.
commercial banks to Senegalese entrepreneurs for the acquisition of
heavy equipment such as trucks, construction and telecommunications
equipment.

The U.S. Department of Agriculture's (USDA's) West Africa Regional
GSM-102 Export Credit Guarantee (GSM-102) program provides for access to
financing for imports of wheat, rice, feed grains, vegetable oil,
protein meal and dairy products. The payment guarantee to the U.S.
exporter is for a minimum of 90 days and a maximum of one year. The
guarantor banks in Senegal are currently Citibank and CBAO. The current
limit for 19 West African countries, Senegal included, is \$50 million.
The GSM-102 program is generally available only to high quality
importers with a good credit history. The GSM-102 is not a flexible
financing tool for U.S. exporters. Therefore, USDA has extended a more
flexible tool in the West Africa region, the Supplier Credit Guarantee
Program. Like COFACE, the French equivalent of EXIM Bank, the Supplier
program guarantees direct credit from a U.S. exporter to a West African
importer without going through a bank. The guarantee covers 65 percent
of the credit extended by the U.S. exporter, and the coverage is for 15
to 180 days.

#### Types of Projects Receiving Financing Support

The African Development Bank (AfDB) and the World Bank finance public
projects dealing with infrastructure. AfDB is currently putting a great
emphasis on private sector financing. The private sector-lending arm of
the World Bank, the International Finance Corporation, was involved in
the project financing of GE Capital's 56 MW power plant project in
Senegal, and in the financing of a second cement factory. The West
African Development Bank granted a CFA 6 billion loan in early 2001 to
Senelec, the national power company, for the acquisition of a 20 MW
turbine.

The U.S. Trade Development Agency, along with the AFDB, offers funds for
feasibility studies, and TDA has financed several studies in Senegal in
recent years, most recently to a private sector concern for a potential
agro-processing facility.

#### List of Senegalese Banks with Correspondent U.S. Banking Arrangements

-   Citibank Dakar is the only U.S.-owned bank in Senegal. Most of the
    largest commercial banks are subsidiaries of French banks, many of
    which have representative offices in the United States.

-   Crédit Lyonnais Senegal is affiliated with Crédit Lyonnais of
    France, which has a representative office in New York.

-   Société Générale de Banques du Senegal (SGBS) is affiliated with the
    Société Générale de Banques of France, which has a representative
    office in New York. Its foreign correspondent banks include Société
    Générale France, Banca National del Lavoro and the Credit Suisse.

-   Banque Internationale pour Le Commerce et l'Industrie du Senegal
    (BICIS) is affiliated with the Banque Nationale de Paris-Paribas.
    Its foreign correspondent banks include Barclays Bank, BNP France,
    Dresdner Bank, and Banque Bruxelles Lambert.

-   Banque de l'Habitat du Senegal (BHS) specializes in housing. BHS has
    a branch in New York that targets the growing Senegalese community
    in the United States.

-   Caisse Nationale de Crédit Agricole (CNCA) provides credit to
    small-scale rural enterprises. It is affiliated with France\'s
    Crédit Agricole.

-   Ecobank is present in 12 African countries: Nigeria, Ghana, Benin,
    Mali, Cote d'Ivoire, Togo, Burkina, Liberia, Niger, Cameroon, Guinea
    and Senegal. Its foreign correspondent banks include Bankers Trust
    Company in New York, Swiss Bank Corporation, Royal Bank of Canada,
    National Westminster Bank of London, ING in Holland and Standard
    Bank of South Africa.

-   CBAO has correspondent relationships with Citibank New York and
    Swiss Bank Corporation.

-   Banque Sénégalo-Tunisienne has correspondent relationships with
    Credit Commercial de France, Standard Chartered and Banca Nazionale
    del Lavoro. BST has signed a Master Guarantee Agreement with
    Eximbank.

#### Travel Advisory and Visas

#### Entry Requirements: 

A passport and proof of return/onward ticket is required. A visa is not
required for stays of less than 90 days. Evidence of a vaccination for
yellow fever may be required at the port of entry.

In an effort to prevent international child abduction, many governments
have initiated procedures at entry/exit points. These often include
requiring documentary evidence of relationship and permission for the
child\'s travel from the parent(s) or legal guardian present. Having
such documentation on hand, even if not required, may facilitate
entry/departure.

Travelers should obtain the latest information on entry requirements
from the Embassy of Senegal, 2112 Wyoming Avenue, N.W., Washington, D.C.
20008, telephone (202) 234-0540. Overseas, inquiries should be made at
the nearest Senegalese embassy or consulate.

*Work and Residency Permits:* American citizens who expect to work in
Senegal for an extended period of time must apply for a work permit
(carte de séjour) at the local immigration office located at the
Ministry of Interior. The following documents should support the
application:

. Photocopy of the passport

. Birth certificate

. Police or criminal record

. Completed application form

. Proof of employment (a businessperson should submit the statutes of
his/her company, and a deportation bond of approximately \$175
reimbursable at the time of departure from Senegal)

. Medical certificate

. Fiscal stamps worth \$20.

**Safety and Security*:*** Although a cease-fire agreement was signed in
December 2004 between Casamance separatists and the Senegalese military,
the U.S. Embassy in Dakar advises U.S. citizens to plan carefully all
travel to parts of the Casamance region of southern Senegal, excluding
the City of Ziguinchor and the resort area of Cap Skirring. Throughout
the history of the insurgency, there have been few incidents of fighting
within the Ziguinchor andCap Skirring. In recent years, however, rural
areas have been the sites of sporadic violent attacks on Senegalese
military and civilian personnel and, on rare occasions, tourists.

U.S. citizens contemplating travel to the Casamance area are urged to
contact the U.S. Embassy in Dakar for the latest safety and security
information. In addition to a prolonged insurgency, armed bandits and
land mines present a threat to travelers and residents in rural areas of
the Casamance. The U.S. Embassy recommends that U.S. citizens not drive
in certain areas of the Casamance. Two airlines operate flights between
Dakar and Ziguinchor, and charter flights are available to Cap Skirring
from Europe.

Due to the potential for violence, U.S. citizens should avoid political
gatherings and street demonstrations, and maintain security awareness at
all times.

For the latest security information, Americans traveling abroad should
regularly monitor the Department\'\'s Internet web site at
http://travel.state.gov where the current [Worldwide Caution Public
Announcement](http://travel.state.gov/travel/cis_pa_tw/pa/pa_1161.html)
, [Travel Warnings and Public
Announcements](http://travel.state.gov/travel/cis_pa_tw/cis_pa_tw_1168.html)
can be found.

Up-to-date information on security can also be obtained by calling
1-888-407-4747 toll free in the United States, or, for callers outside
the United States and Canada, a regular toll line at 1-317-472-2328.
These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time,
Monday through Friday (except U.S. federal holidays).

**Crime Information:** Street crime in Senegal poses high risks for
visitors. Most reported incidents involve pickpockets, purse-snatchers,
and street scam artists, who are especially active in large crowds and
around tourists. In Dakar, there has been an increase in purse
snatchings and pick pocketing in the downtown area.

The loss or theft abroad of a U.S. passport should be reported
immediately to the local police and the nearest U.S. Embassy or
Consulate. If you are the victim of a crime while overseas, in addition
to reporting to local police, contact the nearest U.S. Embassy or
Consulate for assistance. The Embassy/Consulate staff can, for example,
assist you to find appropriate medical care, to contact family members
or friends, and explain how funds could be transferred. Although the
investigation and prosecution of the crime is solely the responsibility
of local authorities, consular officers can help you to understand the
local criminal justice process and to find an attorney, if needed.

U.S. citizens may refer to the Department of State's pamphlet, [*A Safe
Trip
Abroad*](http://travel.state.gov/travel/tips/safety/safety_1747.html) ,
for ways to help ensure a trouble-free journey. The pamphlet is
available by mail from the [Superintendent of Documents, U.S. Government
Printing Office](http://www.gpoaccess.gov/) , Washington, D.C. 20402,
via the Internet at http://www.gpoaccess.gov, or via the Bureau of
Consular Affairs home page at
[http://travel.state.gov](http://travel.state.gov/).

**Business Fraud:** Perpetrators of business fraud often target
foreigners, including Americans. While such fraud schemes in the past
have been largely associated with Nigeria, they are now prevalent
throughout West Africa, including Senegal. The scams pose a danger of
both financial loss and physical harm. Recently, an increasing number of
American citizens have been the targets of such scams.

Typically, these scam operations begin with an unsolicited communication
(usually by e-mail) from an unknown individual who describes a situation
that promises quick financial gain, often by assisting in the transfer
of a large sum of money or valuables out of the country. A series of
"advance fees" must then be paid in order to conclude the transaction:
for example, fees to open a bank account or to pay certain taxes. In
fact, the final payoff does not exist; the purpose of the scam is simply
to collect the advance fees. One common variation of this scheme
involves individuals claiming to be refugees or other victims of various
conflicts in West Africa (notably Sierra Leone) who contact U.S.
citizens to request their help in transferring large sums of money out
of Senegal. Another typical ploy has persons claiming to be related to
present or former political leaders who need assistance to transfer
large sums of cash. Other variations include what appear to be
legitimate business deals requiring advance payments on contracts.

The best way to avoid becoming a victim of advance-fee fraud is common
sense - if it looks too good to be true, it probably is. Any unsolicited
business proposal originating from Senegal should be carefully checked
out before any funds are committed, any goods or services are provided,
or any travel is undertaken. For additional information, the Department
of State's brochure, [*Advance Fee Business
Scams*](http://travel.state.gov/travel/tips/brochures/brochures_1216.html)
is available via the Bureau of Consular Affairs home page at
[http://travel.state.gov]{.underline}.

**Medical Facilities***:* Several hospitals and clinics in the capital,
Dakar, can treat major and minor injuries and illnesses. There is
inadequate inpatient psychiatric care, though there is very good
office-based psychiatry. Public hospitals do not meet U.S. standards,
but several private clinics are at the level of small European
hospitals, and even approach U.S. community hospital standards. The
Embassy maintains a list of physicians and other health care
professionals, though the Embassy does not guarantee their services or
recommend any of the physicians. Medical facilities outside Dakar are
limited.

French medications are far more readily available than American drugs,
and the limited selection of American drugs in stock are often listed
under the French trade name. Medications may be obtained at pharmacies
throughout Dakar and in other areas frequented by tourists, and are
usually less expensive than those in the U.S. Travelers should carry a
supply of any needed prescription medicines, along with copies of the
prescriptions, including the generic name for the drugs, and a supply of
preferred over-the-counter medications.

**Medical Insurance:** The Department of State strongly urges Americans
to consult with their medical insurance company prior to traveling
abroad to confirm whether their policy applies overseas and whether it
will cover emergency expenses such as a medical evacuation. U.S. medical
insurance plans seldom cover health costs incurred outside the United
States unless supplemental coverage is purchased. Further, U.S. Medicare
and Medicaid programs do not provide payment for medical services
outside the United States. However, many travel agents and private
companies offer insurance plans that will cover health care expenses
incurred overseas including emergency services such as medical
evacuations.

When making a decision regarding health insurance, Americans should
consider that many foreign doctors and hospitals require payment in cash
prior to providing service and that a medical evacuation to the U.S. may
cost well in excess of \$50,000. Uninsured travelers who require medical
care overseas often face extreme difficulties. When consulting with your
insurer prior to your trip, ascertain whether payment will be made to
the overseas healthcare provider or whether you will be reimbursed later
for expenses incurred. Some insurance policies also include coverage for
psychiatric treatment and for disposition of remains in the event of
death.

Useful information on medical emergencies abroad, including overseas
insurance programs, is provided in the Department of State's Bureau of
Consular Affairs brochure, [*Medical Information for Americans Traveling
Abroad*](http://travel.state.gov/travel/tips/health/health_1185.html),
available via the Bureau of Consular Affairs home page.

**Other Health Information:** Information on vaccinations and other
health precautions, such as safe food and [Information on vaccinations
and other health precautions, such as safe food and water precautions
and insect bite protection](http://www.cdc.gov/travel), may be obtained
from the Centers for Disease Control and Prevention's (CDC's) hotline
for international travelers at 1-877-FYI-TRIP (1-877-394-8747), fax
1-888-CDC-FAXX (1-888-232-3299), or via the Cud's Internet site at
http://www.cdc.gov/travel. For [information about outbreaks of
infectious diseases abroad](http://www.who.int/en) consult the World
Health Organization's website at http://www.who.int/en. [Further health
information for travelers](http://www.who.int/ith) is available at
http://www.who.int/ith.

Malaria is a serious risk to travelers in Senegal. Chloroquine resistant
P. falciparum malaria is a severe form of the disease that is found in
many parts of West Africa, including Senegal. Because travelers to
Senegal are at high risk for contracting malaria they should take one of
the following anti-malarial drugs: mefloquine (Lariam - tm),
doxycycline, or atovaquone/proguanil (Malarone -- tm). The Centers for
Disease Control and Prevention have determined that a traveler who is on
an appropriate anti-malarial drug has a greatly reduced chance of
contracting the disease. In addition, other personal protective
measures, such as the use of insect repellents, help to reduce malaria
risk. Travelers who become ill with a fever or flu-like illness while
traveling in a malaria-risk area and up to one year after returning home
should seek prompt medical attention and tell the physician their travel
history and what anti-malarials they have been taking. For additional
information on malaria, protection from insect bites and antimalarials,
visit the CDC Travelers\'\' Health website at
<http://www.cdc.gov/travel/malinfo.htm>.

Other vaccines may be recommended for travel to Senegal. Please visit
the CDC's website for more information.

**Traffic Safety and Road Conditions***:* While in a foreign country,
U.S. citizens may encounter road conditions, which differ significantly
from those in the United States. The information below concerning
Senegal is provided for general reference only and may not be totally
accurate in a particular location or circumstance.

Safety of Public Transportation: Fair\
Urban Road Conditions/Maintenance: Fair\
Rural Road Conditions/Maintenance: Poor\
Availability of Roadside Assistance: Poor

Road conditions in Senegal range from adequate to poor. Travelers
outside Dakar should remain on the major, hard-surfaced routes and drive
during daylight hours only. Paved roads link most major cities but are
often in poor repair. Drivers should expect to encounter long stretches
of inter-city roadways with potholes and other obstacles. Rural roads
range from well maintained dirt and gravel routes to sand tracks.

Traffic accidents are a leading cause of injury and death in Senegal.
Visitors who drive should take the time to learn local traffic rules and
drive defensively. Visitors should be cautious when using public
transportation, particularly if the vehicle appears to be overcrowded
and/or poorly maintained.

Road travel between Mauritania and Senegal is restricted to several
designated border-crossing points, and long delays at the border are
normal.

For specific information concerning Senegalese driving permits, vehicle
inspection, road tax and mandatory insurance, contact [the Senegalese
national tourist organization offices](http://www.senegal-tourism.com/)
in New York via the Internet at http://www.senegal-tourism.com. [For
additional general information about road
safety](http://intranet.ca.state.gov/cainternet/road_safety.html),
including links to foreign government sites, see the Department of
State, Bureau of Consular Affairs home page at
<http://travel.state.gov/road_safety.html>.

The U.S. Department of Defense (DOD) separately assesses some foreign
air carriers for suitability as official providers of air services. For
information regarding the DOD policy on specific carriers, travelers may
contact DOD at (618) 229-4801.

Criminal Penalties: While in a foreign country, a U.S. citizen is
subject to that country\'s laws and regulations, which sometimes differ
significantly from those in the United States and may not afford the
protections available to the individual under U.S. law. Penalties for
breaking the law can be more severe than in the United States for
similar offenses. Persons violating Senegalese law, even unknowingly,
may be expelled, arrested or imprisoned. Penalties for possession, use
or trafficking in illegal drugs in Senegal are strict and convicted
offenders can expect jail sentences and heavy fines.

Consular Notification and Access*:* The U.S. Embassy does not always
receive timely notification by Senegalese authorities of the arrest of
U.S. citizens. U.S. citizens are encouraged to carry a copy of their
U.S. passports with them at all times, so that, if questioned by local
officials, proof of identity and U.S. citizenship are readily available.
If arrested, U.S. citizens should always ask to be allowed to contact
the U.S. Embassy (see Registration/Embassy Location below).

Customs Regulations*:* Several types of items \-- including computers
and computer parts, video cameras and players, stereo equipment, tape
players, auto parts, and various tools and spare parts \-- cannot be
brought into Senegal without clearance by Senegalese customs officials.
Airport customs officials may hold such items if brought in as baggage
or carry-on luggage. Travelers should check with the Embassy of Senegal
in Washington, DC, regarding these restrictions. (See Entry Requirements
Section above for contact information.)

Senegalese customs authorities encourage the use of an ATA (Admission
Temporaire/Temporary Admission) Carnet for the temporary admission of
professional equipment, commercial samples and/or goods for exhibitions
and fair purposes. ATA Carnet Headquarters, located at the U.S. Council
for International Business, 1212 Avenue of the Americas, New York, NY
10036, issues and guarantees the ATA Carnet in the United States. For
additional information call (212) 354-4480, send an e-mail to
atacarnet@uscib.org, or visit www.uscib.org for details.

**Currency:** Travelers can obtain cash from some ATM machines in
Senegal. Travelers can obtain cash and/or traveler\'s checks through
international credit cards, such as Master Card, Visa, and American
Express, by presenting their credit card at a local financial
institution sponsoring their card. See the Banking Section.

**Children's issues***:* [For information on international adoption of
children and international parental child abduction
issues](http://intranet.ca.state.gov/cainternet/children's_issues.html ),
please refer to our Internet site at
http://travel.state.gov/children\'s_issues.html or telephone (202)
736-7000.

**Embassy Location/Registration***:* U.S. citizens living in or visiting
Senegal are encouraged to register with the U.S. Embassy at Avenue Jean
XXIII, Dakar, and to obtain updated information on travel and security
in Senegal. The mailing address is B.P. 49, Dakar, Senegal. The
telephone number is (221) 823-4296; after-hours (221) 823-4604. [Embassy
website](http://usembassy.state.gov/dakar) is
<http://usembassy.state.gov/dakar/>.

####### Holidays

January 1 (New Year\'s)

April 4 (Independence Day)

May 1 (International Labor Day)

August 15 (Assumption Day)

November 1 (All Saints Day)

December 25 (Christmas Day)

In addition, the following holidays are observed according to the
religious calendars: Korite, Tabaski, Mawlud, Easter Monday, Ascension
and Pentecost.

####### Business Infrastructure

**Air Transportation**: The Léopold Sédar Senghor International Airport
is the hub of the sub-region. Dakar is linked to numerous African cities
by air, and daily and weekly flights go to Europe. SAA flies everyday to
New York from Johannesburg via Dakar.

**Port:** Dakar has one of the largest deep-water seaports along the
West African coast. Its deep-draft structure and 640 foot-wide access
channel allows round-the-clock access to the port. Its current
infrastructure includes tanker vessel loading and unloading terminals, a
container terminal with a storage capacity of 3000 20-foot-equivalent
units, a cereals and fishing port, a dedicated phosphate terminal and a
privately run ship repair facility. The port's location at the extreme
western point of Africa, at the crossroad of the major sea-lanes linking
Europe to South America, makes it a natural port of call for shipping
companies. A number of shipping companies sail to Dakar from U.S. ports,
but usually by transshipment in Europe. The main direct-call U.S/West
Africa carriers are Wilhemsen Lines, Torm Line and America Africa Delmas
Line, and Atlantic Container Lines. In addition, Maersk Line offers
weekly sailings from the U.S. to Dakar with transshipment in Algeciras
in southern Spain. Transit time from Houston, New Orleans and Miami is
respectively 34, 36 and 40 days. Total freight traffic was 10.1 million
metric tons in 2003.

**Ground Transportation:** Taxis (black-yellow in color) are cheap,
numerous and available everywhere in Dakar. It is customary to negotiate
the fare since most meters installed in the taxis are broken or missing.
For travel outside Dakar, public transportation is available but often
unreliable and uncomfortable. U.S. visitors who plan to stay in Dakar a
few days may want to rent a car and driver. Numerous car rental agencies
offer first-class service and have a desk at the airport and in hotels.
Credit cards are accepted for payment.

**Communications:** Senegal has an excellent telecommunications
infrastructure. International calls to most countries can be dialed
directly. The country code for Senegal is 221. Cable, telex, fax, paging
and Internet services are available. A number of cyber cafés are located
in Dakar. Cellular telephones are very popular and they operate on the
GSM standard. Dakar is on Greenwich Meridian Time, four time zones ahead
of Eastern Standard Time (EST). Daylight Savings Time is not observed in
Senegal.

**Banks:** Banks are open Monday through Friday from 7:45 am to 12:15
p.m. and from 1:30 p.m. to 3:45 p.m. Citibank is the only U.S. bank
present in Senegal. Some local banks operate Automatic Teller Machines,
which handle MasterCard, Visa and Cirrus cards. It is possible for U.S.
visitors to receive wire transfer money via Western Union and Money
Gram. Foreign exchange bureaus are available in downtown Dakar.

**Hotels:** Dakar has business hotels of excellent reputation. Most of
these hotels have business centers. The Embassy recommends the
following:

Hotel Meridien Tel: 221-869-6969/Fax: 869-6924/E-mail:
resa.meridien@sentoo.sn . The Meridien is the most prestigious hotel in
Dakar, and its conference facilities are impressive. Very close to the
airport, the Meridien is a 30- to 45-minute drive from downtown Dakar.

Hotel Teranga: Tel: 221-889-22-00/Fax: 823-50-01/E-mail: teranga@alc.sn.
The Teranga Sofitel is located in the heart of Dakar.

Hotel Savana: Tel: 221-849-42-42/Fax: 849-42-43/E-mail: hotel@savana.sn
.Downtown on the Petite Corniche.

Hotel Lagon II: Tel: 221-889-2525/Fax: 823-77-27/E-mail: lagon@sentoo.sn
. Downtown on the Petite Corniche.

Hotel Novotel: Tel: 221- 849 61 61 /Fax: 823-89-29/E-mail:
novotel@sentoo.sn Near the Central Bank building in downtown Dakar.

**Office rental:** Most offices are located in the downtown Dakar area
called the "Plateau". The rent varies depending upon the location and
the length of the lease.

**Language:** The principal language of international business in
Senegal is French. Many Senegalese businessmen can conduct basic
business in English but are not comfortable with extended or technical
conversations, although this is changing as more and more Senegalese
choose to study in the U.S. High-level professional interpretation is
available at \$640-700 per day for business meetings, but less expensive
(\$200-300) competent interpreters are also available.

**Food:** The Senegalese diet is based on rice, millet served with fish,
meat and various sauces. Travelers should drink only bottled water,
which is available at most food stores, hotels and restaurants. Fruits
and vegetables should be peeled or cooked. There are numerous first
class restaurants in Dakar. They offer excellent fish and French cuisine
as well as international specialties.

U.S. business travelers are encouraged to obtain a copy of the "Key
Officers of Foreign Service Posts: Guide for Business Representatives"
available for sale by the Superintendent of Documents, U.S. Government
Printing office, Washington, D.C. 20402; tel: (202) 512-1800; fax: (202)
512-2250. Business travelers to Senegal seeking appointments with U.S.
Embassy officials should contact the U.S. Commercial Section in advance.
The Commercial Section can be reached by telephone at 221-823-42-96,
extension 2227/2228, fax: 221-821-13-71.

######## 

**Chapter X. APPENDICES**

**Appendix A: Country Data**

CY02 CY03 CY04 (P) CY05(P)

Population (millions) 10.0 10.2 10.5 10.7.

Population Growth (%) 2.2 2.2 2.2 2.2

-Muslim 94%

-Christian 5%

-Animists 1%

Government System Presidential

Languages French, Wolof, Poular, Serer, Diola, Mandingo

Work Week Monday through Friday

# **Appendix B: Domestic Economy**

CY02 CY03 CY04 CY05 (P)

GDP (USD billion) 5.8 6.8 8.0 8.7

GDP Growth rate ( %) 2.4 6.5 6.0 6.4

Government Spending as 13.6 14.1 13.9 13.8

Percent of GDP (%)

Inflation 2.4 0.0 0.5 1.6

Unemployment (%) 45.2 46.0 48.0 48.0

Foreign Exchange N/A N/A N/A N/A

Reserves

Average exchange rate for 600 550 500 500

USD 1 (end of period)

NPV of Debt to GDP 35.3 36.2 28.5 25.0

U.S. Economic/Military 27.0 27.0 27.0 27.0

Assistance (USD Million)

**Appendix C: Trade ( USD millions)**

CY02 CY03 (E) CY04 (P) CY05 (P)

Exports (FOB) 1,238.3 1,329.0 1,536.0 1,630.0

Imports (FOB) 1,863.3 2,183.6 2,506.0 2,564.0

U.S. Exports (FAS) (CY) 81.7 79.5 74.7 75.0

U.S. imports (CIF) (CY) 4.2 4.5 3.8 4.0

U.S. shares (%) 9.3 7.0 5.3 5.0

Notes: Exchange rate -- USD 1= FCFA 600 (2002) 550 (2003) 500 (2004) 500
(2005)

(CY)=Calendar Year, (E)=estimate;

(P)=Projected, N/A=Not Available

Sources: Government of Senegal/Ministry of Finance, IMF, Embassy
estimates, and USAID/Senegal

######## 

######## 

######## 

######## CHAPTER 11: U.S. AND COUNTRY CONTACTS

####### Appendix D: U.S. and Country Contacts

American Chamber of Commerce in Senegal

Steve Jones\--President (Fortesa),\
Makha Sy\--Vice President (Ernst & Young),\
Yacine Barro\--Secretary (Microsoft),\
Lewis Shaw\--Treasurer (Suffolk University),\
Simplice Nicoue\--Membership Chair (UPS),\
Coura Fall\--Board Member at-large (Computer Frontiers),\
Angela Franklin\--Board Member at-large (Chez Alpha Books),\
Ibnoul Arab Ly\--Board Member at-large (Pfizer),\
Upi Sharma\--Board Member at-large (Citibank)

Website with membership information: www.amchamsen.org

Agence de Promotion des Investissements et des Infrastructures (APIX)

(Investment Promotion Agency)

Mrs. Aminata Niane, Director

52 - 54 Rue Mouhamed V

Immeuble Alwar - 1er étage

Dakar

Tel: (221) 849-05-55

Fax: (221) 823-17-02

E-mail: <apix@sentoo.sn>

Cellule de Contrôle et de Gestion du Portefeuille de l'Etat

Privatization Unit

M. Ahmadou Camara

Ministry of Finance

11, rue Malan

Dakar, Sénégal

Tel: (221) 823-34-28/823-34-29

Fax: (221) 822-56-31

Dakar Chamber of Commerce and Industry

M. Lamine Niang, President

1, Place de l\'Indépendance

BP 118

Dakar, Sénégal

Tel: (221) 823-71-89

Fax: (221) 823-93-63

E-mail: <cciad@telecomplus.sn>

URL: [www.cciad.sn](http://www.cciad.sn/)

## Centre d\'Arbritage, de Médiation et de Conciliation de CCIAD

## (The Arbitration Center)

## M. Amadou Dieng, Permanent Secretary

## 1, place de l\'Indépendance

## BP 118

Dakar, Sénégal

## Tel: (221) 823-65-15

## Fax: (221) 823-48-98

## E-mail: centarbi@telecomplus.sn

## Trade Point Sénégal

## M. Mor Talla Diouck, General Administrator

## Km 2,5 Bld du Centenaire de la Commune

## BP 21874

Dakar, Sénégal

## Tel: (221) 839-73-73 / 839-73-76

## Fax: (221) 8397390/821-80-10

## E-mail: <tpdakar@tpsnet.org>

URL: [www.tpsnet.org](http://www.tpsnet.org/)

####### Business Unions and Associations

There are a number of business unions and associations in Senegal. The
most significant are:

CNP

The National Council of Business Leaders

M.Baidy Agne, President

7, rue Jean Mermoz

BP 3537

Dakar, Sénégal

Tel: (221) 821-58-03

Fax: (221) 832-48-26

E-mail: <cnp@sentoo.sn>

URL: [www.cnp.sn](http://www.cnp.sn/)

CNES

The National Employers\' Association

M. Mansour Cama, President

5, avenue Carde Dakar, Sénégal

Tel: (221) 821-76-62 / 823 09 74

Fax: (221) 822-96-58 / 822 32 19

E-mail: <cnes@sentoo.sn>

FENAPH

The National Textile Federation

M. Gora Athj

Rue 13 x Prolongée x Bourguiba

BP 7051

Dakar, Sénégal

Tel: (221) 824-24-45

Fax: (221) 824-24-43

UNACOIS

The National Association of Senegalese Import/Export Businesses

M. Ousmane Sy Ndiaye, Private Sector Expert

96, rue A.K. Bourgi x Jaraaf Mamadou Paye

Dakar, Sénégal

Tel: (221) 821-60-48

Fax: (221) 822-01-85

GAIPES

Industrial Fishing Organization

M. Saër Seck, President

29, boulevard de la Libération

BP 2138

Dakar, Sénégal

Tel: 221-821-49-81

Fax: 221-821-95-06

E-mail: gaipes@telecomplus.sn

####### Country Advertising Agencies

McCann - Erikson Sénégal

M. Karim Konate, Director

Bld du Sud x Canal IV, Point E

Villa Yama Salam

BP 2026

Dakar, Sénégal

Tel: (221) 869-26-26

Fax: (221) 869-26-30

E-mail: mccan@mccan.sn

Optima

Didier Bangalter

Point E, rue 7 angle rue B

Dakar, Sénégal

Tel: (221) 869-21-00

Fax: (221) 869-21-01

E-mail: optima@sentoo.sn

Publicom

M. Claude Chérubin, Director

BP 3956

Dakar, Sénégal

Tel: (221) 820-20-20

Fax: (221) 820-10-20

E-mail: <publi.com@sentoo.sn>Optima

M. Didier Bangaltere, Director

Point E, Rue 2 x Tour de l'Œuf

BP 25399 Dakar Fann

Tel : (221) 869-21-00

Fax : (221) 869-21-01

E-mail : <optima@sentoo.sn>

Ocean Ogilvy Senegal

M. Thibault Fournier

Point E, Rue A x Rue 7

BP 22070 Dakar Ponty

Tel: (221) 824-49-74 / 824-49-75

Fax: (221) 824-49-76

E-mail : <oceanao@sentoo.sn>

KAANI

M. Serge Villain, Director

Point-E Boulevard de l'Est

BP 5020 Dakar Fann

Tel: (221) 824-98-98\
Fax: (221) 824-98-99

E-mail: <kanni@arc.sn>

####### TV Advertising

Radio Télévision Sénégal

Direction des Affaires Commerciales et des Relations Extérieures

M. Cherif Thiam, Director

58, boulevard de la République

BP 1765

Dakar, Sénégal

Tel: (221) 849-1331/849-1306

Fax: (221) 821-7813/822-3490

E-mail: rts@[primature.sn](http://www.primature.sn/)

URL: www.snrts.com

Publicom

M. Claude Chérubin, Director General

BP 3956

Dakar, Sénégal

Tel: (221) 820-20-20

Fax: (221) 820-10-20

E-mail: publi.com@sentoo.sn

Canal Horizon Dakar

Mrs. Aminata Léye, Marketing Manager

31, avenue Albert Sarraut

BP 1390

Dakar, Sénégal

Tel: (221) 823-5050

Fax: (221) 823-3030

####### Newspaper Advertising

Le Soleil

M. Lune Tall, Marketing Manager

BP 92

Dakar, Sénégal

Tel: (221) 832-92-06

Fax: (221) 832-06-81

Sud Quotidien/Alliance Régie

M. Momar Dème, Marketing Department

BP 7328

Dakar, Sénégal

Tel: (221) 821-33-38

Fax: (221) 822-52-90

WalFadjri

M. Ousmane Sané, Marketing Department

Sicap Sacré Coeur III No 8542

Dakar, Sénégal

Tel: (221) 824-23-40/824-23-43

Fax: (221) 824-23-46

Bulletin d'Information Economique

Chambre de Commerce de Dakar

BP 118

Dakar, Sénégal

Tel: (221) 823-71-89

Fax: (221) 823-93-63

Le Matin

M. Mame Less Camara, Director of Publication

Route de l\'Aéroport L.S.S - Yoff

BP 8076

Dakar, Sénégal

Tel: (221) 820-92-02 / 03 / 04 / 05

Fax: (221) 820-92-06

E-mail: <Tandian@Rapide.Pana.com>

## L\'Info 7

## M. Pape Samba Kane, Publications Coordinator

## 71, avenue A. Peytavin

## BP 11357

## Dakar, Sénégal

## Tel: (221) 822-0535

## Fax: (221) 822-77-77

## E-mail: comsept@telecomplus.sn

Le Quotidien\
Sodida, Rue 14 prolongée\
BP 25221 Dakar Fann\
SENEGAL\
Tél : (221) 825.49.20/22\
Fax : (221) 825.49.30\
URL : [http://www.lequotidien.sn](http://www.lequotidien.sn/)

####### Country Commercial Banks and Financial Institutions

Citibank

2, place de l\'Indépendance

M. Gabriel Lopes, General Manager

BP 3391

Dakar, Sénégal

Tel: (221) 849-11-11

Fax: (221) 823‑88‑17

## Ecobank

## Mrs. Evelyn Tall, Managing Director

## 8, avenue L. S. Senghor

## BP 9095

Dakar, Sénégal

## Tel: (221) 849-20-00 

## Fax: (221) 823-47-07

## E-mail: ecobank@sentoo.sn

Banque Internationale Pour le Commerce

Et l\'Industrie du Sénégal (BICIS)

M. Amadou Kane, Managing Director

2, avenue L. S. Senghor

BP 392

Dakar, Sénégal

Tel: (221) 839-03-90

Fax: (221) 823‑37‑07

Compagnie Bancaire de l\'Afrique de l\'Ouest (CBAO)

M. Bernard Delavallée, General Manager

Place de l\'Indépendance

BP 129

Dakar, Sénégal

Tel: (221) 839-96-96

Fax: (221) 823‑20‑05

Société Générale de Banques (SGBS)

M. Bernard Labadens , General Manager

19, avenue L. S. Senghor

BP 323

Dakar, Sénégal

Tel: (221) 839-55-00

Fax: (221) 823‑90‑36

E-mail: sgsbs@telecomplus.sn

Crédit Lyonnais

M. Jean-Claude Dubois, General Manager

Boulevard Pinet Laprade x Huart

BP 56

Dakar, Sénégal

Tel: (221) 849-0000

Fax: (221) 823‑84‑30

E-mail: cl_senegal@creditlyonnais.sn

## Banque Sénégalo-Tunisienne (BST)

## M. Abdoul Mbaye, Director

## 97, avenue André Peytavin

B. P. 4111

## Dakar, Sénégal

## Tel: (221) 849-60-60

## Fax: (221) 823-82-38

E-mail: bst@bst.sn

## 

Bank of Africa, Director

M. Bernard Puechaldou

4, Place de l'Indépendance

B.P. 1992 RP

Dakar, Sénégal

Tel: (221) 849-62-40

Fax: (221) 842-1667

Email: <boadg@sentoo.sn>

Western Union

M. Bouraima Signaté, Managing Director

Immeuble Sokhna Anta

5, rue Docteur Thèze

BP 129

Dakar, Sénégal

Tel: (221) 839-96-96

Fax: (221) 823-20-05

## Money Gram

## M. Souleymane Soumaré, Money Transmitter Responsible

## 97, avenue André Peytavin

## Dakar, Sénégal

## Tel: (221) 849-60-60

## Fax: (221) 823-82-38

E-mail: <bst@bst.sn>

Bourse Régionale des Valeurs Mobilières (BRVM)

Mme Khady Sy, Coordinator

Chambre de Commerce de Dakar

1, Place de l'Indépendance

BP 22500

Dakar, Sénégal

Tel: (221) 821-1518

Fax: (221) 821-1506

E-mail: osane@syfed.refer.sn

Compagnie de Gestion Financière et de Bourse (CGF Finance)

M. Gabriel Fall, Director

12, rue Dr. Thèze

Immeuble Coumba Castel

BP 1516

Dakar, Sénégal

Tel: (221) 822-6134 / 821-0317

Fax: (221) 822-6135 / 823-3899

E-mail: cgfbrvm@telecomplus.sn

CGF Finance is a brokerage firm

BMCE Capital Dakar

Avenue Abdoulaye Fadiga

BP 5275

Tel: (221) 889-0505

## **Multilateral Development Bank Offices/International Financial Institutions in Country**

The World Bank

M. Madani Tall, Country Director

3, place de l'Indépendance

Dakar, Sénégal

Tel: (221) 823-36-30

Fax: (221) 823-62-77

International Finance Corporation

Mme Marième Travaly

3, place de l'Indépendance -- SDIH 7^th^ fl.

Dakar, Sénégal

Tel: (221) 822-95-61

Fax: (221) 823-62-77

E-mail: <mtravaly@ifc.org>

The International Monetary Fund (IMF)

M. Ousmane Doré, Resident Representative

8, rue du Dr. Guillet

B. P. 6419

Dakar, Sénégal

Tel: (221) 821-33-98

Fax: (221) 823-30-52

E-mail: [bwane@imf.org]{.underline}

West African Development Bank (BOAD)

M. Christophe Aguessy, Resident Representative

S/c BCEAO-Agence

Boulevard du General de Gaulle

BP 4197

Tel: (221) 823-10-47

Fax: (221) 823-63-46

E-mail: <boadbrsen@sn.boad.org>

Hours: M-F 08:00-12:00, 14:30-18:30

####### U.S. Embassy Resources

U.S. Embassy Dakar, Senegal

Washington, DC 20521-2130

Tel: (221) 823-42-96

Fax: (221) 822-29-91 / 821-13-71

(The U.S. Embassy is located in downtown Dakar on Ave. Jean XXIII)

####### U.S. Foreign Commercial Service -- U.S. Embassy

Cynthia Griffin-Greene, Regional Senior Commercial Officer

Email: <Griffin-GreeneCA@state.gov>

Youhanidou Wane, Commercial Specialist

Email: <Wanebay@state.gov>

Medina Sy, Administrative Assistant

Email: <SyM@state.gov>

####### Economic Section - U.S. Embassy 

Douglas J. Meurs, Economic Officer

Email: <MeursD@state.gov>

Mamadou Lamine Gassama, Economic Specialist

Email: <GassamaM@state.gov>

**[U.S. Department of Treasury -- U.S. Embassy]{.underline}**

Susan Strawn, Enforcement Officer

Email: StrawnSL@state.gov

**[USAID-Private Sector Advisor]{.underline}**

John Stamm, Private Enterprise Officer

Email: <jstamm@usaid.gov>

**[U.S. Department of Agriculture-Animal and Plant Health Inspection
Service (APHIS)]{.underline}** co-located with USAID

Dr. Cheryl French, Assistant Regional Director Africa

Email: <cheryl.m.french@aphis.usda.gov>

Dr. Raphael Coly, Agricultural Specialist, Sub-Regional Office Africa

Email: <Raphael.Coly@aphis.usda.gov>

U.S. Agency for International Development

Tel: (221) 869-6100

(USAID is located in Ngor, near the international airport)

####### Washington-Based U.S. Government Country Trade Contacts

U.S. Department of Commerce

International Trade Administration

Mr. Philip Michelini, Senior Specialist

Room 2037, Department of Commerce

Washington, DC, 20230

Tel: (202) 482-4388

State Department Desk Officer

Office of West African Affairs

Ms. Shaye Brown, Country Officer

Room 4250, Department of State

Washington, DC, 20520

Tel: (202) 647-3407

Fax: 202-647-4855

U.S. Trade and Development Agency

Mr. Bryce Ternet, Country Manager for Africa & Middle East

1000 Wilson Boulevard, Suite 1600

Arlington, VA 22209

Washington DC 20523-1602

Tel: (703) 875-4357

Fax: (703) 875-4009

E-mail: <Bternet@tda.gov>

Export - Import Bank of the United States (EX-IM BANK)

Mr. Joseph Grandmaison, Coordinator/Counselor for Africa

811 Vermont Avenue, N. W.

Washington, D. C. 20571

Tel: 202-566-8008

Fax: 202-566-7254

OPIC

Ms. Joan Edwards, Acting Regional Manager for Africa

1100 New York Avenue, NW

Washington, DC 20527

Tel: (202) 336-8845

Fax: (202) 218-0183

E-mail: <jedwards@opic.gov>

OPIC Allied Capital Corporation

Mr. Cabell Williams III, President

1666 K Street, NW

Washington DC 20006

Tel: (202) 331-1112

Fax: (202) 659-2053

OPIC African Growth Fund

Equator Bank

Ms. Maile D. Houpert

Washington Representative

1850 K Street, NW, Suite 390

Washington DC 20006

Tel: (202) 293-3275

Fax: (202) 872-1521

Multilateral Development Operations

U.S. Department of Commerce, Room 1107

14th Street and Constitution Avenue, NW

Washington, DC 20230

Tel: (202) 482-4332

Fax: (202) 273-0927

Trade Information Center

Department of Commerce

1401 Constitution Avenue, NW, Room 7424

Washington DC 20230

Tel: 1-800-USA-TRADE

Corporate Council on Africa (CCA)

Esther Dassanou\
Program Manager\
West Africa International Business Linkages (WAIBL)\
Corporate Council on Africa

1100 17^th^ St. NW, Suite 1100\
Tel:  202-835-1115 ext. 511\
Fax:  202-835-1117\
Email:  <edassanou@africacncl.org>

U.S. Commercial Service/U.S. Department of Commerce

U.S. Commercial Service Abidjan

U.S. Embassy Abidjan

5, rue Owens

01 BP 1712 Abidjan 01

Cote d'Ivoire

Tel: (225) 22 41 12 50

\(225\) 22 41 12 52

Fax: (225) 22 41 12 60

Foreign Agricultural Service

U.S. Department of Agricuture (USDA)

Susan Reid, Agricultural Attache

U.S. Embassy Abidjan

Immeuble Tropique III

3, rue Jesse Owens

01 BP 1712 Abidjan 01

Côte d\'Ivoire

Tel: (225) 22.41.13.55/56/58

Fax: (225)22.41.13.59

## **Partial Listing of Web Sites** 

-   

-   [http://www.afdb.org](http://www.afdb.org/) (African Development
    Bank)

-   [http://www.worldbank.org](http://www.worldbank.org/) (World Bank
    Operations)

-   http://[www.banquemondiale-senegal.org](http://www.banquemondiale-senegal.org/)

-   <http://www.imf.org/> (International Monetary Fund)

-   [http://www.ifc.org](http://www.ifc.org/) (International Finance
    Corporation)

-   [http://www.gouv.sn](http://www.gouv.sn/) (the official web site of
    the Senegalese government)

-   [http://www.africacncl.org](http://www.africacncl.org/) (the
    Corporate Council for Africa)

-   <http://www.odci.gov/cia> (the CIA World Factbook)

-   [http://www.apix.sn](http://www.apix.sn/) (The Investment Promotion
    Agency) *(French/English)*

-   <http://www.mbendi.co.za/land/af/sn/p0005.htm> (Mbendi's website is
    specialized on mining, energy and international trade)
    *(French/English)*

-   <http://www.cifas.sn/> (CIFAS is the french investors club in
    Senegal) *(French)*

-   <http://www.izf.net/izf/Guide/Senegal/Default.htm> (A practical
    guide for doing business in Senegal) *(French)*

-   <http://www.dree.org/senegal> (The Economic Service at Dakar's
    French Embassy)

-   http://www.tpsnet.org/ Trade point Senegal *(French)*

# 

######## CHAPTER 12: MARKET RESEARCH 

#### Appendix E: Market Research

Market research, general economic and commercial reporting, and trade
leads produced by the U.S. Embassy can be found at
[http://www.export.gov](http://www.export.gov/) .

These reports are available on the FAS home page at
http://www.fas.usda.gov.

######## Chapter 13: Trade Events Schedule

######## 

-   [**SIAGRO**](http://www.eventseye.com/fairs/trade_fair_event_3420.html):
    International Food Exhibition & Food Processing Equipment, April
    2006, in Dakar

-   **[Dakar International Trade Fair]{.underline}**, December, 2006, in
    Dakar

Contact: **CICES (Senegal's Office of External Trade)**

Route de l\'Aéroport

BP 8166 Dakar Yoff\
Tel: (221) 827 54 66 / 827 54 72

Fax: (221) 827 52 75