Index of "1996 Country Commercial Guides"
Index of "Economic and Business Issues"
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U.S. Department of State  
Senegal Country Commercial Guide  
Office of the Coordinator for Business Affairs  
 
 
                          COUNTRY COMMERCIAL GUIDE  
                                   SENEGAL  
 
This Country Commercial Guide (CCG) presents a comprehensive look at 
Senegal's commercial environment through economic, political and market 
analyses.   
 
The CCGs 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 annualy at U.S. Embassies through 
the combined efforts of several U.S. governement agencies.   
 
 
--------------------- 
I.  EXECUTIVE SUMMARY 
--------------------- 
 
OVERVIEW 
-------- 
 
WITH ITS CAPITAL CITY OF DAKAR LOCATED ON THE WESTERNMOST POINT OF 
AFRICA, SENEGAL IS A GATEWAY TO THE CONTINENT.  IT HAS SOME OF THE BEST 
COMMERCIAL FACILITIES IN WEST AFRICA, WITH EXCELLENT INTERNATIONAL AND 
DOMESTIC TRANSPORTATION LINKS.  ALTHOUGH ITS INDUSTRIAL BASE IS SMALLER 
THAN THAT OF RIVAL COTE D'IVOIRE, MANY COMPANIES USE SENEGAL AS A 
REGIONAL CENTER OF WEST AFRICAN OPERATIONS.  SENEGAL IS ALSO KNOWN AS 
AFRICA'S MOST POLITICALLY STABLE COUNTRY--A FUNCTIONING MULTI-PARTY 
DEMOCRACY HAS BEEN IN PLACE SINCE INDEPENDENCE FROM FRANCE IN 1960. 
 
AFTER YEARS OF STAGNATION, SENEGAL'S ECONOMY IS SHOWING SIGNS OF A 
TURNAROUND.  ANNUAL GDP GROWTH HAS IMPROVED FROM A NEGATIVE RATE OF 0.8 
PCT IN 1993 TO 2.3 PCT IN 1994.  IN 1995, THE TARGET RATE OF GROWTH IS 
4.5 PCT.  THE DOMESTIC ECONOMY IN THIS SMALL, SEMI-ARID COUNTRY REMAINS 
HEAVILY DEPENDENT ON AGRICULTURE, AND THUS THE AMOUNT OF RAINFALL, WHICH 
MAY VARY CONSIDERABLY FROM YEAR TO YEAR.  PEANUTS, FISH, AND CALCIUM 
PHOSPHATES ARE THE MAJOR EXPORTS.  TOURISM AND SERVICES ARE ALSO 
IMPORTANT FOREIGN EXCHANGE EARNERS. 
 
SINCE THE DEVALUATION OF THE CFA FRANC IN EARLY 1994, THE GOVERNMENT HAS 
IMPLEMENTED A SERIES OF ECONOMIC POLICY REFORMS TO ENHANCE 
COMPETITIVENESS.  SUPPORTED BY THE INTERNATIONAL MONETARY FUND, THE 
WORLD BANK, AND OTHER DONORS INCLUDING FRANCE, JAPAN, AND THE U.S., 
SENEGAL IS PHASING OUT MOST QUANTITATIVE RESTRICTIONS ON IMPORTS, 
DISMANTLING MONOPOLIES, LIBERALIZING THE LABOR MARKET, AND PRIVATIZING 
SEVERAL IMPORTANT STATE-OWNED INDUSTRIES. 
 
COMMERCIAL ENVIRONMENT 
---------------------- 
 
THE SENEGALESE ARE GENERALLY WELL-DISPOSED TOWARD AMERICANS, AND ARE 
ACTIVELY SEEKING 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. BUSINESS RELATIONSHIPS HERE.  ALSO, U.S. BUSINESSES SHOULD 
BE AWARE THAT DOMESTIC CREDIT IN SENEGAL IS EXTREMELY TIGHT AND 
INDIGENOUS SENEGALESE FIRMS ARE TYPICALLY SMALL AND UNDERFINANCED. 
 
FRANCE REMAINS SENEGAL'S LARGEST TRADING PARTNER, ALTHOUGH ITS SHARE HAS 
BEEN DECLINING SINCE THE CFA DEVALUATION.  IN 1994, FRANCE HAD A 30 PCT 
SHARE OF THE USD 1.14 BILLION IMPORT MARKET, FOLLOWED BY NIGERIA WITH 19 
PCT, AND THE UNITED STATES WITH 8.1 PCT.  THE UNITED STATES RUNS A 
SIGNIFICANT SURPLUS IN BILATERAL TRADE, EXPORTING ABOUT USD 60 MILLION 
PER YEAR TO SENEGAL.  MAJOR U.S. EXPORTS INCLUDE RICE, WHEAT,AND OTHER 
AGRICULTURAL COMMODITIES, AS WELL AS PETROLEUM PRODUCTS, COMPUTER 
EQUIPMENT, USED CLOTHING, AND COSMETICS. 
 
MAJOR BUSINESS OPPORTUNITIES 
---------------------------- 
 
ALTHOUGH SENEGAL OFFERS A RELATIVELY LIMITED INTERNAL MARKET FOR U.S. 
BUSINESS, NEW EMPHASIS ON THE USE OF MARKET FORCES TO REGULATE THE 
ECONOMY, THE LIBERALIZATION OF IMPORTS, AND CONSIDERABLE OPPORTUNITIES 
IN TELECOMMUNICATIONS AND IN POWER GENERATION COULD SPELL INCREASED 
OPPORTUNITIES FOR SALES OF U.S. PRODUCTS IN SENEGAL.  OTHER BEST 
PROSPECTS FOR U.S. BUSINESS IN SENEGAL INCLUDE FISHING, MINING, FOOD 
PROCESSING AND PACKAGING EQUIPMENT, USED CLOTHING, PHARMACEUTICALS, 
TOURISM, AGRI-BUSINESS, AND FOOD (ESPECIALLY CEREAL CROPS). 
 
EMBASSY ASSISTANCE 
------------------ 
 
EMBASSY DAKAR IS DEDICATED TO OFFERING ASSISTANCE AND COUNSEL TO 
AMERICAN BUSINESS PERSONS WISHING TO EXPLORE SENEGAL'S STABLE AND 
FAVORABLE ENVIRONMENT FOR INVESTMENT.  EMBASSY DAKAR ALSO HAS A "PARTNER 
POST" RELATIONSHIP WITH THE OVERSEAS STAFFS OF THE DEPARTMENTS OF 
COMMERCE AND AGRICULTURE IN ABIDJAN. 
 
COUNTRY COMMERCIAL GUIDES ARE AVAILABLE ON THE NATIONAL TRADE DATA BANK 
ON CD-ROM OR THROUGH THE INTERNET.  PLEASE CONTACT STAT-USA AT 1-800-
STAT-USA FOR MORE INFORMATION.  TO LOCATE COUNTRY COMMERCIAL GUIDES VIA 
THE INTERNET, PLEASE USE THE FOLLOWING WORLDWIDE WEB ADDRESS:  WWW.STST-
USA.GOV.   CCGS CAN ALSO BE ORDERED IN HARD COPY OR ON DISKETTE FROM THE 
NATIONAL TECHNICAL INFORMATION SERVICE (NTIS) AT 1-800-533-NTIS. 
 
-------------------------------- 
II.  ECONOMIC TRENDS AND OUTLOOK 
-------------------------------- 
 
SENEGAL IS A SEMI-ARID COUNTRY LOCATED ON THE WESTERNMOST POINT OF 
AFRICA WITH A POPULATION ESTIMATED AT 8 MILLION IN 1994.  ITS ECONOMY IS 
DOMINATED BY AGRICULTURE, PARTICULARLY BY PEANUT PRODUCTION.  THE MODERN 
SECTOR INCLUDES FISHING, PHOSPHATES, TOURISM, AND CHEMICAL INDUSTRIES.  
SENEGAL'S ECONOMY IS HIGHLY VULNERABLE TO DECLINING RAINFALL, 
DESERTIFICATION AND CHANGES IN WORLD COMMODITY PRICES.  HISTORICALLY, 
POPULATION GROWTH OF NEARLY 3 PCT HAS ROUGHLY MATCHED GDP GROWTH.  THE 
COUNTRY STILL DEPENDS HEAVILY ON FOREIGN ASSISTANCE, WHICH IN 1994 
REPRESENTED ABOUT 42.8 PCT OF THE GOVERNMENT'S BUDGET, OR CFA 272.2 
BILLION (USD 544 MILLION AT THE AVERAGE EXCHANGE RATE IN 1994). 
  
IN THE 1980S, SENEGAL WAS ONE OF THE FIRST COUNTRIES IN AFRICA TO EMBARK 
ON A STRUCTURAL ADJUSTMENT PROGRAM UNDER THE TUTELAGE OF THE IMF AND THE 
WORLD BANK.  THE MACROECONOMIC POLICY AND STRUCTURAL REFORMS CONDUCTED 
HELPED REDUCE FINANCIAL AND STRUCTURAL IMBALANCES AND ACHIEVED SOME 
PROGRESS IN LIBERALIZING THE ECONOMY.  BUDGET AND BALANCE OF PAYMENT 
IMBALANCES WERE REDUCED, AND INFLATION WAS HELD TO A LEVEL OF ABOUT 2 
PCT PER YEAR.  REAL GDP GREW BY SOME 3.6 PCT PER YEAR ON AVERAGE, BUT 
PER CAPITA INCOME ROSE BY ONLY ABOUT 1 PCT PER YEAR. 
 
UNFORTUNATELY, IN THE EARLY 1990S, SENEGAL FACED MAJOR FINANCIAL AND 
STRUCTURAL DISEQUILIBRIA, AND THE RATE OF ECONOMIC GROWTH BECAME LOW AND 
ERRATIC.  IN EARLY 1993, SENEGAL CAME VERY CLOSE TO FINANCIAL COLLAPSE.  
POLITICAL CONSIDERATIONS RELATED TO THE PRESIDENTIAL AND LEGISLATIVE 
ELECTIONS LED THE GOVERNMENT TO POSTPONE  ADJUSTMENT EFFORTS INCLUDING 
THE ADOPTION OF A REVISED LABOR CODE AND AN ACTION PLAN FOR REFORMS IN 
THE AGRICULTURAL SECTOR.  AS A RESULT, NEGOTIATIONS FOR FURTHER BUDGET 
SUPPORT FROM THE INTERNATIONAL MONETARY FUND (IMF) AND THE WORLD BANK 
WERE CANCELLED.  THE  ABSENCE OF BASIC MACROECONOMIC REFORM AGREEMENTS 
LED TO THE SUSPENSION OF FINANCIAL SUPPORT FROM OTHER MAJOR DONORS SUCH 
AS FRANCE, THE EUROPEAN UNION, AND JAPAN.  TO ARREST THE DETERIORATION, 
IN LATE AUGUST 1993, THE GOVERNMENT IMPOSED A PACKAGE OF INTERNAL 
AUSTERITY MEASURES WHICH CONTAINED THE BUDGET DEFICIT.  HOWEVER, THESE 
MEASURES WERE NOT SUFFICIENT TO RESTORE ECONOMIC GROWTH AND 
COMPETITIVENESS.  IN JANUARY 1994, SENEGAL AND THE 13 OTHER COUNTRIES OF 
THE CFA FRANC ZONE DEVALUED THEIR COMMON CURRENCY BY 50 PCT AGAINST THE 
FRENCH FRANC. 
 
MAJOR TRENDS AND OUTLOOK 
------------------------ 
 
THE DEVALUATION OF THE CFA FRANC WAS AN EXPLICIT CONDITION SET BY THE 
IMF AND THE WORLD BANK FOR RESUMPTION OF FINANCING FOR ECONOMIC 
ADJUSTMENT.  IN MARCH 1994, SENEGAL WAS THE FIRST CFA FRANC ZONE COUNTRY 
TO SIGN A STAND-BY AGREEMENT AFTER THE DEVALUATION.  SUBSEQUENTLY, IN 
AUGUST 1994, THE GOVERNMENT NEGOTIATED A NEW THREE YEAR EXTENDED 
STRUCTURAL ADJUSTMENT FACILITY (ESAF) WITH THE IMF FOR USD 192 MILLION.  
ONE YEAR OF TOUGH NEGOTIATIONS HAVE LED TO THE WORLD BANK'S APPROVAL OF 
SENEGAL'S PRIVATE SECTOR COMPETITIVENESS PROGRAM (PASCO).  OF THE USD 40 
MILLION TOTAL, USD 30 MILLION WAS DISBURSED UNDER THE PASCO DURING THE 
FIRST QUARTER OF 1995.  SENEGAL'S AGRICULTURAL STRUCTURAL ADJUSTMENT 
PROGRAM WAS ALSO APPROVED BY THE BANK'S BOARD IN LATE MAY 1995.  OF USD 
45 MILLION, USD 23 MILLION WAS DISBURSED IN LATE JUNE.  THE PASCO AND 
THE PASA ARE CURRENTLY THE TWO MAJOR ECONOMIC POLICY REFORM PROGRAMS 
SUPPORTED BY THE BANK. 
 
MACROECONOMIC INDICATORS SHOW THAT SENEGAL HAS TURNED IN RESPECTABLE 
PERFORMANCE IN MEETING THE TARGETS SET UNDER THE IMF'S ESAF PROGRAM: 
ANNUAL GDP GROWTH HAS IMPROVED FROM A NEGATIVE RATE OF 0.8 PCT IN 1993 
TO 2.3 PCT IN 1994, COMPARED TO AN OBJECTIVE OF 2.5 PCT.  INFLATION WAS 
REPORTED TO BE 33 PCT COMPARED TO A TARGETTED 39 PCT, AND THE FISCAL 
DEFICIT WAS HELD TO 5.5 PCT OF GDP. 
 
IN APRIL 1995, PARIS CLUB OFFICIAL CREDITORS GRANTED SENEGAL AN 11TH 
DEBT RESCHEDULING, POSTPONING CFA 87 BILLION (USD 174 MILLION) IN 
OFFICIAL DEBT PAYMENTS.  CREDITORS GRANTED SENEGAL THE MOST GENEROUS 
"NAPLES TERMS," WHICH MAY INCLUDE 67 PCT REDUCTION IN THE PUBLIC DEBT.  
LONDON CLUB CREDITORS ALSO POSTPONED AN ESTIMATED CFA 22 BILLION (USD 44 
MILLION) IN PAYMENTS TO PRIVATE SECTOR ENTERPRISES.  SENEGAL IS SEEKING 
SOME ADDITIONAL FOREIGN AID COMMITMENTS WITH THE DONOR CONSULTATIVE 
GROUP MEETING TO BE HELD IN PARIS IN JULY 1995, THE FIRST SUCH MEETING 
SINCE 1987. 
 
DURING 1994 AND 1995, SENEGAL HAS MADE SOME ENCOURAGING PROGRESS IN THE 
IMPLEMENTATION OF STRUCTURAL POLICIES AIMED AT CREATING A BETTER 
REGULATORY FRAMEWORK FOR PRIVATE SECTOR DEVELOPMENT.  MEASURES 
IMPLEMENTED TO DATE INCLUDE: 
 
-- THE ELIMINATION OF BARRIERS TO FREE DOMESTIC TRADE (PRICE 
LIBERALIZATION OF SOAP, MILK, COFFEE, SOFT DRINKS, CEMENT, TOMATO PASTE 
AND FRESH TOMATOES; 
-- THE ABOLITION OF MONOPOLISTIC AGREEMENTS IN THE FOLLOWING INDUSTRIES: 
CEMENT, TEXTILES, WHEAT FLOUR, TOMATO PASTE, PACKING MATERIALS, AND 
FERTILIZERS; 
-- THE PREPARATION OF A LIST OF 15 MAJOR PUBLIC ENTERPRISES TO BE 
PRIVATIZED DURING THE NEXT THREE YEARS; 
-- THE ELIMINATION OF EXPORT SUBSIDIES; 
-- THE ABOLITION OF THE REQUIREMENT FOR PRIOR GOVERNMENT AUTHORIZATION 
TO LAY OFF WORKERS DURING ECONOMIC DOWNTURNS. 
 
AS THE ECONOMY ADAPTS TO THESE CHANGES, NEW OPPORTUNITIES SHOULD APPEAR 
AND DIVERSIFICATION OF SUPPLY SOURCES IS LIKELY TO OCCUR.  
 
PROSPECTS FOR 1995 
------------------ 
 
GOVERNMENT OBJECTIVES ARE TO REACH A REAL GDP GROWTH RATE OF 4.5 PCT IN 
1995, FOLLOWED BY 5.5 PCT IN 1996; TO LIMIT THE AVERAGE INFLATION RATE 
TO 8 PCT IN 1995 AND TO 3.5 PCT IN 1996; AND TO REDUCE THE EXTERNAL 
CURRENT ACCOUNT DEFICIT, EXCLUDING OFFICIAL TRANSFERS, TO 8.5 PCT IN 
1995 AND TO 7.5 PCT IN 1996.  THE GOVERNMENT HAS ALSO PLANNED TO 
UNDERTAKE SOME IMPORTANT REFORM MEASURES BY THE END OF 1995 INCLUDING 
THE PRIVATIZATION OF "SONACOS," THE PEANUT OIL PARASTATAL, AND 
LIBERALIZATION OF RICE, WHEAT, AND WHEAT FLOUR IMPORTS.  POTENTIAL 
OBSTACLES TO ACHIEVING ECONOMIC GROWTH AND PROSPERITY INCLUDE POPULATION 
GROWTH OF ALMOST 3 PCT PER YEAR, AND PERSISTENT HIGH UNEMPLOYMENT. 
 
MAJOR ECONOMIC SECTORS 
---------------------- 
 
FISHERIES 
--------- 
 
THE FISHING SECTOR IS ONE OF THE MOST ECONOMICALLY IMPORTANT IN SENEGAL.  
IT PRODUCES 8.5 PCT OF GDP, EMPLOYS 200,000 PERSONS AND ACCOUNTED FOR 
27.3 PCT OF TOTAL EXPORTS IN 1994 (USD 240 MILLION).  IN 1995, THE 
SECTOR IS EXPECTED TO YIELD CFA 127 BILLION (USD 254 MILLION), AN 
INCREASE OF 6 PCT OVER 1994 IN DOLLAR TERMS.  FAVORABLE WORLD PRICES, 
MARKET DIVERSIFICATION, AND COMPETITIVE PRICING AS A RESULT OF THE CFA 
DEVALUATION HAVE HELPED BOOST SENEGALESE FISHING.  HOWEVER, AN AGING AND 
OUTMODED FLEET, THE THREAT OF OVERFISHING, AND STIFF COMPETITION FROM 
SOUTH ASIA CONTINUE TO HAMPER THE DEVELOPMENT OF THE FISHING SECTOR. 
  
MINING 
------ 
 
MINING OUTPUT CONSISTS MAINLY OF CALCIUM PHOSPHATE, ALTHOUGH PLANS TO 
DEVELOP GOLD AND IRON ORE ARE UNDERWAY.  IN 1994, PHOSPHATE AND 
PHOSPHATE PRODUCTS ACCOUNTED FOR 19 PCT OF TOTAL MERCHANDISE EXPORT 
EARNINGS (USD 162 MILLION).  NEW MARKETS IN ASIA AND AFRICA HAVE 
COMPENSATED FOR THE REDUCTION OF EUROPEAN DEMAND.  THE GOVERNMENT 
PREDICTS THAT EARNINGS FROM PHOSPHATES WILL REMAIN STABLE IN 1995.  
PHOSPHATE MINING ACCOUNTS FOR LESS THAN 2 PCT OF SENEGAL'S GDP AND 
EMPLOYS OVER 2,000 PEOPLE. 
 
PEANUTS 
------- 
 
PEANUT PRODUCTION ENGAGES 42 PCT OF CULTIVATED LAND AND PROVIDES INCOME 
FOR MORE THAN ONE MILLION PERSONS.  THE SECTOR CONTINUES TO SUFFER FROM 
A SHRINKING MARKET, AND PRODUCTION IS FALLING DUE TO SOIL DEPLETION AND 
THE UNCERTAINTY OF RAINFALL.  EXPORTS OF PEANUT PRODUCTS REACHED USD 27 
MILLION IN 1994 AND REPRESENTED ONLY 3.1 PCT OF TOTAL EXPORT EARNINGS. 
 
PETROLEUM 
--------- 
 
NO OIL IS PRODUCED IN SENEGAL, BUT THE COUNTRY IMPORTS BOTH CRUDE AND 
REFINED PETROLEUM PRODUCTS.  THE SOCIETE AFRICAINE DE RAFFINAGE (SAR) 
OIL REFINERY OWNED BY THE GOVERNMENT AND A CONSORTIUM OF DISTRIBUTORS 
HAS A CAPACITY OF 1.2 MILLION TONS PER YEAR.   IT ACTS AS A SERVICE 
OPERATION FOR ITS SHAREHOLDERS (ELF AQUITAINE, TOTAL, SHELL, AND MOBIL).  
PART OF ITS OUTPUT IS EXPORTED TO MALI, MAURITANIA AND THE GAMBIA. 
 
TOURISM 
------- 
 
THE TOURISM INDUSTRY HAS COME TO PLAY AN IMPORTANT ROLE IN THE ECONOMY.  
THE HIGH SEASON IS DECEMBER-FEBRUARY, WHEN SENEGALESE WEATHER IS AT ITS 
MOST ATTRACTIVE.  FRENCH TOURISTS MAKE UP THE BULK OF ARRIVALS, BUT 
EFFORTS ARE BEING MADE TO ATTRACT VISITORS FROM NORTH AMERICA AND OTHER 
EUROPEAN COUNTRIES.  ABOUT 346,000 TOURISTS CAME TO SENEGAL IN 1994.  
FOREIGN INVESTMENT IN HOTELS IS DOMINATED BY THE FRENCH. 
 
GOVERNMENT ROLE IN THE ECONOMY 
------------------------------ 
 
THE GOVERNMENT IS STILL FAR AND AWAY THE COUNTRY'S LARGEST EMPLOYER AND 
CONSUMER AND PLAYS A DOMINANT ROLE IN MUCH OF SENEGAL'S ECONOMIC 
ACTIVITY.  DESPITE MEASURES TO PRIVATIZE STATE-OWNED COMPANIES, IT STILL 
HAS MAJORITY PARTICIPATIONS IN THE TELECOMMUNICATIONS, TRANSPORT, 
MINING, AND THE ELECTRIC POWER INDUSTRIES.  ALTHOUGH THE GOVERNMENT IS 
TRYING TO CREATE AN ENABLING ENVIRONMENT FOR PRIVATE SECTOR DEVELOPMENT, 
THERE IS STILL NOTICEABLE HESITANCY FROM THE PRIVATE SECTOR TO UNDERTAKE 
NEW INVESTMENT. 
 
IN IMPLEMENTING KEY ECONOMIC REFORMS, THE GOVERNMENT IS COMMITTED TO 
PRIVATIZE 15 ENTERPRISES DURING THE NEXT THREE YEARS.  THE PRIVATIZATION 
PROGRAM INCLUDES THE FOLLOWINGS PARASTATALS: SONACOS (PEANUT OIL), 
SONEES (WATER), SENELEC (ELECTRCITY), SONATEL (TELECOMMUNICATIONS), AND 
SSPT (PHOSPHATES).  SO FAR PROGRESS HAS BEEN SLOW.  IT IS NOT CLEAR WHAT 
THE SOURCES OF FINANCING FOR THE SALE OF THE 15 COMPANIES TO BE 
PRIVATIZED WOULD BE FOR LOCAL INVESTORS. 
 
STRUCTURALLY, THE GOVERNMENT'S 1995 BUDGET PRIORITIES REMAIN THE SAME AS 
IN PREVIOUS YEARS.  ITS INVESTMENT PROGRAM FOCUSES PARTICULARLY ON 
AGRICULTURE, ON PUBLIC SOCIAL SERVICES GROUPED AS THE "FOURTH SECTOR" 
(PUBLIC HEALTH, EDUCATION, WATER SUPPLY), AND ON THE REHABILITATION AND 
MAINTENANCE OF EXISTING INFRASTRUCTURE. 
 
BALANCE OF PAYMENTS 
------------------- 
 
DURING 1994, SENEGAL'S BALANCE OF PAYMENTS IMPROVED SLIGHTLY.  THE 
MERCHANDISE TRADE DEFICIT DECREASED BY NEARLY 32.8 PCT.  IN 1994, TOTAL 
EXPORT EARNINGS WERE STRONG ENOUGH TO COVER 75 PCT OF IMPORTS, COMPARED 
TO 63 PCT IN 1993.  EXCEPTIONALLY HIGH LEVELS OF FINANCIAL ASSISTANCE 
FROM DONORS AND THE PARIS CLUB DEBT RESCHEDULING LIMITED THE CURRENT 
ACCOUNT DEFICIT TO THE EQUIVALENT OF 1.0 PCT OF GDP IN 1994, AND CLOSED 
THE FINANCING GAP. 
 
INFRASTRUCTURE SITUATION:  GOODS/SERVICE DISTRIBUTION 
----------------------------------------------------- 
 
SENEGAL HAS A GENERALLY WELL-DEVELOPED BUSINESS INFRASTRUCTURE, 
ESPECIALLY WHEN COMPARED TO OTHER COUNTRIES IN THE REGION. 
 
 
 
THE AIRPORT AT DAKAR-YOFF IS ONE OF THE PRINCIPAL INTERNATIONAL AIRPORTS 
IN WEST AFRICA AND CAN HANDLE ALL TYPES OF AIRCRAFTS ON ITS TWO RUNWAYS.  
DAKAR-YOFF AIRPORT SERVES MORE THAN 24 INTERNATIONAL AIRLINES, HANDLES 
APPROXIMATELY 1.5 MILLION PASSENGERS PER YEAR, AND MOVES MORE THAN 
20,000 METRIC TONS OF INTERNATIONAL AIR FREIGHT.  THERE ARE DIRECT 
FLIGHTS TO EUROPE AND NORTH AMERICA, AND FREQUENT FLIGHTS TO OTHER 
AFRICAN COUNTRIES.  SECONDARY AIRPORTS ARE LOCATED IN THE REGIONS OF 
SAINT LOUIS, TAMBACOUNDA, AND ZIGUINCHOR. 
 
SENEGAL'S RAIL NETWORK, WHILE SOMEWHAT ANTIQUATED, CARRIES MORE THAN 3 
MILLION TONS OF CARGO PER YEAR.  IT LINKS SENEGAL'S MAJOR CITIES TO THE 
CAPITAL, AND PROVIDES SERVICE BETWEEN SENEGAL AND MALI. 
 
DAKAR'S PORT HAS MORE THAN 9,000 METERS OF QUAYS AND 43 BERTHS, OF WHICH 
40 ARE SUITABLE FOR SHIPS UP TO 40,000 MT.  THE PORT IS ONE OF THE FEW 
IN AFRICA WITH A FLOATING DRY DOCK, A CONTAINER TERMINAL, AND CONTAINER 
SERVICE.  IT HAS A FISH PIER WITH SITES RESERVED EXCLUSIVELY FOR COLD 
STORAGE AND REPAIR, AND MAINTENANCE OF FISHING FLEETS.  HOWEVER, PORT 
CHARGES ARE HIGH AND SERVICE IS INEFFICIENT; THE VOLUME OF TRANSIT TRADE 
FOR MALI HAS FALLEN AS FIRMS IN MALI HAVE CHOSEN TO BRING IN A GROWING 
PERCENTAGE OF THEIR TARDE VIA ROAD FROM COTE D'IVOIRE. 
 
--------------------------- 
III.  POLITICAL ENVIRONMENT 
--------------------------- 
 
BILATERAL RELATIONSHIP WITH THE UNITED STATES 
--------------------------------------------- 
 
SENEGAL ENJOYS AN EXCELLENT RELATIONSHIP WITH THE UNITED STATES.  THE 
GOVERNMENT OF SENEGAL IS KNOW AND RESPECTED FOR ITS ABLE DIPLOMATS AND 
HAS OFTEN BEEN SUPPORTIVE OF THE U.S. IN THE UNITED NATIONS, INCLUDING 
IN TROOP CONTRIBUTIONS FOR PEACEKEEPING ACTIVITIES.  SOME 200 SENEGALESE 
STUDENTS COME TO THE U.S. EACH YEAR FOR STUDY.  THE U.S. AGENCY FOR 
INTERNATIONAL DEVELOPMENT PROVIDES APPROXIMATELY 30 MILLION DOLLARS PER 
YEAR IN ASSISTANCE. 
 
SYNOPSIS OF POLITICAL SYSTEM 
---------------------------- 
 
SENEGAL IS A REPUBLIC WITH AN ELECTED PRESIDENT, ABDOU DIOUF, WHO HAS 
BEEN IN OFFICE SINCE 1981.  THE COUNTRY HAS A UNICAMERAL LEGISLATURE 
WHICH HAS BEEN CONTROLLED  BY THE PRESIDENT'S SOCIALIST PARTY SINCE 
INDEPENDENCE FROM FRANCE IN 1960. 
 
PRESIDENT DIOUF AND THE SOCIALIST PARTY AGAIN WON PRESIDENTIAL ELECTIONS 
IN FEBRUARY 1993 AND LEGISLATIVE ELECTIONS IN MAY 1993, GAINING 84 OF 
120 NATIONAL ASSEMBLY SEATS.  THE OPPOSITION PARTIES, LED BY THE 
SENEGALESE DEMOCRATIC PARTY, WON 27 SEATS.  THOUGH DIOUF AND THE 
SOCIALISTS CLEARLY HAD MAJORITIES, BOTH ELECTIONS WERE MARRED BY 
ACCUSATIONS OF FRAUD AND IRREGULARITIES. 
 
PRESIDENT DIOUF'S MANDATE RUNS TO THE YEAR 2000.  MUNICIPAL ELECTIONS 
WILL BE HELD IN LATE 1995. 
 
POLITICAL ISSUES AFFECTING BUSINESS CLIMATE 
------------------------------------------- 
 
DESPITE ECONOMIC DIFFICULTIES, BUSINESSES DO NOT PERCEIVE ANY IMMEDIATE 
INSTABILITY IN THE POLITICAL SITUATION.  THERE IS CONCERN FOR THE MEDIUM 
TERM ABOUT THE GROWING PRESSURES OF POPULATION GROWTH, URBAN 
UNEMPLOYMENT, AND THE RECENT ACTIVITY OF SEPARATISTS IN THE SOUTHERN 
CASAMANCE REGION. 
 
IN MARCH 1995, PRESIDENT DIOUF ENLARGED HIS GOVERNMENT TO INCLUDE FOUR 
OPPOSITION PARTIES.  ABDOULAYE WADE, FOR MANY YEARS THE MOST INFLUENTIAL 
OPPOSITION FIGURE, AND HIS SENEGALESE DEMOCRATIC PARTY (PDS) TOOK FIVE 
MINISTERIAL PORTFOLIOS OUT OF A TOTAL OF 34 SEATS.  WADE ACCEPTED THE 
POST OF MINISTER OF STATE WITHOUT PORTFOLIO, REPORTING DIRECTLY TO 
PRESIDENT DIOUF.  OPPOSITION PARTIES TEND TO BE PERSONALITY-DRIVEN AND 
THEIR APPROACH TO ECONOMIC MATTERS DOES NOT DIFFER PERCEPTIBLY FROM THAT 
OF THE RULING SOCIALIST PARTY.  THE RULING SOCIALIST PARTY RETAINS ITS 
STRENGTH, ESPECIALLY IN THE COUNTRYSIDE.  
 
SENEGAL'S HUMAN RIGHTS RECORD IS POSITIVE.  THE SENEGALESE ARMY IS NON-
POLITICAL AND HIGHLY PROFESSIONAL.  WHILE THE JUDICIARY IS IN NEED OF 
STRENGTHENING AS AN INSTITUTION, THERE IS DE FACTO AND DE JURE RESPECT 
FOR CIVIL LIBERTIES, INCLUDING FREEDOM OF SPEECH AND PRESS, ASSOCIATION, 
MOVEMENT, AND RESPECT FOR THE RIGHT OF CITIZENS TO CHANGE THEIR 
GOVERNMENT. 
 
----------------------------------------- 
IV.  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.  ABOUT 38 PCT OF THE POPULATION LIVES IN 
URBAN AREAS AND 25 PCT IS CONCENTRATED IN DAKAR. 
 
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.  EXISTING  ALONGSIDE THESE COMPANIES ARE 
EXTREMELY COMPETITIVE SMALL-SCALE TRADERS SPECIALIZING IN THE WHOLESALE 
AND RETAIL DISTRIBUTION OF FABRICS AND CONSUMER GOODS.  IN THE PAST, 
LEBANESE MERCHANTS WERE THE INTERFACE BETWEEN FRENCH TRADING COMPANIES 
AND THE LOCAL POPULATION.  NOW, THEY ARE GRADUALLY BEING REPLACED BY 
SENEGALESE MERCHANTS SELLING POPULAR CONSUMER GOODS SUCH AS TEXTILES AND 
ELECTRONICS. 
 
A LIMITED NUMBER OF LARGER RETAIL STORES SUCH AS SUPERMARKETS DEAL IN 
MOSTLY IMPORTED GOODS, BUT THE EFFECTS OF DEVALUATION AND DECLINING 
PURCHASING POWER ARE THREATENING THEIR EXISTENCE. 
 
THE TRADITIONAL OR INFORMAL SECTOR IS IN VIBRANT EXPANSION IN SENEGAL.  
IT INCLUDES AROUND 30,000 SMALL BUSINESSES EMPLOYING 57,000 PERSONS.  A 
SIZEABLE PORTION OF DOMESTIC TRADE IS CARRIED OUT BY INFORMAL TRADERS IN 
MUNICIPAL AND STREET MARKETS.  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.  INFORMAL STREET VENDORS MAKE UP A DYNAMIC, 
IF SOMEWHAT MARGINALIZED, SUB-COMPONENT OF THE INFORMAL SECTOR.   
 
TO PROMOTE THE SALE OF U.S. PRODUCTS, U.S. COMPANIES ARE ADVISED TO 
PROVIDE BROCHURES AND MARKETING LITERATURE IN FRENCH. 
 
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 BUSINESSMAN/FIRM, FLUENT IN FRENCH AND AWARE OF 
SENEGAL'S BUSINESS PRACTICES.  UNLESS THE U.S. EXPORTERS REQUIRES AN 
EXCLUSIVE DEALERSHIP/DISTRIBUTIONSHIP, IT IS VERY COMMON TO SEE A 
DISTRIBUTOR REPRESENTING SEVERAL PRODUCT LINES. 
 
U.S. BUSINESSMEN MAY APPROACH THE U.S. EMBASSY IN DAKAR THROUGH THE 
DEPARTMENT OF COMMERCE AND ITS DISTRICT OFFICES IN THE UNITED STATES TO 
REQUEST AN AGENT/DISTRIBUTOR SEARCH. 
 
FRANCHISING 
----------- 
 
FRANCHISING DOES NOT EXIST IN SENEGAL.  UNDER-CAPITALIZATION OF MANY 
LOCAL COMPANIES HINDERS THE DEVELOPMENT OF THIS FORM OF PARTNERSHIP. 
 
DIRECT MARKETING 
--------------- 
 
IDENTIFICATION OF MARKETS BY COMPANIES LARGELY UNFAMILIAR WITH 
SENEGALESE CULTURE AND THE LOCAL BUSINESS ENVIRONMENT SERIOUSLY 
CHALLENGES DIRECT MARKETING EFFORTS.    
 
JOINT VENTURES/LICENSING 
------------------------ 
 
THE SENEGALESE INVESTMENT CODE PROVIDES INCENTIVES FOR JOINT VENTURE 
BUSINESS OPERATIONS.  HOWEVER, 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. 
 
STEPS TO ESTABLISHING AN OFFICE 
------------------------------- 
 
ESTABLISHING A BUSINESS IN SENEGAL AND QUALIFYING FOR INVESTMENT 
INCENTIVES HAS BEEN SIMPLIFIED THROUGH CREATION OF THE "GUICHET UNIQUE," 
OR ONE-STOP-WINDOW.  THIS IS AN OFFICE OF THE MINISTRY OF FINANCE.  IT 
CENTRALIZES ALL THE PAPERWORK REQUIRED FOR THE CREATION OF A BUSINESS IN 
SENEGAL.  MOST BUSINESSES CAN BE SET UP WITHIN 30-45 DAYS. 
 
THE MOST COMMON LEGAL FORMS OF INCORPORATION ARE THE LIMITED LIABILITY 
COMPANY (SOCIETE A RESPONSABILITE LIMITEE - SARL) AND THE STOCK 
CORPORATION (SOCIETE ANONYME - SA).  ALL SARLS MUST HAVE A MINIMUM PAID-
UP CAPITAL OF CFAF 500,000 (APPROX USD 1,000) AND AT LEAST TWO 
SHAREHOLDERS.  THE MINIMUM CAPITAL REQUIRED TO CREATE A STOCK 
CORPORATIONS IS CFAF 2M (APPROX USD 4,000) WITH A MINIMUM OF 7 
SHAREHOLDERS. 
 
IT IS RECOMMENDED THAT COMPANIES CONSULT WITH THE COMMERCIAL SECTION OF 
THE U.S. EMBASSY FOR GUIDANCE AND ASSISTANCE.  THE EMBASSY CAN PROVIDE 
NAMES AND POINTS OF CONTACT TO ENSURE PROPER REGISTRATION. 
 
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 OR TELEMARKETING.   
 
PACKAGING IN SMALL AND REUSABLE CONTAINERS IS AN IMPORTANT SELLING 
FACTOR FOR CONSUMER GOODS SUPPLIERS. 
 
ADVERTISING AND TRADE PROMOTION 
------------------------------- 
 
THE SENEGALESE MARKET IS NOT A SOPHISTICATED ONE, THEREFORE U.S. 
COMPANIES DO NOT NEED TO USE ADVANCED MARKETING TECHNIQUES TO SELL THEIR 
PRODUCTS.  TELEVISION IS THE MOST EFFECTIVE MEDIUM OF ADVERTISING AND 
THE COSTS ARE RELATIVELY MODEST:  A SIXTY-SECOND SPOT ON TELEVISION 
DURING PEAK HOURS (7:30 PM-9:30 PM) COSTS CFAF 498,000 (APPROX. USD 
860).  ADVERTISING IS AVAILABLE IN OTHER MEDIA AS WELL - NEWSPAPERS, 
MAGAZINES, BILLBOARD, AND RADIO.  SPONSORING A SPORTS TEAM, LOCAL BANDS 
AND MUSIC STARS IS ANOTHER EFFECTIVE TACTIC:  MARLBORO, FOR INSTANCE, 
SPONSORS THE SENEGALESE STAR YOUSSOU NDOUR.  THE ADVICE OF LOCAL MARKET 
RESEARCH ORGANIZATIONS SHOULD BE SOUGHT BEFORE EMBARKING ON A PUBLICITY 
CAMPAIGN.  CONTACT INFORMATION FOR SENEGALESE MEDIA IS LISTED IN 
APPENDIX E. 
   
THERE ARE HALF A DOZEN NEWSPAPERS PUBLISHED REGULARLY IN SENEGAL, BUT 
THE READING PUBLIC IS RELATIVELY LIMITED AND CONFINED TO DAKAR.  THE 
QUASI-OFFICIAL LE SOLEIL (50,000 CIRCULATION) IS A DAILY.  THE MAJOR 
POPULAR INDEPENDENT NEWSPAPERS INCLUDE SUD QUOTIDIEN (20,000 TO 40,000 
DAILY CIRCULATION), WAL FADJRI (15,000 DAILY), THE SATIRICAL CAFARD 
LIBERE (12,000 WEEKLY) AND LE TEMOIN (7,000 WEEKLY).  NATIONAL 
NEWSPAPERS ARE IN FRENCH WITH A WEEKLY INSERT IN ETHNIC LANGUAGES. 
 
VARIOUS TRADE ORGANIZATIONS PUBLISH BULLETINS AND NEWSLETTERS SUCH AS 
THAT OF THE DAKAR CHAMBER OF COMMERCE, "CICES-INFO" FROM THE SENEGALESE 
TRADE CENTER  AND THE PERIODICAL "ENTREPRENDRE" ISSUED BY THE NATIONAL 
COUNCIL OF BUSINESS LEADERS. 
 
SEVERAL EUROPE-BASED MAGAZINES ENJOY A WIDE CIRCULATION, INCLUDING JEUNE 
AFRIQUE, PARIS MATCH, L'EXPRESS, LE POINT, L'EVENEMENT DU JEUDI, AS WELL 
AS THE EUROPEAN EDITIONS OF TIME MAGAZINE AND NEWSWEEK. 
 
PRICING PRODUCT 
--------------- 
 
PRICE IS THE MOST IMPORTANT FACTOR IN SELLING IN SENEGAL, FOLLOWED 
CLOSELY BY LIBERAL CREDIT TERMS AND  
FINANCING PACKAGES.   
 
SALES SERVICE/CUSTOMER SUPPORT 
------------------------------ 
 
AFTER-SALES SUPPORT AND SERVICE IS CRITICAL FOR SOPHISTICATED AND HEAVY 
INDUSTRIAL EQUIPMENT SUCH AS COMPUTER HARDWARE AND SOFTWARE, 
PHOTOCOPIERS, TELECOMMUNICATIONS BIG TICKET ITEMS, AND INDUSTRIAL 
MACHINERY.  HOWEVER, PRODUCT RECALLS ARE VIRTUALLY UNKNOWN IN SENEGAL. 
 
SELLING TO THE GOVERNMENT 
------------------------- 
 
GOVERNMENT PURCHASING IS A SIGNIFICANT FACTOR IN SENEGAL.  NEARLY ALL 
SUCH PURCHASING IS DONE THROUGH COMPETITIVE BIDDING.  THIS INCLUDES 
MAJOR INFRASTRUCTURE PROJECTS FINANCED BY INTERNATIONAL LENDING 
ORGANIZATIONS SUCH AS THE WORLD BANK AND THE AFRICAN DEVELOPMENT BANK 
(AFDB). 
 
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 CONTACT MS. BARBARA WHITE, PROJECT MANAGER AFDB, OFFICE OF 
FINANCE, U.S. DEPARTMENT OF COMMERCE, WASHINGTON, D.C. 20230. 
 
PARASTATALS ARE ALSO BIG PURCHASERS OF EQUIPMENT AND SUPPLIES.  CALLS 
FOR BIDS ARE PUBLISHED IN THE LOCAL NEWSPAPERS.  THE U.S. EMBASSY IN 
DAKAR MONITORS REQUESTS FOR TENDER AND REPORTS TO THE U.S. DEPARTMENT OF 
COMMERCE THOSE WHICH MAY BE OF INTEREST TO U.S. SUPPLIERS.  BID 
SPECIFICATIONS ARE IN FRENCH AND BIDDERS ARE REQUIRED TO SUBMIT 
PROPOSALS IN FRENCH. 
 
U.S. FIRMS CAN BID WITH THE ASSISTANCE OF A LOCAL AGENT IN ORDER TO 
COMPLY WITH THE RULES AND PROCEDURES ANNOUNCED BY PARASTATALS.  THE 
OFFICIAL TENDERS COMMISSION ("COMMISSION DES MARCHES") IS AN 
INTERMINISTERIAL WATCHDOG FOR ALL GOVERNMENT AND PARASTATAL INVITATIONS 
TO BID. 
 
PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT 
--------------------------------------------- 
 
SENEGAL MAINTAINS STANDARD INTELLECTUAL PROPERTY PROTECTION SAFEGUARDS, 
AND INVESTORS DO NOT REPORT PROBLEMS IN THIS AREA.  SENEGAL IS A 
SIGNATORY TO THE  BERNE COPYRIGHT CONVENTION.  IT IS ALSO A MEMBER OF 
THE AFRICAN ORGANIZATION OF INTELLECTUAL PROPERTY (OAPI), A GROUPING OF 
THIRTEEN FRANCOPHONE AFRICAN COUNTRIES.  OAPI IS A COMMON FRAMEWORK FOR 
INTELLECTUAL PROPERTY PROTECTION.  THEREFORE, RIGHTS REGISTERED IN ONE 
MEMBER COUNTRY ARE VALID IN ALL.  PATENT VALIDITY IS TWENTY YEARS.  
REGISTERED TRADEMARKS ARE PROTECTED FOR TWENTY YEARS AT EACH 
REGISTRATION, RENEWABLE WITHOUT LIMIT.   
 
REDRESS FOR INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS CAN BE SOUGHT 
THROUGH THE SENEGALESE COURT SYSTEM.  HOWEVER, THE LEGAL PROCEDURE IS 
VERY SLOW. 
 
NEED FOR A LOCAL ATTORNEY 
------------------------- 
 
ONCE THE DECISION TO OPEN A BUSINESS IN SENEGAL IS MADE, THE U.S. 
BUSINESSMAN WILL REQUIRE LEGAL COUNSEL AND A "NOTAIRE" (A NOTARY -- IN 
FRENCH PRACTICE, A PROFESSION WHICH IS MUCH MORE INFLUENTIAL THAN IN THE 
UNITED STATES) FOR ALL THE LEGAL FORMALITIES THAT LEAD TO THE CREATION 
OF THE BUSINESS.  THE EMBASSY HAS AVAILABLE A LIST OF LAWYERS AND 
NOTARIES.  IT IS ADVISABLE THAT U.S. FIRMS APPROACH FIRMS SPECIALIZING 
IN FINANCIAL AND TAXATION ADVISORY SERVICES.  WELL-QUALIFIED 
REPRESENTATIVES OF MAJOR U.S. AND INTERNATIONAL AUDITING AND BUSINESS 
CONSULTING FIRMS ARE LOCATED IN SENEGAL. 
 
--------------------------------------------------- 
V.  LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT 
--------------------------------------------------- 
 
WHEN AVAILABLE, THE STATISTICS BELOW ARE GIVEN THROUGH 1993.  THEY DO 
NOT REFLECT THE EFFECTS OF THE CFA FRANC DEVALUATION. 
 
BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES 
------------------------------------------------------ 
 
RANK OF SECTOR:  1 
NAME OF SECTOR:  TELECOMMUNICATIONS PRODUCTS AND SERVICES  
ITA INDUSTRY CODE:  TEL/TES 
 
ALTHOUGH TOTAL MARKET SIZE DECLINED FROM 1992 TO 1993, THE MARKET FOR 
TELECOMMUNICATIONS IS EXPECTED TO INCREASE:  THE NATION'S DEMAND FOR 
TELECOMMUNICATIONS PRODUCTS AND SERVICES IS GROWING RAPIDLY, NOT ONLY 
BECAUSE OF MAINLY URBAN POPULATION GROWTH AND COMMERCIAL EXPANSION, BUT 
ALSO BECAUSE OF THE SURGE IN NEW COMMUNICATIONS TECHNOLOGY NOW AVAILABLE 
WORLDWIDE. 
 
DATA TABLE (USD MILLIONS) 
                               1992       1993 
TOTAL MARKET SIZE               7.3        5.2 
TOTAL LOCAL PRODUCTION            0          0 
TOTAL EXPORTS                     0          0 
TOTAL IMPORTS                   7.3        5.2 
IMPORTS FROM THE U.S.           0.7        0.6 
 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES. 
 
INFRASTRUCTURE INVESTMENTS IN THE SECTOR HAVE INCREASED SIGNIFICANTLY.  
FROM CFAF 5 BILLION (USD 10 MILLION) IN 1990 THEY CLIMBED TO CFAF 12.7 
BILLION (USD 25.4 MILLION) IN 1993.  SONATEL, SENEGAL'S 
TELECOMMUNICATIONS PARASTATAL, IS ACTIVELY SEEKING IMPROVEMENT OF ITS 
TELECOMMUNICATIONS CAPABILITIES, CREATING POTENTIAL OPPORTUNITIES FOR 
INTERESTED U.S. FIRMS.  FURTHER, THE PROSPECT OF SONATEL'S PRIVATIZATION 
BODES WELL FOR U.S. TELECOMMUNICATIONS FIRMS.  UPCOMING SONATEL PROJECTS 
INCLUDE BIG TICKET ITEMS SUCH AS FULLY DIGITIZING ITS EXISTING 
TELECOMMUNICATIONS NETWORK, INSTALLATION OF A FIBER OPTIC NETWORK, AS 
WELL AS THE INSTALLATION OF A MODERN CELLULAR PHONE SYSTEM. 
 
FRENCH TELECOMMUNICATIONS COMPANIES HAVE A COMPETITIVE EDGE IN THE 
MARKET BECAUSE FRANCE, THROUGH THE VERY ACTIVE CAISSE FRANCAISE DE 
DEVELOPPEMENT (CFD), OFFERS TIED AND CONCESSIONAL FUNDING TO THE 
SENEGALESE GOVERNMENT FOR THE MODERNIZATION OF THE TELECOMMUNICATIONS 
SECTOR.  EMBASSY RECOMMENDS THAT U.S. FIRMS WORK WITH MULTILATERAL 
AND/OR BILATERAL FINANCIAL INSTITUTIONS TO GAIN MARKET SHARE.  THE 
AFRICAN DEVELOPMENT BANK, THE EUROPEAN INVESTMENT BANK, AND THE WEST 
AFRICAN DEVELOPMENT BANK ARE INVOLVED IN FINANCING SONATEL PROJECTS. 
 
RANK OF SECTOR:  2 
NAME OF SECTOR:  POWER GENERATION 
ITA INDUSTRY CODE:  ELP 
 
COMMERCIAL AND INVESTMENT OPPORTUNITIES RANGE FROM THE ACQUISITION OF 
SMALL DIESEL PLANTS, TO SUPPLYING GAS TURBINES, REHABILITATING THE 
ANTIQUATED POWER PLANTS AND SELLING ELECTRIC METERS.    
 
THE 1994-1998 TOTAL INVESTMENT PROGRAM FOR POWER GENERATION IS ESTIMATED 
AT USD 320M.  SENELEC, SENEGAL'S POWER PARASTATAL IS ACTIVELY SEEKING 
UPGRADES TO ITS EXISTING POWER GENERATION CAPABILITIES IN ORDER TO MEET 
A RAPIDLY GROWING DEMAND FOR INCREASED CAPACITY.  THE INVESTMENT PROGRAM 
OF INTEREST TO U.S. COMPANIES COVERS THE FOLLOWING AREAS: 
 
--  SUPPLY OF 50 MW OF ELECTRICITY THROUGH A BUILD, OWN, TRANSFER (BOT) 
ARRANGEMENT 
--  REHABILITATION OF POWER PLANT BOILERS 
--  EXTENSION OF EXISTING POWER PLANTS 
--  REINFORCEMENT OF THE REGIONAL POWER CENTERS THROUGH THE ACQUISITION 
OF SMALL DIESEL PLANTS WITH A CAPACITY OF 2.2 MW 
--  ACQUISITION OF TWO LOW-SPEED DIESEL PLANTS BUDGETED FOR USD 73 
MILLION, IN 1998 
--  CONSTRUCTION OF THE MANANTALI DAM, A JOINT PROJECT INVOLVING THE 
COUNTRIES OF SENEGAL, MALI AND GUINEA, IN 2002 
 
SUPPLIER CREDIT AS WELL AS FINANCING FROM FOREIGN BANKING AND 
DEVELOPMENT INSTITUTIONS GIVE A COMPETITIVE EDGE TO FOREIGN FIRMS.  
RECENTLY, FRANCE GRANTED A USD 6.9 MILLION LOAN ON VERY SOFT TERMS - 25 
YEARS, 3.25 PCT INTEREST RATE, 5-YEAR GRACE PERIOD - FOR THE 
REHABILITATION OF A POWER PLANT. 
 
DATA TABLE:  N/A 
 
RANK OF SECTOR:  3 
NAME OF SECTOR:  GOLD MINING/IRON ORE MINING 
ITA INDUSTRY CODE:  OGS 
 
SENEGAL'S GOLD MINING INDUSTRY IS "HIGHLY PROSPECTIVE."  THE SABODALA 
MINE IN EASTERN SENEGAL HAS PROVEN GOLD RESERVES OF 2.6 MILLION TONS OF 
ORE YIELDING 17 TONS OF METAL GOLD WITH AN AVERAGE GOLD GRADE OF 5 
GRAMS/TON.  (SOUTH AFRICAN MINES HAVE A GOLD GRADE AVERAGING 3 
GRAMS/TON.)  THE CURRENT LEVEL OF COMMITMENT TO ESTABLISHING MINES IN 
SENEGAL BY FOREIGN FIRMS BODES WELL FOR THE GROWTH OF THE SECTOR.  A 
NUMBER OF COMPANIES FROM SOUTH AFRICA (RANDGOLD, ANGLO-AMERICAN 
CORPORATION, AND GOLDEN STAR), GREAT BRITAIN (SAMAX), AUSTRALIA, AND 
CANADA (AGEM) HAVE ENTERED THE FIELD.  PRODUCTION MAY START IN 1996. 
 
LARGE RESERVES OF IRON ORE ALSO EXIST IN THE EASTERN PART OF THE 
COUNTRY.  AN ESTIMATED 650 MILLION TONS OF OXIDE ORE HAVE BEEN 
IDENTIFIED AND MIFERSO, SENEGAL'S PARASTATAL IRON ORE MINING COMPANY 
FORECASTS YEARLY PRODUCTION OF 12 MILLION TONS.  HOWEVER, FINANCING FOR 
THIS HUGE PROJECT IS THE STUMBLING BLOCK FOR A COUNTRY STRAPPED FOR 
FUNDS.  AN ESTIMATED USD 772.6 MILLION IS NEEDED FOR MINE EXPLORATION, 
THE CONSTRUCTION OF A RAILWAY (311 KILOMETERS), AND A MINERAL PORT. 
 
DATA TABLE:  N/A 
 
RANK OF SECTOR:  4 
NAME OF SECTOR:  USED CLOTHING 
ITA INDUSTRY CODE:  TXT 
 
SENEGAL'S RAPIDLY GROWING POPULATION AND LOW PER CAPITA INCOME HAS 
CREATED A HUGE DEMAND FOR USED CLOTHING.  THIS NEED IS NOT LIKELY TO 
SUBSIDE IN THE NEAR FUTURE AND OFFERS SOME INTERESTING OPPORTUNITIES FOR 
U.S. FIRMS ALREADY ENTRENCHED IN THE INDUSTRY.  PARTICULARLY IN DEMAND 
BY THE SENEGALESE ARE LOW-COST ACTIVE WEAR PRODUCTS SUCH AS SPORTS 
CLOTHING AND SHOES, AS WELL AS CASUAL/DRESS JEANS AND RELATED OUTERWEAR.  
HOWEVER, IN ORDER TO PROMOTE THE LOCAL TEXTILE INDUSTRY, STATE 
AUTHORITIES HAVE IMPOSED AN ANNUAL QUOTA OF 2,000 MT ON USED CLOTHING 
IMPORTS. 
 
DATA TABLE (USD MILLIONS) 
                           1992      1993 
TOTAL MARKET SIZE           2.5      2.8 
TOTAL LOCAL PRODUCTION        0        0 
TOTAL EXPORTS                 0        0 
TOTAL IMPORTS               2.5      2.8 
IMPORTS FROM THE U.S.         1      1.2 
 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTMATES. 
 
RANK OF SECTOR:  5 
NAME OF SECTOR:  COMPUTERS/PERIPHERALS 
ITA INDUSTRY CODE:  CPT 
 
ALTHOUGH ADVANCED BY MOST AFRICAN STANDARDS, SENEGAL FINDS ITSELF 
LAGGING BEHIND IN COMPUTER TECHNOLOGY AND IS ACTIVELY SEEKING U.S. 
INVOLVEMENT IN THIS AREA.  FRANCE IS THE LARGEST EXPORTER OF COMPUTERS, 
WITH 21 PCT OF THE MARKET, FOLLOWED CLOSELY BY THE U.S.  HOWEVER, IT 
SHOULD BE NOTED THAT A LARGE PORTION OF FRENCH EXPORTS CONSIST OF RE-
EXPORTED U.S.-MADE EQUIPMENT.  CONSEQUENTLY, DIRECT SALES OF U.S. 
EQUIPMENT BY U.S. FIRMS TO SENEGAL ARE TO BE ENCOURAGED SINCE FRENCH 
FIRMS MARK UP THE PRICE OF RE-EXPORTED U.S. EQUIPMENT MAKING THEM MORE 
EXPENSIVE FOR THE SENEGALESE. 
 
DATA TABLE (USD MILLIONS) 
                         1992    1993 
TOTAL MARKET SIZE         4.8    2.6 
TOTAL LOCAL PRODUCTION      0      0 
TOTAL EXPORTS               0      0 
TOTAL IMPORTS             4.8    2.6 
IMPORTS FROM THE U.S.     0.7    0.5 
 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES. 
 
RANK OF SECTOR:  6 
NAME OF SECTOR:  FOOD PROCESSING AND PACKAGING EQUIPMENT 
ITA INDUSTRY CODE:  FPP 
 
THE DEVALUATION OF THE CFA FRANC FOLLOWED BY AN INCREASE IN IMPORT 
PRICES ARE THE DRIVING FORCE BEHIND AN INCREASING INTEREST IN CREATING 
IMPORT-SUBSTITUTION INDUSTRIES.  THEREFORE, THERE IS A NEED FOR FOOD 
PROCESSING MACHINERY AND EQUIPMENT.  A NUMBER OF LOCAL BUSINESSMEN IN 
THIS SECTOR EXPRESSED A STRONG INTEREST FOR A RECENT TDA ORIENTATION 
VISIT TO THE U.S.  FOR INSTANCE, SENEGAL'S LARGEST PACKAGING COMPANY IS 
ACTIVELY SEEKING AN ELECTRIC WELDING LINE TO MEET FDA QUALITY CONTROL 
STANDARDS.  A MAJOR FISH PROCESSING FACTORY IS LOOKING FOR DOWNSTREAM 
INTEGRATION BY BEGINNING CANNING OPERATIONS. 
 
THE DECREASE IN DISPOSABLE INCOME OF SENEGALESE CONSUMERS HAS LED LOCAL 
MANUFACTURERS TO EXPLORE MICRO-PACKAGING IN ORDER TO REDUCE THE PRICE OF 
DISCRETE PURCHASES OF THEIR PRODUCTS.  U.S. INVESTORS KNOWLEDGEABLE IN 
THE MANUFACTURE OF CARDBOARD, PAPER, PLASTIC AND METAL CONTAINER 
PRODUCTS WOULD BE A WELCOME ADDITION TO THIS UNDER-DEVELOPED INDUSTRY.  
LOCAL TECHNICAL CAPABILITIES TO PRODUCE QUALITY PACKAGING ARE VERY 
LIMITED AND IN NEED OF IMPROVEMENT. 
 
AS PROBLEMS WITH SOLID WASTE INCREASE, THERE IS A NEED FOR U.S. 
TECHNOLOGY CAPABLE OF COLLECTING, RECYCLING AND REPRODUCING FOOD 
PACKAGING CONTAINERS LOCALLY. 
 
DATA TABLE:  N/A 
 
RANK OF SECTOR:  7 
NAME OF SECTOR:  MARINE FISHERIES PRODUCTS  
ITA INDUSTRY CODE:  MFI 
 
ALTHOUGH IT IS ONE OF SENEGAL'S BIGGEST FOREIGN EXCHANGE EARNERS, THE 
FISHING INDUSTRY SUFFERS EXTENSIVELY FROM THE DEGRADATION OF ITS 
EXISTING FLEET OF FISHING VESSELS AND SUPPORT FACILITIES.  THE FISHING 
SECTOR'S PRINCIPAL CHALLENGE IS TO MODERNIZE AND REEQUIP ITS OUTMODED 
AND INEFFICIENT FLEET, ALONG WITH ITS FISH PRODUCT PROCESSING 
FACILITIES.  FINANCING FOR THIS MASSIVE INDUSTRY IS SCARCE AND THUS, IN 
THE PAST, SENEGAL RELIED PRINCIPALLY ON FRANCE AS ITS TRADITIONAL 
TRADING PARTNER.  AS FRANCE LOOKS CLOSER TO HOME, U.S. INVESTMENT 
THROUGH LEASING OR JOINT VENTURE OPERATIONS COULD LEAD TO MANY 
OPPORTUNITIES INCLUDING THE SALE OF NEW AND USED FISHING VESSELS AND 
SUNDRY SUPPORT EQUIPMENT, AS WELL AS ITEMS USED IN FISH PRODUCT 
PROCESSING. 
 
DATA TABLE:  N/A 
 
RANK OF SECTOR:  8 
NAME OF SECTOR:  COSMETICS/TOILETRIES 
ITA INDUSTRY CODE:  COS 
 
U.S. COSMETICS ARE A HIGHLY REGARDED AND SOUGHT AFTER PRODUCT IN WEST 
AFRICA.  U.S. FIRMS GARNER A 16 PCT SHARE OF THE COSMETIC MARKET IN 
SENEGAL.  THE OTHER PRINCIPAL COMPETITOR IS FRANCE.  HIGH ON THE LIST OF 
PRODUCTS SOUGHT BY SENEGALESE CONSUMERS ARE HAIR, FACIAL AND SKIN CARE 
PRODUCTS.  LOCAL DISTRIBUTION COULD PROVE PROFITABLE TO U.S. INVESTORS. 
 
DATA TABLE (USD MILLIONS) 
                          1992      1993 
TOTAL MARKET SIZE          N/A      N/A 
TOTAL LOCAL PRODUCTION     N/A      N/A 
TOTAL EXPORTS              N/A      N/A 
TOTAL IMPORTS              3.4      3.6 
IMPORTS FROM THE U.S.      0.7      0.6 
 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES. 
 
RANK OF SECTOR:  9 
NAME OF SECTOR:  TRAVEL AND TOURISM 
ITA INDUSTRY CODE:  TRA 
 
TRAVEL AND RESORT OPERATORS MAY FIND AN ACTIVE MARKET IN SENEGAL.  
RECENTLY, THE SENEGALESE GOVERNMENT ANNOUNCED THE SALE OF 17 GOVERNMENT-
OWNED HOTELS, INCLUDING ONE ON GOREE ISLAND AS WELL AS IN THE  CASAMANCE 
AND PETITE COTE  TOURIST REGIONS.  KNOWN FOR ITS MILD CLIMATE, ENDLESS 
BEACHES AND GREAT SPORT FISHING, SENEGAL HAS LONG BEEN HIGHLY REGARDED 
AS A EUROPEAN TOURIST DESTINATION.  AS U.S. INTEREST IN WEST AFRICA 
INCREASES, SO MIGHT THE OPPORTUNITIES FOR U.S. COMPANIES SEEKING NEW 
TRAVEL DESTINATIONS. 
 
DATA TABLE:  N/A 
 
RANK OF SECTOR:  10 
NAME OF SECTOR:  USED AND RECONDITIONED EQUIPMENT 
ITA INDUSTRY CODE:  USD 
DATA TABLE:  N/A 
   
U.S. FIRMS INTERESTED IN JOINT VENTURE INVESTMENT IN SENEGAL'S TEXTILE 
INDUSTRY MAY FIND OPPORTUNITIES IN THE PROCUREMENT OF OPEN-END 
SPINNING/WEAVING FACTORIES.  THERE IS ALSO A HUGE DEMAND FOR USED 
EQUIPMENT IN THE FOOD AND RICE PROCESSING INDUSTRY. 
 
RANK OF SECTOR:  11 
NAME OF SECTOR:  PHARMACEUTICALS 
ITA INDUSTR CODE:  DRG 
 
AFTER THE DEVALUATION OF THE CFA FRANC, SENEGAL'S GOVERNMENT IS TAKING 
STEPS TO MAKE PHARMACEUTICAL PRODUCTS CHEAPER AND MORE READILY AVAILABLE 
TO LOCAL CONSUMERS.  THE GOVERNMENT INTRODUCED LEGISLATION WHICH WILL 
ALLOW PHARMACEUTICAL COMPANIES TO IMPORT AND DISTRIBUTE GENERIC 
PHARMACEUTICAL PRODUCTS ON THE LOCAL MARKET.  THE SENEGALESE MARKET FOR 
PHARMACEUTICALS IS DOMINATED BY FRENCH FIRMS.  U.S. FIRM WARNER 
LAMBERT/PARKE DAVIS, SIPOA (A JOINT VENTURE BETWEEN RHONE POULENC AND 
U.S. COMPANY ROHRER), AND VALDAFRIQUE SHARE THE LOCAL PRODUCTION OF 
PHARMACEUTICALS.  DIRECT SALES OF U.S. PHARMACEUTICALS TO SENEGAL DO NOT 
EXIST:  WARNER LAMBERT/PARKE DAVIS DAKAR IS A SUBSIDIARY OF PARKE DAVIS 
FRANCE. 
 
DATA TABLE (USD MILLIONS) 
                           1993    1994 
TOTAL MARKET SIZE           N/A    44 
TOTAL LOCAL PRODUCTION      N/A    4.8 
TOTAL EXPORTS               N/A    4 
TOTAL IMPORTS               N/A    43.2 
IMPORTS FROM THE U.S.         0    0 
 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES. 
 
BEST PROSPECTS FOR AGRICULTURAL GOODS 
------------------------------------- 
 
RANK OF SECTOR:  1 
NAME OF SECTOR:  RICE 
PS&D COMMODITY HEADING:  RICE, MILLED (0422110) 
 
SENEGAL IS ONE OF THE LARGEST RICE IMPORTERS IN THE WORLD.  RICE 
REPRESENTS 42 PCT OF THE SENEGALESE FOOD BASKET.  THE RECENT RICE IMPORT 
LIBERALIZATION COUPLED WITH A DRASTIC REDUCTION IN LOCAL PRODUCTION WILL 
LIKELY BOOST RICE IMPORTS, HENCE OFFER OPPORTUNITIES TO U.S. RICE 
EXPORTERS ALREADY ACTIVE IN THIS MARKET.  FURTHER, U.S. EXPORTERS COULD 
INCREASE THEIR MARKET SHARE IF THE U.S. GOVERNMENT MAINTAINS THE 
REGIONAL PRIVATE SECTOR GSM-102 PROGRAM. 
 
DATA TABLE (IN TMT)  
                           1993      1994 
TOTAL MARKET SIZE           540      500 
TOTAL LOCAL PRODUCTION      177      100 
TOTAL EXPORTS                 0        0 
TOTAL IMPORTS               363      400 
IMPORTS FROM THE U.S.        89       90 
 
RANK OF SECTOR:  2 
NAME OF SECTOR:  WHEAT 
PS&D COMMODITY HEADING:  WHEAT (0410000) 
 
WHEAT IMPORTS TO SENEGAL ROSE 3 PCT FROM 1993 TO 1994 TO MEET INCREASED 
CONSUMPTION DUE TO POPULATION GROWTH AND URBANIZATION.  PER CAPIT WHEAT 
CONSUMPTION IS ESTIMATED AT 20 KG AND COMES THIRD AFTER RICE AND MILLET.  
MARKET LIBERALIZATION SHOULD LEAD TO OPPORTUNITIES FOR U.S. COMPANIES IN 
THIS SECTOR, WHICH IS NOW ESSENTIALLY CONTROLLED BY FRENCH INTERESTS.  
THE GSM-102 EXPORT CREDIT GUARANTEE PROGRAM APPLIES TO SENEGAL. 
 
DATA TABLE (IN TMT) 
                          1993      1994 
TOTAL MARKET SIZE          185      190 
TOTAL LOCAL PRODUCTION       0        0 
TOTAL EXPORTS                0        0 
TOTAL IMPORTS              185      190 
IMPORTS FROM THE U.S.        9       10 
 
THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES. 
 
----------------------------------- 
VI. TRADE REGULATIONS AND STANDARDS 
----------------------------------- 
 
TRADE BARRIERS 
-------------- 
 
IN SENEGAL, TRADE IS NOW GENERALLY SUBJECT TO TARIFF RATHER THAN VOLUME 
CONTROLS.  TRADE CONDITIONS (TARIFF LEVELS, DUTY-FREE ACCESS) ARE 
AFFECTED BY MEMBERSHIP IN THE REGIONAL FREE TRADE AREAS, THE WEST 
AFRICAN ECONOMIC AND MONETARY UNION (UEMOA) AND ECONOMIC COMMUNITY OF 
WEST AFRICAN STATES (ECOWAS), AND BY ASSOCIATION WITH THE EUROPEAN 
UNION.  IN 1994, THE GOVERNMENT PHASED OUT MOST QUANTITATIVE 
RESTRICTIONS ON IMPORTS, DISCONTINUED EXPORT SUBSIDIES, ELIMINATED 
NUMEROUS PRICE CONTROLS, REDUCED TARIFF BARRIERS, AND DISMANTLED SOME 
MONOPOLISTIC AGREEMENTS.  SENEGAL IS EXPECTED TO TAKE FURTHER MEASURES 
TO LIBERALIZE ITS IMPORT SYSTEM AND TO RATIONALIZE ITS SYSTEM OF 
EFFECTIVE PROTECTION SOON. 
 
TARIFFS AND IMPORT TAXES 
------------------------ 
 
FOLLOWING THE CFA FRANC DEVALUATION, TARIFFS AND IMPORT TAXES WERE 
SIMPLIFIED: 
 
- GENERAL CUSTOMS DUTIES WERE REDUCED TO A FLAT RATE OF 10 PCT OF CIF 
VALUE EXCEPT FOR PRODUCTS IMPORTED FROM THE WEST AFRICAN ECONOMIC 
COMMUNITY (ECOWAS). 
 
- THE AD VALOREM FISCAL DUTY SCHEDULE WAS SIMPLIFIED TO FOUR LEVELS.  
THERE IS A 10 PCT DUTY ON "SOCIAL AND STRATEGIC GOODS" (E.G., 
PHARMACEUTICALS, RICE, AND WHEAT) AND CAPITAL GOODS AND INPUTS FOR 
INDUSTRY.  ALL IMPORTED CONSUMER GOODS NOT PRODUCED LOCALLY ARE SUBJECT 
TO THE ORDINARY FISCAL DUTY OF 20 PCT, WHILE THOSE COMPETING WITH LOCAL 
PRODUCTION ARE SUBJECT TO A 30 PCT RATE.  LUXURY GOODS ARE SUBJECT TO A 
50 PCT FISCAL DUTY. 
 
- THE CUSTOMS STAMP CHARGE WAS STANDARDIZED AT 5 PCT OF CIF VALUE ON ALL 
IMPORTED PRODUCTS, EXCEPT THOSE SPECIALLY EXEMPTED; AND THE VALUE ADDED 
TAX (VAT) WAS SIMPLIFIED FROM FIVE CATEGORIES TO TWO CATEGORIES ASSESSED 
AT 10 AND 20 PCT. 
 
CUSTOMS VALUATION 
----------------- 
 
SENEGAL HAS ADOPTED THE HARMONIZED SYSTEM NOMENCLATURE, EFFECTIVE JULY 
8, 1995.  PREVIOUSLY, THE COUNTRY USED THE BRUSSELS TARIFF NOMENCLATURE. 
 
IMPORT LICENSES 
--------------- 
 
THE IMPORT OF SOME PRODUCTS SUCH AS POTATOES, ONIONS, AND BANANAS IS 
SUBJECT TO PRIOR AUTHORIZATION.  SEVERAL MONOPOLIES ON GOODS IMPORTS 
HAVE BEEN ELIMINATED, AND LIBERALIZATION OF RICE IMPORTS IS EXPECTED BY 
FEBRUARY 1996. 
 
EXPORT CONTROLS 
--------------- 
 
THERE ARE NO RESTRICTION ON EXPORTS FROM SENEGAL.  AN EXPORT DUTY OF 20 
PCT REMAINS SUSPENDED, AND THE EXPORT SUBSIDY WAS ELIMINATED IN FEBRUARY 
1994. 
 
IMPORT/EXPORT DOCUMENTATION 
--------------------------- 
 
DOCUMENTS REQUIRED WHEN EXPORTING TO SENEGAL INCLUDE THE FOLLOWING: 
 
--  TWO COPIES OF THE COMMERCIAL INVOICE, WHICH SHOULD SHOW 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.) 
 
-- A PROFORMA INVOICE.  THIS SHOULD CONTAIN THE SAME INFORMATION AS THE 
COMMERCIAL INVOICE BUT MUST BE CERTIFIED BY A CHAMBER OF COMMERCE. 
 
-- A CERTIFICATE OF ORIGIN IS NECESSARY FOR ALL IMPORTED GOODS. 
 
BEGINNING IN LATE 1992 THE GOVERNMENT SET UP AN IMPORT INSPECTION 
PROGRAM ADMINISTERED BY THE MULTINATIONAL SOCIETE GENERALE DE 
SURVEILLANCE (SGS) IN AN EFFORT TO LIMIT FRAUD AND TAX LOSSES ON 
IMPORTED GOODS.  THIS SYSTEM IS STILL IN PLACE, AND THE AUTHORITIES HAVE 
RENEWED THE CONTRACT.  PRIOR TO SHIPPING, IMPORTERS MUST PROVIDE CUSTOMS 
OFFICIALS WITH DOCUMENTATION LISTING THE QUANTITY, QUALITY, AND PRICE OF 
THE PRODUCTS SUBJECT TO CUSTOMS DUTIES.  IMPORT PROCEDURES INCLUDE THE 
FOLLOWING: 
 
O   IMPORTERS MUST DEPOSIT A PRELIMINARY IMPORT DECLARATION SEVEN DAYS 
PRIOR TO SHIPPING IMPORTED GOODS HAVING A VALUE EQUAL TO OR GREATER THAN 
USD 2000. 
 
O  AUTOMATIC APPROVAL OF THE PRELIMINARY IMPORT DECLARATION IS OBTAINED 
BY SUBMITTING 3 COPIES OF THE PRO FORMA BILLS OF LADING WITH THE 
DECLARATION. 
 
O  A PRELIMINARY IMPORT DECLARATION IS VALID FOR 6 MONTHS AND CAN BE 
EXTENDED FOR 3 MONTHS.  PRELIMINARY IMPORT DECLARATIONS MUST BE 
CANCELLED AND REISSUED IF THERE IS A CHANGE IN SUPPLIER, AN INCREASE IN 
THE VALUE OF THE ORDER BY MORE THAN 10 PCT, OR A MODIFICATION IN THE 
QUANTITY OF THE ORDER. 
 
O  ANY PAYMENT FOR IMPORTED GOODS GREATER IN VALUE THAN CFA 500,000 (USD 
1000) MUST BE MADE THROUGH AN APPROVED SENEGALESE BANK OR FINANCIAL 
INSTITUTION. 
 
O  ANY FOB IMPORT VALUE EQUAL TO OR GREATER THAN CFA 1.5 MILLION (USD 
3000)  MUST BE INSPECTED BY SGS IN THE SUPPLIER'S COUNTRY PRIOR TO 
SHIPPING.  (SGS HAS IN AT LEAST ONE CASE DENIED PERMISSION FOR THE 
IMPORT OF U.S. FOODSTUFFS, ALLEGING PREDATORY PRICING.) 
 
O  PRESENTATION OF A CERTIFICATE OF VERIFICATION OF INSPECTION IS 
OBLIGATORY. 
 
TEMPORARY ENTRY 
--------------- 
 
GOODS IMPORTED FOR RE-EXPORT ARE SUBJECT TO A TEMPORARY ADMISSION SYSTEM 
AND ARE NOT ASSESSED FOR ANY PAYMENT OF CUSTOMS DUTIES.  THIS SYSTEM HAS 
BEEN ABUSED IN THE PAST, AND CUSTOMS OFFICIALS MAY BE PARTICULARLY 
DEMANDING IN ENFORCING REGULATIONS. 
 
LABELING AND MARKING REQUIREMENTS 
--------------------------------- 
 
THERE ARE NO NON-STANDARD REQUIREMENTS FOR LABELING OR MARKING. 
 
PROHIBITED IMPORTS 
------------------ 
 
PROHIBITED IMPORTS INCLUDE NARCOTICS, MUNITIONS, PORNOGRAPHIC MATERIALS, 
MATCHES, EXPLOSIVES AND PASSENGER TRANSPORT VEHICLES NOT SPECIFICALLY 
LICENSED FOR IMPORT. 
 
STANDARDS 
--------- 
 
SENEGAL HAS SIGNED THE TOKYO ROUND AGREEMENTS OF THE GENERAL AGREEMENT 
ON TARIFFS AND TRADE (GATT), WHICH PREVENT THE USE OF NATIONAL STANDARDS 
TO HAMPER FREE TRADE. 
 
FREE TRADE ZONES/WAREHOUSES 
--------------------------- 
 
THE DAKAR INDUSTRIAL FREE TRADE ZONE WAS ESTABLISHED IN 1974 TO 
ENCOURAGE FOREIGN INVESTORS TO SET UP INTENSIVE EXPORT-ORIENTED 
COMPANIES.  ITS STATUTE WAS WRITTEN TO EXPIRE AFTER TWENTY-FIVE YEARS, 
UNTIL 1999, AND MAY LEGALLY BE RENEWED OR ENDED. 
 
BONDED WAREHOUSES EXIST FOR GOODS TO BE RE-EXPORTED TO NEIGHBORING 
COUNTRIES.  GOODS IMPORTED UNDER THE WAREHOUSE SYSTEM BENEFIT FROM TOTAL 
SUSPENSION OF DUTIES AND TAXES FOR 12 MONTHS RENEWABLE. 
 
SPECIAL IMPORT PROVISIONS 
------------------------- 
 
QUANTITATIVE RESTRICTIONS ARE APPLIED TO USED CLOTHING AND USED 
AUTOMOBILES.  IMPORTS OF MEDICINES AND PHARMACEUTICALS ARE SUBJECT TO 
PRIOR APPROVAL BY THE MINISTRY OF HEALTH. 
 
MEMBERSHIP IN FREE TRADE ARRANGEMENTS 
------------------------------------- 
 
SENEGAL IS A MEMBER OF THE ECONOMIC COMMUNITY OF WEST AFRICAN STATES 
(ECOWAS), THE WEST AFRICAN ECONOMIC AND MONETARY UNION (UEMOA), THE LOME 
CONVENTION, AND THE GATT. 
 
------------------------ 
VII.  INVESTMENT CLIMATE 
------------------------ 
 
INVESTMENT BARRIERS 
------------------- 
 
THE GOVERNMENT OFFICIALLY WELCOMES FOREIGN INVESTMENT, BUT A HEAVY TAX 
BURDEN COMBINED WITH HIGH FACTOR COSTS HAVE BEEN OBSTACLES.  FOR 
EXAMPLE, THE PRICE OF ELECTRICITY IS ONE OF THE HIGHEST IN WEST AFRICA.  
THE PRICE OF WATER, TELECOMMUNICATIONS, AND LABOR COSTS ARE ALSO HIGH 
COMPARED TO OTHER CFA FRANC ZONE AFRICAN COUNTRIES.  BANKS ARE 
OVERLIQUID, BUT ARE REPORTEDLY UNWILLING TO LEND TO ANY BUT THE BEST 
CREDITS OR TO TAKE LONG TERM RISK. 
 
OPENNESS TO FOREIGN INVESTMENT 
------------------------------ 
 
SENEGAL OFFERS TAX HOLIDAYS AND TAX-FREE EXPORT PROCESSING ZONES TO 
ENCOURAGE FOREIGN INVESTMENT.  THERE IS NO DISCRIMINATION AGAINST 
BUSINESS CONDUCTED OR OWNED BY FOREIGN INVESTORS.  IN FACT, THERE ARE NO 
BARRIERS REGARDING 100 PCT OWNERSHIP OF BUSINESSES BY FOREIGN INVESTORS 
IN MOST SECTORS AREAS.  THE GOVERNMENT HAS STOPPED ITS PRACTICE OF 
PARTICIPATING IN FOREIGN INVESTMENT PROJECTS.  HOWEVER, INDUSTRIES SUCH 
AS RAILROADS, ELECTRICAL PRODUCTION, TELECOMMUNICATIONS AND POSTAL 
SERVICES REMAIN UNDER THE CONTROL OF PARASTATALS. 
 
SENEGAL'S INVESTMENT CODE PROVIDES EQUITABLE TREATMENT OF FOREIGN AND 
LOCAL FIRMS (ALSO GUARANTEED BY ITS BILATERAL INVESTMENT TREATY WITH THE 
U.S.).  FREE TRANSFER OF CAPITAL AND PROFITS IS GUARANTEED, AND THERE 
ARE SPECIAL INCENTIVES TO COMPANIES WILLING TO LOCATE OUTSIDE THE DAKAR 
REGION. 
 
THE GOVERNMENT HAS RECENTLY UNDERTAKEN A SERIES OF MEASURES IN ITS 
EFFORTS TO ATTRACT FOREIGN INVESTMENT.  THESE INCLUDE LIBERALIZATION OF 
ITS INVESTMENT CODE, DISMANTLEMENT OF MONOPOLIES, AND CREATION OF FREE 
POINTS (FACTORIES WITH DUTIES-FREE STATUS FOR INPUTS) THROUGHOUT THE 
COUNTRY.  FURTHER, IT HAS PRIVATIZED A NUMBER OF ITS PARASTATALS AND HAS 
ESTABLISHED A "ONE STOP WINDOW" TO ALLEVIATE THE ADMINISTRATIVE BURDEN 
NORMALLY ASSOCIATED WITH ESTABLISHING NEW ENTERPRISES.  AT THE 
INSISTENCE OF THE INTERNATIONAL FINANCIAL INSTITUTIONS THE GOVERNMENT 
REVISED ITS LABOR CODE TO PERMIT LAYOFFS WHEN ENTERPRISES FACE ECONOMIC 
DOWNTURNS. 
 
SENEGAL'S INVESTMENT CODE DEFINES ELIGIBILITY FOR INVESTMENT INCENTIVES 
ACCORDING TO A FIRM'S SIZE AND TYPES OF ACTIVITIES, THE AMOUNT OF THE 
POTENTIAL INVESTMENT, AND THE LOCATION OF THE PROJECT.  TO QUALIFY FOR 
INCENTIVES, THE INVESTMENT MUST BE OF AT LEAST CFA 5 MILLION (USD 10000) 
AND MUST CREATE A MINIMUM OF THREE JOBS.  ENTERPRISES OPERATING IN 
"PRIORITY" SECTORS ARE ELIGIBLE FOR INVESTMENT CODE ADVANTAGES.  THESE 
SECTORS INCLUDE: AGRICULTURE, FISHING, ANIMAL-REARING AND RELATED 
INDUSTRIES, MANUFACTURING, TOURISM, EXPLORATION AND MINING, BANKS AND 
FINANCIAL INSTITUTIONS, TRADING COMPLEXES, AND CULTURAL ACTIVITIES.  ALL 
BENEFIT FROM THE "COMMON REGIME" WHICH INCLUDES EXONERATION FROM DUTIES 
ON IMPORTS OF GOODS NOT PRODUCED LOCALLY (2 YEARS FOR SMALL AND MEDIUM 
SIZED FIRMS AND 3 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 PCT OF THEIR TOTAL INPUTS WITHIN A FISCAL YEAR.  ENTERPRISES AGREEING 
TO LOCATE IN LESS INDUSTRIALIZED AREAS OF SENEGAL BENEFIT FROM 
EXONERATION OF THE LUMP SUM PAYROLL TAX OF 3 PCT, WITH THE EXONERATION 
RUNNING FROM 5 TO 12 YEARS DEPENDING ON THE LOCATION OF THE INVESTMENT.   
THE INVESTMENT CODE PROVIDES FOR EXEMPTION FROM INCOME TAX, DUTIES AND 
TAXES, PHASED OUT PROGRESSIVELY OVER THE LAST THREE YEARS OF THE 
EXONERATION PERIOD.  INCENTIVES ARE AUTOMATICALLY GRANTED TO INVESTMENT 
PROJECTS MEETING THE ABOVE CRITERIA. 
 
THE ESTABLISHMENT OF A ONE-STOP WINDOW ("GUICHET UNIQUE") AT THE 
MINISTRY OF FINANCE WAS DESIGNED TO REDUCE DELAYS IN EXAMINING AND 
APPROVING PRIVATE INVESTMENT PROGRAMS.  APPLICATIONS FOR AUTHORIZATION 
ARE EXAMINED WITHIN A ONE MONTH PERIOD AND ABSENT OBJECTIONS WITHIN THAT 
PERIOD ARE CONSIDERED APPROVED.  ALL SERVICES PROVIDED BY THE WINDOW ARE 
FREE. 
 
CONVERSION AND TRANSFER POLICIES 
-------------------------------- 
 
PRESENTLY THERE ARE NO RESTRICTIONS ON THE TRANSFER OR REPATRIATION OF 
CAPITAL AND INCOME EARNED, OR INVESTMENTS FINANCED WITH CONVERTIBLE 
FOREIGN EXCHANGE.  THOUGH INDIVIDUALS ARE LIMITED IN THE AMOUNT OF 
FOREIGN CURRENCY THEY MAY OBTAIN FOR TRIPS OUTSIDE OF SENEGAL, 
COMMERCIAL TRANSFERS ARE NORMALLY CARRIED OUT RAPIDLY AND IN FULL BY 
LOCAL BANKING INSTITUTIONS.  THE CFA FRANC, USED BY SENEGAL AND OTHER 
ZONE COUNTRIES WAS DEVALUED IN EARLY 1994 BUT REMAINS PEGGED TO THE 
FRENCH FRANC AT THE RATE OF 100 CFA EQUALS 1FF.  CURRENTLY 1 USD EQUALS 
ABOUT CFA 500. 
 
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 AREAS IN ORDER TO FORM PARASTATALS.  IN 
EACH CASE, ADEQUATE COMPENSATION WAS PAID TO THE AFFECTED FOREIGN 
INVESTORS.  THIS PRACTICE WAS ABANDONED AND MANY OF THE FIRMS INVOLVED 
HAVE SINCE BEEN RE-PRIVATIZED. 
 
DISPUTE SETTLEMENT 
------------------ 
 
SENEGAL IS A MEMBER OF THE INTERNATIONAL CENTER FOR THE SETTLEMENT OF 
INVESTMENT DISPUTES (WASHINGTON CONVENTION).   THERE HAVE BEEN NO RECENT 
MAJOR INVESTMENT DISPUTES IN SENEGAL.  THE INVESTMENT CODE PROVIDES FOR 
SETTLEMENT OF DISPUTES VIA DUE PROCESS OF THE LAW PRESCRIBED IN THE 
SENEGALESE JUDICIAL SYSTEM.  IF REQUIRED, ARBITRATION IS CARRIED OUT 
ACCORDING TO AGREEMENTS CONCERNING THE PROTECTION OF INVESTMENTS BETWEEN 
SENEGAL AND THE STATE OF ORIGIN OF THE PRIVATE PERSON OR LEGAL ENTITY.  
IN THE ABSENCE OF SUCH AGREEMENTS, ARBITRATION IS GOVERNED BY THE MODEL 
RULES ON ARBITRAL PROCEDURE ADOPTED BY THE UNITED NATIONS INTERNATIONAL 
LAW COMMISSION IN 1958 AND COMMENDED TO MEMBER STATES BY UNITED NATIONS 
GENERAL ASSEMBLY RESOLUTION NUMBER 1262. 
 
PERFORMANCE REQUIREMENTS/INCENTIVES 
----------------------------------- 
 
IN ORDER TO QUALIFY FOR INVESTMENT INCENTIVES, SMALL- AND MEDIUM-SIZED 
FIRMS ARE REQUIRED TO INVEST AT LEAST CFA 5 MILLION (USD 10,000), EMPLOY 
AT LEAST 3 SENEGALESE NATIONALS FULL-TIME, AND KEEP REGULAR ACCOUNTS IN 
A STANDARD FORMAT.  FURTHER, A NEW FIRM OR AN EXISTING FIRM REQUESTING 
AN EXTENSION OF SUCH INCENTIVES MUST BE AT LEAST 20 PCT SELF-FINANCED; 
30 PCT SELF-FINANCING IS REQUIRED FOR OTHER TYPES OF FIRMS.   LARGE 
FIRMS (THOSE WITH AT LEAST CFA 200 MILLION IN EQUITY CAPITAL OR USD 
400,000) ARE REQUIRED TO CREATE AT LEAST 50 FULL-TIME POSITIONS FOR 
SENEGALESE NATIONALS, TO CONTRIBUTE HARD CURRENCY EQUIVALENT TO AT LEAST 
CFA 100 MILLION (APPROX. USD 200,000) AND TO KEEP REGULAR ACCOUNTS IN 
CONFORMITY WITH SENEGALESE STANDARDS.  FURTHER, FIRMS MUST REPORT ON 
COMPANY PRODUCTS, PRODUCTION, EMPLOYMENT AND CONSUMPTION OF RAW 
MATERIAL. 
 
RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT 
-------------------------------------------- 
 
IN ADDITION TO THE TRADITIONAL GUARANTEES OFFERED TO INVESTORS, E.G., 
FREE TRANSFER OF CAPITAL AND INCOME, AS WELL AS EQUAL TREATMENT (FOREIGN 
AND DOMESTIC PRIVATE ENTITIES ARE PERMITTED TO ESTABLISH AND OWN 
BUSINESSES AND TO ENGAGE IN MOST FORMS OF REMUNERATIVE ACTIVITY), OTHER 
ADVANTAGES GRANTED COVER BOTH A FIRM'S INVESTMENT AND OPERATION.  LOCAL 
MAJORITY OWNERSHIP IS NOT NECESSARY.  OF THE STATE-OWNED FIRMS RECENTLY 
PRIVATIZED, SEVERAL WERE SOLD IN PART OR IN WHOLE TO FOREIGN ENTITIES. 
 
PROTECTION OF PROPERTY RIGHTS 
----------------------------- 
 
THE SENEGALESE LEGAL SYSTEM ENFORCES PRIVATE RIGHTS.  SENEGAL IS A 
MEMBER OF THE AFRICAN ORGANIZATION OF INDUSTRIAL PROPERTY (OAPI), 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 SINCE ITS INCEPTION AND IS A MEMBER OF THE BERNE COPYRIGHT 
CONVENTION.  LOCAL STATUTES RECOGNIZE RECIPROCAL PROTECTION FOR AUTHORS 
OR ARTISTS WHO ARE NATIONALS OF COUNTRIES ADHERING TO THE 1971 PARIS 
CONVENTION ON INTELLECTUAL PROPERTY RIGHTS. 
 
-- PATENTS ARE PROTECTED FOR TWENTY YEARS.  AN ANNUAL CHARGE IS LEVIED 
DURING THIS PERIOD.  TRADE SECRETS AND COMPUTER CHIP DESIGNS ARE 
RESPECTED. 
 
-- REGISTERED TRADEMARKS ARE PROTECTED FOR A PERIOD OF TWENTY YEARS.  
TRADEMARKS MAY BE RENEWED INDEFINITELY BY SUBSEQUENT REGISTRATIONS. 
 
-- AS FOR COPYRIGHTS, SENEGAL IS A SIGNATORY TO THE BERNE COPYRIGHT 
CONVENTION.  THE SENEGALESE OFFICE OF AUTHORS RIGHTS, PART OF THE 
MINISTRY OF FINANCE, HAS THE ROLE OF ENFORCING COPYRIGHT OBLIGATIONS. 
 
REGULATORY SYSTEM:  LAWS AND PROCEDURES 
--------------------------------------- 
 
LEGAL, REGULATORY AND ACCOUNTING SYSTEMS CLOSELY FOLLOW FRENCH MODELS. 
 
EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT 
-------------------------------------------------- 
 
THERE IS NO SENEGALESE STOCK MARKET OR OVER-THE-COUNTER MARKET IN 
SHARES; CREDIT TO INDUSTRY IS PROVIDED EXCLUSIVELY BY BANK LOANS OR 
THROUGH SPECIAL LINES OF CREDIT FROM BILATERAL DONORS OR INTERNATIONAL 
INSTITUTIONS.  CREDIT IS AVAILABLE WITHOUT DISCRIMINATION BUT THE TIGHT 
MONETARY POLICY OF THE WEST AFRICAN CENTRAL BANK MAKES IT PROHIBITIVELY 
EXPENSIVE FOR ALL BUT THE HIGHEST YIELDING PROJECTS.  THE CURRENT 
COMMERCIAL COST OF FUNDS IS 17-20 PCT, PLUS A BANKING OPERATING TAX OF 2 
PCT. 
 
THERE IS NO SYSTEM TO ENCOURAGE AND FACILITATE PORTFOLIO INVESTMENT. 
 
POLITICAL VIOLENCE 
------------------ 
 
NO MAJOR POLITICAL VIOLENCE HAS BEEN REPORTED SINCE FEBRUARY 1994 WHEN A 
PLANNED OPPOSITION PARTY RALLY TURNED INTO A RIOT THAT BROUGHT ABOUT THE 
DEATHS OF 8 PEOPLE (INCLUDING SIX POLICEMEN) AND CAUSED CONSIDERABLE 
PROPERTY DAMAGE IN DOWNTOWN DAKAR.  THE ENTRY OF THE PRINCIPAL 
OPPOSITION PARTY INTO THE GOVERNMENT IN MARCH 1995 HAS BROUGHT ABOUT A 
STABLE ENVIRONMENT TO PURSUE ECONOMIC REFORMS.  THE UNIONS, TO DATE, 
HAVE REMAINED CALM. 
 
SENEGAL IS STILL SOMEWHAT AT ODDS WITH ITS NEIGHBORS.  TO THE SOUTH, 
SENEGAL MUST MANAGE A VIOLENT CASAMANCE SEPARATIST MOVEMENT ON ITS 
TERRITORY, ALONG WITH GUINEA-BISSAU'S GOVERNMENT.  IN THE GAMBIA, THERE 
HAS BEEN A MILITARY JUNTA IN POWER SINCE JULY 1994, WHOSE ECONOMIC 
POLICIES HAVE DISRUPTED THE FLOW OF BOTH GOODS AND PEOPLE.  WITH 
MAURITANIA, TO THE NORTH, THERE IS A CONTINUING PROBLEM WITH REFUGEES.  
TO THE EAST, MALI AND SENEGAL SUFFER FROM CROSS-BORDER CATTLE RAIDS BY 
CRIMINAL ELEMENTS OF BOTH COUNTRIES.  DIPLOMATIC NEGOTIATIONS ARE 
ONGOING TO ACHIEVE PEACEFUL RESOLUTIONS TO THESE PROBLEMS. 
 
THE MOST SERIOUS RISKS INVOLVE THE CASAMANCE SEPARATISTS IN THE SOUTHERN 
REGION OF SENEGAL.  DESPITE THE CEASE FIRE AGREEMENT OF MAY 1993 BETWEEN 
THE GOVERNMENT AND SEPARATIST GROUPS, INCREASING VIOLENCE HAS BEEN 
REPORTED RECENTLY.  FACTIONS OF THE FORCES OF THE DEMOCRATIC MOVEMENT OF 
THE CASAMANCE (MFDC) HAVE BEGUN ATTACKS ON VILLAGES.  IN APRIL, FOUR 
FRENCH TOURISTS DISAPPEARED IN THE REGION, AND ARE BELIEVED DEAD.  THE 
EMBASSY'S OFFICIAL TRAVEL POLICY PROHIBITS RECREATIONAL U.S. GOVERNMENT 
EMPLOYEE TRAVEL TO THE AREA. 
 
BILATERAL INVESTMENT AGREEMENTS 
------------------------------- 
 
SENEGAL AND THE UNITED STATES SIGNED A BILATERAL INVESTMENT TREATY IN 
DECEMBER, 1983.  THE TREATY PROVIDES FOR MOST FAVORED NATION TREATMENT 
FOR INVESTORS, FOR INTERNATIONALLY RECOGNIZED STANDARDS FOR COMPENSATION 
IN THE EVENT OF EXPROPRIATION, FOR FREE TRANSFER OF CAPITAL AND PROFITS, 
AND FOR PROCEDURES FOR DISPUTE SETTLEMENT.  SENEGAL HAS SIGNED SIMILAR 
AGREEMENTS FOR PROTECTION OF INVESTMENT WITH FRANCE, SWITZERLAND, 
DENMARK, FINLAND, SPAIN, ITALY, THE NETHERLANDS, SOUTH KOREA, ROMANIA 
AND JAPAN.  SENEGAL HAS CONCLUDED TAX TREATIES WITH FRANCE, MALI AND THE 
FRENCH-SPEAKING AFRICAN MEMBER STATES OF THE ORGANIZATION COMMUNE 
AFRICAINE ET MALGACHE. 
 
THERE IS NO TAX TREATY BETWEEN THE UNITED STATES AND SENEGAL. 
 
OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS 
-------------------------------------------- 
 
THERE IS NO ACTIVE OPIC INVESTMENT INSURANCE COVERAGE IN SENEGAL.  
GOVERNMENT OFFICIALS STATE THAT SENEGAL IS PLANNING TO BECOME A MEMBER 
OF THE MULTILATERAL INVESTMENT GUARANTEE AGENCY (MIGA), AN ARM OF THE 
WORLD BANK. 
 
LABOR 
----- 
 
UNSKILLED AND SEMI-SKILLED LABOR IS ABUNDANT IN SENEGAL, BUT THERE ARE 
RELATIVELY FEWER TRAINED WORKERS IN THE FIELDS OF ENGINEERING, 
INFORMATION SYSTEMS, AND MANAGEMENT. 
 
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 BUSINESS LEADERS (CNP), AND THE NATIONAL EMPLOYERS' ASSOCIATION 
(CNES).  THE PRINCIPAL LABOR UNIONS ARE: THE NATIONAL CONFEDERATION OF 
SENEGALESE WORKERS (CNTS), WHICH IS AFFILIATED WITH THE RULING SOCIALIST 
PARTY, AND THE NATIONAL ASSOCIATION OF SENEGALESE UNION WORKERS (UNSAS). 
 
THE RECENT CFA FRAN DEVALUATION HAS UNEXPECTEDLY MADE LABOR UNIONS 
SOMEWHAT MORE REASONABLE THAN IN THE PAST, BUT HIGH LABOR COSTS AND LOW 
PRODUCTIVITY MAY MEAN CONTINUED USE OF CAPITAL-INTENSIVE TECHNOLOGIES IN 
NEW INVESTMENT. 
 
FOREIGN TRADE ZONES/FREE PORTS 
------------------------------ 
 
THE DAKAR INDUSTRIAL FREE TRADE ZONE, A GOVERNMENT-OWNED AND OPERATED 
FREE TRADE ZONE, WAS ESTABLISHED IN 1974 FOR EXPORT ORIENTED FIRMS, 
WHETHER OWNED BY FOREIGNERS OR NATIONALS OF SENEGAL.  ENTERPRISES 
OPERATING WITHIN THE ZONE HAVE COMPLETE FISCAL AND DUTY EXEMPTION FOR 
ALL ACTIVITIES (EXCEPT PAYROLL TAXES), FREE TRANSFER OF ALL PROFITS, 
ROYALTIES AND DIVIDENDS, AND FREE RECRUITMENT OF FOREIGN PERSONNEL.  
THEY ARE EXEMPT FROM DUTIES ON THE IMPORTATION OF GOODS AND EQUIPMENT, 
RAW MATERIAL, AND FINISHED AND SEMI-FINISHED PRODUCTS.  FIRMS WITHIN THE 
ZONE ALSO QUALIFY FOR THE ADVANTAGES STEMMING FROM SENEGAL'S MEMBERSHIP 
IN THE ECONOMIC COMMUNITY OF WEST AFRICAN STATES (ECOWAS) AND ITS STATUS 
UNDER THE LOME CONVENTION WITH THE EUROPEAN COMMUNITY. 
 
THERE ARE NINE FIRMS OPERATING IN THE DAKAR FREE TRADE ZONE, THE LARGEST 
OF WHICH, A SUBSIDIARY OF WARNER LAMBERT/PARKE-DAVIS, IS U.S. OWNED.  
ZONE FIRMS REPORT THAT TAX AUTHORITIES REGULARLY CONTEST THE ADVANTAGES 
EMBODIED IN LAW AND REGULATIONS, AND ADVOCATE A REINFORCEMENT AND 
EXTENSION OF THE LAW GOVERNING THE ZONE TO CLARIFY THE RULES OF THE 
GAME.  DISCUSSIONS BETWEEN THE GOVERNMENT AND INDUSTRY HAVE BEEN GOING 
ON SINCE 1994, AND THE PARLIAMENT MAY VOTE ON A NEW LAW REGARDING THE 
ZONE LATE THIS YEAR.  THE ZONE'S CURRENT STATUTE EXPIRES IN 1999. 
 
IN APRIL 1991, IT BECAME POSSIBLE TO CREATE "FREE POINTS" (FIRMS 
EXEMPTED FROM TAXES AND DUTIES) OUTSIDE THE ZONE.  ENTERPRISES GRANTED 
THIS STATUS HAVE TAX AND FISCAL ADVANTAGES SIMILAR TO THOSE FIRMS 
OPERATING WITHIN THE ZONE.  APPROVAL FOR FREE POINT STATUS IS GRANTED 
FOR A PERIOD OF 20 YEARS AND IS RENEWABLE.  TO DATE THIS STATUS HAS BEEN 
USED PRINCIPALLY TO ASSIST EXISTING FIRMS EXPERIENCING FINANCIAL 
DIFFICULTIES. 
 
THERE IS NO FREE PORT IN SENEGAL.  SINCE DAKAR SERVES AS A POINT OF 
ENTRY PORT FOR MALI, BONDED WAREHOUSES EXIST FOR GOODS TO BE SURFACE-
SHIPPED TO MALI. 
 
CAPITAL OUTFLOW POLICY 
---------------------- 
 
IN AN EFFORT TO MAINTAIN PARITY BETWEEN THE CFA FRANC AND THE FRENCH 
FRANC, THE WEST AFRICAN CENTRAL BANK (BCEAO) CONDUCTS A TIGHT MONETARY 
POLICY INTENDED TO REDUCE CAPITAL OUTFLOW BY LIMITING LIQUIDITY.  IN 
AUGUST 1993, MEMBER COUNTRIES SUSPENDED REPURCHASE OF CFA BANKNOTES 
ABROAD, A MEASURE MEANT TO STEM CAPITAL FLIGHT FROM THE REGION'S BANKS.  
THIS MEASURE ALSO DISCOURAGES PORTFOLIO INVESTMENT OUTSIDE OF THE ZONE. 
 
FOREIGN DIRECT INVESTMENT STATISTICS 
------------------------------------ 
 
IT REMAINS DIFFICULT TO OBTAIN RELIABLE DIRECT INVESTMENT STATISTICS.  
FRANCE STILL SUPPLIES THE BULK OF SENEGAL'S FOREIGN INVESTMENT.  
FOLLOWING THE CFA FRANC DEVALUATION, SOME INVESTMENT PROJECTS ARE 
AWAITING NEW LEGISLATION ON THE DAKAR INDUSTRIAL FREE TRADE ZONE.  
ADDITIONAL INVESTMENTS BY THREE AMERICAN FIRMS IN PHARMACEUTICALS, 
CHEMICALS, AND PETROLEUM MARKETING WILL SIGNIFICANTLY INCREASE THE 
RECORDED LEVEL OF THE U.S. INVESTMENT IN SENEGAL, WHICH NOW STANDS AT 
ABOUT USD 35-40 MILLION.  THERE IS LIMITED GERMAN INVESTMENT IN HOTELS 
AND TOURIST FACILITIES, AND SOME JAPANESE, SOUTH KOREAN AND TAIWANESE 
INVESTMENT IN FISHING.  MOST DIRECT INVESTMENT IS MADE TO UPDATE OR 
REPAIR ANTIQUATED FACILITIES. 
 
SENEGAL'S ONLY SIGNIFICANT DIRECT INVESTMENT ABROAD IS ITS SHARE OF THE 
MULTINATIONAL AIRLINE "AIR AFRIQUE," WHICH CONTINUES TO SUFFER MAJOR 
FINANCIAL PROBLEMS. 
 
MAJOR FOREIGN INVESTORS 
----------------------- 
 
NO PUBLISHED FIGURES ARE AVAILABLE ON FOREIGN INVESTORS.  SIGNIFICANT 
FRENCH INTERESTS INCLUDE THE MIMRAN GROUP (BANKING, SUGAR, AND WHEAT), 
THE HERSANT GROUP (PRINTING), AND THE BOLLORE GROUP (TOBACCO AND 
SHIPPING).  AMERICAN INVESTMENT, WHICH CONTRACTED IN RECENT YEARS, IS 
EXPANDING AGAIN AT MOBIL OIL SENEGAL, WARNER LAMBERT/PARKE-DAVIS 
(PHARMACEUTICALS), AND COLGATE/NSOA (CHEMICALS). 
 
---------------------------------- 
VIII.  TRADE AND PROJECT FINANCING 
---------------------------------- 
 
BANKING SYSTEM 
-------------- 
 
SENEGAL IS A MEMBER OF THE WEST AFRICAN ECONOMIC AND MONETARY UNION 
(UEMOA).  THE SEVEN MEMBER COUNTRIES USE THE CFA FRANC, ISSUED BY THE 
WEST AFRICAN CENTRAL BANK.  THE EXCHANGE RATE IS 100 CFA FRANCS EQUALS 1 
FRENCH FRANC.  PARITY AND FIXED CONVERTIBILITY ARE GUARANTEED BY THE 
FRENCH TREASURY. 
 
THERE ARE EIGHT COMMERCIAL BANKS IN OPERATION IN SENEGAL.  THE LARGEST 
ONES ARE PREDOMINANTLY FRENCH.  CITIBANK, THE ONLY U.S. BANK PRESENT IN 
THE COUNTRY, IS ALSO VERY ACTIVE.  OTHER FINANCIAL INSTITUTIONS SUCH AS 
INSURANCE COMPANIES, A VENTURE CAPITAL FIRM AND A LEASING COMPANY ARE 
ALSO PRESENT HERE. 
 
FOREIGN EXCHANGE CONTROLS 
------------------------- 
 
THERE IS FREE CONVERTIBILITY OF THE CFA FRANC VIA THE BANKING SYSTEM FOR 
COMMERCIAL TRANSACTIONS.  THE RATE VARIES DAILY ACCORDING TO THE FRENCH 
FRANC-U.S. DOLLAR RATE.  TRANSFERS ARE MADE THROUGH THE WEST AFRICAN 
CENTRAL BANK.  CFA FRANC BANKNOTES ARE NOT LEGAL TENDER OUTSIDE OF THE 
UEMOA.  TRAVELERS MAY EXCHANGE FOREIGN CURRENCY FOR CFA FRANCS WITHOUT 
LIMIT AT COMMERCIAL BANKS.  TRAVELERS MAY OBTAIN LIMITED BUT ADEQUATE 
AMOUNTS OF FRENCH FRANCS OR OTHER FOREIGN CURRENCIES OR TRAVELERS CHECKS 
AT BANKS UPON PRESENTATION OF A VALID AIRLINE TICKET. 
 
GENERAL FINANCING AVAILABILITY 
------------------------------ 
 
THE MONETARY POLICY OF THE WEST AFRICAN CENTRAL BANK IS EXTREMELY TIGHT.  
SINCE THE DEVALUATION OF THE CFA FRANC, THE CENTRAL BANK HAS REDUCED ITS 
DISCOUNT RATE THREE TIMES, FROM 14.5 PCT TO 10 PCT.  HOWEVER, THE COST 
OF CREDIT IS STILL TOO HIGH (AROUND 17 PCT).  THEREFORE, INDUSTRY'S 
DEMAND FOR LOANS IS LOW AND SENEGALESE BANKS REMAIN OVERLIQUID. 
 
FINANCING EXPORTS/METHODS OF PAYMENT 
------------------------------------ 
 
U.S. EXPORTERS SHOULD REQUIRE AN IRREVOCABLE LETTER OF CREDIT DRAWN ON 
ONE OF THE MAJOR BANKS.  EXIMBANK FINANCING IS NOT AVAILABLE FOR SALES 
TO THE SENEGALESE GOVERNMENT OR TO SENEGALESE PARASTATALS. 
 
PROJECT FINANCING 
----------------- 
 
THE AFRICAN DEVELOPMENT BANK (AFDB) AND THE WORLD BANK FINANCE PROJECTS 
DEALING WITH INFRASTRUCTURE.  THE U.S. TRADE DEVELOPMENT AGENCY ALONG 
WITH THE AFDB OFFERS FUNDS FOR FEASIBILITY STUDIES. 
 
LIST OF SENEGALESE BANKS AND THEIR U.S. CORRESPONDENTS 
------------------------------------------------------ 
 
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: 
 
--CREDIT LYONNAIS SENEGAL IS AFFILIATED WITH CREDIT LYONNAIS OF FRANCE, 
WHICH HAS A REPRESENTATIVE OFFICE IN NEW YORK. 
 
--SOCIETE GENERALE DE BANQUES DU SENEGAL (SGBS) IS AFFILIATED WITH THE 
SOCIETE GENERALE DE BANQUES OF FRANCE, WHICH HAS A REPRESENTATION IN NEW 
YORK.  ITS FOREIGN CORRESPONDENTS INCLUDE:  SOCIETE GENERALE FRANCE, AND 
BANCA NATIONAL DEL LAVORO. 
 
--BANQUE INTERNATIONALE POUR LE COMMERCE ET L'INDUSTRIE DU SENEGAL 
(BICIS) IS AFFILIATED WITH THE BANQUE NATIONALE DE PARIS.  ITS FOREIGN 
CORRESPONDENTS INCLUDE: BARCLAYS BANK, BNP FRANCE, DRESDNER BANK, AND 
BANQUE BRUXELLES LAMBERT. 
 
--BANQUE SENEGALO-TUNISIENNE (BST) CHANNELS ITS INTERNATIONAL OPERATIONS 
THROUGH CREDIT COMMERCIAL DE FRANCE. 
 
--BANQUE DE L'HABITAT DU SENEGAL (BHS) SPECIALIZES IN HOUSING.  BHS HAS 
A BRANCH IN NEW YORK WHICH TARGETS THE GROWING SENEGALESE COMMUNITY IN 
THE U.S. 
 
--CAISSE NATIONALE DE CREDIT AGRICOLE (CNCA) PROVIDES CREDIT TO SMALL-
SCALE RURAL ENTERPRISES.  IT IS AFFILIATED WITH FRANCE'S CREDIT 
AGRICOLE. 
 
-------------------- 
IX.  BUSINESS TRAVEL 
-------------------- 
 
SENEGAL IS SERVED BY A NUMBER OF INTERNATIONAL AIRLINES, INCLUDING 
DIRECT SERVICE FROM NEW YORK VIA AIR AFRIQUE. 
 
THE UNITED STATES EMBASSY OFFERS ASSISTANCE AND COUNSEL TO U.S. BUSINESS 
TRAVELERS VISITING SENEGAL.  THEY SHOULD CONTACT THE COMMERCIAL OFFICER 
WELL IN ADVANCE BY FAX AT (221) 22-29-91 OR BY PHONE AT (221) 23-42-96.  
CORRESPONDENCE MAY BE SENT BY DOMESTIC U.S. MAIL TO THE ECONOMIC-
COMMERCIAL SECTION, U.S. EMBASSY DAKAR, DEPARTMENT OF STATE, WASHINGTON, 
D.C. 20521-2130, OR BY INTERNATIONAL AIRMAIL TO B.P. 49, DAKAR, SENEGAL 
(TRANSIT TIME: VARIABLE, ABOUT 10 DAYS) OR BY AN INTERNATIONAL AIR 
EXPRESS COMPANY (TRANSIT TIME: 3-4 DAYS). 
 
BUSINESS TRAVELERS MAY ALSO CONSULT WITH THE COMMERCE DEPARTMENT'S 
INTERNATIONAL TRADE ADMINISTRATION (ITA) DESK OFFICER BY TELEPHONE AT 
202-377-4388. 
 
BUSINESS CUSTOMS 
---------------- 
 
SENEGAL HAS INHERITED FRENCH COMMERCIAL TRADITIONS.  BUSINESS PRACTICES, 
ACCOUNTING METHODS AND LEGAL PROCEDURES DERIVE FROM THE FRENCH SYSTEM.  
BUSINESS CORRESPONDENCE, CATALOGS AND ADVERTISING MATERIALS SHOULD BE 
PREPARED IN FRENCH. 
 
ACCUSTOMED TO CONDUCTING BUSINESS OVER THE TELEPHONE OR BY FAX, AMERICAN 
BUSINESS PERSONS MAY FIND THAT LOCAL DECISION-MAKING OPERATES AT A 
SLOWER PACE THAN IN THE UNITED STATES.  REPEATED PERSONAL CONTACTS ARE 
OFTEN NECESSARY TO ESTABLISH A WORKING RELATIONSHIP WITH BUSINESS 
PARTNERS. 
 
TRAVEL ADVISORY AND VISAS 
------------------------- 
 
A PASSPORT IS REQUIRED FOR ENTRY.  U.S. CITIZENS DO NOT NEED A VISA FOR 
STAYS OF LESS THAN 90 DAYS.  EVIDENCE OF A VACCINATION FOR YELLOW FEVER 
MAY BE REQUIRED AT THE PORT OF ENTRY.  FOR FURTHER INFORMATION, 
TRAVELERS MAY CONTACT THE EMBASSY OF THE REPUBLIC OF SENEGAL, 2112 
WYOMING AVENUE, N.W., WASHINGTON, D.C., 20008, TELEPHONE:  (202) 234-
0540. 
 
CURRENT TRAVEL INFORMATION ABOUT SENEGAL AND OTHER COUNTRIES IS 
AVAILABLE BY TELEPHONE AT (202) 647-5225, VIA THE CONSULAR AFFAIRS 
BULLETIN BOARD AT TELEPHONE (202) 647-9225 OR VIA FAX AT (202) 647-3000. 
 
THE DEPARTMENT OF STATE'S CONSULAR INFORMATION SHEET OF APRIL 25, 1995, 
NOTED THE FOLLOWING: 
 
COUNTRY DESCRIPTION:  SENEGAL IS A DEVELOPING WEST AFRICAN COUNTRY.  
FACILITIES FOR TOURISTS ARE WIDELY AVAILABLE ALTHOUGH OF VARYING 
QUALITY. 
 
AREAS OF INSTABILITY:  SEPARATISTS IN THE CASAMANCE AREA OF SOUTHERN 
SENEGAL HAVE AGAIN BECOME ACTIVE.  A SERIES OF VIOLENT INCIDENTS HAS 
RESULTED IN THE DEATHS OF SOME SENEGALESE CITIZENS.  AS A RESULT, THE 
U.S. EMBASSY IN DAKAR HAS ADVISED U.S. CITIZENS TO AVOID TRAVEL TO 
SOUTHERN SENEGAL SOUTH OF THE CASAMANCE RIVER EXTENDING FROM THE 
ATLANTIC OCEAN EAST TO THE TOWN OF TANAF INCLUDING ZINGUINCHOR AND CAP 
SKIRRING.  ROADS IN THE CASAMANCE ARE POOR, AND DRIVING CAN BE EXTREMELY 
HAZARDOUS, PARTICULARLY AT NIGHT.  TRAVEL ONLY ON THE MAJOR 
(HARDSURFACED) ROUTES.  IN ADDITION, ROAD TRAVEL BETWEEN MAURITANIA AND 
SENEGAL IS RESTRICTED TO SEVERAL DESIGNATED BORDER CROSSING POINTS.  
LONG DELAYS AT THE BORDER ARE NORMAL. 
 
MEDICAL FACILITIES:  MEDICAL FACILITIES ARE LIMITED, PARTICULARLY IN 
AREAS OUTSIDE THE CAPITAL, DAKAR.  MALARIA IS PRESENT IN SENEGAL AND 
TRAVELERS MAY WISH TO START THINKING MEFLOQUINE, A PRESCRIPTION 
MEDICATION, ONE WEEK BEFORE ARRIVAL.  FOR ADDITIONAL HEALTH INFORMATION, 
TRAVELERS CAN CONTACT THE CENTER FOR DISEASE CONTROL'S INTERNATIONAL 
TRAVELERS HOTLINE (404) 332-4559. 
 
INFORMATION ON CRIMES:  STREET CRIME IN SENEGAL POSES MODERATE RISKS FOR 
VISITORS.  MOST REPORTED INCIDENTS INVOLVE PICKPOCKETS, PURSE SNATCHERS 
AND STREET SCAM ARTISTS, WALLETS, JEWELRY AND OTHER VALUABLES ARE 
SUBJECT TO THEFT, ESPECIALLY DURING TIMES OF INTERNATIONAL MEETINGS OR 
EVENTS WHICH DRAW LARGE CROWDS. 
 
THE LOSS OR THEFT ABROAD OF A U.S. PASSPORT SHOULD BE REPORTED 
IMMEDIATELY TO LOCAL POLICE AND TO THE NEAREST U.S. EMBASSY OR 
CONSULATE.  THE PAMPHLETS "A SAFE TRIP ABROAD" AND "TIPS FOR TRAVELERS 
TO SUB-SAHARAN AFRICA" PROVIDE USEFUL INFORMATION ON PROTECTING PERSONAL 
SECURITY WHILE TRAVELING ABROAD AND ON TRAVEL IN THE REGION IN GENERAL.  
BOTH ARE AVAILABLE FROM THE SUPERINTENDENT OF DOCUMENTS, U.S. GOVERNMENT 
PRINTING OFFICE, WASHINGTON D.C. 20402. 
 
DRUG PENALTIES:  U.S. CITIZENS ARE SUBJECT TO THE LAWS OF THE COUNTRY IN 
WHICH THEY ARE TRAVELING.  PENALTIES FOR POSSESSION, USE OR TRAFFICKING 
IN ILLEGAL DRUGS ARE STRICT AND CONVICTED OFFENDERS CAN EXPECT JAIL 
SENTENCES AND FINES. 
 
HOLIDAYS 
-------- 
 
JANUARY 1 (NEW YEAR'S) 
APRIL 4 (INDEPENDENCE DAY) 
FIRST MONDAY IN APRIL (EASTER MONDAY) 
MAY 1 (INTERNATIONAL LABOR DAY) 
AUGUST 15 (ASSUMPTION DAY) 
NOVEMBER 1 (ALL SAINT'S DAY) 
DECEMBER 25 (CHRISTMAS DAY) 
 
IN ADDITION, THE FOLLOWING HOLIDAYS ARE OBSERVED ACCORDING TO THE 
RELIGIOUS CALENDARS:  KORITE (FEBRUARY), TABASKI (MAY), MAWLUD (AUGUST), 
ASCENSION AND PENTECOST (MAY). 
 
BUSINESS INFRASTRUCTURE 
----------------------- 
 
SENEGAL HAS A RELATIVELY WELL-DEVELOPED INFRASTRUCTURE COMPARED TO OTHER 
COUNTRIES OF WEST AFRICA.  AS THE LONGTIME CAPITAL OF FRENCH WEST 
AFRICA, DAKAR WAS FAVORED IN RECEIVING TRANSPORTATION AND COMMUNICATIONS 
FACILITIES.  THE COUNTRY HAS THE SECOND-LARGEST PORT IN AFRICA, AN 
INTERNATIONAL AIRPORT AT DAKAR AND INTERNATIONAL CLASS HOTELS. 
 
TRANSPORTATION IN DAKAR:  TAXIS (BLACK-YELLOW IN COLOR) ARE CHEAP, 
NUMEROUS AND AVAILABLE EVERYWHERE IN DAKAR.  ALL OF THEM ARE METERED. 
 
COMMUNICATIONS:  INTERNATIONAL CALLS TO MOST COUNTRIES CAN BE DIALED 
DIRECTLY.  THE COUNTRY CODE IS 221.  CABLE, TELEX AND FAX SERVICES ARE 
AVAILABLE.  DAKAR IS ON GREENWICH MERIDIEN TIME, FIVE TIMES ZONE AHEAD 
OF EASTERN STANDARD TIME (EST).  DAYLIGHT SAVINGS TIME IS NOT OBSERVED 
IN SENEGAL. 
 
BANKS:  OPEN MONDAY THROUGH FRIDAY FROM 8:30 AM TO 12 NOON AND FROM 1:30 
PM TO 3 PM.  CITIBANK IS THE ONLY U.S. BANK PRESENT IN SENEGAL. 
 
LANGUAGE:  THE PRINCIPAL LANGUAGE OF INTERNATIONAL BUSINESS IN SENEGAL 
IS FRENCH.  FEW BUSINESS PERSONS IN SENEGAL CAN COMMUNICATE COMFORTABLY 
IN ENGLISH.  PROFESSIONAL INTERPRETATION IS AVAILABLE BUT IS VERY 
EXPENSIVE -- TYPICALLY USD 400-500 PER DAY FOR BUSINESS MEETINGS. 
 
HEALTH:  THE GENERAL LEVEL OF HEALTH IS GOOD.  MALARIA IS A LEADING 
CAUSE OF DEATH IN THE COUNTRYSIDE.  MALARIA PROPHYLAXIS IS RECOMMENDED 
SINCE THERE IS A HIGH INCIDENCE OF CHLOROQUINE-RESISTANT MALARIA IN 
SENEGAL; TRAVELERS SHOULD BEGIN TAKING A RECOMMENDED ANTIMALARIAL DRUG 
AT LEAST TWO WEEKS BEFORE ARRIVAL.  YELLOW FEVER IMMUNIZATION DURING THE 
PREVIOUS 10 YEARS IS MANDATORY TO ENTER SENEGAL. 
 
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. 
 
-------------- 
X.  APPENDICES 
-------------- 
 
A.  COUNTRY DATA - SENEGAL 
-------------------------- 
 
----------------------------------------------------- 
-                          1994  1995  1996 
-                           (E)   (P)   (P) 
----------------------------------------------------- 
 
1.  PROFILE 
----------- 
 
-  POPULATION (MILLIONS)     8.0   8.4   8.6   
-  POPULATION GROWTH (PCT)     3.0   3.1   3.1   
-  RELIGIONS  MOSLEM 95 PCT 
-             CHRISTIAN 4 PCT 
-             (ROMAN CATHOLIC 3.5) 
-             ANIMISTS 1 PCT 
-  GOVERNMENT SYSTEM  PRESIDENTIAL 
-  LANGUAGES  FRENCH, WOLOF, PUULAR, 
-  SERER, MANDINGO, DIOLA 
-  WORK WEEK  MONDAY THROUGH FRIDAY 
 
2.  DOMESTIC ECONOMY 
-------------------- 
 
-  GDP (USD BILLIONS)       4.3  4.6  5.0 
-  GDP GROWTH RATE (PCT)    2.3  4.5  5.5 
-  GDP PER CAPITA (USD)     506  536  550 
-  GOVERNMENT SPENDING 
-  AS PERCENT OF GDP (PCT) 29.5  29.2  30.0 
-  INFLATION (PCT)         36.0   8.0   3.5 
-  UNEMPLOYMENT (MILLIONS)  4.0   4.2   4.3 
-  FOREIGN EXCHANGE 
-  RESERVES (USD M)         N/A   N/A   N/A 
-  AVERAGE EXCHANGE 
-  RATE FOR USD 1.00        500   N/A   N/A 
-  DEBT SERVICE RATIO      18.9  17.7  17.2 
-  U.S. ECONOMIC/MILITARY 
-   ASSISTANCE (USD MILLIONS)  30.4  25.6  25.6 
 
3. TRADE (USD MILLIONS) 
----------------------- 
 
-  EXPORTS (FOB)        744   855  1007 
-  IMPORTS (FOB)       1040  1118  1271 
-  U.S. EXPORTS (FAS)  84.0   N/A   N/A 
-  U.S. IMPORTS (CIF)  11.7   N/A   N/A 
-  U.S. SHARE (PCT)     8.1   N/A   N/A 
 
- IMPORTS OF AGRICULTURAL GOODS 
------------------------------- 
 
-  TOTAL FROM WORLD       262.0  283.7  325.7 
-  TOTAL FROM THE U.S.     36.5   38.0   39.5 
-  U.S. SHARE (PCT)        14.0   13.4   12.1 
-  AGRICULTURAL GOODS 
-  TRADE BALANCE WITH U.S. -34.0  -34.2  -35.0 
 
----------------------------------------------------- 
NOTES:  (E) = ESTIMATE, (P) = PROJECTED, N/A = NOT AVAILABLE. 
 
SOURCES:  GOVERNMENT OF SENEGAL MINISTRY OF FINANCE, DAKAR CHAMBER OF 
COMMERCE, WEST AFRICAN CENTRAL BANK, IMF, EMBASSY ESTIMATES, U.S. 
DEPARTMENT OF AGRICULTURE. 
 
----------------------------- 
E.  U.S. AND COUNTRY CONTACTS 
----------------------------- 
 
MINISTRY OF TRADE, HANDICRAFTS AND INDUSTRIALIZATION 
MR. IDRISSA SECK, MINISTER 
BUILDING ADMINISTRATIF, 7TH FLOOR 
DAKAR, SENEGAL 
TEL:  (221) 22-50-33/22-95-42 
FAX:  (221) 23-11-43 
 
EXTERNAL TRADE BUREAU 
(DIRECTION DU COMMERCE EXTERIEUR) 
MRS. AMINATA SALL, DIRECTOR 
122, AVE FELIX EBOUE 
DAKAR, SENEGAL 
TEL:  (221) 21-57-25 
 
SENEGALESE CENTER FOR EXTERNAL TRADE (CICES) 
MRS. AMINATA MBAYE, DIRECTOR 
ROUTE DE L'AEROPORT 
B.P. 8166 DAKAR YOFF 
TEL:  (221) 20-17-50/23-10-70 
FAX:  (221) 35-07-12 
 
NOTE:  CICES PROMOTES SENEGAL'S EXPORT PRODUCTS AND COORDINATES 
SENEGAL'S PARTICIPATION IN TRADE FAIRS. 
  
CHAMBERS OF COMMERCE 
-------------------- 
 
DAKAR CHAMBER OF COMMERCE AND INDUSTRY 
MR. LAMINE NIANG, PRESIDENT 
1, PLACE DE L'INDEPENDANCE 
DAKAR, SENEGAL 
TEL:  (221) 23-71-89 
FAX:  (221) 23-93-63 
 
BUSINESS UNIONS AND ASSOCIATIONS 
-------------------------------- 
 
THERE ARE A NUMBER OF BUSINESS UNIONS AND ASSOCIATIONS IN SENEGAL.  THE 
MOST SIGNIFICANT ARE: 
 
THE NATIONAL COUNCIL OF BUSINESS LEADERS 
CONSEIL NATIONAL DU PATRONAT (CNP) 
MR. YOUSOUPHA WADE, PRESIDENT 
TEL:  (221) 21-58-03 
FAX:  (221) 32-48-26 
 
NOTE:  THE CNP INCLUDES MOST OF THE PROMINENT BUSINESSMEN IN THE 
COUNTRY. 
 
THE NATIONAL EMPLOYERS' ASSOCIATION 
CONFEDERATION NATIONALE DES EMPLOYEURS DU SENEGAL (CNES) 
MR. MANSOUR KAMA, PRESIDENT 
41, RUE AMADOU ASSANE NDOYE 
DAKAR, SENEGAL 
TEL:  (221) 21-76-62 
FAX:  (221) 22-96-58 
 
UNACOIS 
MR. MOUSTAPHA DIOP, PRESIDENT 
96, RUE A.K. BOURGI X JARAAF MAMADOU PAYE 
DAKAR, SENEGAL 
TEL:  (221) 21-60-48 
 
NOTE:  UNACOIS IS THE NATIONAL ASSOCIATION OF SMALL SENEGALESE 
IMPORT/EXPORT BUSINESSES. 
 
COUNTRY ADVERTISING AGENCIES 
---------------------------- 
 
IMPACT STRATEGIES 
MRS. MARIE MBOUP, DIRECTOR 
5, PLACE DE L'INDEPENDANCE 
IMMEUBLE SDIH 
DAKAR, SENEGAL 
TEL/FAX:  (221) 22-43-12 
 
NELSON MCCANN ERIKSON 
MR. PHILIP ELBEZ 
41, RUE A. ASSANE NDOYE X DR. THEZE 
DAKAR, SENEGAL 
TEL:  (221) 22-12-69 
FAX:  (221) 22-11-93 
 
PUBLISEN 
MR. BOUBACAR DIALLO, DIRECTOR 
1, RUE GALANDOU DIOUF 
DAKAR, SENEGAL 
TEL/FAX:  (221) 22-13-64 
 
COUNTRY COMMERCIAL BANKS 
------------------------ 
 
CITIBANK 
2, PLACE DE L'INDEPENDANCE 
MICHEL ACCAD, GENERAL MANAGER 
B.P. 3391  
DAKAR, SENEGAL 
TEL:  (221) 23-29-81 
FAX:  (221) 23-88-17 
 
BANQUE INTERNATIONALE POUR LE COMMERCE 
ET L'INDUSTRIE DU SENEGAL (BICIS) 
CLAUDE RUFFIN, MANAGING DIRECTOR 
2, AVENUE ROUME 
B.P. 392 
DAKAR, SENEGAL 
TEL:  (221) 23-10-33 
FAX:  (221) 23-37-07 
 
COMPAGNIE BANCAIRE DE L'AFRIQUE DE L'OUEST (CBAO) 
ABDOUL MBAYE, GENERAL MANAGER 
PLACE DE L'INDEPENDANCE 
B.P. 129 
DAKAR, SENEGAL 
TEL:  (221) 23-10-00 
FAX:  (221) 23-20-05 
 
SOCIETE GENERALE DE BANQUES (SGBS) 
MR. POUPET, GENERAL MANAGER 
B.P. 323 DAKAR 
TEL:  (221) 23-10-60 
FAX:  (221) 23-90-36 
 
CREDIT LYONNAIS 
MR. BERARDENGO, GENERAL MANAGER 
BOULEVARD PINET LAPRADE X HUART 
B.P. 56  
DAKAR, SENEGAL 
TEL:  (221) 23-10-08 
FAX:  (221) 23-84-30 
 
U.S. CHARTERED ACCOUNTING FIRMS 
------------------------------- 
 
COOPERS & LYBRAND 
A.A. DIEYE, CORRESPONDENT 
CABINET AZIZ DIEYE & ASSOCIATES 
2, PLACE DE L'INDEPENDANCE 
DAKAR, SENEGAL 
TEL:  (221) 21-85-88/21-86-71 
FAX:  (221) 21-95-74 
 
DELOITTE & TOUCHE 
BLAISE DIADHIOU, REPRESENTATIVE 
CABINET ACG 
4, RUE MALENFANT 
B.P. 3191 
DAKAR, SENEGAL 
TEL:  (221) 22-11-38 
FAX:  (221) 22-11-75 
 
PRICE WATERHOUSE & COMPANY 
MAYORO WADE, CORRESPONDENT 
64, RUE WAGANE DIOUF 
B.P. 1686 
DAKAR, SENEGAL 
TEL:  (221) 23-97-77 
FAX:  (221) 23-85-79 
 
U.S. EMBASSY TRADE PERSONNEL 
---------------------------- 
 
CAROL R. KALIN, ECONOMIC OFFICER 
JAMES D. WHEELER, COMMERCIAL OFFICER 
MAMADOU LAMINE GASSAMA, ECON/COML SPECIALIST 
YOUHANIDOU WANE, COMMERCIAL ASSISTANT 
U.S. EMBASSY DAKAR 
DEPARTMENT OF STATE 
WASHINGTON, D.C. 20521-2130 
TEL:  (221) 23-42-96 
FAX:  (221) 22-29-91 
 
WASHINGTON-BASED U.S. GOVERNMENT COUNTRY TRADE CONTACTS 
------------------------------------------------------- 
 
COMMERCE DEPARTMENT DESK OFFICER FOR SENEGAL 
INTERNATIONAL TRADE ADMINISTRATION 
MR. PHILIP MICHELINI, DESK OFFICER 
ROOM 2037, DEPARTMENT OF COMMERCE 
WASHINGTON, D.C., 20230 
TEL:  (202) 482-4388 
 
STATE DEPARTMENT COMMERCIAL COORDINATOR 
BUREAU FOR AFRICAN AFFAIRS 
DR. ADA ADLER, COMMERCIAL COORDINATOR 
ROOM 5202, DEPARTMENT OF STATE 
WASHINGTON, D.C., 20520 
TEL:  (202) 687-3502 
FAX:  (202) 736-4583 
 
------------------- 
F.  MARKET RESEARCH 
------------------- 
 
AVAILABLE AND UPCOMING DOC/ISAS AND IMIS 
---------------------------------------- 
 
94 DAKAR 09566:  SENELEC, THE SENEGALESE NATIONAL POWER COMPANY 
 
94 DAKAR 07851:  SENEGAL: THE NATIONAL TELECOMMUNICATIONS COMPANY'S 
PROFILE AND THE MARKET FOR TELECOMMUNICATIONS 
 
94 DAKAR 08727:  SENEGAL: THE MICROWAVE COMMUNICATIONS MARKET 
 
94 DAKAR 06794:  SENEGAL: THE MARKET FOR CELLULAR COMMUNICATIONS 
 
95 DAKAR 05696:  SENEGAL: TEXTILE INDUSTRY OUTLOOK 
 
UPCOMING REPORTS 
---------------- 
 
SENELEC (ELECTRIC POWER): PROSPECTS FOR PRIVATIZATION 
 
SONATEL (TELECOMMUNICATIONS): PROSPECTS FOR PRIVATIZATION 
 
SENEGAL: THE TOURISM INDUSTRY 
 
SENEGAL: THE AGRI-BUSINESS INDUSTRY 
 
SENEGAL: PHARMACEUTICALS AND THE CFA FRANC DEVALUATION 
 
------------------------ 
G.  TRADE EVENT SCHEDULE 
------------------------ 
 
NOVEMBER 1995:  THE AGRI-BUSINESS TRADE FAIR (SPONSORED BY THE EUROPEAN 
UNION) 
DECEMBER 1996:  THE DAKAR INTERNATIONAL TRADE FAIR
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