Sminaire Promotion des Investissements AAITPC 2003

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Business Opportunities in Senegal UNIDO/AAITPC/CII
Investment Seminar KUALA LUMPUR/Park Plaza
Hotel 11 March 2003
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Population  10.5 million      
Population growth rate  2.9       Land
area  200,000 km2       Capital
City  Dakar Currency CFA Franc ( US
1 620)       GDP per capita 550      
GDP growth  5.7       Exports of goods and
services 1,415 (million)       Imports of
goods and services 1,803 (million)      
Contribution to GDP per sector      
Primary sector  19.5       Secondary
sector  21.5 Tertiary sector  50
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Senegal Major Exports (000 US)
1 US 620 CFA
Source Ministry of Finance/Department of
Statistics
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Major Trading Partners Exports (000 US)
1 US 620 CFA
Source Ministry of Finance/Department of
Statistics
5
Senegal Major Imports (000 US)
1 US 620 CFA
Source Ministry of Finance/Department of
Statistics
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Major Trading Partners Imports (000 US)
1 US 620 CFA
Source Ministry of Finance/Department of
Statistics
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Trading with Malaysia Exports (000 US)

• Imports US 4 million
• Chemicals US 1.5 million
• Edible oil US 1.5 million
• Exports !!!!!!!!

1 US 620 CFA
Source Ministry of Finance/Department of
Statistics
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MALAYSIAN BUSINESS IN SENEGAL

• Possible JV between SOSETRA and LEADER STEEL
  sdn.bhd in the steel business
• CNLT within INDOSEN a Joint Venture
  CNLT/Southeastern Yards/Sotexka (spinning/Weaving
  garments)
• UTAS an Expo Center to be opened next October

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• INVESTING IN SENEGAL

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THE VISION

• Senegal, an emerging country by 2010
• Investment destination in WAEMU
• Investment rate 30 of GDP
• The Business Hub in West Africa

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THE WAY FORWARD En route to Excellence 
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THE WAY FORWARD
A
NO OBSTACLE TO EXCELLENCE
Soccer teams picture
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THE WAY FORWARD
A
AND TRHOUGH PARTNERSHIP, AND PROFESSIONALISM,
SUCCESS WILL BE THE REWARD!
Soccer teams picture
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1- RULE OF LAW AND GOOD GOVERNANCE2- OPEN
BOOMING ECONOMY WHITOUT DISCRIMINATION3- NEW
GOVERNMENT FULLY BUSINESS ORIENTED4- SKILLED
HEALTHY WORKFORCE AVAILABLE6- PREFERRENTIAL
ACCES TO INTERNATIONAL MARKETS7- INTERESTING
INVESTMENT INCENTIVES8- INVESTMENTS PROTECTION
GUARANTEE 9- BUSINESS OPPORTUNITIES
GOOD REASONS TO INVEST
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A conducive Business environment

• Senegal has fully subscripted to all WTO
  agreements and laws
• Reciprocal Agreements on investments protection
  and no double taxation with
• G8 countries
• Most of the G15 countries
• Senegal is member of the International Centre for
  the settlement of investments disputes
  (Washington convention)

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A conducive Business environment

• Reduction of tariff rates from 7 categories to 4
• An attractive investment code offering
• No discrimination between nationals and
  foreigners
• No limitation in employing expatriates
• No exchange control
• No Double taxation agreement signed with many
  countries
• UK
• Italy
• Taiwan
• France
• USA
• Canada
• Mauritius,Malaysia in progress
• Import duty exemption on equipment required for
  investments

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A BOOMING ECONOMY

• Rated B/Stable B by Standard Poors in Dec
  2002
• Above 5 GDP growth over the last 5 years
• Very low inflation below 2 since 1997
• Stable and convertible currency pegged to the
  Euro
• Ranked n1 for matching the convergence criteria
  of WAEMU
• Ranked n8 by the 2000  Africa Competitiveness
  Report  for the survey  Africa where to invest 

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A NEW GOVERNMENT FULLY BUSINESS ORIENTED

• Creation of APIX in JULY 2000
• Co-authored co-chairing of the NEPAD (New
  Partnership for Africas Development)
• Creation of ADEPME (Small Scale Entreprises
  Agency), May 2001
• Creation of CPI, the Presidential Investors
  Advisory Council November 2002

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A SKILLED HEALTHY WORKFORCE

• Total workforce available 4,000,000
• 53 in the Rural areas
• 17 in the Informal sector
• Growth rate of the workforce3
• A young healthy and skilled population
• 57 under the age of 25
• 55 literacy rate (70 for boys)
• 35 of young population achieve high school level
• One of the world lowest rate of HIV infection
  (0.7to 1)
• University Graduates in economics, science,.. are
  available
• Workforce skills in textile manufacturing is
  well known
• French is the official language but English is
  widely spoken

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STRATEGIC LOCATION TO ACCESS GLOBAL MARKETS
Senegal
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GATEWAY TO LANDLOCKED MARKETS IN WEST AFRICA
Senegal
WAEMU countries, 72 million consumer,single
currency, free movement
ECOWAS 16 countries, 234 million consumers,
preferential access
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STRATEGIC LOCATION TO DAILY DEAL WITH ASIA,
EUROPE AND THE AMERICAs

• GMT TIME ZONE
• 5 HOUR-FLIGHT FROM EUROPE
• 7 HOUR-FLIGHT FROM NORTH AMERICA
• THE CLOSEST COUNTRY TO LATIN AMERICA
• GATEWAY TO COMMON MARKETS IN WEST AFRICA

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A WONDERFUL QUALITY OF LIFE FOR DOING BUSINESS
WHILST BEING ON HOLIDAYS
KEY INFRASTRUCTURES TO ACCESS GLOBAL MARKETS

• Telecommunications network
• 42 megabits band width
• Connection to ATLANTIS and SAFE fibber optic
  cables
• 3.5 fixed lines for every 100 inhabitants (the
  highest rate in Sub Sahara African countries)
  digital network covering the entire territory
• The highest rate of internet connections in West
  Africa
• The sector might be deregulated next year and
  open to other private companies
• Mobile phone network 65 coverage of the
  territory
• 2 operators in the sector
• A 3rd license to be granted by the government
• 350,000 users

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KEY INFRASTRUCTURES TO ACCESS GLOBAL MARKETS

• Airlines
• 2 daily flights to Paris and other 7 weekly
  flights to Europe
• 4 weekly flights to New York the Open sky
  policy agreement (South African Airways)
• 3 weekly flights to Asia via Saudi Airlines
  (Jeddah)
• 4 weekly flights to Asia via Kenya Airways and
  Emirates

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A WONDERFUL QUALITY OF LIFE FOR DOING BUSINESS
WHILST BEING ON HOLIDAYS
KEY INFRASTRUCTURE TO ACCESS GLOBAL MARKETS

• The Port of Dakar
• At the crossroad between Europe,North America,
  South America and Sub Saharan Africa
• 3,400 miles from New York
• 3,600 miles from Cape Town
• 2,500 miles from le Havre
• 2,800 miles from Rio de Janeiro
• One of the best fishing facilities on the West
  African coast
• Piloting service available around the clock
• Safe access at all times compared to other ports
• Naval repair facilities

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KEY LINKAGES TO ACCESS GLOBAL MARKETS

• Sea links to Europe (6 days)
• 55 links per month
• 11 company flags (the major ones are Maersk,SDV,
  PO Ned Lloyd)
• Sea links to USA (18 days)
• 4 links per month
• Maersk is the main carrier (transhipment in
  Spain)
• Tormlines is another carrier
• Airlines
• 2 daily flights to Paris and other 12 weekly
  flights to Europe
• 4 weekly flights to New York the Open sky
  policy agreement (South African Airways)
• 1 weekly flights to Asia via Saudi Airlines
  (Jeddah)
• 4 weekly flights to Asia via Kenya Airways and
  Emirates

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A PREFERENTIAL ACCESS TO GLOBAL MARKETS

• WAEMU West African Economic and Monetary Union
• Economic union of 8 West African Countries
• 72 Million consumers sharing one single
  currency.
• A regional stock market
• ECOWAS Economic Community of West African
  States
• Community of 15 States
• Market of 234 Million consumers
• EUROPE UE/ACP Agreement to access the European
  market
• USA under AGOA April 2002, Visa granted to
  Senegal for apparel provision

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INTERESTING INVESTMENT INCENTIVES

• Advantages of the Investments Code
• Exemption from
• Import duties and taxes on the production
  equipment and material
• VAT invoiced by local suppliers on goods,services
  works
• The flat-rate taxes paid to Senegalese employees
• The minimum flat rate-tax
• Licence levy (depending on the investment zone)
  
• Possibility of renewing fixed-term contracts for
  five years

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INTERESTING INVESTMENT INCENTIVES

• Advantages of the Free Export Company (EFE)
• For industrial and agricultural enterprises which
  export at least 80 of their production.
• Exemption from
• Securities income deducted from distributed
  dividends
• All forms of taxes based on salaries
• exemptions for customs duties and stamps for
  production and transportation equipment
• exemptions for wage taxes, business license
  taxes, land tax and all registration and stamp
  duties
• Corporate tax at the rate of 15 instead of
  35.     

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BUSINESS OPPORTUNITIES

• Seafood processing
• Food processing
• Beverages
• Leather processing
• Textiles and garments
• Cosmetics
• Construction materials
• Glass and Glass ware products
• Electrical goods (switch gears, cables,
  batteries,etc.)
• Mining Marble estimated potential of 1 million
  tons, Gold, Iron Ore, etc..
• Fertilizers   

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OPPORTUNITIES IN THE CHEMICAL SECTOR

• Pharmaceuticals products
• Perfumes
• House and family care products
• Cosmetics
• Soaps
• Insecticides
• Herbicides
• Paints
• Fertilizers   

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OPPORTUNITIES IN LEATHER, TEXTILES GARMENTS

• AGOA export opportunity to the US market under
  category 5
• Quota free
• Duty free
• Cotton available in the country and neighbouring
  countries
• Skilled workforce
• Existing textiles units for rehabilitation
• Abundant livestock
• Skilled handicraft workers
• Large domestic market (WAEMU included)
• Strategic location to ship to the US markets

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OPPORTUNITIES IN THE AGRIBUSINESS

• 240,000 hectares available Up North along the
  Senegalese River for
• Farming
• Horticulture
• Floriculture
• Million of hectares suitable for livestock
  production
• Cattle
• Poultry
• Cashew nuts plantations
• Diversification of peanuts production

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OPPORTUNITIES IN TOURISM SECTOR

• 500,000 tourists per year with more than 5
  annual growth
• 700 km of sandy beaches
• Nicest people worldwide
• 2 big Natural reserves
• Niokolo koba Wildlife park
• Djoudj birds Reserve
• High potential to implement new Golf areas
• A wonderful quality of life
• 200 km sandy beaches virgin from any investments
• Lack of Business Hotels in Dakar City

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OPPORTUNITIES IN I.C.T.

• The best telecom infrastructure in West Africa
• The highest rate of internet connection in the
  West Africa region
• Low duty tax on ICT equipments (5)
• Skilled widely people available
• Willingness to develop e-government

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The Creation of an Investment Promotion and
Majors Projects Agency aims to improve private
infrastructures
"Infrastructure" is a key condition to promote
investments in productive sectors
Private Investments
Infrastructure
Develop Public/Private Partnership to improve the
infrastructure (financial restriction of the
Government)
THE MAJOR INNOVATION IS THAT ALL THESE
INFRASTRCTURES PROJECTS ARE TO BE BUILT UNDER THE
BOT or BOOT BASIS
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OPPORTUNITIES IN THE INFRASTRUCTURE SECTOR

• The New International Airport
• The Ore Tanker Port
• Extension and Modernization of the Port of Dakar
• New Standard Gauge Railways system
• Toll Highway
• International Business Centre

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MAIN AVERAGE OPERATING COSTS

• Labour costs.
• Minimum salary US 54-68 per month
• Employer charges 11-15 (Social security and
  pension fund)
• Transportation costs
• Shipping 40 container to US US 3000-3500
• Shipping 40 container to Europe US 2000-2500
• 30 of the shipping cost can be brought down
• Telecommunications.
• see brochures
• Land and industrial buildings
• Rental of warehouse 1.5/m2
• Non built ground 0.30/m2
• Improved land 2.50/m2

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A WONDERFUL QUALITY OF LIFE FOR DOING BUSINESS
WHILST BEING ON HOLIDAYS
PROJECTS BUSINESS OPPORTUNITIES

• Textile, Wearing Apparel Garments
• AGOA opportunity
• Country location
• WAEMU ECOWAS markets
• Cold chain plant
• Packaging
• Manufacturing of electrical parts
• Rural electrification policy
• 16,000 villages to be electrified
• Fruit processing
• Dry cleaning factory
• Plastic products
• Furnitures

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A WONDERFUL QUALITY OF LIFE FOR DOING BUSINESS
WHILST BEING ON HOLIDAYS
SOME PROJECTS PROFILES
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PROJECTS PRESENTATION

• Project Name ENTREPRISE COLLÉ ARDO
• Business Line ready wear garments made of
  tradition fabric and handwowen materials
• Date of creation 1983
• Employees 6 permanent
• Main products ready wear garments for women
  (western style) traditional apparel (men)
• Production 11,000 items per year
• Turnover
• Project purpose expansion of the confection
  activity
• Products ready wear garments
• Production expected 24,000 items 50 for exports
  in western markets
• Investments160,000 US
• Request partnership
• Funding
• Equipments
• Marketing strategy skills and knowledge

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PROJECTS PRESENTATION

• Project Name AFRICAINE DE CH. ET TUYAUTERIE
• Business Line industrial assembly and
  maintenance, boileworks, pipes, drilling
  equipments, cisterns.
• Date of creation 1985
• Employees 35
• Main products industrial assemby services, ships
  repairs,industrial maintenance, cisterns
• Production
• Turnover 1 million US
• Investment in assets O.5 million US
• Project purpose creation of a cold chain plant
  for ice production and conservation of fish and
  garden produce
• Products same products line
• Production expected expectation of incremental
  turnover of 100,000 US
• Investments 150,000 US
• Request partnership
• technology

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PROJECTS PRESENTATION

• Project Name SENEG ELECTRO MECANIQUE
• Business Line mechanical spare parts and sets
• Date of creation 1983
• Employees 11
• Main products mechanical spare parts
• Production 2,100 items per year
• Turnover 240,000 US
• Project purpose mechanics spare parts is a
  growing business and acquisition of a foundery
  will enable local production and reach annual
  turnover of F CFA 400 m
• Products mechanics spare parts
• Production expected 20,000 items 10 senegalese
  market needs
• Investments
• Request partnership
• Funding
• Equipments
• Marketing Management skills and knowledge

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PROJECTS PRESENTATION

• Project Name MICRO DOSES TECHNOLOGIES
• Business Line fabrication of vertical packaging
  machines, (shaping, sealing, filling), line
  production automation
• Date of creation 1995
• Employees 19 permanent
• Main products packing machines, line automation,
  industrial maintenance
• Production 12 machineries per year
• Turnover 50,000 US
• Project purpose expansion of activity, upgrading
  of technology and production capability
  increasing
• Products same business line
• Production expected more than 30 to 40
  equipments per year. Export opportunities are
  tremendous
• Investments
• Request partnership
• Funding
• technology
• Marketing strategy skills and knowledge

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PROJECTS PRESENTATION

• Project Name ICOTAF
• Business Line Textile
• Weaving, threading, dyeing,printing
• Date of creation 1952 (1990 for the new
  management team)
• Employees 288
• Main products
• Drill cloth
• Damask
• Creton
• Production 11,000 items per year
• Turnover 6.8 million US
• Project purpose renovate and modernize actual
  products
• Products same business line Denim, Wax
• Production expected 7 million meters of cloth
  fabrics and target export markets
• Investments US 5 million
• Request partnership
• Funding
• Technology

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PROJECTS PRESENTATION

• Project Name GENERAL METAL CONSTRUCTION
• Business Line metal furniture, decorations, all
  kind of wrought iron
• Date of creation 2000
• Employees 10 permanent 7 temporary
• Main products metal furnitures, iron decoration
  gates, doors window. Iron panes,
• Production 300 items per year
• Turnover
• Project purpose upgrade activity and expand it
  by creating a new product line in aluminium
• Production expected market survey underway
• Investments US 100,000
• Request partnership
• Funding
• Technology design
• Raw materials

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PROJECTS PRESENTATION

• Project Name SOPROKA
• Business Line clothing maintenance and
  enhancement
• Starch
• Blue detergent
• Date of creation 1990
• Employees 36 permanent (100 temporary workers)
• Main products Starch and detergent blue
• Production Starch 500 tons, detergent blue 165
  tons
• Turnover FCA 700 m
• Project purpose Cassava cultivation for raw
  starch
• Production expected 1,200 tons and incremental
  turnover of 450 m
• Investments US 1 million
• Request partnership
• Funding
• technology
• Marketing strategy skills and knowledge

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THANK YOU FOR YOUR ATTENTION !

• For information and assistance
• 52-54 rue Mohamed V - Dakar BP 430 Senegal
• Tel [phone] / Fax [phone]
  89
• E-mail apix_at_sentoo.sn
• Website www.apix.sn
  www.investinsenegal.com