This article will discuss the economy and business climate of Senegal
In 2012, Senegal launched an ambitious national development programme known as the “Plan for an Emerging Senegal” (PSE). Its phased implementation is set to continue until 2035. The programme aims to introduce economic reforms, improve infrastructure, attract investment in strategic sectors, and stimulate the development of the private sector.
Since the implementation of the PSE, Senegal has demonstrated stable economic growth, averaging 5.3 % from 2014 to 2023. According to the 2023 Heritage Foundation Index of Economic Freedom, Senegal ranked 103rd out of 180 countries worldwide and 13th among 47 Sub-Saharan African nations.
The Senegalese government has established a “one-stop shop” system to simplify administrative regulations for business operations. It has opened service centres across the country, synchronised over 60 government websites, and digitised numerous public services and payment mechanisms. The national digital company SENUM plans to lay 4,500 kilometres of additional fibre optic cable to expand internet access.
As part of service modernisation, the Customs Directorate-General has announced the full digitalisation of customs clearance procedures across all customs units connected to the “Gainde” system, effective from 1 January 2024. This includes the complete electronic processing of customs declarations.
The Senegalese government maintains a continuous dialogue with the private sector through the Presidential Investment Council, which sponsors annual forums where investors provide feedback on government policies and actions. The Senegal Investment Promotion Agency (APIX) conducts preliminary assessments of investment proposals and serves as the exclusive administrator of all Special Economic Zones (SEZs) in Senegal.
In most sectors, there are no restrictions on foreign ownership of businesses. However, strategic sectors such as water supply, electricity distribution, and port services remain exceptions.
Industrial Policy and Investment Climate
Senegal’s Investment Code offers incentives, including temporary exemptions from customs duties and corporate tax, to foreign investors. Key priority sectors for investment include: agriculture and agribusiness, fisheries and livestock, manufacturing, tourism, mining exploration and extraction, banking and financial services.
Senegal is actively developing offshore oil fields at GTA and Sangomar. Industrial extraction at the Sangomar offshore field began in the second half of 2024. Woodside Energy, which holds an 82% stake, estimates the project cost at $4.9–5 billion USD.
The country’s key export industries include phosphate mining, fertiliser production, agricultural commodities, commercial fishing, and oil and gas extraction projects. Since 2005, the government has restricted the import of unprocessed poultry products to encourage local production.
With modern international airports in Dakar and Saint-Louis, as well as improvements in ground transportation, Senegal aims to become a regional hub for logistics, services, and industrial development. Three Special Economic Zones (SEZs) offer tax exemptions and other incentives to investors: DISEZ — 45 km east of Dakar, urban Centre of Diamniadio – 30 km from Dakar, ZESIS — 110 km southeast of the capital, foreign investment and business environment.
Senegal relies heavily on foreign direct investment (FDI) and donor assistance. The government welcomes foreign investment, which plays a crucial role in the country’s economic development. The Investment Code ensures equal legal treatment for both local and foreign businesses.
For business travel to Senegal, foreign visitors are advised to carry some cash in US dollars, as international payment cards are not accepted everywhere, and service disruptions may occur.
We hope this brief overview provides potential investors with insights into Senegal’s economic landscape and business climate, encouraging them to pursue their entrepreneurial ambitions in this promising and dynamic African nation.
Gennadiy Ulyanych,
Head of the West Africa Office,
Institute for Global Politics,
Dakar, Senegal
