Senegal

Adex Senegal, Senegal – Global Accounting Alliance Member

Economic Overview & Business Opportunities – Senegal

Investors and businesspeople looking to penetrate the lucrative West African markets have an ideal gateway. Business opportunities in Senegal beckon the savvy entrepreneur with a stable economy, solid emerging infrastructure, and strong macroeconomic performance. A member of ECOWAS (Economic Community of West African States), Senegal’s gross domestic product (GDP) remains among the highest. These factors position the country as the perfect regional business hub for market penetration into West Africa. 

The Republic of Senegal has a population of 17.7 and is a major seaport with strategic international access. Its borders include Mali, Mauritania, Guinea, and Cape Verde. It has a rich history dating from ancient times to its occupation by the Berbers, the Portuguese, and the French. 

Gaining its independence from France in 1960, Senegal went through several decades of strife and political upheavals. However, stronger reformational policies are taking place with a more stable government in power. Senegal is now a modern nation with a competitive commercial ecosystem, growing economy, and favourable business environment.

 

The Economy of Senegal

Senegal enjoys an open economy and is rich in natural resources such as minerals, precious stones, and iron ore. More than half of its economy comes from foreign trade, and it is a leading phosphate producer. Senegal’s main exports for 2022 include gold, horticultural products, groundnuts, phosphates, petroleum oils, and fish. Its main imports include fuel, foodstuff, and capital equipment.

Senegal’s GDP began its post-pandemic recovery phase in mid-2020. The International Monetary Fund (IMF) forecasts GDP growth to reach USD34 billion in 2023. 

While the war in Ukraine is having an impact, the Government’s responsive policy rollouts are proving effective. The economy grew by 2.9% year-on-year for the first half of 2022, with 21% total exports and 10.1% fixed investments. The World Bank estimates an economic growth of 4.8%, which makes business opportunities in Senegal quite viable. 

 

Why Invest in Senegal

Investors and entrepreneurs seeking business opportunities in Senegal will benefit from the Government’s robust economic strategies. National policies aim to strengthen and promote local supplies and value chains while reducing the trade deficit. The Government’s revision of the Emerging Senegal Plan targets to position Senegal as an emerging market by 2035. Its sectoral policies and aims include the following:

• Create sustainable and inclusive economic growth
• Adopt and implement a private sector-based investment plan
• Establish structural transformation 
• Improve and diversify infrastructure and connectivity
• Eradicate free movement barriers
• Encourage and stimulate a competitive business ecosystem
• Provide access to international markets 
• Accelerate domestic production and intra-community trade

Senegal is an active commercial hub, serving the Middle East as well as being a significant port-of-call from Europe. It is eligible for the African Growth and Opportunity Act which provides duty-free access to US markets. Senegal is also on track to becoming an oil and gas producer in the near future. All in all, these factors establish Senegal as an important and lucrative market for entrepreneurs to invest in.