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IN with the New…
The Economist
2010 issue «Uncaging the
Lions»
Stated :
«Over the next 5
years Africa’sgrowth rate is
likely to take the lead»
Key numbers : AFRICA TODAY
• Total Population in 2011 : 1 billion
• Population under 15 : 41%
• Adult literacy : 62%
• GDP income per capita is 10th of world average
• Annual growth rate: 7%
Recent Economic Outlook Studies
• Ernst & Young in «It’s time for Africa» of 09/2011 stated that: « Africa is a window of opportunity for investors competing for growth beyond market boundaries»
• McKinsey Global Institute in « Lions on the move: The progress and potential of African economics» of 06/2010 stated that: « a dynamic business sector is emerging in Africa, investors who want to be part of that story should focus, expand and invest now»
• IMF (International Monetary Fund) on theirglobal studies published promising prospective on Africa in the furure.
Prospective : AFRICA TOMORROW
•In 2020 the African population will exceed China's population, will reach 1.5 billion by 2030and 2.1 billion by 2050
•Africa’s collective GDP in 2020 : $ 2.6 trillion
•Africa’s consumer spending in 2020 : $ 1.4 trillion
•50% of african will be living in cities by 2030
Source : IMF (International Monetary Fund) 2010
Senegal’s Economic Overview
UK-Senegal Investment Forum
Savoy Place, London UK
Thursday, 03rd november, 2011
1. About our country
2. Key Success Factors
3. Key Business Opportunities
4. Recent Private Investments
Performance
5. Succes Stories
AGENDA
Where are We Located?
Located at the western tip of Africa
• 2722 mi from London
• 3818 mi from NYC
• 1522 mi from Lagos
• 3300 mi from Sao Paulo
GMT time zone (+0:00)
A young and healthy population of around 13 million people growing at a 3% annual rate
Large youth : 50.9 % under 20 y.o and only 3,5% over 65 y.o
Global Education Enrollment rate: 92.5%
HIV prevalence rate = 0.7% (EDS IV - 2005)
A democratic, peaceful and warm country
Who Are WE ?
How are We Doing ? Open & dynamic economy
GDP per capita (2010) : US $ 1.078
Annual Growth Rate :
• 2004 – 2007: >5 %
• 2008 : 3.7 %
• 2009 : 2.1 %
• 2010 : 4.1 %
• 2011 (Estimate): 4 %
• 2012 (Projected): 4.4 %
Inflation Rate below 2% since 2007
Standards and Poor's rating : B+ / Stable B (September 2010)
« EMERGING SENEGAL 2015 »
What are our Medium Term Goals (by 2015) ?
Strategic Objectives
• Increase GDP per capita to 1500 $US
• Join the Top 10 FDI recipients in Africa with a
growth Rate of 7- 8%
• Meet the Millenium Development Goals :
Eradicate extreme poverty and hunger
Achieve universal primary education
Promote gender equality and empower women
Increase the girl schooling rate
• Create 100 000 new jobs per year
• Housing for every family
Our Key Success Factors1. Political Stability
2. Quality of human resources
3. A hub to West Africa
4. A preferential access to international markets
5. Modern and Structuring Infrastructure
6. An improving business environment
7. An attractive incentive package
Political Stability
• Strong democracy since independence in 1960
• Strong tradition of tolerance and peace ▫ a Christian President was in office for 20 years in a country with a
94% Muslim population)
• No ethnic, religious violence or military coup (democratic political regime change in 2000)
• Free open and independent press
• Strong institutions
HE Abdoulaye WadeSince 2000
HE Abdou Diouf1981–2000
HE Léopold Sédar-Senghor
1960–1980
Quality of Human Resources
50% of the national budget allocated to Education and Health
HIV prevalence rate = 0.7% (EDS IV - 2005)
Large number of prestigious public and private schools
Large number of high skilled workers, managers and experts
A Hub of West AfricaAir Links
- Senegal Airlines the national airline company along with other major African airlines companies are service to/from the entire West African sub region
- Major international airlines companies (Air France, SN Brussels, Turkish, Iberia, Tap Portugal, etc...) offer more than 20 daily flights from/to Europe
- Delta Airlines/South African airline also cover 6daily flights from/to the USA (New York, Atlanta et Washington)
▫ Emirates Airlines service 10 times a week from/toDubai
Sea Links
- 11 major companies (Maersk/SDV/P&O Nedloyd) service to :
- Europe : 6 days/week and 55 links/month ; - USA : 7 days/week
A Preferential access to International Markets
Member of West Africa economic communities with free movement of persons, goods and services
o WAEMU : West African Economic and Monetary Union
Economic union of 8 West African Countries, 90 million consumers using the same currency (F CFA)
o CEDEAO : Community of West African States Economic
Community of 15 States, a market of 280 Million consumers, whose key objective is to implement a common West African market
Preferential Access to European and North Americanmarkets
oUE/ACP Agreement
oAGOA: African Growth and Opportunity Act
oOHADA
Modern and Structuring Infrastructure
New Blaise Diagne International Airport located in DIASS (47 km from Dakar) and five (5) international Airports
Modern port in expansion: Containers Terminal, Deep water port, direct access 24h/24, international lines (Grimaldi, Delmas, Maersk line) operated by Dubai Port World
New and upgraded Road Infrastructures: Toll high ways, coast border roads, etc…
Modern and reliable telecommunication network : 3000 km of optic fibre, 100% digital, international bandwidth 5.9 Gb/s
An improving business environment
Senegal: Top African reformer on cross-border trade (World Bank
Doing Business Report 2012 issued on october 2011)
An annual Presidential Investment Council (PIC) with domestic
and foreign investors meeting with the President and the Government on
topics such as:
Infrastructure and access to land
Administrative procedures, justice, good governance and transparency
Taxation and Incentives
Simplified administrative procedures through a One-Stop Shop
< 48 hours for company incorporation
< 10 days for the Investment Code
< 21 days for the Free Export Company Status
ISO 9001- Version 2008 Certification
Key Principles
• No discrimination between nationals and foreigners
• No limitation in employing expatriates
• Guarantees & Protection of property rights
• Guarantee of the provision of foreign exchange
• Guarantee of transfers of capital & earnings
• Fiscal and non fiscal benefits
An attractive Incentive Package
INVESTMENT CODE Exemption from import duties on the production equipment and material Suspension of VAT on the production equipment and material and VAT invoiced by local
suppliers on goods, services & works etc. 50% Reduction of taxable income over 5 years up to 40% of eligible investment (Tax
Credits)
An attractive Incentive Package
FREE EXPORT COMPANY STATUS• For industrial, agricultural & ICT companies which export at least 80% of their
production• Exemption from customs duties and stamps for production and transportation
equipment, Wage taxes, business license taxes, etc.• Exemption from all forms of taxes based on salaries• Securities income deducted from distributed dividends • Corporate tax at 15% instead of 25%.
SPECIAL INCENTIVES FOR MAJOR PROJECTS• Outstanding fiscal incentives granted to projects over 250 billion FCFA (500 million US $)• Incentives directly negotiated between the investor and the relevant Ministry
Major Senegalese Exports (2010):
2.21 billion US $
Major trading partners in terms of Export
Source : ANSD / NACE 2010
Rest of Africa
22%
Asia and America
20%
Europe19%
WAEMU39%
Senegal’s International Trade
Major Senegalese Imports (2010): 4.21 billion US $
Origin of Imports
Source : ANSD/ NACE 2010
Europe44%
Africa22%
Asia24%
America10%
Senegal’s International Trade
Senegalese Imports 787.7 million US $ in 2010
Edible vegetables and certain
roots and tubers
Oil seed, fruits, grain, seed
Fish products , crustaceans,
molluscs,
Salt, sulphur, earth, stone, plaster,
lime and cement
Bilateral Trade Between Senegal and UK
Senegalese Exports21.04 million US$ in 2010
Mineral fuels, oils, distillation products, etc.
Dairy products, eggs, honey, edible animal products
Machinery, nuclear reactors, boilers, etc
Vehicles
Electrical, electronic equipment
Articles of iron or steel
Tanning, dye extracts
Organic chemicals
Other made textile articles, sets, worn clothing etc
Optical, photo, technical, medical, etc apparatus
KEY BUSINESS OPPORTUNITIES• Agriculture and Agribusiness
• Tourism, Arts & Crafts, and Cultural industries
• Infrastructure development
• Light manufacturing and Pharmaceutical Industries
• Seafood products and aquaculture
• Mining
• Energy
• ICT and Teleservices
• Social Housing
Yearly average 1996-1999:
0.983 billions US $
Yearly average 2000-
2004: 1.407Billions US $
Yearly average 2005-2010:
2.183 Billions US $
43,16 % growth 55,19 % growth
Private Investment experienced a 82,45 % growth between 2000 et 2010
Sustained growth in the volume of private investment
Source : DPEE, sept. 2011
0.870 0.832
1.132
1.098
1.2631.509
1.403
1.695
2.2562.615
2.123
2.116
0.000
0.500
1.000
1.500
2.000
2.500
3.000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Bil
lio
ns
US
$
Private investments trends
Yearly Average 1996-1999:
115.22 Millions US$
Yearly Average 2000-2004: 147,82
Millions US $
Yearly Average 2005-2010: 369,10 Millions US $
28,31 % growth 149,71% growth
A considerable Evolution of Incoming FDI between 2000 and 2010
with a 223,93 % growth
Foreign Direct Investment Trends
Source : DPEE, sept. 2011
11.44
186.38
90.65
172.41 144.77
149.74
203.37
388.88
397.22
468.29
357.22
399.63
0.00
100.00
200.00
300.00
400.00
500.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Mil
lio
ns
US
$
FDI Trends
AGRICULTURE SECTOR
AGRICOLA FAMOSA Activities: Melon productionCorporate capital: BrazilianAmount: 12.7 million US $
BECKETT COLLEGEActivities: Training centre based on theBritish school systemCorporate capital: BritishAmount: 440 000 US $
EDUCATION SECTOR
EUROMEDActivities: Private higher education andspecialized trainingCorporate capital: Senegalese and LebaneseAmount: 12.9 million US $
INFRASTRUCTURE SECTOR
PHILIP MORRIS Activities: Tobacco Manufacturing Corporate capital: Netherlands and UKAmount: 29 million US $
INDUSTRY SECTOR
TOLL HIGHWAY (SENAC s.a)Activities: Toll highway road Corporate capital: Senegalese & InternationalAmount: 1 billion US $