Senegal: Investing in Senegal
Senegal hosts a large stock of FDI compared to its region, and inflows have been dynamic in recent years, even during the global economic crisis triggered by the COVID-19 pandemic, as the government is leading an active policy to encourage FDI inflows. According to UNCTAD’s World Investment Report 2024, Senegal's FDI inflows were stable at USD 2.64 billion in 2023, with the announcement of 335 greenfield investment projects. At the end of the same period, the total stock of FDI stood at USD 16.357 billion, around 52.1% of the country’s GDP. Key projects launched in recent years include the Port de Ndayane deepwater terminal, developed by DP World with a USD 1.2 billion investment to ease Dakar's port capacity. The Niakhar Solar Power Station, a 30MW solar plant with a 15MW/45MWh battery storage, received USD 40 million from the West African Development Bank. Additionally, the Greater Tortue Ahmeyim LNG project, led by BP and Kosmos Energy, plays a central role in Senegal's energy transition. These projects highlight the country’s drive to modernize its infrastructure and energy sectors. France is the largest investor in Senegal (17% of the stock), but recently there have been important investments from China, Turkey, and the United Arab Emirates. Some other key investors are Canada, Mauritius, Morocco, and Côte d'Ivoire (IMF). Sectors attracting substantial investment include petroleum and natural gas, agribusiness, mining, tourism, manufacturing, and fisheries (U.S. Trade Administration).
Senegal's strengths in terms of FDI attraction include competitive production costs, a skilled workforce, a strategic geographical location, good international and regional political relations, and a competitive economy. Some of the barriers that might impede investment are economic vulnerability, low activity diversity, underdeveloped infrastructure, inefficient and non-transparent regulation, bureaucracy, high factor costs, and lack of security. The authorities are working on overhauling the labour market, facilitating access to land, improving the commercial justice system, reducing the regulatory burden through modernizing the administration, and strengthening the competition framework. A Public-private partnership (PPP) framework has also been designed to help accelerate and broaden the implementation of major investments. There is no legal discrimination against businesses conducted or owned by foreign investors, and there are no barriers to full ownership of businesses by foreign investors in most sectors. With strong air connections, a modern airport, growing seaports, improved ground transport, and mobile banking, the country aims to become a regional hub for trade and transportation. Moreover, three Special Economic Zones offer tax exemptions and benefits to investors. While repatriating capital and income is generally easy, the regional central bank occasionally limits offshore accounts for project-financing companies registered in the country. Senegal ranks 92nd among the 133 economies on the Global Innovation Index 2024 and 108th out of 184 countries on the latest Index of Economic Freedom.
Foreign Direct Investment | 2020 | 2021 | 2022 |
FDI Inward Flow (million USD) | 1,846 | 2,588 | 2,586 |
FDI Stock (million USD) | 9,066 | 9,670 | 11,729 |
Number of Greenfield Investments* | 10 | 8 | 14 |
Value of Greenfield Investments (million USD) | 606 | 654 | 1,426 |
Source: UNCTAD, Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Country Comparison For the Protection of Investors | Senegal | Sub-Saharan Africa | United States | Germany |
Index of Transaction Transparency* | 7.0 | 5.5 | 7.0 | 5.0 |
Index of Manager’s Responsibility** | 1.0 | 3.5 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 6.0 | 5.5 | 9.0 | 5.0 |
Source: Doing Business, Latest available data
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
The main assets of the country are:
The country has many obstacles to FDI. The main weaknesses of the country are:
A law has been adopted in Senegal to establish the regime of special economic zones (SEZ). Tax and customs benefits can be granted to companies approved under the SEZ regime for a maximum of 25 years, including: exemptions from duties and taxes on imports of goods, raw materials and equipment (except for community levies); the application of a reduced corporate tax rate of 15%; and exoneration from some taxes such as business tax and property tax. Today there are three SEZs: one in the suburbs of Dakar, one in Sandiara and another in Ndiass.
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Latest Update: May 2025