Country Profile

Senegal Situated in the west side of Africa. Bordered by Five countries along with
North Atlantic Ocean. Mali is the only land locked country bordered by Senegal. And
Republic of Gambia is also surrounded by Senegal almost. For the Mediterranean
countries Senegal port is one of the nearest port for them to enter in the African
market. There was a time when France ruled Senegal. Which means Europeans have a
very good influence in the Senegal business market, especially France because of
there historical relation. Southern side of Senegal is good for farmers because of the
fertile land on that area. On the other hand Northern side is unproductive due to its
soil erosion. Most of the northern side is desert area. Ports of Senegal are in the west
side. Dakar is the capital city of Senegal. Other major cities of Senegal are Saint-
Louis, Kaolack, Rafisque, Taoba and Ziguinchor. Dakar port is the strategic point for
European trade and it is the largest port of the country. Other important ports are in
Ziguinchor and Kaolack. The climate of Senegal has two seasons. Dry season (Dec-
Apr) and rainy season (May-Nov). Dry season is the best time to visit the tourists.

Pestel Analysis

Political

Senegal is one of Africa’s role model democratic country. There are lots of small
political parties, but (APR) Alliance for the Republic and (PDS) Senegalese
Democratic Party these two are the main leading and opposition party in Senegal.
Senegal has more than 80 political parties. The unicameral parliament consists of the
National Assembly, which has 150 seats. An independent judiciary also exists in
Senegal. The nation's highest courts that deal with business issues are the
constitutional council and the court of justice, members of which are named by the
president. Senegal is a republic country and has a presidential system. Adult voters
elect the president every five years as of 2001, previously being seven years. They
had four total presidents till date. The current president is Macky Sall, elected in
March 2012.

Senegal offers a stable political environment, relatively robust infrastructure, strong

institutions and a favorable geographic position with growing opportunities for
foreign investment. The Government of Senegal welcomes foreign investment and
has prioritized efforts to improve its business climate. Senegal has maintained a stable
macroeconomic environment, with its regional currency, the CFA franc, pegged to the
Euro and easy repatriation of capital and income. Investors cite high factor costs,
bureaucratic hurdles, limited access to financing and a rigid labor market among the
obstacles to investment. The government is making efforts address some of these
challenges, streamline bureaucratic procedures and improve Senegal’s
competitiveness. France is the largest source of foreign direct investment but the
government of Senegal is keen to diversify its sources of investment. 

On the other hand China’s presence in the country is relatively small compared with
that in other African nations. Beyond financing and infrastructure, however, Senegal
is trying to attract Chinese light manufacturers to industrial parks in the new city of
Diamniadio outside Dakar. Senegal’s membership of the Central Bank of West
African States also makes it attractive for foreign investors. Some in Senegalese
business circles complain that the government is too focused on attracting foreign
investment. But the country’s president Macky Sall says the government prioritizes
local businesses when possible and encourages foreign companies to co-operate with
local businesses. Senegal has a reputation for being one of Africa’s most politically
stable countries, enjoying one of the continent’s fastest economic growth rates and
having a government that says it is committed to improving the business climate and
cutting red tape. As such, the country is trying to position itself as a regional
economic hub. Inflows of foreign direct investment increased from $276m in 2012 to
$532m in 2017. Senegal is already home to a number of regional headquarters for
multinationals, non-governmental organizations and international bodies, and the
government is working to attract foreign investors beyond the western companies that
have traditionally dominated trade in Africa.