China, India, the UAE and several western countries have long been lured to Senegal over it’s political and economic attractiveness.
In March this year, Senegal secured yet another massive deal in foreign investment. President of Turkey Recep Erdogan announced that USD 582 million would be injected into the West Africa country for construction, agriculture and infrastructure development.
The deal follows the trend of several countries that have found Senegal to be a lucrative investment destination.
According to statistics from the UN Conference on Trade and Development, since 2003, the country has attracted investments of an estimated USD 2.8 billion from the United Arab Emirates, approximately USD 1.23 billion from South Korea and over USD 650 million each from China and India.
The country also has bilateral investment treaties with Australia, Denmark, France and the US.
According to the Financial Times, between 2012 and 2017 inflows of foreign direct investment more than doubled, from USD 276 million to USD 532 million.
Senegal’s political stability and consistent, fast economic growth are what makes it such an attractive investment destination.
The country enjoys a favourable geographic location, with a major seaport and easy access to European and North American markets.
According to a 2016 report from Deloitte, Senegal is classified among the top three fastest-growing economies in Africa, behind Côte d’Ivoire and Tanzania.
Its economy grew 9.1 percent year-on-year in the fourth quarter of 2017, following a 7.1 percent expansion in the previous period.
Senegal’s annual inflation rate fell to 0.5 percent in May of 2018 from 1.1 percent in the previous month.
By all accounts, Senegal’s favourable geographic position and strong institutions which offer new opportunities for foreign investment seems likely to continue to inspire business confidence, thereby cementing its place in Africa as a preferred investment destination.
See more about LEX Africa Senegalese member firm Mame Adama Gueye & Associes