UK-Senegal Investment Forum

Savoy Place, London UK

Thursday, 3rd november, 2011

IT’S TIME FOR AFRICA

OUT with the Old……

The Economist

2000 issue «The HopelessContinent »

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

A new face of Africa….

SenegalDoors of AFRICA

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

About Our Country

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)

Capital City : Dakar (3 million people)

Area : 196,722 sq. km. (76,000 sq. mi.)

Who Are WE ?

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 Factors

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

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

Recent private

investment performance

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

Some Success Stories

ESS STORIES

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 $

TOURISM SECTOR

ONOMO HOTELActivities: Hotel management, cateringCorporate capital: FrenchAmount: 8.4 million US $

RADISSON BLU HOTELActivities: Hotel management, catering Corporate capital: SenegaleseAmount:50 million US $