Business
Doing Business in Africa: A profile of Senegal
Thus, the country’s first priority should be to continue its liberalizing reforms in order to make business conditions more attractive to both Senegalese entrepreneurs and outside investors. These could stand to be improved, especially in the area of property acquisition and construction permits.
Second, even though Senegal has had currency stability through its membership in the CFA franc monetary zone, it remains to be seen whether that overvalued currency is of much merit for a poor, export-dependent economy with little in the way of valuable commodities in great demand on world markets. While leaving the currency zone may prompt a great deal of uncertainty and instability in the long run, the resulting devalued currency Senegal would be forced to adopt would greatly add to the country’s competitiveness on world markets.
Third, even though Senegal has so far been able to avoid much in the way of conflict and violence both at home and with its neighbors, it is in a dangerous, unstable geopolitical region rife with conflict. Neighboring Mali collapsed into political rebellion and civil war in 2012, prompting French military intervention in 2013.
Mauritania, Senegal’s neighbor to the north, endured a series of military coups in the last decade while Guinea, Senegal’s neighbor to the south, has also recently been affected by a series of destabilizing coups and civil unrest. Further afield, the simmering insurgency in Western Sahara and the brutal civil wars in Sierra Leone and Liberia serve as reminders that West Africa remains a dangerous place.
Still, despite all that, prospects for Senegal are reasonably good. The absence of overly divisive political conflict and its strong, stable democracy are a rarity in the region. If the government can needlessly burdensome rules that hold back business development, the future should be relatively bright for Senegal and its people.
Copyright AFK Insider 2014
