Dakar is the western-most African city on its way to becoming a major regional business hub. Located in French/Wolof West African Senegal, Dakar enjoys a tropical climate with distinct wet and dry seasons. Situated on the Cape Verde peninsula, the city is surrounded by sandy beaches, a thriving harbor, and has a beautiful mix of old French and modern architecture.
Popularized in the West by the annual "Dakar Rally," the off-road race from Paris to Senegal's capital draws thousands of tourists and grabs media attention. Besides the race, the French have long vacationed on Senegal's beaches as airline connections to Paris are convenient and affordable
Dakar is a major regional financial center and is the primary choice for Europeans doing business in West Africa. For one, its home to more banks than any other West African city. It's home to BCEAO, the central bank of the West African CFA currency as well as home to many international NGOs. Dakar's even the preferred regional port for transatlantic and European shipments. It's strategic location ensures that capital will continue to flow into the city for the foreseeable future.
Dakar's Senghor airport is a stop-over for transatlantic flights between the East Coast and South Africa. Delta Airlines, the only American air carrier in Africa services Dakar. Air connections are also available to the rest of Africa, Europe, and the Middle East with such air carriers as Air France and Saudi Arabian Airlines.
The Economy
Senegal's economy is developing at a brisk yet healthy rate. Its gross national product (real growth rate) has been consistently averaging a robust 5.5% since 1997 and its industrial production rate is about 3% with no end in sight. About 70% of Senegal's labor force is engaged in farming and arid neighboring countries like Mali also depend on Senegal's food exports. Awakening giant, India has become Senegal's largest importer. As India continues to develop, Senegal will undoubtedly become even more economically powerful and its reliance on Senegal's fish, cotton, nuts, and vegetables will keep things moving. China has also paved the way for an increase in Senegalese imports, especially textiles, farm products, fish, and minerals by announcing tariff exemptions on all Senegalese products.
Safety
You'd be happy to know that Senegal has one of the lowest violent crime rates in the world. According to INTERPOL data, the murder rate was just 0.33 per 100,000 people. Compare that to Japan's 1.41 rate and the US' 5.5 rate. Rapes, thefts, and robberies are all far lower than even Japan and of course, the US. After Iceland, Senegal is the safest country in the world! Tourists and those who frequent Senegal will tell you that the nation is home to some of the friendliest and most hospitable people you'll ever meet. You'll also like to hear that the country has one of Africa's lowest HIV/AIDS rates at just 0.8%.
Senegalese are often described as tolerant, warm, and hospitable. In fact, "Senegal" literally translates to "our boat" signifying that everyone present is together in the same boat. With such a diverse population, it's easy to see how many religions (Muslims, Christians, Buddhists, Native religions, etc.) and languages (Wolof, Halpulaar, French, etc.) can peacefully coexist.
If political stability is your concern, then Senegal is your haven. Last year's presidential election was declared, "free and fair" (BBC Article) with no reports of political killings (Russia, for example did have politically related killings last year). It's worth mentioning that the French still maintain a military base here.
Tourism Potential
Since the 1970's, Dakar has been a tourist destination for the French; however Delta's new service from the US to the airport, low costs, the spectacular beaches, and the great weather will certainly bring new tourists for the years to come. The center city, or "Le Plateau" has a very European feel. The narrow streets are lined with a blend of French colonial style buildings and modern high rises. The city's small parks, squares, and the shore on three sides of this peninsular city provide a relaxing relief. You'll even find several beach resorts in and around town from Club Med to Le Meridien in the northern quarters of the city, N'gor and Yoff. With such assets, Dakar is an ideal developing city.
As cruising proves to be the cheapest way to travel and vacation, it's worth noting that Dakar has increasingly become a high-end cruise port of call and will attract more cruise ships within the next few years. Tapping into the increase in cruisers with a shop near the port area could give you an excellent business opportunity.
Outside of Dakar, tourists can venture to a number of beaches, national parks, and historic landmarks. Many tourists travel by ferry to Gorée Island where they'll find Fort d'Estrées, a nineteenth century French fort. Or, head a few hours north to the picturesque French colonial shore town of Saint-Louis. Beyond the cities and shore, is Senegal's vast landscape teeming with elephants, lions, aardvarks, crocodiles, and ostriches as well as lots of endemic species.
Wedged in the middle of south central Senegal is the small, wealthy, oil-rich nation of the Gambia. Here, tourists will find Western Africa's own Stonehenge at Wassu, an ancient stone circle that is a growing tourist attraction. Like elsewhere in the region, everything is accessible from Dakar.
Open for Foreign Investment
The Senegalese government is open to wholly-owned foreign corporations operating in the country and has tax exemption incentives for foreign investment in the Dakar area. You'd qualify for these incentives with just US$ 7,000 and by employing 3 Senegalese (for more information, see aabf.org's Senegal investment guide or visit APIX, the national investment office). With so many foreign banks, including CitiBank, you'll be able to take care of all your financial transactions with ease. With regards to property rights, foreign investors are treated equally with a legal system based on the French law. Operating a business can certainly be an easy and inexpensive experience.
We're not the only ones who think Dakar is a great investment destination. According to the IMF's late 2007 forecast, Senegal will see an 800% increase in foreign direct investment by 2010. Just take a look at these groups that are planning to get a piece of the action:
- Jafza Jebel Ali Free Zone (Economic Zones World/Dubai World) signed a contract for the development of the Dakar Integrated Special Economic Zone (Jan 2008). The project expects to host 1,000 companies, creating employment growth for the next 2 decades and will be integrated with tourism, residential, and commercial development
- In October 2007, Senegal handed over developing and operating duties of Dakar's shipping container terminal to DP World (Dubai World).
- Aureos Capital announced in October 2007 its pledge of US$ 2.86 M to Compagnie Sahelienne (Matforce) which sells car and energy equipment.
- Iran bought 34% of state-owned oil producer, SAR in September 2007.
- Last year, ArcelorMittal announced plans for a US$ 2.2 B iron ore mine project in Senegal.
So if you're searching for a safe getaway spot where you can live bigger for less, have great weather, and access to a cosmopolitan city, the shore, and nature, then the Dakar region is for you. If you're looking to start a business in a robust and business-friendly economy, or trying seeking a tax haven, then Dakar is certainly a great investment destination for you. Feel free to send us questions and comments on this or any other great investment destination.
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