In a context where global foreign investment increased by 10.9% in 2013, in particular in Europe (+25.2%) and in Latin America (+17.5%), FDI flows to developing economies reached a new high of US$759 billion. The African continent has posted an increase of 6.8% of FDI in 2013.
Senegal has a proactive policy towards FDI. At the end of the 90s, there was an FDI boom in the direction of Senegal. France is historically one of the countries that invested the most in Senegal. However, the effects of the crisis of 2008-2009 caused a drop of about 20% in the flows of FDI. The Senegalese economy remains largely dependent on European growth.
Senegal has a large stock of FDI, mainly of French origin. In 2013, FDI has again been driven by large-scale projects for the development of infrastructure and the country's power grid. For the last few years, the flow of foreign investment into Senegal has remained around 300 million USD annually (338 million USD in 2013).
Information on the 2013 FDI influx in this region can be accessed in the Global Investment Trade Monitor published in January 2014 by the United Nations Conference on Trade and Development (UNCTAD).
|Senegal||Sub-Saharan Africa||United States||Germany|
|Index of Transaction Transparency*||6.0||5.0||7.0||5.0|
|Index of Manager’s Responsibility**||1.0||4.0||9.0||5.0|
|Index of Shareholders’ Power***||5.0||9.0||5.0|
|Index of Investor Protection****||3.0||4.5||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||338||276||298|
|FDI Stock (million USD)||1,960||2,283||2,696|
|Performance Index*, Ranking on 181 Economies||140||-||-|
|Potential Index**, Ranking on 177 Economies||121||-||-|
|Number of Greenfield Investments***||6||5||9|
|FDI Inwards (in % of GFCF****)||9.9||8.0||8.0|
|FDI Stock (in % of GDP)||13.7||16.3||17.8|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
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Last Updates: January 2015