Senegal Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in senegal, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Market Challenges
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The Government of Senegal continues to improve Senegal’s investment climate. Since 2012, Senegal has significantly improved infrastructure, implemented some important economic reforms, worked to increase investment in strategic sectors, and tried to strengthen private sector competitiveness, in addition to significantly reducing the average number of days it takes to start a business. The Government of Senegal expanded the “single window” system to provide services to companies, opening new service centers across the country, harmonizing more than 60 government websites, and digitizing dozens of government services and payment mechanisms. Through the $1.8 billion “Technological New Deal” announced in February 2025, Senegal aims to digitize 90 percent of public services and provide internet to 95 percent of the country by 2034 in an effort to make financial and commercial processes more transparent. 

Property owners can apply for construction permits online. The Commercial Court of Dakar was officially created by Law No. 2017-24 on June 28, 2017, and launched in 2018. The Government of Senegal made progress in operationalizing its Commercial Court, prioritizing the resolution of business disputes. Although companies continue to report problems with corruption and opacity, Senegal compares favorably with many countries in the region in corruption indicators.

High energy costs also serve as a challenge to the growth of industry. The $550 million MCC Senegal Power Compact entered into force in 2021 and aims to decrease energy costs by modernizing the power sector, increasing access to electricity in rural Senegal, strengthening the electrical transmission network in Dakar, and improving governance of the power sector.

Despite these improvements, business climate challenges remain.  Because the informal sector dominates Senegal’s economy, legitimate companies bear a heavy tax burden, although Senegal is making progress in broadening the tax base. Some U.S. companies complain about delays and uncertainty in the project development process. High costs for real estate and energy undermine Senegal’s competitiveness. Senegal’s bureaucracy remains slow and difficult to navigate for projects requiring government approval. A slow legal system and challenges in resolving commercial disputes are impediments to investment despite the recent creation of a commercial court and may serve as an obstacle for foreign small and medium-sized businesses.  Senegal has a procurement regulatory agency (ARMP) and standardized procurement practices; however, application of these rules has been inconsistent. 

According to the World Bank, per capita GDP in 2023 was $1,698, and $4,777.60 when adjusted by purchasing power parity (PPP). According to the World Bank, per capita GDP in 2024 was $1,744, and $5,110.04 when adjusted by purchasing power parity (PPP). As a result, U.S. companies interested in this market may want to consider a regional strategy using Dakar as a hub for West Africa. Moreover, firms seeking to provide goods and services to the Government of Senegal should bear in mind that prevailing fiscal pressures and a narrow revenue base mean the Government of Senegal is price-sensitive in its decision to procure goods and services. 

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