COUNTRIES
The countries in which Arc Development Company is currently doing business and offers services to foreign investors and African enterprises are set forth below. All of these countries are (1) actively seeking foreign investment and trade, (2) offering incentives to foreign investors and (3) seeking to cure bureaucratic hurdles to foreign investment and trade and to curb corruption.
Investment. Current investment opportunities in the countries where Arc does business include road infrastructure, extractive industries (petroleum and hard minerals), transport, electric power, renewable energy, manufacturing, promotion of small and medium sized enterprises, information technology/electronics, telecommunications, food processing, apparel, tourism, agriculture, fisheries and forestry.
All but one of the countries in which Arc does business are parties to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (“the Washington Convention”) and the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“the New York Convention”). The Washington Convention and the New York Convention are two of the most important forms of investment protection available to foreign investors.
The Washington Convention is a multilateral treaty which established the International Centre for Settlement of Investment Disputes (“ICSID”), the primary purpose of which is to provide a mechanism for effective conciliation and arbitration of international investment disputes. The Convention seeks to remove impediments to the free international flow of private investment posed by non-commercial risks and the absence of specialized international methods for investment dispute settlement.
The New York Convention is a multilateral treaty which requires the courts of countries that are parties to the Convention to give effect to arbitration agreements, and to recognize and enforce arbitral awards made in other countries.
All of the countries in which Arc does business are members of the World Bank’s Multilateral Investment Guarantee Agency (“MIGA”). MIGA provides non-commercial guarantees (insurance) for investments made in developing countries. These guarantees protect investors against the risks of transfer restriction (including inconvertibility), expropriation, war and civil disturbance, and breach of contract.
In all of the countries where Arc does business, political risk insurance is available to US investors, contractors and exporters from the Overseas Private Investment Corporation (“OPIC”), an independent agency of the United States Government. Political risk insurance can cover currency inconvertibility, expropriation and political violence, and is available for investments in new ventures, expansions of existing enterprises, privatizations and acquisitions with positive developmental benefits.
All of the countries in which Arc does business are also parties to bilateral investment treaties, another important form of investment protection. A bilateral investment treaty (“BIT”) is a treaty between two countries which establishes the terms and conditions for private investment by the nationals and companies of one country in another country. Typically, BITs guarantee fair and equitable treatment of foreign investment and provide for free transferability of investment-related funds, protection from expropriation and impartial dispute resolution in an international forum.
Trade. Interest in American and European products is high in all of the countries in which Arc does business. Trade opportunities for American and European exporters presently include oil field equipment, heavy equipment and machinery, construction materials, iron and steel products, petroleum products (including fuels and lubricants), chemicals and related products, manufacturing equipment, transport equipment and vehicles, electrical equipment, boilers, agro industrial machinery, food processing equipment and technology, manufactured goods, generic pharmaceutical products, cosmetics, textiles, apparel and food products.
All of the countries in which Arc does business are either members or observers of the World Trade Organization (“WTO”). The WTO is an international organization that promotes free trade. It provides a legal and institutional framework for the negotiation and implementation of trade agreements among its members. It polices the application of such agreements and settles disputes concerning their interpretation and application.
All of the francophone countries in which Arc does business are members of the Organization for the Harmonization of Business Law in Africa (“OHADA”). OHADA is an international organization currently comprising 16 African nations. It was created by the Treaty on the Harmonization of Business Law in Africa. The purpose of the treaty and the organization is to promote economic development in Africa by creating a secure legal framework for the conduct of business. In order to achieve this goal, the treaty authorizes OHADA to promulgate laws known as “Uniform Acts” concerning various aspects of business. These Uniform Acts are binding on members and override any conflicting laws that have been enacted by member States.
A number of the countries in which Arc does business have established free trade zones which offer fiscal, regulatory and customs incentives.
Cameroon
The Republic of Cameroon is blessed with an abundance of natural resources, particularly in the agriculture, mining, forestry and oil and gas sectors. The Government of Cameroon is actively seeking to attract foreign investment and trade in these sectors and others in order to create economic growth and new employment.
The Government of Cameroon, together with the Commonwealth Business Council, has published an Investment Projects Register which sets forth details of numerous projects for which Cameroon is seeking foreign investment assistance. Investment opportunities currently exist in the sectors of road infrastructure, transport, electric power, water, renewable energy, extractive industries, commerce and trade, promotion of small and medium sized enterprises, health, tourism, agriculture and agro-industries, telecommunications and publishing.
In order to attract foreign investors, Cameroon offers various incentives including tax and customs exemptions; free remittance abroad of dividends, capital returns, interest and principal on foreign debt, lease payments, royalties and management fees, and returns on liquidation; 100 percent foreign ownership of equity; equality of treatment with local businesses; and guarantees against expropriation.
The United States and Cameroon have entered into an investment guarantee agreement that offers political risk insurance to American investors through the Overseas Private Investment Corporation (“OPIC”).
With respect to trade, opportunities exist for the export to Cameroon of machinery, electrical equipment, vehicles, consumer goods, food products and grains, pharmaceuticals, crude oil, fuel, lubricants, aluminum oxide, rubber, industrial supplies and apparel (including used apparel).
To encourage foreign investment and trade, Cameroon has established a free trade zone regime which is applicable to all locations throughout the country. Under Cameroon’s industrial free zone legislation, firms exporting at least 80 percent of their output qualify for an extensive package of fiscal, regulatory and customs incentives. These incentives include exemption from all licenses, authorizations and quota restrictions for exports and imports; exemption from all price and margin controls; a ten year tax holiday on all taxes and a flat tax of 15 percent thereafter; profit/loss carry forward during the tax period; the right to hold foreign exchange accounts in domestic banking system; the right to transfer abroad all funds earned in Cameroon; exemption for all exports and imports from all existing and future direct and/or indirect taxes, duties and imposts; exemption from the Import Verification Program; exemption of all locally purchased inputs from production and sales related taxes; exemption from the Standard Wage Classification Scheme specified in the Labor Code; the right to freely negotiate contracts between employer and employee; right to the acquisition of work permits for expatriate workers; and the right to replace the National Social Security Scheme with a private plan of equal or better benefits. Cameroon’s free trade zone regime is administered by the National Office for Industrial Free Zones.
Cameroon is a member of the World Trade Organization and the Organization for the Harmonization of Business Law in Africa.
Capital: Yaounde
Other Major Cities: Douala, Garoua, Bamenda
Time Zone: UTC + 1
Currency: CFA franc
Official Languages: French, English
Legal System: based on French civil law with common law influences
Principal Law Governing Foreign Investment: Foreign investment in Cameroon is governed by the Investment Charter of 2002 and the Investment Code of 1990.
International Protection of Foreign Investment: Cameroon is a party to both the Washington Convention and the New York Convention, and is a member of MIGA. It has entered into bilateral investment treaties with Belgium and Luxembourg, Germany, Italy, the Netherlands, Romania, Switzerland, the United Kingdom and the United States.
Principal Industries: petroleum production and refining, aluminum production, light consumer goods, textiles, lumber and ship repair
Agricultural Products: coffee, cocoa, cotton, rubber, bananas, oilseed, grains, root starches, livestock, timber
Main Exports: crude oil and petroleum products, lumber, cocoa beans, aluminum, coffee, cotton
Main Imports: machinery, electrical equipment, transport equipment, fuel, foodstuffs
The Government of Cameroon, together with the Commonwealth Business Council, has published an Investment Projects Register which sets forth details of numerous projects for which Cameroon is seeking foreign investment assistance. Investment opportunities currently exist in the sectors of road infrastructure, transport, electric power, water, renewable energy, extractive industries, commerce and trade, promotion of small and medium sized enterprises, health, tourism, agriculture and agro-industries, telecommunications and publishing.
In order to attract foreign investors, Cameroon offers various incentives including tax and customs exemptions; free remittance abroad of dividends, capital returns, interest and principal on foreign debt, lease payments, royalties and management fees, and returns on liquidation; 100 percent foreign ownership of equity; equality of treatment with local businesses; and guarantees against expropriation.
The United States and Cameroon have entered into an investment guarantee agreement that offers political risk insurance to American investors through the Overseas Private Investment Corporation (“OPIC”).
With respect to trade, opportunities exist for the export to Cameroon of machinery, electrical equipment, vehicles, consumer goods, food products and grains, pharmaceuticals, crude oil, fuel, lubricants, aluminum oxide, rubber, industrial supplies and apparel (including used apparel).
To encourage foreign investment and trade, Cameroon has established a free trade zone regime which is applicable to all locations throughout the country. Under Cameroon’s industrial free zone legislation, firms exporting at least 80 percent of their output qualify for an extensive package of fiscal, regulatory and customs incentives. These incentives include exemption from all licenses, authorizations and quota restrictions for exports and imports; exemption from all price and margin controls; a ten year tax holiday on all taxes and a flat tax of 15 percent thereafter; profit/loss carry forward during the tax period; the right to hold foreign exchange accounts in domestic banking system; the right to transfer abroad all funds earned in Cameroon; exemption for all exports and imports from all existing and future direct and/or indirect taxes, duties and imposts; exemption from the Import Verification Program; exemption of all locally purchased inputs from production and sales related taxes; exemption from the Standard Wage Classification Scheme specified in the Labor Code; the right to freely negotiate contracts between employer and employee; right to the acquisition of work permits for expatriate workers; and the right to replace the National Social Security Scheme with a private plan of equal or better benefits. Cameroon’s free trade zone regime is administered by the National Office for Industrial Free Zones.
Cameroon is a member of the World Trade Organization and the Organization for the Harmonization of Business Law in Africa.
Capital: Yaounde
Other Major Cities: Douala, Garoua, Bamenda
Time Zone: UTC + 1
Currency: CFA franc
Official Languages: French, English
Legal System: based on French civil law with common law influences
Principal Law Governing Foreign Investment: Foreign investment in Cameroon is governed by the Investment Charter of 2002 and the Investment Code of 1990.
International Protection of Foreign Investment: Cameroon is a party to both the Washington Convention and the New York Convention, and is a member of MIGA. It has entered into bilateral investment treaties with Belgium and Luxembourg, Germany, Italy, the Netherlands, Romania, Switzerland, the United Kingdom and the United States.
Principal Industries: petroleum production and refining, aluminum production, light consumer goods, textiles, lumber and ship repair
Agricultural Products: coffee, cocoa, cotton, rubber, bananas, oilseed, grains, root starches, livestock, timber
Main Exports: crude oil and petroleum products, lumber, cocoa beans, aluminum, coffee, cotton
Main Imports: machinery, electrical equipment, transport equipment, fuel, foodstuffs
Equatorial Guinea
Because of its small size and its substantial petroleum revenues, the Republic of Equatorial Guinea has the highest per capita income in Africa. It also has one of the fastest growing economies in Africa. However, the Government of Equatorial Guinea has recognized the need to diversify the country’s economy so as to lessen its dependence upon petroleum revenues.The National Development Plan adopted in 2007 provides for diversification of the economy through promotion of investment in agriculture, fisheries, energy, tourism and financial services. Other investment opportunities include road infrastructure, building and construction, oil and gas, education and public health.
In order to attract foreign investment to these sectors, the investment code provides for repatriation of profits and exemptions from various taxes and capital requirements. The investment code also contains incentives for job creation, training and promotion of non-traditional exports.
The United States and Equatorial Guinea have entered into an investment guarantee agreement that offers political risk insurance to American investors through the Overseas Private Investment Corporation.
With respect to trade, opportunities exist for the export to Equatorial Guinea of petroleum sector equipment, machinery, electrical and electronic equipment, boilers, vehicles, iron and steel products, vehicles, fuels, oils, distillation products and food products. Equatorial Guinea has liberalized its trade regulations by eliminating qualitative restrictions on imports and reducing the range and amount of tariffs.
Equatorial Guinea has observer status in the World Trade Organization and has applied for full membership. It is also a member of the Organization for the Harmonization of Business Law in Africa.
Capital: Malabo
Other Major Cities: Bata
Time Zone: UTC + 1
Currency: CFA franc
Official Languages: Spanish, French
Legal System: based on Spanish civil law
Principal Law Governing Foreign Investment: Foreign investment in Equatorial Guinea is governed by the Law on the Regulation of Investments (Law No. 7/1992 as amended in April 1994).
International Protection of Foreign Investment: Equatorial Guinea is not a party to the Washington Convention or the New York Convention. It is a member of MIGA, and has entered into bilateral investment treaties with France and Spain.
Principal Industries: petroleum, natural gas, fishing, lumber
Agricultural Products: coffee, cocoa, rice, yams, cassava (tapioca), bananas, palm oil nuts, livestock, lumber
Main Exports: petroleum, methanol, lumber, cocoa
Main Imports: petroleum sector equipment, machinery, boilers, iron and steel products, fuels, oils and distillate products, chemical products and vehicles
In order to attract foreign investment to these sectors, the investment code provides for repatriation of profits and exemptions from various taxes and capital requirements. The investment code also contains incentives for job creation, training and promotion of non-traditional exports.
The United States and Equatorial Guinea have entered into an investment guarantee agreement that offers political risk insurance to American investors through the Overseas Private Investment Corporation.
With respect to trade, opportunities exist for the export to Equatorial Guinea of petroleum sector equipment, machinery, electrical and electronic equipment, boilers, vehicles, iron and steel products, vehicles, fuels, oils, distillation products and food products. Equatorial Guinea has liberalized its trade regulations by eliminating qualitative restrictions on imports and reducing the range and amount of tariffs.
Equatorial Guinea has observer status in the World Trade Organization and has applied for full membership. It is also a member of the Organization for the Harmonization of Business Law in Africa.
Capital: Malabo
Other Major Cities: Bata
Time Zone: UTC + 1
Currency: CFA franc
Official Languages: Spanish, French
Legal System: based on Spanish civil law
Principal Law Governing Foreign Investment: Foreign investment in Equatorial Guinea is governed by the Law on the Regulation of Investments (Law No. 7/1992 as amended in April 1994).
International Protection of Foreign Investment: Equatorial Guinea is not a party to the Washington Convention or the New York Convention. It is a member of MIGA, and has entered into bilateral investment treaties with France and Spain.
Principal Industries: petroleum, natural gas, fishing, lumber
Agricultural Products: coffee, cocoa, rice, yams, cassava (tapioca), bananas, palm oil nuts, livestock, lumber
Main Exports: petroleum, methanol, lumber, cocoa
Main Imports: petroleum sector equipment, machinery, boilers, iron and steel products, fuels, oils and distillate products, chemical products and vehicles
Gabon
The Gabonese Republic is one of the most prosperous and stable countries in Africa. Its economy is heavily dependent upon the petroleum sector, and the Government is actively seeking to develop other sectors. Specifically, Gabon is seeking foreign investment in road infrastructure, education, health, mining, agriculture, forestry, timber processing, telecommunications, manufacturing, transport, housing and tourism.
To attract foreign investment to these sectors, Gabon offers various incentives including tax and customs exemptions; free conversion or transfer of capital, earnings, profits and interest payments; no restrictions on purchase of foreign exchange; 100 percent foreign ownership of equity for most enterprises; equality of treatment with local companies; no major performance requirements such as exporting a certain percentage of production, purchasing from local companies or investing in a certain region of the country; and guarantees against expropriation.
The Overeas Private Investment Corporation provides coverage for qualified investments in Gabon.
With respect to trade opportunities, Gabon is seeking imports of construction materials, transportation equipment, machinery, telecommunications equipment, metals, chemicals, food products, cosmetics and apparel.
Gabon is developing a free trade zone on Mandji Island near Port-Gentil, the country’s principal port and industrial center.
Gabon is a member of the World Trade Organization and the Organization for the Harmonization of Business Law in Africa.
Capital: Libreville
Other Major Cities: Port-Gentil
Time Zone: UTC + 1
Currency: CFA franc
Official Language: French
Legal System: based on French civil law
Principal Law Governing Foreign Investment: Foreign investment in Gabon is governed by Law No. 15/98 establishing a Charter for Investments in the Gabonese Republic.
International Protection of Foreign Investment: Gabon is a party to both the Washington Convention and the New York Convention, and is a member of MIGA. It has entered into bilateral investment treaties with Belgium and Luxembourg, China, Germany, Italy, Morocco, Romania, Spain and Switzerland.
Principal Industries: petroleum extraction and refining; manganese; gold; chemicals; ship repair; food and beverages; textiles; timber; cement
Agricultural Products: cocoa, coffee, sugar, palm oil, rubber, cattle, okume (a tropical soft wood), fish
Main Exports: crude oil, timber, manganese, uranium
Main Imports: machinery and equipment, food products, chemicals, construction materials
To attract foreign investment to these sectors, Gabon offers various incentives including tax and customs exemptions; free conversion or transfer of capital, earnings, profits and interest payments; no restrictions on purchase of foreign exchange; 100 percent foreign ownership of equity for most enterprises; equality of treatment with local companies; no major performance requirements such as exporting a certain percentage of production, purchasing from local companies or investing in a certain region of the country; and guarantees against expropriation.
The Overeas Private Investment Corporation provides coverage for qualified investments in Gabon.
With respect to trade opportunities, Gabon is seeking imports of construction materials, transportation equipment, machinery, telecommunications equipment, metals, chemicals, food products, cosmetics and apparel.
Gabon is developing a free trade zone on Mandji Island near Port-Gentil, the country’s principal port and industrial center.
Gabon is a member of the World Trade Organization and the Organization for the Harmonization of Business Law in Africa.
Capital: Libreville
Other Major Cities: Port-Gentil
Time Zone: UTC + 1
Currency: CFA franc
Official Language: French
Legal System: based on French civil law
Principal Law Governing Foreign Investment: Foreign investment in Gabon is governed by Law No. 15/98 establishing a Charter for Investments in the Gabonese Republic.
International Protection of Foreign Investment: Gabon is a party to both the Washington Convention and the New York Convention, and is a member of MIGA. It has entered into bilateral investment treaties with Belgium and Luxembourg, China, Germany, Italy, Morocco, Romania, Spain and Switzerland.
Principal Industries: petroleum extraction and refining; manganese; gold; chemicals; ship repair; food and beverages; textiles; timber; cement
Agricultural Products: cocoa, coffee, sugar, palm oil, rubber, cattle, okume (a tropical soft wood), fish
Main Exports: crude oil, timber, manganese, uranium
Main Imports: machinery and equipment, food products, chemicals, construction materials
Ghana
The Republic of Ghana, formerly the “Gold Coast”, is frequently cited as a model for political and economic reform in Africa. It remains one of the world’s top gold producers, but its economy has historically been dominated by agriculture. The discovery of major offshore oil reserves 2007 is likely to have a profound effect on Ghana’s economy. Ghana is currently seeking foreign investment in infrastructure (roads, railways, ports, mass transportation), energy, agriculture, agro-processing, seafood processing, mineral processing (gold, diamonds, salt), wood processing, manufacturing, information and communications technology, real estate development (residential, commercial, warehouses), tourism, education, health, financial services, cotton and textiles, ethnic beauty products, fine and custom jewelry and ceramics.
Investment incentives offered by Ghana include various tax and customs exemptions; free transferability through any authorized dealer bank in freely convertible currency of dividends and net profits attributable to a foreign investment; payments in respect of loan servicing where a foreign loan has been obtained; remittance of proceeds (net of all taxes and other obligations) in the event of sale or liquidation of the enterprise or any material interest attributable to the investment; 100 percent foreign ownership of equity; and guarantees against expropriation of private investments.
The Overeas Private Investment Corporation provides coverage for qualified investments in Ghana.
Trade opportunities in Ghana for American and European exporters include oil and gas auxiliary services, goods and services for the mining sector, value added processing for the mining sector, construction and earth moving equipment (including reconditioned equipment), building materials, telecommunications switching and transmission equipment, cellular telephones, fax machines, radio and television equipment, computer equipment, desktop personal computers (including used computers), floppy diskettes, printers, monitors, vehicles (including used vehicles), pharmaceuticals and medical supplies, food processing and packing equipment, travel and tourism services, agricultural products and food products.
Ghana has a free trade zone regime. It has established a number of “Export Processing Zones” to promote the processing industry and the development of trade and services. Export Processing Zone incentives include exemption from all direct and indirect customs taxes on exports and production-related imports; exemption from all forms of income tax for ten years and limitation of such taxes to eight percent thereafter; the right to hold foreign currency accounts in domestic banking system; and exemption from capital gains tax on dividends from investments in the Export Processing Zone. To be included in the Export Processing Zones regime, a company must export at least 70 percent of its production. At present, there are more than 200 Export Processing Zone companies in Ghana. Export Processing Zones are administered by the Ghana Free Zones Board.
Ghana is a member of the World Trade Organization.
Capital: Accra
Other Major Cities: Kumasi
Time Zone: UTC + 0
Currency: Cedi
Official Language: English
Legal System: based on English common law
Principal Law Governing Foreign Investment: Foreign investment in Ghana is governed by the Ghana Investment Promotion Centre Act of 1994 (Act No. 478).
International Protection of Foreign Investment: Ghana is a party to both the Washington Convention and the New York Convention, and is a member of MIGA. It has also entered into bilateral investment treaties with China, Denmark, Germany, Malaysia, the Netherlands, Serbia, Switzerland and the United Kingdom.
Principal Industries: mining, lumber, light manufacturing, aluminum smelting, food processing, cement, commercial shipbuilding
Agricultural Products: cocoa, rice, cassava (tapioca), peanuts, corn, shea nuts, bananas, timber
Main Exports: gold, cocoa, timber, tuna, bauxite, aluminum, manganese ore, diamonds, horticulture
Main Imports: heavy equipment, machinery, petroleum, food products
Investment incentives offered by Ghana include various tax and customs exemptions; free transferability through any authorized dealer bank in freely convertible currency of dividends and net profits attributable to a foreign investment; payments in respect of loan servicing where a foreign loan has been obtained; remittance of proceeds (net of all taxes and other obligations) in the event of sale or liquidation of the enterprise or any material interest attributable to the investment; 100 percent foreign ownership of equity; and guarantees against expropriation of private investments.
The Overeas Private Investment Corporation provides coverage for qualified investments in Ghana.
Trade opportunities in Ghana for American and European exporters include oil and gas auxiliary services, goods and services for the mining sector, value added processing for the mining sector, construction and earth moving equipment (including reconditioned equipment), building materials, telecommunications switching and transmission equipment, cellular telephones, fax machines, radio and television equipment, computer equipment, desktop personal computers (including used computers), floppy diskettes, printers, monitors, vehicles (including used vehicles), pharmaceuticals and medical supplies, food processing and packing equipment, travel and tourism services, agricultural products and food products.
Ghana has a free trade zone regime. It has established a number of “Export Processing Zones” to promote the processing industry and the development of trade and services. Export Processing Zone incentives include exemption from all direct and indirect customs taxes on exports and production-related imports; exemption from all forms of income tax for ten years and limitation of such taxes to eight percent thereafter; the right to hold foreign currency accounts in domestic banking system; and exemption from capital gains tax on dividends from investments in the Export Processing Zone. To be included in the Export Processing Zones regime, a company must export at least 70 percent of its production. At present, there are more than 200 Export Processing Zone companies in Ghana. Export Processing Zones are administered by the Ghana Free Zones Board.
Ghana is a member of the World Trade Organization.
Capital: Accra
Other Major Cities: Kumasi
Time Zone: UTC + 0
Currency: Cedi
Official Language: English
Legal System: based on English common law
Principal Law Governing Foreign Investment: Foreign investment in Ghana is governed by the Ghana Investment Promotion Centre Act of 1994 (Act No. 478).
International Protection of Foreign Investment: Ghana is a party to both the Washington Convention and the New York Convention, and is a member of MIGA. It has also entered into bilateral investment treaties with China, Denmark, Germany, Malaysia, the Netherlands, Serbia, Switzerland and the United Kingdom.
Principal Industries: mining, lumber, light manufacturing, aluminum smelting, food processing, cement, commercial shipbuilding
Agricultural Products: cocoa, rice, cassava (tapioca), peanuts, corn, shea nuts, bananas, timber
Main Exports: gold, cocoa, timber, tuna, bauxite, aluminum, manganese ore, diamonds, horticulture
Main Imports: heavy equipment, machinery, petroleum, food products
Guinea
The Republic of Guinea is endowed with vast mineral, hydroelectric and agricultural resources, most of which remain undeveloped. Guinea has almost half of the world’s bauxite reserves, as well as substantial gold and diamond reserves.
Guinea’s investment code authorizes the following types of foreign investment: foreign private; mixed foreign and local, and mixed public and private. An investment promotion department exists within the Ministry of Commerce.
Current investment opportunities in Guinea include mining, agriculture, commercial farming involving processing and packaging, fertilizer production, fisheries, road infrastructure, construction, health, education, telecommunications, tourism and real estate development.
Investment incentives include the right to transfer to any country of the investor’s choice the original foreign capital, profits resulting from investment, capital gains on disposal of investment and fair compensation paid in the event of nationalization or expropriation of the investment; preferential tax treatment for investments in priority sectors, which include promotion of small and medium sized businesses, development of non-traditional exports, processing of local natural resources and local raw materials, establishment of activities in less economically developed regions, agriculture, commercial farming involving processing and packaging, livestock (especially when coupled with veterinary services), fisheries, fertilizer production, chemical or mechanical preparation and processing facilities for vegetable, animal or mineral products, health and education businesses, tourism facilities and hotel operations, real estate development, and investment banks and credit institutions; equality of treatment with local companies; and guarantees against nationalization or expropriation except for a public purpose and upon payment of fair compensation.
The United States and Guinea have entered into an investment guarantee agreement that offers political risk insurance to American investors through the Overseas Private Investment Corporation.
Trade opportunities in Guinea for American and European exporters include machinery, boilers, vehicles, electrical and electronic equipment, food products and grains, animal and vegetable oils, petroleum products including fuels and lubricants, chemicals and related products, metals, manufactured goods and textiles.
Guinea is a member of the World Trade Organization and the Organization for the Harmonization of Business Law in Africa.
Capital: Conakry
Other Major Cities: Nzerekore, Kankan, Kindia
Time Zone: UTC + 0
Currency: Guinean franc
Official Language: French
Legal System: based on French civil law
Principal Law Governing Foreign Investment: Foreign investment in Guinea is governed by Ordinance No. 001/PRG/87 concerning the Investment Code of 3 January 1987, as amended by Law No. L/95/029/CTRN of 30 June 1995.
International Protection of Foreign Investment: Guinea is a party to both the Washington Convention and the New York Convention, and is a member of MIGA. It has also entered into bilateral investment treaties with Burkino Faso, Italy, Malaysia, Serbia and Switzerland.
Principal Industries: bauxite, gold, diamonds, iron, aluminum refining, light manufacturing, agricultural processing
Agricultural Products: rice, coffee, pineapples, palm kernels, cassava (tapioca), bananas, sweet potatoes, livestock, timber
Main Exports: bauxite, alumina, gold, diamonds, coffee, fish, agricultural products
Main Imports: petroleum products, metals, machinery, transport equipment, textiles, grains, food products
Guinea’s investment code authorizes the following types of foreign investment: foreign private; mixed foreign and local, and mixed public and private. An investment promotion department exists within the Ministry of Commerce.
Current investment opportunities in Guinea include mining, agriculture, commercial farming involving processing and packaging, fertilizer production, fisheries, road infrastructure, construction, health, education, telecommunications, tourism and real estate development.
Investment incentives include the right to transfer to any country of the investor’s choice the original foreign capital, profits resulting from investment, capital gains on disposal of investment and fair compensation paid in the event of nationalization or expropriation of the investment; preferential tax treatment for investments in priority sectors, which include promotion of small and medium sized businesses, development of non-traditional exports, processing of local natural resources and local raw materials, establishment of activities in less economically developed regions, agriculture, commercial farming involving processing and packaging, livestock (especially when coupled with veterinary services), fisheries, fertilizer production, chemical or mechanical preparation and processing facilities for vegetable, animal or mineral products, health and education businesses, tourism facilities and hotel operations, real estate development, and investment banks and credit institutions; equality of treatment with local companies; and guarantees against nationalization or expropriation except for a public purpose and upon payment of fair compensation.
The United States and Guinea have entered into an investment guarantee agreement that offers political risk insurance to American investors through the Overseas Private Investment Corporation.
Trade opportunities in Guinea for American and European exporters include machinery, boilers, vehicles, electrical and electronic equipment, food products and grains, animal and vegetable oils, petroleum products including fuels and lubricants, chemicals and related products, metals, manufactured goods and textiles.
Guinea is a member of the World Trade Organization and the Organization for the Harmonization of Business Law in Africa.
Capital: Conakry
Other Major Cities: Nzerekore, Kankan, Kindia
Time Zone: UTC + 0
Currency: Guinean franc
Official Language: French
Legal System: based on French civil law
Principal Law Governing Foreign Investment: Foreign investment in Guinea is governed by Ordinance No. 001/PRG/87 concerning the Investment Code of 3 January 1987, as amended by Law No. L/95/029/CTRN of 30 June 1995.
International Protection of Foreign Investment: Guinea is a party to both the Washington Convention and the New York Convention, and is a member of MIGA. It has also entered into bilateral investment treaties with Burkino Faso, Italy, Malaysia, Serbia and Switzerland.
Principal Industries: bauxite, gold, diamonds, iron, aluminum refining, light manufacturing, agricultural processing
Agricultural Products: rice, coffee, pineapples, palm kernels, cassava (tapioca), bananas, sweet potatoes, livestock, timber
Main Exports: bauxite, alumina, gold, diamonds, coffee, fish, agricultural products
Main Imports: petroleum products, metals, machinery, transport equipment, textiles, grains, food products
Liberia
The Republic of Liberia is unique among African nations because of its relationship with the United States: Liberia was founded by freed American slaves and its government was modeled on that of the United States. With the installation of a democratically elected government in 2006, Liberia is in the process of rebuilding an economy that was devastated by years of civil war; this situation offers numerous opportunities for foreign investors. African-American billionaire Robert L. Johnson has recently opened a luxury four star resort in Liberia. Liberia has the distinction of having the highest ratio of foreign direct investment to GDP in the world.
There is growing investor interest in Liberia, particularly in agriculture, construction, mining and tourism. Investment opportunities also exist in infrastructure, transportation, manufacturing, telecommunications, electric power, fisheries, forestry, petroleum exploration, rubber processing, wood processing and housing.
Investment incentives include the unrestricted right to use investments and any income derived therefrom for any lawful purpose; the right to retain or dispose of all lawful proceeds from operations, subject to taxes and other legal obligations; unconditional transferability (subject to taxes and other legal obligations) into and out of Liberia through any authorized dealer bank of capital for investment, payments in respect of servicing foreign loans and remittance of proceeds (net of all taxes and other obligations) in the event of sale or liquidation of any interest attributable to the investment; equality of treatment with local businesses; and guarantees against expropriation except for a public purpose and upon payment of fair and adequate compensation based on fair market value with repatriation in freely convertible currency.
The Overseas Private Investment Corporation provides coverage for qualified investments in Liberia.
With respect to trade opportunities for American and European exporters, almost no manufacturing is done in Liberia so there is a considerable demand for imported manufactured goods. Other opportunities in Liberia for American and European exporters include petroleum products (fuels, lubricants, distillates), chemicals, iron and steel products, heavy machinery, boilers, nuclear reactors, vehicles, ships and other floating structures, electrical and electronic equipment, pharmaceuticals, wood, wood products, wood charcoal and food products.
The Government of Liberia established the Industrial Free Zones Authority in 1976 to promote industrial and corporate growth, and designated several areas as free trade zones. Industries established within these zones are exempt from import duties and taxes on income. However, the industrial facilities that had been built in the free trade zones were extensively damaged during the civil war and are now inoperative. The government is currently considering measures to restore free trade zone operations.
Liberia has observer status in the World Trade Organization and has applied for full membership.
Capital: Monrovia
Time Zone: UTC + 0
Currency: Liberian dollar
Official Language: English
Legal System: based on Anglo-American common law
Principal Law Governing Foreign Investment: Foreign investment in Liberia is governed by the Investment Act of 2010.
International Protection of Foreign Investment: Liberia is a party to both the Washington Convention and the New York Convention, and is a member of MIGA. It has also entered into bilateral investment treaties with France, Germany and Switzerland.
Principal Industries: rubber, iron, palm oil, timber, diamonds, maritime registry
Agricultural Products: rubber, coffee, cocoa, rice, cassava (tapioca), palm oil, sugar cane, bananas, livestock, timber
Main Exports: rubber, timber, iron, diamonds, cocoa, coffee
Main Imports: fuels, chemicals, machinery, transport equipment, manufactured goods, food products
There is growing investor interest in Liberia, particularly in agriculture, construction, mining and tourism. Investment opportunities also exist in infrastructure, transportation, manufacturing, telecommunications, electric power, fisheries, forestry, petroleum exploration, rubber processing, wood processing and housing.
Investment incentives include the unrestricted right to use investments and any income derived therefrom for any lawful purpose; the right to retain or dispose of all lawful proceeds from operations, subject to taxes and other legal obligations; unconditional transferability (subject to taxes and other legal obligations) into and out of Liberia through any authorized dealer bank of capital for investment, payments in respect of servicing foreign loans and remittance of proceeds (net of all taxes and other obligations) in the event of sale or liquidation of any interest attributable to the investment; equality of treatment with local businesses; and guarantees against expropriation except for a public purpose and upon payment of fair and adequate compensation based on fair market value with repatriation in freely convertible currency.
The Overseas Private Investment Corporation provides coverage for qualified investments in Liberia.
With respect to trade opportunities for American and European exporters, almost no manufacturing is done in Liberia so there is a considerable demand for imported manufactured goods. Other opportunities in Liberia for American and European exporters include petroleum products (fuels, lubricants, distillates), chemicals, iron and steel products, heavy machinery, boilers, nuclear reactors, vehicles, ships and other floating structures, electrical and electronic equipment, pharmaceuticals, wood, wood products, wood charcoal and food products.
The Government of Liberia established the Industrial Free Zones Authority in 1976 to promote industrial and corporate growth, and designated several areas as free trade zones. Industries established within these zones are exempt from import duties and taxes on income. However, the industrial facilities that had been built in the free trade zones were extensively damaged during the civil war and are now inoperative. The government is currently considering measures to restore free trade zone operations.
Liberia has observer status in the World Trade Organization and has applied for full membership.
Capital: Monrovia
Time Zone: UTC + 0
Currency: Liberian dollar
Official Language: English
Legal System: based on Anglo-American common law
Principal Law Governing Foreign Investment: Foreign investment in Liberia is governed by the Investment Act of 2010.
International Protection of Foreign Investment: Liberia is a party to both the Washington Convention and the New York Convention, and is a member of MIGA. It has also entered into bilateral investment treaties with France, Germany and Switzerland.
Principal Industries: rubber, iron, palm oil, timber, diamonds, maritime registry
Agricultural Products: rubber, coffee, cocoa, rice, cassava (tapioca), palm oil, sugar cane, bananas, livestock, timber
Main Exports: rubber, timber, iron, diamonds, cocoa, coffee
Main Imports: fuels, chemicals, machinery, transport equipment, manufactured goods, food products
Mali
The Republic of Mali, the second largest gold producer in Africa, is presently seeking to diversify its economy. In this connection, the Government has identified the following priority sectors for development: agribusiness; fishing and fish processing; livestock and forestry; mining and metallurgical industries; communications; housing development; transportation; human and animal health promotion enterprises; vocational and technical training enterprises and cultural promotion enterprises. Investment opportunities also exist in water resources development, energy (thermal and solar) and food and beverage processing.
In order to attract foreign investment, Mali offers various incentives. These include exemptions from certain taxes and customs duties. The duration of the exemptions depends on the size of the investment and whether the investment is a new enterprise or the continuation of an existing enterprise (investments in excess of 150 million CFA francs and new enterprises receive longer exemptions). There is also a supplementary exemption for enterprises that add value to local resources. Foreign investors enjoy equality of treatment with local investors and are guaranteed the right to repatriate capital, income, dividends and proceeds from liquidation of the investment.
The Overseas Private Investment Corporation provides coverage for qualified investments in Mali.
With respect to trade, opportunities exist for the export to Mali of agricultural commodities, agro-industrial equipment, telecommunications equipment, mining and mineral processing equipment (especially for gold), machinery, new and used clothing, computers, processed food, vehicles, electronic equipment, equipment and technical services for hydroelectric power generation and distribution, water resources and irrigation projects, public health and agricultural development.
There is no free trade zone in Mali, but export zone status is granted to companies if all products are to be exported, which also qualifies them for tax free status.
Mali is a member of the World Trade Organization and the Organization for the Harmonization of Business Law in Africa.
Capital: Bamako
Other Major Cities: Sikasso, Mopti
Time Zone: UTC + 0
Currency: CFA franc
Official Language: French
Legal System: based on French civil law
Principal Law Governing Foreign Investment: Foreign investment in Mali is governed byLaw No. 91-048/AN-RM of 26 February 1991.
International Protection of Foreign Investment: Mali is a party to the Washington Convention and the New York Convention, and is a member of MIGA. It has also entered into bilateral investment treaties with Algeria, China, Egypt, Germany, the Netherlands and Switzerland.
Principal Industries: food processing, construction, phosphate and gold mining
Agricultural Products: cotton, millet, rice, corn vegetables, peanuts, livestock
Main Exports: cotton, gold, livestock
Main Imports: petroleum, machinery and equipment, construction materials, food products, textiles
In order to attract foreign investment, Mali offers various incentives. These include exemptions from certain taxes and customs duties. The duration of the exemptions depends on the size of the investment and whether the investment is a new enterprise or the continuation of an existing enterprise (investments in excess of 150 million CFA francs and new enterprises receive longer exemptions). There is also a supplementary exemption for enterprises that add value to local resources. Foreign investors enjoy equality of treatment with local investors and are guaranteed the right to repatriate capital, income, dividends and proceeds from liquidation of the investment.
The Overseas Private Investment Corporation provides coverage for qualified investments in Mali.
With respect to trade, opportunities exist for the export to Mali of agricultural commodities, agro-industrial equipment, telecommunications equipment, mining and mineral processing equipment (especially for gold), machinery, new and used clothing, computers, processed food, vehicles, electronic equipment, equipment and technical services for hydroelectric power generation and distribution, water resources and irrigation projects, public health and agricultural development.
There is no free trade zone in Mali, but export zone status is granted to companies if all products are to be exported, which also qualifies them for tax free status.
Mali is a member of the World Trade Organization and the Organization for the Harmonization of Business Law in Africa.
Capital: Bamako
Other Major Cities: Sikasso, Mopti
Time Zone: UTC + 0
Currency: CFA franc
Official Language: French
Legal System: based on French civil law
Principal Law Governing Foreign Investment: Foreign investment in Mali is governed byLaw No. 91-048/AN-RM of 26 February 1991.
International Protection of Foreign Investment: Mali is a party to the Washington Convention and the New York Convention, and is a member of MIGA. It has also entered into bilateral investment treaties with Algeria, China, Egypt, Germany, the Netherlands and Switzerland.
Principal Industries: food processing, construction, phosphate and gold mining
Agricultural Products: cotton, millet, rice, corn vegetables, peanuts, livestock
Main Exports: cotton, gold, livestock
Main Imports: petroleum, machinery and equipment, construction materials, food products, textiles
Nigeria
The Federal Republic of Nigeria is Africa’s most populous country and its largest exporter of petroleum. Nigeria’s economy is one of the fastest growing in the world. Nigeria is the United States’ largest trading partner in sub-Saharan Africa, and the United States is Nigeria’s largest foreign investor.
The Nigerian Investment Promotion Commission has identified four industrial sectors for priority development: metallurgical/engineering industries, agriculture (forest-based and agro-related activities), chemical/petrochemical and construction. Within these sectors, the specific projects that have been targeted for development include foundries and forges; metal fabrication/machine tools; pharmaceuticals; rubber and plastic; leather and leather products; textiles and woven apparel; cement; building materials (e.g., bricks, ceramic glass); food processing; sugar; confectioneries and beverages; cereal and grain milling; and fruits, vegetables, vegetable oils, oil seeds, roots and tubers. In addition to these priority investment projects, foreign investors are invited to participate solely or jointly with Nigerians in the following projects: cutting and polishing gemstones; gold processing; sugar production; multi-mineral plant for gypsum, talc, kaolin, marble/dolomite; cement production; lead and zinc project; processing of salt from seawater; sodium triphosphate production; sheet metal production; mining of industrial minerals; fabrication of spare parts; exploitation of known coal reserves; and timber/wood processing.
Investment incentives in Nigeria include unconditional transferability in freely convertible currency of dividends and profits (net of taxes) attributable to the investment, payments in respect of loan servicing where a foreign loan has been obtained, and remittance of proceeds (net of taxes and other obligations) in the event of sale or liquidation of the enterprise or any interest attributable to the investment; various tax incentives and customs exemptions; guarantees against expropriation; and unrestricted foreign ownership of local businesses.
The Overseas Private Investment Corporation provides coverage for qualified investments in Nigeria.
Nigeria imports 90 percent of the products which it consumes. Consequently, there are numerous trade opportunities in Nigeria for American and European exporters. At present, such opportunities include machinery, chemicals, transport equipment, manufactured goods, food products and livestock.
Nigeria has two kinds of free trade zones: general purpose “Export Processing Zones” or “Free Zones” and special purpose “Oil and Gas Free Zones”. At present there are five free trade zones in operation or under construction in Nigeria, and others are being planned. These zones were established pursuant to Nigeria Export Processing Zones Act No. 63 of 1992 and the Oil and Gas Export Free Zone Act of 1996. Within the Export Processing Zones, the following incentives are available: exemption from payment of all federal, state and local taxes, levies, rates and customs duties; repatriation of foreign capital investment; no import or export license required; rent free land during construction of factory; unrestricted remittance of profits and dividends earned by investors in the zone; 100 percent foreign ownership of enterprises in the zone is permitted; and sale of up to 25 percent of products produced in the zone is permitted in domestic markets. In the Oil and Gas Free Zone, the following incentives are available: exemption from all import and export taxes, commercial levies, corporate taxes, VAT and withholding taxes; 100 percent repatriation of capital and profits; 100 percent foreign ownership permitted; leases available for 5 to 21 years; and no quotas for expatriate employees. Nigeria is in the process of enacting new free zone legislation that would change certain of these incentives.
Overseas Private Investment Corporation coverage is available to qualified projects in Nigeria.
Nigeria is a member of the World Trade Organization.
Capital: Abuja
Other Major Cities: Lagos, Kano, Ibadan
Time Zone: UTC + 1
Currency: Naira
Official Language: English
Legal System: based on English common law and, in the 12 northern states, on Islamic law
Principal Law Governing Foreign Investment: Foreign investment in Nigeria is governed by Nigerian Investment Promotion Commission Decree No. 16 of 1995 (“the Investment Code”).
International Protection of Foreign Investment: Nigeria is a party to both the Washington Convention and the New York Convention, and is a member of MIGA. It has also entered into bilateral investment treaties with Finland, France, Germany, Italy, Korea, the Netherlands, Romania, Serbia, Spain, Switzerland, the United Kingdom and the United States.
Principal Industries: petroleum production and refining, coal, tin, columbite, rubber products, wood, hides and skins, textiles, cement and other construction materials, food products, footwear, chemicals, fertilizer, printing, ceramics, steel
Agricultural Products: cocoa, peanuts, cotton, palm oil, corn, rice, sorghum, millet, cassava (tapioca), yams, rubber, livestock, timber, fish
Main Exports: petroleum and petroleum products, cocoa, rubber
Main Imports: machinery, chemicals, transport equipment, manufactured goods, food products, livestock
The Nigerian Investment Promotion Commission has identified four industrial sectors for priority development: metallurgical/engineering industries, agriculture (forest-based and agro-related activities), chemical/petrochemical and construction. Within these sectors, the specific projects that have been targeted for development include foundries and forges; metal fabrication/machine tools; pharmaceuticals; rubber and plastic; leather and leather products; textiles and woven apparel; cement; building materials (e.g., bricks, ceramic glass); food processing; sugar; confectioneries and beverages; cereal and grain milling; and fruits, vegetables, vegetable oils, oil seeds, roots and tubers. In addition to these priority investment projects, foreign investors are invited to participate solely or jointly with Nigerians in the following projects: cutting and polishing gemstones; gold processing; sugar production; multi-mineral plant for gypsum, talc, kaolin, marble/dolomite; cement production; lead and zinc project; processing of salt from seawater; sodium triphosphate production; sheet metal production; mining of industrial minerals; fabrication of spare parts; exploitation of known coal reserves; and timber/wood processing.
Investment incentives in Nigeria include unconditional transferability in freely convertible currency of dividends and profits (net of taxes) attributable to the investment, payments in respect of loan servicing where a foreign loan has been obtained, and remittance of proceeds (net of taxes and other obligations) in the event of sale or liquidation of the enterprise or any interest attributable to the investment; various tax incentives and customs exemptions; guarantees against expropriation; and unrestricted foreign ownership of local businesses.
The Overseas Private Investment Corporation provides coverage for qualified investments in Nigeria.
Nigeria imports 90 percent of the products which it consumes. Consequently, there are numerous trade opportunities in Nigeria for American and European exporters. At present, such opportunities include machinery, chemicals, transport equipment, manufactured goods, food products and livestock.
Nigeria has two kinds of free trade zones: general purpose “Export Processing Zones” or “Free Zones” and special purpose “Oil and Gas Free Zones”. At present there are five free trade zones in operation or under construction in Nigeria, and others are being planned. These zones were established pursuant to Nigeria Export Processing Zones Act No. 63 of 1992 and the Oil and Gas Export Free Zone Act of 1996. Within the Export Processing Zones, the following incentives are available: exemption from payment of all federal, state and local taxes, levies, rates and customs duties; repatriation of foreign capital investment; no import or export license required; rent free land during construction of factory; unrestricted remittance of profits and dividends earned by investors in the zone; 100 percent foreign ownership of enterprises in the zone is permitted; and sale of up to 25 percent of products produced in the zone is permitted in domestic markets. In the Oil and Gas Free Zone, the following incentives are available: exemption from all import and export taxes, commercial levies, corporate taxes, VAT and withholding taxes; 100 percent repatriation of capital and profits; 100 percent foreign ownership permitted; leases available for 5 to 21 years; and no quotas for expatriate employees. Nigeria is in the process of enacting new free zone legislation that would change certain of these incentives.
Overseas Private Investment Corporation coverage is available to qualified projects in Nigeria.
Nigeria is a member of the World Trade Organization.
Capital: Abuja
Other Major Cities: Lagos, Kano, Ibadan
Time Zone: UTC + 1
Currency: Naira
Official Language: English
Legal System: based on English common law and, in the 12 northern states, on Islamic law
Principal Law Governing Foreign Investment: Foreign investment in Nigeria is governed by Nigerian Investment Promotion Commission Decree No. 16 of 1995 (“the Investment Code”).
International Protection of Foreign Investment: Nigeria is a party to both the Washington Convention and the New York Convention, and is a member of MIGA. It has also entered into bilateral investment treaties with Finland, France, Germany, Italy, Korea, the Netherlands, Romania, Serbia, Spain, Switzerland, the United Kingdom and the United States.
Principal Industries: petroleum production and refining, coal, tin, columbite, rubber products, wood, hides and skins, textiles, cement and other construction materials, food products, footwear, chemicals, fertilizer, printing, ceramics, steel
Agricultural Products: cocoa, peanuts, cotton, palm oil, corn, rice, sorghum, millet, cassava (tapioca), yams, rubber, livestock, timber, fish
Main Exports: petroleum and petroleum products, cocoa, rubber
Main Imports: machinery, chemicals, transport equipment, manufactured goods, food products, livestock
Senegal
The Republic of Senegal is considered one of Africa’s model democracies, and has one of the most stable economies in the region. In 1994, Senegal instituted a dramatic economic reform program with the support of the international donor community. As a result, Senegal has one of the fastest growing economies in Africa.
The Government of Senegal is currently giving priority to development of the following sectors: energy, mining, tourism, agribusiness, pharmaceuticals, banking and finance, telecommunications, insurance, transportation and real estate.
Investment incentives in Senegal include guarantees against nationalization and expropriation; free repatriation of profit and capital; equality of treatment with foreign nationals; freedom to obtain foreign currency; and access to raw materials produced in Senegal. Companies that invest more than 100 million CFA frances may qualify for exemption from customs duties on goods imported for use in operations; suspension of VAT on imported goods and goods and services purchased from local vendors for use in operations; deductions from the amount of taxable profit; and exemption from the flat tax paid by employers as part of the salaries paid to employees. One hundred percent foreign ownership of businesses is allowed in most sectors.
Overseas Private Investment Corporation coverage is available for qualified projects in Senegal.
Trade opportunities in Senegal for American and European exporters include machinery and transport equipment; food products; fuels, lubricants and related materials; manufactured goods; chemicals and related products; animal and vegetable oils, fats and waxes; raw materials for further processing; beverages and tobacco; and livestock.
Senegal established the Dakar Free Trade Zone in 1974, but it stopped issuing new licenses in 1999 and is now largely inactive. In 2007, the Government of Senegal entered into an agreement with the Jebel Ali Free Zone of Dubai (“JAFZA”) to establish a “special economic zone” outside of Dakar. This project is still in the development phase.
Senegal is a member of the World Trade Organization and the Organization for the Harmonization of Business Law in Africa
Capital: Dakar
Other Major Cities: Touba, Thies
Time Zone: UTC + 0
Currency: CFA franc
Official Language: French
Legal System: based on French civil law
Principal Law Governing Foreign Investment: Foreign investment in Senegal is governed by Law No. 2004-06 of 6 February 2004.
International Protection of Foreign Investment: Senegal is a party to both the Washington Convention and the New York Convention, and is a member of MIGA. It has also entered into bilateral investment treaties with Argentina, Germany, Korea, the Netherlands, Romania, Sweden, Switzerland, the United Kingdom and the United States.
Principal Industries: agricultural and fish processing, phosphate mining, fertilizer production, petroleum refining, iron ore, gold and zircon mining, construction materials, shipbuilding and repair, tourism
Agricultural Products: peanuts, millet, corn, sorghum, rice, cotton, tomatoes, green vegetables, livestock, poultry, fish
Main Exports: fish, groundnuts (peanuts), petroleum products, phosphates, cotton
Main Imports: food and beverages, heavy equipment, machinery, fuels
The Government of Senegal is currently giving priority to development of the following sectors: energy, mining, tourism, agribusiness, pharmaceuticals, banking and finance, telecommunications, insurance, transportation and real estate.
Investment incentives in Senegal include guarantees against nationalization and expropriation; free repatriation of profit and capital; equality of treatment with foreign nationals; freedom to obtain foreign currency; and access to raw materials produced in Senegal. Companies that invest more than 100 million CFA frances may qualify for exemption from customs duties on goods imported for use in operations; suspension of VAT on imported goods and goods and services purchased from local vendors for use in operations; deductions from the amount of taxable profit; and exemption from the flat tax paid by employers as part of the salaries paid to employees. One hundred percent foreign ownership of businesses is allowed in most sectors.
Overseas Private Investment Corporation coverage is available for qualified projects in Senegal.
Trade opportunities in Senegal for American and European exporters include machinery and transport equipment; food products; fuels, lubricants and related materials; manufactured goods; chemicals and related products; animal and vegetable oils, fats and waxes; raw materials for further processing; beverages and tobacco; and livestock.
Senegal established the Dakar Free Trade Zone in 1974, but it stopped issuing new licenses in 1999 and is now largely inactive. In 2007, the Government of Senegal entered into an agreement with the Jebel Ali Free Zone of Dubai (“JAFZA”) to establish a “special economic zone” outside of Dakar. This project is still in the development phase.
Senegal is a member of the World Trade Organization and the Organization for the Harmonization of Business Law in Africa
Capital: Dakar
Other Major Cities: Touba, Thies
Time Zone: UTC + 0
Currency: CFA franc
Official Language: French
Legal System: based on French civil law
Principal Law Governing Foreign Investment: Foreign investment in Senegal is governed by Law No. 2004-06 of 6 February 2004.
International Protection of Foreign Investment: Senegal is a party to both the Washington Convention and the New York Convention, and is a member of MIGA. It has also entered into bilateral investment treaties with Argentina, Germany, Korea, the Netherlands, Romania, Sweden, Switzerland, the United Kingdom and the United States.
Principal Industries: agricultural and fish processing, phosphate mining, fertilizer production, petroleum refining, iron ore, gold and zircon mining, construction materials, shipbuilding and repair, tourism
Agricultural Products: peanuts, millet, corn, sorghum, rice, cotton, tomatoes, green vegetables, livestock, poultry, fish
Main Exports: fish, groundnuts (peanuts), petroleum products, phosphates, cotton
Main Imports: food and beverages, heavy equipment, machinery, fuels