Senegal has called on Member States of the Economic Community of West African States (ECOWAS) to intensify efforts aimed at promoting and attracting foreign investments to their countries.
Ms. Fama Fall of Senegal’s Directorate of Foreign Trade, Investment, and Development made the appeal during the presentation at the ECOWAS Common Investment Market (ECIM) Technical Committee Council meeting held in Abuja.
The event was convened to assess the regional investment climate and foster knowledge sharing on cross-border investment promotion among member states.
It also aimed to focus on interrogating policy decisions that would attract both intra-ECOWAS and extra-ECOWAS investment flows, which would trigger sub regional economic integration and development.
Fall, who first reviewed Senegal’s investment climate and investment policy reforms over the past three years, also highlighted its investment promotion, facilitation, monitoring, dispute settlement and bilateral agreement efforts.
She disclosed that Senegal’s foreign direct investment hit 2.58 billion dollars in 2022, and 2.64 billion dollars in 2023, when government deliberately put in place some measures to attract foreign investment.
According to her, the country’s strategic sectors include agriculture; information and communication technologies; construction; health; tourism; as well as oil and gas, which all have potential to attract more investment.
“France is the biggest investor in Senegal, but more and more, new investors are coming from other horizons.
“From China (peanuts, industrial products, public works, etc.); Turkey (public works); and the United Arab Emirates (mainly for gold), not to mention countries like Morocco, Indonesia and the United States of America.
“Senegal currently has seven officially-created SEZs (Special Economic Zones), three of which are operational and four under development,” she said.
Participants at the ECIM meeting in Abuja
Fall said the Senegalese government had also set up a legal framework to attract, enhance, facilitate, promote and monitor investments in the country.
She listed the legal frameworks as the Codes on Mining, Oil, Electricity, Customs, Building, General Tax, French Public Procurement, Local Content Law, Public-Private Partnerships.
Others include the ECOWAS Common Investment Code, ECOWAS Energy Protocol, Pan-African Investment Code, FTAA Protocol on Investment, and the Trade and Investment Agreement between the U.S. Government and ECOWAS.
“Senegal has signed several bilateral investment treaties (BITs) with Turkey; India; Spain; France; Mauritius; Italy; Malaysia; South Africa; Qatar; Argentina; Republic of Korea; Tunisia; United States of America; Romania; United Kingdom; Netherlands; Sweden, Germany; Switzerland; Canada; Tunisia; and UNCTAD.
“It is important to note that the new FTAA Protocol on Investment provides for the lapse of all BITs between African countries as soon as the Protocol is adopted.
“On the other hand, BITs signed with non-African countries remain in force insofar as they are not incompatible with the provisions of the AfCFTA Investment Protocol,” Fall further said.
She explained that the latter’s provisions prevail in the event of conflict with BITs signed with countries that have now become third parties vis-à-vis African countries.
The Senegalese official recommended to member states some regional measures aimed at supporting investment promotion and attraction, such as the improvement of coordination and governance of investment management.
Fall suggested the publishing of an annual report on regional investment monitoring, with statistical data on investment flows in ECOWAS.
“Member countries should overhaul their investment governance, particularly with regard to coordination between administrative departments responsible for investment management.
“Each country should complete the “last mile” of transport infrastructure linking all ECOWAS countries.
“Member states should adopt a resolution for the holding of a mandatory ECIM ministerial meeting on the occasion of ECOWAS’s 50th anniversary,” she added.
Nan
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