Doing Business 2020 Senegal

Economy Profile
Senegal

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Doing Business 2020 Senegal

Economy Profile of Senegal

Doing Business 2020 Indicators
(in order of appearance in the document)

Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company

Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety
mechanisms in the construction permitting system

Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and
the transparency of tariffs

Registering property Procedures, time and cost to transfer a property and the quality of the land administration system

Getting credit Movable collateral laws and credit information systems

Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance

Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling
processes

Trading across borders Time and cost to export the product of comparative advantage and import auto parts

Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes

Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for
insolvency

Employing workers Flexibility in employment regulation and redundancy cost

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 Doing Business 2020 Senegal

About Doing Business

The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and
regional level.

The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life
cycle.

Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for
starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across
borders, enforcing contracts and resolving insolvency. Doing Business also measures features of employing workers. Although Doing Business does not present rankings
of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.

By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages
economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector
researchers and others interested in the business climate of each economy.

In addition, Doing Business offers detailed subnational studies, which exhaustively cover business regulation and reform in different cities and regions within a nation.
These studies provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected
cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked.

The first Doing Business study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study covers 11 indicator sets and 190 economies. Most
indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013
(Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data
for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from
feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the
regulatory environment for business around the world.

To learn more about Doing Business please visit doingbusiness.org

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 Doing Business 2020 Senegal

Ease of Doing Business in

Region Sub-Saharan Africa DB RANK DB SCORE
Senegal
Income Category Lower middle income

Population 15,854,360 123 59.3

City Covered Dakar

Rankings on Doing Business topics - Senegal

60
67

96

116 114
119
131 132
142

166

Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits

Topic Scores

91.2 62.1 65.2 58.3 65.0 44.0 51.2 60.9 50.6 44.3

Starting a Business (rank) 60 Getting Credit (rank) 67 Trading across Borders (rank) 142
Score of starting a business (0-100) 91.2 Score of getting credit (0-100) 65.0 Score of trading across borders (0-100) 60.9
Procedures (number) 4 Strength of legal rights index (0-12) 6 Time to export
Time (days) 6 Depth of credit information index (0-8) 7 Documentary compliance (hours) 26
Cost (number) 22.6 Credit registry coverage (% of adults) 0.0 Border compliance (hours) 61
Paid-in min. capital (% of income per capita) 3.0 Credit bureau coverage (% of adults) 8.2 Cost to export
Documentary compliance (USD) 96
Dealing with Construction Permits (rank) 131 Protecting Minority Investors (rank) 114 Border compliance (USD) 547
Score of dealing with construction permits (0-100) 62.1 Score of protecting minority investors (0-100) 44.0 Time to export
Procedures (number) 14 Extent of disclosure index (0-10) 7.0 Documentary compliance (hours) 72
Time (days) 177 Extent of director liability index (0-10) 1.0 Border compliance (hours) 53
Cost (% of warehouse value) 7.8 Ease of shareholder suits index (0-10) 6.0 Cost to export
Building quality control index (0-15) 10.0 Extent of shareholder rights index (0-6) 4.0 Documentary compliance (USD) 545
Extent of ownership and control index (0-7) 2.0 Border compliance (USD) 702
Getting Electricity (rank) 119 Extent of corporate transparency index (0-7) 2.0
Score of getting electricity (0-100) 65.2 Enforcing Contracts (rank) 132
Procedures (number) 6 Paying Taxes (rank) 166 Score of enforcing contracts (0-100) 50.6
Time (days) 68 Score of paying taxes (0-100) 51.2 Time (days) 650
Cost (% of income per capita) 2,421.1 Payments (number per year) 53 Cost (% of claim value) 36.4
Reliability of supply and transparency of tariff index (0-8) 5 Time (hours per year) 416 Quality of judicial processes index (0-18) 6.5
Total tax and contribution rate (% of profit) 44.8
Registering Property (rank) 116 Postfiling index (0-100) 71.8 Resolving Insolvency (rank) 96
Score of registering property (0-100) 58.3 Score of resolving insolvency (0-100) 44.3
Procedures (number) 5 Recovery rate (cents on the dollar) 30.0
Time (days) 41 Time (years) 3.0
Cost (% of property value) 7.1 Cost (% of estate) 20.0
Quality of the land administration index (0-30) 10.0 Outcome (0 as piecemeal sale and 1 as going 0
concern)
Strength of insolvency framework index (0-16) 9.0

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 Doing Business 2020 Senegal

Starting a Business

This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and
formally operate in each economy’s largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to
10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of
operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one
company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their
scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure Case study assumptions

Procedures to legally start and formally operate a company To make the data comparable across economies, several assumptions about the business and the
(number) procedures are used. It is assumed that any required information is readily available and that the
entrepreneur will pay no bribes.
• Preregistration (for example, name verification or reservation,
notarization) The business:
• Registration in the economy’s largest business city -Is a limited liability company (or its legal equivalent). If there is more than one type of limited
• Postregistration (for example, social security registration, liability company in the economy, the limited liability form most common among domestic firms is
company seal) chosen. Information on the most common form is obtained from incorporation lawyers or the
statistical office.
• Obtaining approval from spouse to start a business or to leave -Operates in the economy’s largest business city. For 11 economies the data are also collected for
the home to register the company
the second largest business city.
• Obtaining any gender specific document for company -Performs general industrial or commercial activities such as the production or sale to the public of
registration and operation or national identification card goods or services. The business does not perform foreign trade activities and does not handle
products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily
Time required to complete each procedure (calendar days)
polluting production processes.
• Does not include time spent gathering information -Does not qualify for investment incentives or any special benefits.
-Is 100% domestically owned.
• Each procedure starts on a separate day (2 procedures cannot -Has five business owners, none of whom is a legal entity. One business owner holds 30% of the
start on the same day)
company shares, two owners have 20% of shares each, and two owners have 15% of shares
• Procedures fully completed online are recorded as ½ day each.
-Is managed by one local director.
• Procedure is considered completed once final document is -Has between 10 and 50 employees one month after the commencement of operations, all of them
received
domestic nationals.
• No prior contact with officials -Has start-up capital of 10 times income per capita.
-Has an estimated turnover of at least 100 times income per capita.
Cost required to complete each procedure (% of income per -Leases the commercial plant or offices and is not a proprietor of real estate.
capita) -Has an annual lease for the office space equivalent to one income per capita.
• Official costs only, no bribes -Is in an office space of approximately 929 square meters (10,000 square feet).
-Has a company deed that is 10 pages long.
• No professional fees unless services required by law or
commonly used in practice The owners:

Paid-in minimum capital (% of income per capita)

-Have reached the legal age of majority and are capable of making decisions as an adult. If there
• Funds deposited in a bank or with third party before registration is no legal age of majority, they are assumed to be 30 years old.
or up to 3 months after incorporation -Are in good health and have no criminal record.
-Are married, the marriage is monogamous and registered with the authorities.
-Where the answer differs according to the legal system applicable to the woman or man in
question (as may be the case in economies where there is legal plurality), the answer used will be
the one that applies to the majority of the population.

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 Doing Business 2020 Senegal

Starting a Business - Senegal

Standardized Company

Legal form Société à Responsabilité Limitée (SARL) - Limited Liability Company

Paid-in minimum capital requirement XOF 25,000

City Covered Dakar

Indicator Senegal Sub-Saharan OECD high Best Regulatory

Africa income Performance

Procedure – Men (number) 4 7.4 4.9 1 (2 Economies)

Time – Men (days) 6 21.5 9.2 0.5 (New Zealand)

Cost – Men (% of income per capita) 22.6 36.3 3.0 0.0 (2 Economies)

Procedure – Women (number) 4 7.5 4.9 1 (2 Economies)

Time – Women (days) 6 21.6 9.2 0.5 (New Zealand)

Cost – Women (% of income per capita) 22.6 36.3 3.0 0.0 (2 Economies)

Paid-in min. capital (% of income per capita) 3.0 9.3 7.6 0.0 (120 Economies)

Figure – Starting a Business in Senegal – Score

82.4 94.5 88.7 99.2

Procedures Time Cost Paid-in min. capital

Figure – Starting a Business in Senegal and comparator economies – Ranking and Score

DB 2020 Starting a Business Score

0 100

95.1: Togo (Rank: 15)

93.7: Côte d'Ivoire (Rank: 29)

91.2: Senegal (Rank: 60)

86.3: Cameroon (Rank: 104)

85.0: Ghana (Rank: 116)

80.1: Regional Average (Sub-Saharan Africa)

Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of
the scores for each of the component indicators.

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 Doing Business 2020 Senegal

Figure – Starting a Business in Senegal – Procedure, Time and Cost

Time (days) Cost (% of income per capita)

6 18

16

Cost (% of income per capita)

5
14

4 12
Time (days)

10
3
8

2 6

4
1
2

0 0
1 2 3 4
Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.

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 Doing Business 2020 Senegal

Details – Starting a Business in Senegal – Procedure, Time and Cost

No. Procedures Time to Complete Associated Costs

1 Deposit the founding capital with a bank 1 day included in the following
Agency : Bank procedure
The company can deposit the founding capital with a bank directly (“compte de societe en
formation”) or through a public notary. The account is liberated once the company is registered at
the RCCM.

2 Check the company name 1 day no charge

Agency : Court
The company can check the name availability at the Court.

3 Notarize company bylaws and bank deposit of subscribed capital 2 days XOF 130,000 for a limited
Agency : Notary liability company with a
A public notary is required to notarize company bylaws and deposit subscribed capital at a bank. share capital between
The procedure takes 3 days if the notary public prepares the articles of association and a day if
XOF 5,000,000 and XOF
notary only signs. The involvement of the notary is required.
8,000,000

The statutes can be drafted either by notarial act or by any other act, provided that the authorized
signatures are notarized. If by notarial act, the notary must (a) establish the statutes (if the
promoter has not done so) and issue the declaration of conformity (déclaration de régularité et de
conformité); and (b) register the statutes and declare the existence of the company with the tax
authorities.

The promoter may ask the notary to complete additional formalities, such as commercial
registration at the court to obtain the company identification number (numéro d'identification
national des entreprises et des associations, NINEA).

4 Register your business at the one-stop shop 2 days XOF 25,000 + XOF 30,000
Agency : One stop-shop + XOF 90 for any other
Since November 2007, entrepreneurs can register at the one-stop shop which takes care of what XOF 1,000,000 of share
was formerly done in seven different procedures.
capital

Four of the procedures are taken care of by having the four relevant agencies dispatch one of
their civil servants to the one-stop shop. This is:
• The tax authority to register the bylaws;
• The Commercial Registry (‘Registre du Commerce et du Credit Mobilier’ - RCCM) to register the
company bylaws;
• The NINEA to get a company identification number (‘Numéro d’Identification National des
Entreprises et des Associations’); and,
• The Labor authority to register workers and commencement of operation.

They are all physically located in the same location and there is a timesheet kept by the
coordinator of the one-stop shop that indicates the precise time with which every person in the
room delivers the document.

Another two procedures are handled by the one-stop shop, and these are:
• Registration at the Social Security (‘Caisse de Securite Sociale’ - CSS);
• Registration at the Pension Fund (‘Institut de Prevoyance Retraite’ - IPRES).

These two agencies are not physically located inside the one-stop shop but are a few minutes
away. What is done is that when a new file comes in, the coordinator of the one-stop shop sends
the information about the application by email to these two agencies. He then phones them to
make sure that they received the email. Later in the afternoon (or if it afternoon, the next day), the
one-stop shop sends a courier to go and fetch the approved documents.

Fees, for firms with a capital lower than 10,000,000 FCFA, the applicant needs to pay:
• Registration fees: XOF 25,000 for the statutes
• Court Registrar fees: XOF 30,000 if the capital is XOF 1 000 000 + XOF 90 for any other XOF
1,000,000 of capital.

Takes place simultaneously with previous procedure.

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 Doing Business 2020 Senegal

Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications,
requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building
quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information

What the indicators measure Case study assumptions

Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction
company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining all necessary
clearances, licenses, permits and certificates The construction company (BuildCo):
• Submitting all required notifications and receiving all necessary - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest
inspections
business city. For 11 economies the data are also collected for the second largest business city.
• Obtaining utility connections for water and sewerage - Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a
licensed architect and a licensed engineer, both registered with the local association of architects
• Registering and selling the warehouse after its completion or engineers. BuildCo is not assumed to have any other employees who are technical or licensed
Time required to complete each procedure (calendar days) experts, such as geological or topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse upon its
• Does not include time spent gathering information completion.
• Each procedure starts on a separate day—though procedures
that can be fully completed online are an exception to this rule The warehouse:

- Will be used for general storage activities, such as storage of books or stationery.
• Procedure is considered completed once final document is
received - Will have two stories, both above ground, with a total constructed area of approximately 1,300.6
square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be
• No prior contact with officials located on a land plot of approximately 929 square meters (10,000 square feet) that is 100%
owned by BuildCo, and the warehouse is valued at 50 times income per capita.
Cost required to complete each procedure (% of income per
- Will have complete architectural and technical plans prepared by a licensed architect. If
capita)
preparation of the plans requires such steps as obtaining further documentation or getting prior
• Official costs only, no bribes approvals from external agencies, these are counted as procedures.
- Will take 30 weeks to construct (excluding all delays due to administrative and regulatory
Building quality control index (0-15) requirements).

• Quality of building regulations (0-2) The water and sewerage connections:

• Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water
• Quality control during construction (0-3) delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage
infrastructure, a septic tank in the smallest size available will be installed or built.
• Quality control after construction (0-3)
- Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow
• Liability and insurance regimes (0-2) of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and
• Professional certifications (0-4) a peak wastewater flow of 1,136 liters (300 gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the year; will be 1
inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.

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 Doing Business 2020 Senegal

Dealing with Construction Permits - Senegal

Standardized Warehouse

Estimated value of warehouse XOF 41,010,071.10

City Covered Dakar

Indicator Senegal Sub-Saharan OECD high Best Regulatory

Africa income Performance

Procedures (number) 14 15.1 12.7 None in 2018/19

Time (days) 177 145.4 152.3 None in 2018/19

Cost (% of warehouse value) 7.8 8.9 1.5 None in 2018/19

Building quality control index (0-15) 10.0 8.9 11.6 15.0 (6 Economies)

Figure – Dealing with Construction Permits in Senegal – Score

64.0 56.5 61.1 66.7

Procedures Time Cost Building quality control index

Figure – Dealing with Construction Permits in Senegal and comparator economies – Ranking and Score

DB 2020 Dealing with Construction Permits Score

0 100

67.6: Ghana (Rank: 104)

64.1: Togo (Rank: 127)

62.1: Senegal (Rank: 131)

58.5: Regional Average (Sub-Saharan Africa)

57.4: Côte d'Ivoire (Rank: 152)

56.5: Cameroon (Rank: 154)

Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores
are the simple average of the scores for each of the component indicators.

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 Doing Business 2020 Senegal

Figure – Dealing with Construction Permits in Senegal – Procedure, Time and Cost

Time (days) Cost (% of warehouse value)

3.5

160
3

Cost (% of warehouse value)

140
2.5
120
Time (days)

100 2

80
1.5

60
1
40

0.5
20

0 0
1 *2 3 4 5 6 7 8 9 10 11 * 12 13 14
Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.

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 Doing Business 2020 Senegal

Figure – Dealing with Construction Permits in Senegal and comparator economies – Measure of Quality

14 13.0
12 11.0 11.0
10.0 10.0
10
Index score

8.9
8

Senegal Cameroon Côte Ghana Togo Sub-Saharan

d'Ivoire Africa

Details – Dealing with Construction Permits in Senegal – Procedure, Time and Cost

No. Procedures Time to Complete Associated Costs

1 Obtain results of geotechnical study / soil test 30 days XOF 700,000

Agency : Private Firm
According to Law N° 2009-23 dated July 8, 2009 (Loi N° 2009-23 Du 8 Juillet 2009 Portant Code
De La Construction), the soil test is made for the stability of the construction and the authority
have the right to request a copy of the results

2 Obtain property title documents (certificats de droit réel ou réquisition) 5 days XOF 600
Agency : Land Authorities (Bureau de la Conservation Foncière (Service des Domaines))
The property title documents include the history of the property and all loans associated with it.

3 Obtain a cadastral map 7 days XOF 16,700

Agency : Cadastre
The Cadastre will visit the property to check the boundaries.

4 Obtain planning certificate (certificat d’urbanisme) 10 days XOF 20,000

Agency : Regional Urban Planning Authority (Service Régionale d’Urbanisme )
The planning certificate (certificat d’urbanisme) identifies whether a specific land can be used for
the intended construction and if there are some specific rules that must be respected.

The request must be addressed to the Mayor or to the president of the Rural Council along with a
title deed or occupancy permit and an excerpt from the cadastral map of the plot.

The request can be done online through teledac.sec.gouv.sn

5 Obtain building permit 45 days XOF 780,360

Agency : Ministry of Urbanism and Town Planning; Inspection Office; City Hall; Land Management;
Hygiene Service; Civil Safety Office
The application file is submitted either online on teledac.sec.gouv.sn or via five hardcopies. Each
copy consists of an application form, along with the following:
• Plans of all the levels and facades at a scale of 1:100
• Block and location plan
• Two copies of the property title (per application)

6 Hire a private inspection agency and receive approval of the technical execution plan 1 day XOF 1,230,302
Agency : Bureau de Control
It is rare to receive an inspection from the authorities. Thus, to ensure that building standards are
met, BuildCo hires a private inspection agency. Private inspectors visit the site at least once a
week to perform technical inspections.

7 Request final inspection from the Service d'Urbanisme to receive the certificate of 1 day XOF 5,500
conformity
Agency : Regional Urban Planning Authority (Service Régionale d’Urbanisme)
Once construction is completed, BuildCo must fill out a form requesting the certificate of
conformity (certificat de conformite). A representative from BuildCo must go to the Service
Regional in person with a copy of the authorized plans.

8 Receive final inspection 1 day no charge

Agency : Inspection Agency (Direction Régionale de l’Urbanisme et de l’Architecture)
This is an inspection that is done to verify compliance of the construction works with the
regulations (prior to issuance of the certificate of conformity). Sometimes companies have to wait
2 weeks before receiving this final inspection.

9 Obtain certificate of conformity 10 days XOF 15,000

Agency : Regional Urban Planning Authority (Service Régionale d’Urbanisme)
The declaration of the completion of construction (déclaration attestant de l’achèvement des
travaux) must be submitted within 30 days from the date of the end of construction activities.

10 Apply for water connection 1 day no charge

Agency : Société Sénégalaise des Eaux (SDE)
BuildCo must apply for the connection at the private water company, SDE. They lack personnel
and so the time to obtain the estimate (devis) for the payment of fees takes about 1 to 2 weeks.
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Doing Business 2020 Senegal

11 Pay the fees and obtain water connection 25 days XOF 135,000
Agency : Société Sénégalaise des Eaux (SDE)
The application form cost ranges from FCFA 14,000.00 to FCFA 20,000.00. The connection cost is
around FCFA 115,000.00 for industrial companies. This cost increases if the building is far from
the nearest source of water.

The time estimate includes the time to obtain the estimated cost for extension of the grid.

Apply for sewage connection 1 day XOF 36,580

12 Agency : Office National d’Assainissement du Sénégal
BuildCo must apply for the connection to sewage at ONAS. One of the mandatory documents to
be provided is the first water bill.

13 Receive sewage inspection 1 day no charge

Agency : Office National d’Assainissement du Sénégal
BuildCo must visit the sewage company in person to retrieve the inspectors for the inspection of
the sewage mains. Otherwise, it can take them a few weeks to come. An inspection is necessary
to obtain the estimate (devis) for the works to be completed.

14 Pay the fees and obtain sewage connection 45 days XOF 250,000
Agency : Office National d’Assainissement du Sénégal
ONAS inspectors prepare the quotation (devis) within a week of inspecting the site. BuildCo must
then go to ONAS to sign the paperwork and pay the fees. After that, they will install the
connection. ONAS may sometimes outsource the works to a private company.

Takes place simultaneously with previous procedure.

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 Doing Business 2020 Senegal

Details – Dealing with Construction Permits in Senegal – Measure of Quality

Answer Score

Building quality control index (0-15) 10.0

Quality of building regulations index (0-2) 2.0

How accessible are building laws and regulations in your economy? (0-1) Available online; Free 1.0
of charge.

Which requirements for obtaining a building permit are clearly specified in the building regulations or on any List of required 1.0
accessible website, brochure or pamphlet? (0-1) documents; Fees to
be paid; Required
preapprovals.

Quality control before construction index (0-1) 1.0

Which third-party entities are required by law to verify that the building plans are in compliance with existing Licensed architect; 1.0
building regulations? (0-1) Licensed engineer.

Quality control during construction index (0-3) 2.0

What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by 1.0
external engineer or
firm; Inspections at
various phases.

Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.

Quality control after construction index (0-3) 2.0

Is there a final inspection required by law to verify that the building was built in accordance with the approved Yes, final inspection 2.0
plans and regulations? (0-2) is done by
government agency.

Do legally mandated final inspections occur in practice? (0-1) Final inspection does 0.0
not always occur in
practice; Final
inspection occurs
most of the time.

Liability and insurance regimes index (0-2) 2.0

Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use Architect or engineer; 1.0
(Latent Defect Liability or Decennial Liability)? (0-1) Construction
company; Owner or
investor.

Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or Architect or engineer; 1.0
problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) Construction
company.

Professional certifications index (0-4) 1.0

What are the qualification requirements for the professional responsible for verifying that the architectural plans University degree in 1.0
or drawings are in compliance with existing building regulations? (0-2) architecture or
engineering; Being a
registered architect or
engineer.

What are the qualification requirements for the professional who supervises the construction on the ground? (0- University degree in 0.0
2) engineering,
construction or
construction
management.

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 Doing Business 2020 Senegal

Getting Electricity

This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally,
the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data
collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure Case study assumptions

Procedures to obtain an electricity connection (number) To make the data comparable across economies, several assumptions about the warehouse, the
electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining all necessary
clearances and permits
The warehouse:
• Completing all required notifications and receiving all necessary - Is owned by a local entrepreneur and is used for storage of goods.
inspections
- Is located in the economy’s largest business city. For 11 economies the data are also collected for
• Obtaining external installation works and possibly purchasing the second largest business city.
material for these works - Is located in an area where similar warehouses are typically located and is in an area with no
physical constraints. For example, the property is not near a railway.
• Concluding any necessary supply contract and obtaining final - Is a new construction and is being connected to electricity for the first time.
supply
- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square
Time required to complete each procedure (calendar days) feet). The plot of land on which it is built is 929 square meters (10,000 square feet).

• Is at least 1 calendar day The electricity connection:

• Each procedure starts on a separate day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-
• Does not include time spent gathering information kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution
• Reflects the time spent in practice, with little follow-up and no network and is either overhead or underground, whichever is more common in the area where the
prior contact with officials warehouse is located and requires works that involve the crossing of a 10-meter road (such as by
excavation or overhead lines) but are all carried out on public land. There is no crossing of other
Cost required to complete each procedure (% of income per
owners’ private property because the warehouse has access to a road.
capita)
- Does not require work to install the internal wiring of the warehouse. This has already been
• Official costs only, no bribes completed up to and including the customer’s service panel or switchboard and the meter base.

• Value added tax excluded The monthly consumption:

The reliability of supply and transparency of tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours
• Duration and frequency of power outages (0–3) a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts
(assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours
• Tools to monitor power outages (0–1) (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
- Tariffs effective in January of the current year are used for calculation of the price of electricity for
• Regulatory monitoring of utilities’ performance (0–1)
the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.
• Financial deterrents limiting outages (0–1)
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*

• Price based on monthly bill for commercial warehouse in case

study

*Note: Doing Business measures the price of electricity, but it is

not included in the ease of doing business score nor in the ranking
on the ease of getting electricity.

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 Doing Business 2020 Senegal

Getting Electricity - Senegal

Standardized Connection

Name of utility Société Nationale d'Électricité du Sénégal (SENELEC)

Price of electricity (US cents per kWh) 18.2

City Covered Dakar

Indicator Senegal Sub-Saharan OECD high Best Regulatory

Africa income Performance

Procedures (number) 6 5.2 4.4 3 (28 Economies)

Time (days) 68 109.6 74.8 18 (3 Economies)

Cost (% of income per capita) 2421.1 3,187.5 61.0 0.0 (3 Economies)

Reliability of supply and transparency of tariff index (0-8) 5 1.6 7.4 8 (26 Economies)

Figure – Getting Electricity in Senegal – Score

50.0 78.3 70.1 62.5

Procedures Time Cost Reliability of supply and transparency of tariff index

Figure – Getting Electricity in Senegal and comparator economies – Ranking and Score

DB 2020 Getting Electricity Score

0 100

77.4: Ghana (Rank: 79)

72.6: Togo (Rank: 99)

65.2: Senegal (Rank: 119)

61.3: Cameroon (Rank: 133)

59.2: Côte d'Ivoire (Rank: 141)

50.4: Regional Average (Sub-Saharan Africa)

Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the
scores for all the component indicators except the price of electricity.

Figure – Getting Electricity in Senegal – Procedure, Time and Cost

Time (days) Cost (% of income per capita)

2500

60
Cost (% of income per capita)

2000
50
Time (days)

40 1500

30
1000

20

500
10

0 0
1 2 *3 4 5 6
Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
Page 16
 Doing Business 2020 Senegal

reflected here, see the summary below.

Figure – Getting Electricity in Senegal and comparator economies – Measure of Quality

6
5 5
5
4
Index score

4
3
3

2 1.6

1
0
0

Senegal Cameroon Côte Ghana Togo Sub-Saharan

d'Ivoire Africa

Page 17
 Doing Business 2020 Senegal

Details – Getting Electricity in Senegal – Procedure, Time and Cost

No. Procedures Time to Complete Associated Costs

1 Hire electrical contractor to do technical study 7 calendar days XOF 1,610,500

Agency : Electrical Contractor
The applicant hires an electrical contractor to conduct a technical study of the site and the external
connection works.

2 Submit application and technical study to Senelec and await approval 8 calendar days XOF 179,000
Agency : Senelec
The customer files a request of a new connection to Senelec. As part of the application package
he/she to submit a copy of his/her identity card, a copy of his/her lease, a copy of the land title and
the details of the connection. The copies do not have to be notarized. The technical study is also
sent to Senelec for approval, and they will then need to undertake a site inspection. Moreover,
Senelec will need to get an authorization from the 'ageroute' at the Ministry of Transport to go over
the road and make sure there will be sufficient room between the road and the cabling. This
authorization is an internal process between Senelec and the ageroute. Once the authorization is
granted and the site is approved by Senelec, the customer is notified by letter.

3 Receive site inspection by Senelec 1 calendar day XOF 0

Agency : Senelec
To approve the technical study, Senelec inspects the site

4 Electrical contractor conducts external connection works and gets approval from Senelec 32 calendar days XOF 17,705,000
Agency : Electrical Contractor
The electrical contractor that carries out the technical study also orders and purchases the
necessary material and brings it to the utility for approval. The meter board has to be bought
directly at Senelec by the customer or the electrical contractor doing the external connection
works. The transformer has to be bought privately and then be brought to Senelec for a control.

During the works, the utility will supervise the works. For instance, an initial inspection happens at
the beginning of the external works. The customer or the electrical contractor has to go to the
utility after the first inspection to obtain a written note from the utility that confirms the inspection
(procès verbal). The works in the meantime go on. When the works are finally done, the contractor
will need to get approval from Senelec via a final inspection.

5 Receive inspection for external works and for electricity turn-on 7 calendar days XOF 0
Agency : Senelec
After the external connection works are finished, the electrical contractor writes a letter to Senelec
and within a week, the utility carries out an inspection of the works. After this, the client can make
a request for electricity turn-on ('mise sous tension'). Officers from the Senelec from the network
office (internal division of Senelec) will then come and evaluate the impact of the electricity turn-on
and assess the length of the necessary power cut (neighbors have to be cut off in order to connect
the new customer). After this, a date for the electricity turn-on can be scheduled.

6 Pay advance for consumption and await final connection by Senelec 14 calendar days XOF 363,007.75
Agency : Senelec
After the final inspection of the external works and the inspection for the electricity turn-on, the
customer goes to the commercial section of Senelec to pay a the security deposit. The exact
amount depends on the requested load and the estimated monthly consumption. Once the
advanced consumption is paid, the utility informs the equipment section and asks them to connect
the customer. A meeting is held each Tuesday to program cuts, which usually occur on weekends.
Power is restored once the new connection is made and electricity starts flowing.

Takes place simultaneously with previous procedure.

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 Doing Business 2020 Senegal

Details – Getting Electricity in Senegal – Measure of Quality

Answer

Reliability of supply and transparency of tariff index (0-8) 5

Total duration and frequency of outages per customer a year (0-3) 0

System average interruption duration index (SAIDI) 17.4

System average interruption frequency index (SAIFI) 19.0

What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0

Mechanisms for monitoring outages (0-1) 1

Does the distribution utility use automated tools to monitor outages? Yes

Mechanisms for restoring service (0-1) 1

Does the distribution utility use automated tools to restore service? Yes

Regulatory monitoring (0-1) 1

Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? Yes

Financial deterrents aimed at limiting outages (0-1) 1

Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? Yes

Communication of tariffs and tariff changes (0-1) 1

Are effective tariffs available online? Yes

Link to the website, if available online http://www.senelec.sn/tarif

ication/

Are customers notified of a change in tariff ahead of the billing cycle? Yes

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.

If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

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 Doing Business 2020 Senegal

Registering Property

This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a
building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality
of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access
to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure Case study assumptions

Procedures to legally transfer title on immovable property To make the data comparable across economies, several assumptions about the parties to the
(number) transaction, the property and the procedures are used.

• Preregistration procedures (for example, checking for liens, The parties (buyer and seller):
notarizing sales agreement, paying property transfer taxes)
- Are limited liability companies (or the legal equivalent).
• Registration procedures in the economy's largest business city. - Are located in the periurban (that is, on the outskirts of the city but still within its official limits)
• Postregistration procedures (for example, filling title with area of the economy’s largest business city. For 11 economies the data are also collected for the
municipality) second largest business city.
- Are 100% domestically and privately owned.
Time required to complete each procedure (calendar days) - Perform general commercial activities.

• Does not include time spent gathering information The property (fully owned by the seller):
• Each procedure starts on a separate day - though procedures - Has a value of 50 times income per capita, which equals the sale price.
that can be fully completed online are an exception to this rule
- Is fully owned by the seller.
• Procedure is considered completed once final document is - Has no mortgages attached and has been under the same ownership for the past 10 years.
received - Is registered in the land registry or cadastre, or both, and is free of title disputes.
• No prior contact with officials - Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its
official limits), and no rezoning is required.
Cost required to complete each procedure (% of property - Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-
value) story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse
is 10 years old, is in good condition, has no heating system and complies with all safety standards,
• Official costs only (such as administrative fees, duties and building codes and legal requirements. The property, consisting of land and building, will be
taxes).
transferred in its entirety.
• Value Added Tax, Capital Gains Tax and illicit payments are - Will not be subject to renovations or additional construction following the purchase.
excluded - Has no trees, natural water sources, natural reserves or historical monuments of any kind.
- Will not be used for special purposes, and no special permits, such as for residential use,
Quality of land administration index (0-30) industrial plants, waste storage or certain types of agricultural activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)

Page 20
 Doing Business 2020 Senegal

Registering Property - Senegal

Indicator Senegal Sub-Saharan OECD high Best Regulatory

Africa income Performance

Procedures (number) 5 6.1 4.7 1 (5 Economies)

Time (days) 41 51.6 23.6 1 (2 Economies)

Cost (% of property value) 7.1 7.3 4.2 0.0 (Saudi Arabia)

Quality of the land administration index (0-30) 10.0 9.0 23.2 None in 2018/19

Figure – Registering Property in Senegal – Score

66.7 80.9 52.4 33.3

Procedures Time Cost Quality of the land administration index

Figure – Registering Property in Senegal and comparator economies – Ranking and Score

DB 2020 Registering Property Score

0 100

72.0: Togo (Rank: 56)

59.4: Ghana (Rank: 111)

58.6: Côte d'Ivoire (Rank: 112)

58.3: Senegal (Rank: 116)

53.6: Regional Average (Sub-Saharan Africa)

40.1: Cameroon (Rank: 175)

Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of
the scores for each of the component indicators.

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 Doing Business 2020 Senegal

Figure – Registering Property in Senegal – Procedure, Time and Cost

Time (days) Cost (% of property value)

7
40

35 6

Cost (% of property value)

30 5
Time (days)

25
4

20
3
15
2
10

1
5

0 0
1 2 3 4 5
Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.

Page 22
 Doing Business 2020 Senegal

Figure – Registering Property in Senegal and comparator economies – Measure of Quality

12
10.0 10.0
10 9.5
9.0
8.0
Index score

8 7.0
6

Senegal Cameroon Côte Ghana Togo Sub-Saharan

d'Ivoire Africa

Details – Registering Property in Senegal – Procedure, Time and Cost

No. Procedures Time to Complete Associated Costs

1 Obtain a non-encumbrance certificate from the Land Registry 5 days XOF 500
Agency : Land Registry ("Conservation Foncière")
The certificate on the status of property rights affecting a property (certificat d'État de Droits Réels
et Charges) helps to identify any pending encumbrances still linked to the property being
transferred. It also verifies the integrity of the vendor’s ownership.

2 Promissory agreement drafted and executed by the notary 4 days XOF 500,000; (Official
Agency : Notary notary fee schedule:
It is standard practice that the notary drafts the sale and purchase agreement between the parties. Under XOF 40,000,000:
Then they sign it in his presence and he notarizes it.
flat fee of XOF 500,000.
From XOF 40,000,000 to
XOF 80,000,000: 3% of
the property value;
From XOF 80,000,000 to
XOF 300,000,000: 1.5% of
the property value;
Over XOF 300,000,000:
0.75% of the property
value.)

3 Request is filed at the Director of Taxes and Property to acquire an authorization of transfer 1 day no charge
Agency : Land Registry ("Conservation Foncière")
This notification allows the State to exercise its preemption rights and possibly to acquire
ownership of the property. However, since 2014, the parties do not need to wait until the State
notifies whether it exercises its preemption rights to continue with the registration of the property
transfer.

At the same time, if the Conservation Foncière considers that the property is undervalued, it will
request an expert to value the property.

4 Deed of sale is written by the notary after the Director's approval 16 days no charge
Agency : Notary
The relevant charge is already included in the previous payment to the Notary.

5 Notary sends a request of ownership change to the Land Registry 15 days XOF 2,426,094.2; (5% of
Agency : Land Registry ("Conservation Foncière") the property value + XOF
The Notary submits the deed with all the required documents to the Property Registry for 6,500 + 0.9% property
registration. At the Land Registry the name of the new owner is changed and inserted in the
value as a publication fee)
Registry Book.

Takes place simultaneously with previous procedure.

Page 23
 Doing Business 2020 Senegal

Details – Registering Property in Senegal – Measure of Quality

Answer Score

Quality of the land administration index (0-30) 10.0

Reliability of infrastructure index (0-8) 0.0

Type of land registration system in the economy: Title Registration

System

What is the institution in charge of immovable property registration? Conservation

Foncière de Dakar

In what format are past and newly issued land records kept at the immovable property registry of the largest Paper 0.0
business city of the economy —in a paper format or in a computerized format (scanned or fully digital)?

Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, No 0.0
restrictions and the like)?

Institution in charge of the plans showing legal boundaries in the largest business city: Direction du Cadastre

In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business Paper 0.0
city of the economy—in a paper format or in a computerized format (scanned or fully digital)?

Is there an electronic database for recording boundaries, checking plans and providing cadastral information No 0.0
(geographic information system)?

Is the information recorded by the immovable property registration agency and the cadastral or mapping agency Separate databases 0.0
kept in a single database, in different but linked databases or in separate databases?

Do the immovable property registration agency and cadastral or mapping agency use the same identification No 0.0
number for properties?

Transparency of information index (0–6) 4.0

Who is able to obtain information on land ownership at the agency in charge of immovable property registration Anyone who pays the 1.0
in the largest business city? official fee

Is the list of documents that are required to complete any type of property transaction made publicly available– Yes, online 0.5
and if so, how?

Link for online access: http://www.impotsetd

omaines.gouv.sn/fr/d
emarches-affaires-
domaniales-
cadastres

Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable Yes, online 0.5
property registration in the largest business city made publicly available–and if so, how?

Link for online access: http://www.impotsetd

omaines.gouv.sn/fr/d
emarches-affaires-
domaniales-
cadastres

Does the agency in charge of immovable property registration agency formally commit to deliver a legally Yes, online 0.5
binding document that proves property ownership within a specific timeframe –and if so, how does it
communicate the service standard?

Link for online access: http://www.impotsetd

omaines.gouv.sn/fr/d
emarches-affaires-
domaniales-
cadastres

Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency No 0.0
in charge of immovable property registration?

Contact information:

Are there publicly available official statistics tracking the number of transactions at the immovable property No 0.0
registration agency?

Number of property transfers in the largest business city in 2018:

Who is able to consult maps of land plots in the largest business city? Anyone who pays the 0.5
official fee
Page 24
Doing Business 2020 Senegal

Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5

Link for online access: http://www.impotsetd

omaines.gouv.sn/fr/d
emarches-affaires-
domaniales-
cadastres

Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and Yes, online 0.5
if so, how does it communicate the service standard?

Link for online access: http://www.impotsetd

omaines.gouv.sn/fr/d
emarches-affaires-
domaniales-
cadastres

Is there a specific and independent mechanism for filing complaints about a problem that occurred at the No 0.0
cadastral or mapping agency?

Contact information:

Geographic coverage index (0–8) 0.0

Are all privately held land plots in the largest business city formally registered at the immovable property No 0.0
registry?

Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0

Are all privately held land plots in the largest business city mapped? No 0.0

Are all privately held land plots in the economy mapped? No 0.0

Land dispute resolution index (0–8) 6.0

Does the law require that all property sale transactions be registered at the immovable property registry to make Yes 1.5
them opposable to third parties?

Legal basis: Loi n° 2011-07 du 30

mars 2011 portant
régime de la propriété
foncière

Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5

Type of guarantee: State guarantee

Legal basis: Loi n° 2011-07 du 30

mars 2011 portant
régime de la propriété
foncière

Is there a is a specific, out-of-court compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information certified by the immovable
property registry?

Legal basis:

Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., Yes 0.5
checking the compliance of contracts with requirements of the law)?

If yes, who is responsible for checking the legality of the documents? Registrar; Notary;

Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5

If yes, who is responsible for verifying the identity of the parties? Registrar; Notary;

Is there a national database to verify the accuracy of government issued identity documents? Yes 1.0

What is the Court of first instance in charge of a case involving a standard land dispute between two local Tribunal de Grande
businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located Instance de Dakar
in the largest business city?

How long does it take on average to obtain a decision from the first-instance court for such a case (without Between 1 and 2 2.0
appeal)? years

Are there publicly available statistics on the number of land disputes at the economy level in the first instance No 0.0
court?

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Doing Business 2020 Senegal

Number of land disputes in the economy in 2018:

Equal access to property rights index (-2–0) 0.0

Do unmarried men and unmarried women have equal ownership rights to property? Yes

Do married men and married women have equal ownership rights to property? Yes 0.0

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 Doing Business 2020 Senegal

Getting Credit

This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most
recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure Case study assumptions

Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and
lenders with respect to secured transactions through 2 sets of indicators. The depth of credit
• Rights of borrowers and lenders through collateral laws (0-10) information index measures rules and practices affecting the coverage, scope and accessibility of
• Protection of secured creditors’ rights through bankruptcy laws credit information available through a credit registry or a credit bureau. The strength of legal rights
(0-2) index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers
and lenders and thus facilitate lending. For each economy it is first determined whether a unitary
Depth of credit information index (0–8) secured transactions system exists. Then two case scenarios, case A and case B, are used to
• Scope and accessibility of credit information distributed by determine how a nonpossessory security interest is created, publicized and enforced according to
credit bureaus and credit registries (0-8) the law. Special emphasis is given to how the collateral registry operates (if registration of security
interests is possible). The case scenarios involve a secured borrower, company ABC, and a
Credit bureau coverage (% of adults) secured lender, BizBank.

• Number of individuals and firms listed in largest credit bureau In some economies the legal framework for secured transactions will allow only case A or case B
as a percentage of adult population (not both) to apply. Both cases examine the same set of legal provisions relating to the use of
movable collateral.
Credit registry coverage (% of adults)

• Number of individuals and firms listed in credit registry as a Several assumptions about the secured borrower (ABC) and lender (BizBank) are used:
percentage of adult population - ABC is a domestic limited liability company (or its legal equivalent).
- ABC has up to 50 employees.
- ABC has its headquarters and only base of operations in the economy’s largest business city. For
11 economies the data are also collected for the second largest business city.
- Both ABC and BizBank are 100% domestically owned.

The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants
BizBank a nonpossessory security interest in one category of movable assets, for example, its
machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In
economies where the law does not allow nonpossessory security interests in movable property,
ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for
nonpossessory security interests).

In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any
charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of
ABC’s movable assets as possible). ABC keeps ownership and possession of the assets.

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 Doing Business 2020 Senegal

Getting Credit - Senegal

Indicator Senegal Sub-Saharan OECD high Best Regulatory

Africa income Performance

Strength of legal rights index (0-12) 6 5.1 6.1 12 (5 Economies)

Depth of credit information index (0-8) 7 3.9 6.8 8 (53 Economies)

Credit registry coverage (% of adults) 0.0 8.3 24.4 100.0 (2 Economies)

Credit bureau coverage (% of adults) 8.2 11.0 66.7 100.0 (14 Economies)

Figure – Getting Credit in Senegal – Score

65.0

Score - Getting Credit

Figure – Getting Credit in Senegal and comparator economies – Ranking and Score

DB 2020 Getting Credit Score

0 100

70.0: Côte d'Ivoire (Rank: 48)

70.0: Togo (Rank: 48)

65.0: Senegal (Rank: 67)

60.0: Cameroon (Rank: 80)

60.0: Ghana (Rank: 80)

45.2: Regional Average (Sub-Saharan Africa)

Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the
strength of legal rights index and the depth of credit information index.

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 Doing Business 2020 Senegal

Figure – Legal Rights in Senegal and comparator economies

6.2
6 6 6 6 6
6
5.8
Index Score

5.6
5.4
5.2 5.1
5
4.8
4.6

Senegal Cameroon Côte Ghana Togo Sub-Saharan

d'Ivoire Africa

Page 29
 Doing Business 2020 Senegal

Details – Legal Rights in Senegal

Strength of legal rights index (0-12) 6

Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents Yes
to security interests in movable assets exist in the economy?

Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description Yes
of collateral?

Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of Yes
collateral?

May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and replacements of the Yes
original assets?

Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties; Yes
and can the collateral agreement include a maximum amount for which the assets are encumbered?

Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an No
electronic database indexed by debtor's name?

Does a notice-based collateral registry exist in which all functional equivalents can be registered? No

Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third No
party?

Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure? No

Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated? No

Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure? Does the law No
protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it?

Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell Yes
the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt?

Figure – Credit Information in Senegal and comparator economies

9
8 8
8
7
7
6 6
Index Score

6
5
3.9
4
3
2
1
0

Senegal Cameroon Côte Ghana Togo Sub-Saharan

d'Ivoire Africa

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 Doing Business 2020 Senegal

Details – Credit Information in Senegal

Depth of credit information index (0-8) Credit bureau Credit registry Score

Are data on both firms and individuals distributed? Yes No 1

Are both positive and negative credit data distributed? Yes No 1

Are data from retailers or utility companies - in addition to data from banks and No No 0
financial institutions - distributed?

Are at least 2 years of historical data distributed? (Credit bureaus and registries Yes No 1
that distribute more than 10 years of negative data or erase data on defaults as
soon as they are repaid obtain a score of 0 for this component.)

Are data on loan amounts below 1% of income per capita distributed? Yes No 1

By law, do borrowers have the right to access their data in the credit bureau or Yes No 1
credit registry?

Can banks and financial institutions access borrowers’ credit information online Yes No 1
(for example, through an online platform, a system-to-system connection or
both)?

Are bureau or registry credit scores offered as a value-added service to help Yes No 1
banks and financial institutions assess the creditworthiness of borrowers?

Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult
population, the total score on the depth of credit information index is 0.

Coverage Credit bureau Credit registry

Number of individuals 683,311 N/A

Number of firms 17,915 N/A

Total 701,226 0

Percentage of adult population 8.2 0.0

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 Doing Business 2020 Senegal

Protecting Minority Investors

This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights,
governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed
in May 2019. See the methodology for more information.

What the indicators measure Case study assumptions

• Extent of disclosure index (0–10): Disclosure, review, and To make the data comparable across economies, a case study uses several assumptions about
approval requirements for related-party transactions the business and the transaction.
• Extent of director liability index (0–10): Ability of minority
shareholders to sue and hold interested directors liable for The business (Buyer):
prejudicial related-party transactions; Available legal - Is a publicly traded corporation listed on the economy’s most important stock exchange.
remedies (damages, disgorgement of profits, disqualification - Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of
from managerial position(s) for one year or more, rescission of Buyer where permitted, even if this is not specifically required by law.
the transaction) - Has a supervisory board in economies with a two-tier board system on which Mr. James
appointed 60% of the shareholder-elected members.
• Ease of shareholder suits index (0–10): Access to internal
- Has not adopted bylaws or articles of association that go beyond the minimum requirements.
corporate documents; Evidence obtainable during trial and
allocation of legal expenses Does not follow codes, principles, recommendations or guidelines that are not mandatory.
- Is a manufacturing company with its own distribution network.
• Extent of conflict of interest regulation index (0-30): Sum of
the extent of disclosure, extent of director liability and ease of The transaction involves the following details:
shareholder suits indices - Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to
• Extent of shareholder rights index (0-6): Shareholders’ rights Buyer’s five-member board.
and role in major corporate decisions - Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores.
Seller recently closed a large number of its stores.
• Extent of ownership and control index (0-7): Governance - Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s
safeguards protecting shareholders from undue board control distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of
and entrenchment
Buyer’s assets and is higher than the market value.
• Extent of corporate transparency index (0-7): Corporate - The proposed transaction is part of the company’s principal activity and is not outside the
transparency on ownership stakes, compensation, audits and authority of the company.
financial prospects - Buyer enters into the transaction. All required approvals are obtained, and all required disclosures
made—that is, the transaction was not entered into fraudulently.
• Extent of shareholder governance index (0–20): Sum of the - The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and
extent of shareholders rights, extent of ownership and control
directors that approved the transaction.
and extent of corporate transparency indices

• Strength of minority investor protection index (0–50): Sum

of the extent of conflict of interest regulation and extent of
shareholder governance indices

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 Doing Business 2020 Senegal

Protecting Minority Investors - Senegal

Stock exchange information

Stock exchange Bourse Régionale des Valeurs Mobilières

Stock exchange URL http://www.brvm.org

Listed firms with equity securities 46

City Covered Dakar

Indicator Senegal Sub-Saharan OECD high Best Regulatory

Africa income Performance

Extent of disclosure index (0-10) 7.0 5.5 6.5 10 (13 Economies)

Extent of director liability index (0-10) 1.0 3.5 5.3 10 (3 Economies)

Ease of shareholder suits index (0-10) 6.0 5.5 7.3 10 (Djibouti)

Extent of shareholder rights index (0-6) 4.0 1.8 4.7 6 (19 Economies)

Extent of ownership and control index (0-7) 2.0 1.4 4.5 7 (9 Economies)

Extent of corporate transparency index (0-7) 2.0 1.5 5.7 7 (13 Economies)

Figure – Protecting Minority in Senegal – Score

44.0

Score - Protecting Minority Investors

Figure – Protecting Minority Investors in Senegal and comparator economies – Ranking and Score

DB 2020 Protecting Minority Investors Score

0 100

60.0: Ghana (Rank: 72)

44.0: Senegal (Rank: 114)

42.0: Côte d'Ivoire (Rank: 120)

42.0: Togo (Rank: 120)

38.5: Regional Average (Sub-Saharan Africa)

28.0: Cameroon (Rank: 157)

Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are
the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index.

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 Doing Business 2020 Senegal

Figure – Protecting Minority Investors in Senegal and comparator economies – Measure of Quality

Senegal 2 1 7 2 4 6

Cameroon 0 1 7 0 6

Côte d'Ivoire 2 1 7 2 4 5

Ghana 3 5 7 3 5 7

Togo 2 1 7 2 4 5

OECD high income 5.6 5.6 6.6 4.3 4.5 7.4

Sub-Saharan Africa 1.7 3.6 5.6 1.5 1.9 5.6

0 5 10 15 20 25 30 35 40
Sub-Indicator Score

Extent of corporate transparency index (0-7) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-7)
Extent of shareholder rights index (0-6) Ease of shareholder suits index (0-10)

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 Doing Business 2020 Senegal

Details – Protecting Minority Investors in Senegal – Measure of Quality

Answer Score

Extent of conflict of interest regulation index (0-30)

Extent of disclosure index (0-10) 7.0

Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3) Shareholders 3.0
excluding interested
parties

Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0

Must Mr. James disclose his conflict of interest to the board of directors? (0-2) Full disclosure of all 2.0
material facts

Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2) Disclosure on the 2.0
transaction and on
the conflict of interest

Must Buyer immediately disclose the transaction to the public? (0-2) No disclosure 0.0
obligation

Extent of director liability index (0-10) 1.0

Can shareholders representing 10% of Buyer's share capital sue for the damage the transaction caused to Yes 1.0
Buyer? (0-1)

Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0-2) Not liable 0.0

Can shareholders hold the other directors liable for the damage the transaction caused to Buyer? (0-2) Not liable 0.0

Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by shareholders? (0-1) No 0.0

Must Mr. James repay profits made from the transaction upon a successful claim by shareholders? (0-1) No 0.0

Is Mr. James disqualified upon a successful claim by shareholders? (0-1) No 0.0

Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of fraud 0.0
or bad faith

Ease of shareholder suits index (0-10) 6.0

Before suing, can shareholders representing 10% of Buyer's share capital inspect the transaction documents? Yes 1.0
(0-1)

Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0
document

Can the plaintiff request categories of documents from the defendant without identifying specific ones? (0-1) No 0.0

Can the plaintiff directly question the defendant and witnesses at trial? (0-2) No 0.0

Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0

Can shareholder plaintiffs recover their legal expenses from the company? (0-2) Yes if successful 1.0

Extent of shareholder governance index (0-20)

Extent of shareholder rights index (0-6) 4.0

Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0

Can shareholders representing 10% of Buyer's share capital call for a meeting of shareholders? Yes 1.0

Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0

Do shareholders automatically receive preemption rights every time Buyer issues new shares? No 0.0

Do shareholders elect and dismiss the external auditor? Yes 1.0

Are changes to the rights of a class of shares only possible if the holders of the affected shares approve? Yes 1.0

Extent of ownership and control index (0-7) 2.0

Is it forbidden to appoint the same individual as CEO and chairperson of the board of directors? No 0.0

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Doing Business 2020 Senegal

Must the board of directors include independent and nonexecutive board members? No 0.0

Can shareholders remove members of the board of directors without cause before the end of their term? Yes 1.0

Must the board of directors include a separate audit committee exclusively comprising board members? No 0.0

Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of Buyer? No 0.0

Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0

Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0

Extent of corporate transparency index (0-7) 2.0

Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%? No 0.0

Must Buyer disclose information about board members’ primary employment and directorships in other No 0.0
companies?

Must Buyer disclose the compensation of individual managers? No 0.0

Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0

Can shareholders representing 5% of Buyer’s share capital put items on the general meeting agenda? Yes 1.0

Must Buyer's annual financial statements be audited by an external auditor? Yes 1.0

Must Buyer disclose its audit reports to the public? No 0.0

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 Doing Business 2020 Senegal

Paying Taxes

This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of
paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was
completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018). See the methodology for more information.

What the indicators measure Case study assumptions

Tax payments for a manufacturing company in 2018 (number Using a case scenario, Doing Business records taxes and mandatory contributions a medium size
per year adjusted for electronic and joint filing and payment) company must pay in a year, and measures the administrative burden of paying taxes,
contributions and dealing with postfiling processes. Information is also compiled on frequency of
• Total number of taxes and contributions paid or withheld, filing and payments, time taken to comply with tax laws, time taken to comply with the
including consumption taxes (value added tax, sales tax or
requirements of postfiling processes and time waiting.
goods and service tax)

• Method and frequency of filing and payment To make data comparable across economies, several assumptions are used:
- TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces
Time required to comply with 3 major taxes (hours per year) ceramic flowerpots and sells them at retail. All taxes and contributions recorded are paid in the
second year of operation (calendar year 2018). Taxes and mandatory contributions are measured
• Collecting information, computing tax payable
at all levels of government.
• Preparing separate tax accounting books, if required
• Completing tax return, filing with agencies The VAT refund process:
- In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times
• Arranging payment or withholding income per capita of the economy. Sales are equally spread per month (1,050 times income per
capita divided by 12) and cost of goods sold are equally expensed per month (875 times income
Total tax and contribution rate (% of commercial profits)
per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred
• Profit or corporate income tax in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs,
sales and the machine and the tax reporting period is every month. Input VAT will exceed Output
• Social contributions, labor taxes paid by employer VAT in June 2018.
• Property and property transfer taxes
The corporate income tax audit process:
• Dividend, capital gains, financial transactions taxes - An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates,
• Waste collection, vehicle, road and other taxes or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a
corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the
Postfiling Index tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax
• Time to comply with VAT refund (hours) liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual
tax return, but within the tax assessment period.
• Time to obtain VAT refund (weeks)
• Time to comply with a corporate income tax correction (hours)
• Time to complete a corporate income tax correction (weeks)

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 Doing Business 2020 Senegal

Paying Taxes - Senegal

Indicator Senegal Sub-Saharan OECD high Best Regulatory

Africa income Performance

Payments (number per year) 53 36.6 10.3 3 (2 Economies)

Time (hours per year) 416 280.6 158.8 49 (3 Economies)

Total tax and contribution rate (% of profit) 44.8 47.3 39.9 26.1 (33 Economies)

Postfiling index (0-100) 71.8 54.7 86.7 None in 2018/19

Figure – Paying Taxes in Senegal – Score

16.7 43.3 73.2 71.8

Payments Time Total tax and contribution rate Postfiling index

Figure – Paying Taxes in Senegal and comparator economies – Ranking and Score

DB 2020 Paying Taxes Score

0 100

68.0: Côte d'Ivoire (Rank: 114)

57.8: Regional Average (Sub-Saharan Africa)

56.0: Ghana (Rank: 152)

51.2: Senegal (Rank: 166)

47.3: Togo (Rank: 174)

36.3: Cameroon (Rank: 181)

Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for
each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The
threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing
Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.

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 Doing Business 2020 Senegal

Figure – Paying Taxes in Senegal and comparator economies – Measure of Quality

80
71.8
70 64.8
60 54.7
Index score

49.3 49.5
50
40
30
20 14.9
10
0

Senegal Cameroon Côte Ghana Togo Sub-Saharan

d'Ivoire Africa

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 Doing Business 2020 Senegal

Details – Paying Taxes in Senegal

Tax or Payments Notes on Time (hours) Statutory tax Tax base Total tax and Notes on TTCR
mandatory (number) Payments rate contribution
contribution rate (% of
profit)

Corporate 3.0 98.0 30% taxable profit 16.17

income tax

Social security 12.0 88.0 10% gross salaries 10.74

contributions

Retirement 12.0 8.4% gross salaries 9.48

contributions

Payroll tax 12.0 3% gross salaries 3.38

Contribution 1.0 1% value added 2.95

Economique
Locale /Added
Value

Contribution 1.0 15% for rental 7% of rental 2.07

Economique value 20% on value or owned
Locale /Rental owned properties premises
Value

Tax on insurance 1.0 0.25% insurance 0.01

contracts premium

Value added tax 8.0 online 230.0 18% value added 0.00 not included
(VAT)

Fuel tax 1.0 included in fuel 0.00 small amount

price

Interest tax 0.0 16% Interest income 0.00 included in other

taxes

Advertising tax 1.0 various rates 0.00 small amount

Stamp duty on 1.0 XOF 2,000 fixed fee 0.00 small amount
contracts

Totals 53 416 44.8

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 Doing Business 2020 Senegal

Details – Paying Taxes in Senegal – Tax by Type

Taxes by type Answer

Profit tax (% of profit) 16.2

Labor tax and contributions (% of profit) 23.6

Other taxes (% of profit) 5.0

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 Doing Business 2020 Senegal

Details – Paying Taxes in Senegal – Measure of Quality

Answer Score

Postfiling index (0-100) 71.8

VAT refunds

Does VAT exist? Yes

Does a VAT refund process exist per the case study? Yes

Restrictions on VAT refund process none

Percentage of cases exposed to a VAT audit (%) 50% - 74%

Is there a mandatory carry forward period? No

Time to comply with VAT refund (hours) 34.0 32.0

Time to obtain VAT refund (weeks) 17.0 73.6

Corporate income tax audits

Does corporate income tax exist? Yes

Percentage of cases exposed to a corporate income tax audit (%) 0% - 24%

Time to comply with a corporate income tax correction (hours) 11.5 81.7

Time to complete a corporate income tax correction (weeks) No tax audit per case 100
study scenario

Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.
The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction
and time to complete a corporate income tax correction.
N/A = Not applicable.

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 Doing Business 2020 Senegal

Trading across Borders

Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding
tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or
importing a shipment of goods. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure Case study assumptions

Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded
goods and the transactions:
• Obtaining, preparing and submitting documents during
transport, clearance, inspections and port or border handling in
Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as
origin economy
22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively,
• Obtaining, preparing and submitting documents required by suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and
destination economy and any transit economies can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as
24 hours because the actual procedure took 24 hours.
• Covers all documents required by law and in practice, including
electronic submissions of information
Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the
Border compliance costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency
into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire.
• Customs clearance and inspections Contributors are private sector experts in international trade logistics and are informed about
• Inspections by other agencies (if applied to more than 20% of exchange rates.
shipments)
Assumptions of the case study:
• Handling and inspections that take place at the economy’s port - For all 190 economies covered by Doing Business, it is assumed a shipment is in a warehouse in
or border the largest business city of the exporting economy and travels to a warehouse in the largest
business city of the importing economy.
Domestic transport
- It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from
• Loading or unloading of the shipment at the warehouse or its natural import partner—the economy from which it imports the largest value (price times
port/border quantity) of auto parts. It is assumed each economy exports the product of its comparative
advantage (defined by the largest export value) to its natural export partner—the economy that is
• Transport between warehouse and port/border the largest purchaser of this product. Shipment value is assumed to be $50,000.
• Traffic delays and road police checks while shipment is en - The mode of transport is the one most widely used for the chosen export or import product and
route the trading partner, as is the seaport or land border crossing.
- All electronic information submissions requested by any government agency in connection with
the shipment are considered to be documents obtained, prepared and submitted during the export
or import process.
- A port or border is a place (seaport or land border crossing) where merchandise can enter or
leave an economy.
- Relevant government agencies include customs, port authorities, road police, border guards,
standardization agencies, ministries or departments of agriculture or industry, national security
agencies and any other government authorities.

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 Doing Business 2020 Senegal

Trading across Borders - Senegal

Indicator Senegal Sub-Saharan OECD high Best Regulatory

Africa income Performance

Time to export: Border compliance (hours) 61 97.1 12.7 1 (19 Economies)

Cost to export: Border compliance (USD) 547 603.1 136.8 0 (19 Economies)

Time to export: Documentary compliance (hours) 26 71.9 2.3 1 (26 Economies)

Cost to export: Documentary compliance (USD) 96 172.5 33.4 0 (20 Economies)

Time to import: Border compliance (hours) 53 126.2 8.5 1 (25 Economies)

Cost to import: Border compliance (USD) 702 690.6 98.1 0 (28 Economies)

Time to import: Documentary compliance (hours) 72 96.1 3.4 1 (30 Economies)

Cost to import: Documentary compliance (USD) 545 287.2 23.5 0 (30 Economies)

Figure – Trading across Borders in Senegal – Score

62.0 48.4 85.2 76.0 81.2 41.5 70.3 22.1

Time Cost Time Cost Time Cost Time Cost

to to to to to to to to
export: export: export: export: import: import: import: import:
Border Border Documentary Documentary Border Border Documentary Documentary
compliance compliance compliance compliance compliance compliance compliance compliance

Figure – Trading across Borders in Senegal and comparator economies – Ranking and Score

DB 2020 Trading Across Borders Score

0 100

63.7: Togo (Rank: 131)

60.9: Senegal (Rank: 142)

54.8: Ghana (Rank: 158)

53.6: Regional Average (Sub-Saharan Africa)

52.4: Côte d'Ivoire (Rank: 163)

16.0: Cameroon (Rank: 186)

Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple
average of the scores for the time and cost for documentary compliance and border compliance to export and import.

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 Doing Business 2020 Senegal

Figure – Trading across Borders in Senegal – Time and Cost

Time (hours) Cost (USD)

80 72 800
702
70 700
61
547 545
Time (hours)

60 53 600

Cost (USD)
50 500
40 400
30 26 300
20 200
96
10 100
0 0

Export Export Import Import

- - - -
Border Documentary Border Documentary
Compliance Compliance Compliance Compliance

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 Doing Business 2020 Senegal

Details – Trading across Borders in Senegal

Characteristics Export Import

Product HS 03 : Fish & crustacean, mollusc & other aquatic HS 8708: Parts and accessories of motor vehicles
invertebrate

Trade partner Italy France

Border Dakar port Dakar port

Distance (km) 17 17

Domestic transport time (hours) 2 2

Domestic transport cost (USD) 122 147

Details – Trading across Borders in Senegal – Components of Border Compliance

Time to Complete (hours) Associated Costs (USD)

Export: Clearance and inspections required by 10.2 168.0

customs authorities

Export: Clearance and inspections required by 19.8 50.0

agencies other than customs

Export: Port or border handling 41.5 328.7

Import: Clearance and inspections required by 19.3 240.0

customs authorities

Import: Clearance and inspections required by 0.0 0.0

agencies other than customs

Import: Port or border handling 44.0 461.7

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 Doing Business 2020 Senegal

Details – Trading across Borders in Senegal – Trade Documents

Export Import

Bill of lading Bill of lading

Commercial invoice Commercial invoice

Export declaration Pre-Import Declaration (DPI)

Packing list Manifest

Certificate of origin Cargo release order

Insurance Insurance

Phytosanitary certificate Foreign exchange authorization

Engagement de change Attestation of value

Health certificate (certificat de salubrite) SOLAS Certificate

SOLAS certificate

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 Doing Business 2020 Senegal

Enforcing Contracts

The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes
index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data
collection was completed in May 2019. See the methodology for more information.

What the indicators measure Case study assumptions

Time required to enforce a contract through the courts The dispute in the case study involves the breach of a sales contract between two domestic
(calendar days) businesses. The case study assumes that the court hears an expert on the quality of the goods in
dispute. This distinguishes the case from simple debt enforcement.
• Time to file and serve the case
• Time for trial and to obtain the judgment To make the data on the time and comparable across economies, several assumptions about the
case are used:
• Time to enforce the judgment - The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both
Cost required to enforce a contract through the courts (% of located in the economy’s largest business city. For 11 economies the data are also collected for the
claim value) second largest business city.
- The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of
• Average attorney fees adequate quality.
• Court costs - The value of the dispute is 200% of the income per capita or the equivalent in local currency of
USD 5,000, whichever is greater.
• Enforcement costs - The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of
income per capita or $5,000 whichever is greater.
Quality of judicial processes index (0-18)
- The Seller requests the pretrial attachment of the defendant’s movable assets to secure the
• Court structure and proceedings (-1-5) claim.
- The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods
• Case management (0-6) was not adequate.
• Court automation (0-4) - The judge decides in favor of the seller; there is no appeal.
- The Seller enforces the judgment through a public sale of the Buyer’s movable assets.
• Alternative dispute resolution (0-3)

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Enforcing Contracts - Senegal

Standardized Case

Claim value XOF 3,054,783

Court name Dakar Commercial Court

City Covered Dakar

Indicator Senegal Sub-Saharan OECD high Best Regulatory

Africa income Performance

Time (days) 650 654.9 589.6 120 (Singapore)

Cost (% of claim value) 36.4 41.6 21.5 0.1 (Bhutan)

Quality of judicial processes index (0-18) 6.5 6.9 11.7 None in 2018/19

Figure – Enforcing Contracts in Senegal – Score

56.6 59.2 36.1

Time Cost Quality of judicial processes index

Figure – Enforcing Contracts in Senegal and comparator economies – Ranking and Score

DB 2020 Enforcing Contracts Score

0 100

57.6: Côte d'Ivoire (Rank: 94)

54.0: Ghana (Rank: 117)

50.6: Senegal (Rank: 132)

49.6: Regional Average (Sub-Saharan Africa)

49.0: Togo (Rank: 140)

39.9: Cameroon (Rank: 167)

Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of
the scores for each of the component indicators.

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 Doing Business 2020 Senegal

Figure – Enforcing Contracts in Senegal – Time and Cost

Time (days) Cost (% of claim value)

900 46.6 47.5 50
800

Cost (% of claim value)

800 41.7 41.6
710
700 650 36.4 654.9 40
589.6
Time (days)

600 525
488 30
500
23.0 21.5
400
20
300
200 10
100
0 0

Cameroon Côte Ghana OECD Senegal Sub-Saharan Togo

d'Ivoire high Africa
income

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 Doing Business 2020 Senegal

Figure – Enforcing Contracts in Senegal and comparator economies – Measure of Quality

Senegal 2.5 1 0 3

Cameroon 2.5 0 2.5

Côte d'Ivoire 2.5 2.5 0 4.5

Ghana 2.5 1 0 3

Togo 2.5 0 3

OECD high income 2.5 3.2 2.4 3.6

Sub-Saharan Africa 2.2 1.3 0.3 3.2

0 2 4 6 8 10 12 14
Sub-Indicator Score

Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5)

Details – Enforcing Contracts in Senegal

Indicator

Time (days) 650

Filing and service 35

Trial and judgment 300

Enforcement of judgment 315

Cost (% of claim value) 36.4

Attorney fees 28

Court fees 8

Enforcement fees 0.4

Quality of judicial processes index (0-18) 6.5

Court structure and proceedings (-1-5) 3.0

Case management (0-6) 1.0

Court automation (0-4) 0.0

Alternative dispute resolution (0-3) 2.5

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Details – Enforcing Contracts in Senegal – Measure of Quality

Answer Score

Quality of judicial processes index (0-18) 6.5

Court structure and proceedings (-1-5) 3.0

1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5

2. Small claims court 0.0

2.a. Is there a small claims court or a fast-track procedure for small claims? No

2.b. If yes, is self-representation allowed? n.a.

3. Is pretrial attachment available? Yes 1.0

4. Are new cases assigned randomly to judges? Yes, but manual 0.5

5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0

Case management (0-6) 1.0

1. Time standards 1.0

1.a. Are there laws setting overall time standards for key court events in a civil case? Yes

1.b. If yes, are the time standards set for at least three court events? Yes

1.c. Are these time standards respected in more than 50% of cases? Yes

2. Adjournments 0.0

2.a. Does the law regulate the maximum number of adjournments that can be granted? No

2.b. Are adjournments limited to unforeseen and exceptional circumstances? No

2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a.

3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii) No 0.0
clearance rate report; (iii) age of pending cases report; and (iv) single case progress report?

4. Is a pretrial conference among the case management techniques used before the competent court? No 0.0

5. Are there any electronic case management tools in place within the competent court for use by judges? No 0.0

6. Are there any electronic case management tools in place within the competent court for use by lawyers? No 0.0

Court automation (0-4) 0.0

1. Can the initial complaint be filed electronically through a dedicated platform within the competent court? No 0.0

2. Is it possible to carry out service of process electronically for claims filed before the competent court? No 0.0

3. Can court fees be paid electronically within the competent court? No 0.0

4. Publication of judgments 0.0

4.a Are judgments rendered in commercial cases at all levels made available to the general public No
through publication in official gazettes, in newspapers or on the internet or court website?

4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made No
available to the general public through publication in official gazettes, in newspapers or on the internet
or court website?

Alternative dispute resolution (0-3) 2.5

1. Arbitration 1.5

1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or Yes
section of the applicable code of civil procedure encompassing substantially all its aspects?

1.b. Are there any commercial disputes—aside from those that deal with public order or public policy— No
that cannot be submitted to arbitration?

1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes

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Doing Business 2020 Senegal

2. Mediation/Conciliation 1.0

2.a. Is voluntary mediation or conciliation available? Yes

2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or Yes
section of the applicable code of civil procedure encompassing substantially all their aspects (for
example, definition, aim and scope of application, desig

2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or No
conciliation is successful, a refund of court filing fees, income tax credits or the like)?

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 Doing Business 2020 Senegal

Resolving Insolvency

Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate,
which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings.
To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with
data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019. See the methodology for more
information.

What the indicators measure Case study assumptions

Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several
assumptions about the business and the case are used:
• Measured in calendar years
• Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel
experiences financial difficulties.
Cost required to recover debt (% of debtor’s estate) - The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD
200,000, whichever is greater.
• Measured as percentage of estate value - The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate.
• Court fees The hotel cannot pay back the loan, but makes enough money to operate otherwise.
• Fees of insolvency administrators In addition, Doing Business evaluates the quality of legal framework applicable to judicial
• Lawyers’ fees liquidation and reorganization proceedings and the extent to which best insolvency practices have
been implemented in each economy covered.
• Assessors’ and auctioneers’ fees
• Other related fees
Outcome

• Whether business continues operating as a going concern or

business assets are sold piecemeal

Recovery rate for creditors

• Measures the cents on the dollar recovered by secured

creditors

• Outcome for the business (survival or not) determines the

maximum value that can be recovered

• Official costs of the insolvency proceedings are deducted

• Depreciation of furniture is taken into account
• Present value of debt recovered
Strength of insolvency framework index (0- 16)

• Sum of the scores of four component indices:

• Commencement of proceedings index (0-3)
• Management of debtor’s assets index (0-6)
• Reorganization proceedings index (0-3)
• Creditor participation index (0-4)

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 Doing Business 2020 Senegal

Resolving Insolvency - Senegal

Indicator Senegal Sub-Saharan OECD high Best Regulatory

Africa income Performance

Recovery rate (cents on the dollar) 30.0 20.5 70.2 92.9 (Norway)

Time (years) 3.0 2.9 1.7 0.4 (Ireland)

Cost (% of estate) 20.0 22.8 9.3 1.0 (Norway)

Outcome (0 as piecemeal sale and 1 as going concern) 0 .. .. ..

Strength of insolvency framework index (0-16) 9.0 6.5 11.9 None in 2018/19

Figure – Resolving Insolvency in Senegal – Score

32.3 56.3

Recovery rate Strength of insolvency framework index

Figure – Resolving Insolvency in Senegal and comparator economies – Ranking and Score

DB 2020 Resolving Insolvency Score

0 100

47.9: Côte d'Ivoire (Rank: 85)

47.0: Togo (Rank: 88)

44.3: Senegal (Rank: 96)

36.6: Cameroon (Rank: 129)

31.3: Regional Average (Sub-Saharan Africa)

25.4: Ghana (Rank: 161)

Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average
of the scores for the recovery rate and the strength of insolvency framework index.

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 Doing Business 2020 Senegal

Figure – Resolving Insolvency in Senegal – Time and Cost

Time (years) Cost (% of estate)

3.5 40
33.5 3.0 2.9 3.0
3 2.8 35

Cost (% of estate)
30
Time (years)

2.5 2.2
1.9 22.0 22.8 25
2 1.7 20.0
18.0 20
1.5 15.0
15
1 9.3
10
0.5 5
0 0

Cameroon Côte Ghana OECD Senegal Sub-Saharan Togo

d'Ivoire high Africa
income

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 Doing Business 2020 Senegal

Figure – Resolving Insolvency in Senegal and comparator economies – Measure of Quality

Senegal 5.5 2 1 0.5

Cameroon 5.5 2 1 0.5

Côte d'Ivoire 5.5 2 1 0.5

Ghana 2 2 0

Togo 5.5 2 1 0.5

OECD high income 5.3 2.8 2.1 1.9

Sub-Saharan Africa 4.1 2.3 1 0.5

0 2 4 6 8 10 12 14
Sub-Indicator Score

Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3)

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the
strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

Figure – Resolving Insolvency in Senegal and comparator economies – Recovery Rate

Recovery rate(cents on the dollar)

40 36.8
35.1
35
30.0
30
25
24.0
20.5
20
15.8
15
10
5
0

Senegal Cameroon Côte d'Ivoire Ghana Togo Sub-Saharan Africa

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 Doing Business 2020 Senegal

Details – Resolving Insolvency in Senegal

Indicator Answer Score

Proceeding liquidation (after an As Mirage will not be able to settle its current liabilities with its available assets, it will file a declaration of cessation of
attempt at payments (article 25 of the Uniform Act Organizing Collective Proceedings for Wiping Off Debts). In order to continue
reorganization) operating, Mirage will try to obtain the opening of reorganization proceedings and avoid liquidation. Under article 27, a
composition proposal is a proposal lodged no later than 15 days following the declaration of cessation of payments,
specifying the measures and conditions envisaged to redress the company. According to our information, Mirage will
not reach an agreement with its creditors, so the composition proposal will not succeed and the court will convert the
proceedings to liquidation some months after the lodging of the proposal (article 33 of the Uniform Act). A
reorganization proceeding that is later converted into liquidation is the most likely proceeding in Senegal.

Outcome piecemeal sale According to our estimations, the reorganization attempt will fail and the proceedings will probably be converted to
liquidation. The hotel will stop operating and will be dismantled, and the assets of the debtor will be sold separately.

Time (in years) 3.0 Mirage will file a declaration of cessation of payments to obtain the opening of reorganization proceedings. The
declaration has to be done 30 days following the cessation of payments. The competent court will then declare
cessation of payments and open reorganization proceedings. The composition proposal will fail, so the proceedings
will be converted to liquidation. According to our estimations, the complete process of a reorganization attempt that is
then converted to liquidation takes approximately 36 months.

Cost (% of estate) 20.0 According to our estimations, a reorganization attempt that is later converted into liquidation costs approximately 20%
of the value of the estate. The following cost components are applicable: lawyer fees (5-10%), bailiff fees (15%), court
fees, costs of publication and registration (1%).

Recovery rate 30.0

(cents on the dollar)

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 Doing Business 2020 Senegal

Details – Resolving Insolvency in Senegal – Measure of Quality

Answer Score

Strength of insolvency framework index (0-16) 9.0

Commencement of proceedings index (0-3) 2.0

What procedures are available to a DEBTOR when commencing insolvency proceedings? (c) Debtor may file for 0.5
reorganization only

Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but a creditor 0.5
may file for liquidation
only

What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) (a) Debtor is 1.0
Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value generally unable to
of its assets pay its debts as they
mature

Management of debtor's assets index (0-6) 5.5

Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the Yes 1.0
debtor?

Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0

Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0

Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0

Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of Yes 1.0
insolvency proceedings?

Does the insolvency framework assign priority to post-commencement credit? (a) Yes over all pre- 0.5
commencement
creditors, secured or
unsecured

Reorganization proceedings index (0-3) 0.5

Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5

Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as No 0.0
what they would obtain in a liquidation?

Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote No 0.0
separately and are creditors in the same class treated equally?

Creditor participation index (0-4) 1.0

Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency No 0.0
representative?

Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0

Does the insolvency framework provide that a creditor has the right to request information from the insolvency No 0.0
representative?

Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting Yes 1.0
creditors' claims?

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the
strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

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 Doing Business 2020 Senegal

Employing Workers

Doing Business presents detailed data for the employing workers indicators on the Doing Business website (http://www.doingbusiness.org). The study does not present
rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business.

The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure Case study assumptions

Hiring To make the data comparable across economies, several assumptions about the worker and the
(i) whether fixed-term contracts are prohibited for permanent business are used.
tasks; (ii) maximum cumulative duration of fixed-term contracts;
(iii) length of the maximum probationary period; (iv) minimum The worker:
wage;(v) ratio of minimum wage to the average value added per - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience.
worker. - Is a full-time employee.
- Is not a member of the labor union, unless membership is mandatory.
Working hours
(i) maximum number of working days allowed per week; (ii) The business:
premiums for work: at night, on a weekly rest day and overtime; - Is a limited liability company (or the equivalent in the economy).
(iii) whether there are restrictions on work at night, work on a - Operates a supermarket or grocery store in the economy’s largest business city. For 11
weekly rest day and for overtime work; (iv) length of paid annual economies the data are also collected for the second largest business city.
leave. - Has 60 employees.
- Is subject to collective bargaining agreements if such agreements cover more than 50% of the
Redundancy rules food retail sector and they apply even to firms that are not party to them.
(i) whether redundancy can be basis for terminating workers; (ii) - Abides by every law and regulation but does not grant workers more benefits than those
whether employer needs to notify and/or get approval from third mandated by law, regulation or (if applicable) collective bargaining agreements.
party to terminate 1 redundant worker and a group of 9 redundant
workers; (iii) whether the law requires employer to reassign or
retrain a worker before making worker redundant; (iv) whether
priority rules apply for redundancies and reemployment.

Redundancy cost
(i) notice period for redundancy dismissal; (ii) severance
payments, and (iii) penalties due when terminating a redundant
worker. Data on the availability of unemployment protection for a
worker with one year of employment is also collected.

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 Doing Business 2020 Senegal

Employing Workers - Senegal

Details – Employing Workers in Senegal

Answer

Hiring

Fixed-term contracts prohibited for permanent tasks? Yes

Maximum length of a single fixed-term contract (months) 24.0

Maximum length of fixed-term contracts, including renewals (months) 24.0

Minimum wage applicable to the worker assumed in the case study (US$/month) 545.5

Ratio of minimum wage to value added per worker 2.5

Maximum length of probationary period (months) 2.0

Working hours

Standard workday 8.0

Maximum number of working days per week 6.0

Premium for night work (% of hourly pay) 38.0

Premium for work on weekly rest day (% of hourly pay) 0.0

Premium for overtime work (% of hourly pay) 10.0

Restrictions on night work? No

Restrictions on weekly holiday? Yes

Restrictions on overtime work? Yes

Paid annual leave for a worker with 1 year of tenure (working days) 24.0

Paid annual leave for a worker with 5 years of tenure (working days) 24.0

Paid annual leave for a worker with 10 years of tenure (working days) 25.0

Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 24.3

Redundancy rules

Dismissal due to redundancy allowed by law? Yes

Third-party notification if one worker is dismissed? Yes

Third-party approval if one worker is dismissed? No

Third-party notification if nine workers are dismissed? Yes

Third-party approval if nine workers are dismissed? No

Retraining or reassignment obligation before redundancy? No

Priority rules for redundancies? Yes

Priority rules for reemployment? Yes

Redundancy cost

Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 4.3

Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 4.3

Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 4.3

Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 4.3

Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 5.4

Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 9.8
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Doing Business 2020 Senegal

Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 16.3

Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 10.5

Unemployment protection after one year of employment? No

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 Doing Business 2020 Senegal

Business Reforms in Senegal

From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by
Doing Business have been implemented by economies in all regions. The following are reforms implemented since Doing Business 2008.

=Doing Business reform making it easier to do business. = Change making it more difficult to do business.

DB2020

Getting Credit: Senegal improved access to credit information by expanding the coverage of the credit bureau and offering credit scoring as a value-added service.

Paying Taxes: Senegal made paying taxes easier by implementing an electronic filing and payment system and less costly by merging several taxes.

DB2019

Registering Property: Senegal made registering property easier by decreasing the time needed to transfer and register property.

Enforcing Contracts: Senegal made enforcing contracts easier by adopting a law that regulates all aspects of mediation as an alternative dispute resolution
mechanism.

DB2018

Starting a Business: Senegal made starting a business more affordable by reducing the notary fees for company incorporation.

Getting Electricity: Senegal improved the monitoring and regulation of power outages by beginning to record data for the annual system average interruption duration
index (SAIDI) and system average interruption frequency index (SAIFI).

Registering Property: Senegal made registering property easier by lowering the costs of transferring property and by reducing the time to transfer and registering
property.

Paying Taxes: Senegal made paying taxes easier by introducing time limits to the General Tax Code for processing VAT cash refunds and applying these time limits in
practice.

Enforcing Contracts: Senegal made enforcing contracts easier by introducing stricter pre-trial hearing rules that led to a reduction of the time necessary to resolve a
commercial dispute.

DB2017

Registering Property: Senegal made registering property easier by increasing the transparency at its land registry and cadastre.

Getting Credit: Senegal improved access to credit information by establishing a new credit bureau.

Paying Taxes: Senegal made paying taxes less costly by reducing the maximum cap for corporate income tax and implementing more efficient accounting systems and
software.

Resolving Insolvency: Senegal made resolving insolvency easier by introducing a new conciliation procedure for companies in financial difficulties and a simplified
preventive settlement procedure for small companies.

DB2016

Starting a Business: Senegal made starting a business easier by reducing the minimum capital requirement.

Getting Electricity: The utility in Senegal made getting an electricity connection less time-consuming by streamlining the review of applications and the process for the
final connection as well as by reducing the time needed to issue an excavation permit. It also made getting electricity less costly by reducing the security deposit.

Registering Property: Senegal made transferring property less costly by lowering the property transfer tax.

Enforcing Contracts: Senegal made enforcing contracts easier by introducing a law regulating voluntary mediation.

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 Doing Business 2020 Senegal

DB2015

Starting a Business: Senegal made starting a business easier by reducing the minimum capital requirement.

Dealing with Construction Permits: Senegal made dealing with construction permits less time-consuming by reducing the time for processing building permit
applications.

Registering Property: Senegal made it easier to transfer property by replacing the authorization from the tax authority with a notification and setting up a single step
at the land registry.

Getting Credit: Senegal improved its credit information system by introducing regulations developed by the West African Economic and Monetary Union that govern
the licensing and operation of credit bureaus.

Protecting Minority Investors: Senegal strengthened minority investor protections by introducing greater requirements for disclosure of related-party transactions to
the board of directors; by making it possible for shareholders to inspect the documents pertaining to related-party transactions and to appoint auditors to conduct an
inspection of such transactions; and by making it possible for shareholder plaintiffs to request from the other party, and from witnesses, documents relevant to the
subject matter of the claim during the trial.

Paying Taxes: Senegal made paying taxes easier for companies by abolishing the vehicle tax and making it possible to download the declaration forms for VAT online.

DB2014

Registering Property: Senegal made transferring property easier by reducing the property transfer tax.

Paying Taxes: Senegal made paying taxes more costly by increasing the corporate income tax rate. At the same time, Senegal facilitated tax payments by making tax
forms available online and creating the Center for Medium Enterprises.

DB2012

Starting a Business: Senegal made starting a business easier by replacing the requirement for a copy of the founders’ criminal records with one for a sworn declaration
at the time of the company’s registration.

Dealing with Construction Permits: Senegal made obtaining a building permit more expensive by increasing the cost.

Getting Credit: Access to credit in Senegal was improved through amendments to the OHADA Uniform Act on Secured Transactions that broaden the range of assets
that can be used as collateral (including future assets), extend the security interest to the proceeds of the original asset and introduce the possibility of out-of-court
enforcement.

Trading across Borders: Senegal made trading across borders less costly by opening the market for transport, which increased competition.

Enforcing Contracts: Senegal made enforcing contracts easier by launching specialized commercial chambers in the court.

DB2010

Trading across Borders: Senegal made trading across borders easier and less time consuming by introducing improvements at the container terminal at the port of
Dakar and increasing the number of agencies involved in trade facilitation.

DB2009

Starting a Business: Senegal reduced the time needed to start a business by launching a one-stop shop, which allowed several start-up procedures to be merged into
one.

Registering Property: Senegal reduced the time needed to transfer property by introducing time limits at the land registry—for issuing registry certificates and
registering property—and at the Directorate of Taxes and Property.

Trading across Borders: Senegal reduced the time and documentation requirements for exporting and importing by introducing single-window, electronic data
interchange and risk-based inspection systems; extending the operating hours of customs; improving port and road infrastructure; and reducing the number of
checkpoints.

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