Senegal: An Overview
Senegal: A Legal and Economic Framework in Full Transformation
Senegal is now establishing itself as one of the most dynamic hubs in West Africa. A member of the Organization for the Harmonization of Business Law in Africa (OHADA), the Economic Community of West African States (ECOWAS), and the West African Economic and Monetary Union (UEMOA), the country benefits from regional legal and economic integration, which promotes stability, investment security, and harmonisation of the rules applicable to businesses. In a context of managed political transition and economic growth linked to the current exploitation of oil and gas deposits, Senegal is strengthening its regional and international attractiveness. Its strategic geographic location, institutional stability, and historical ties with France – illustrated by the 1974 Tax Convention and the Bilateral Investment Protection Treaty – make it a preferred destination for investors.
A Legal Framework in Profound Transformation
Under the impetus of the new government, Senegal has embarked on a comprehensive reform of its legal and fiscal environment to align its institutions with its development ambitions. This transformation, driven by modernisation and digitalisation, affects sectors as diverse as investment, taxation, customs, digital technology, and business law.
Recent reforms aim to create a more transparent, predictable, and competitive ecosystem, capable of attracting capital while supporting inclusive growth and economic governance.
The New Investment Code: A Major Turning Point
Promulgated on 27 September 2025, the new Investment Code (Law No 2025-16) marks a decisive step. It replaces a framework dating back to 2004 and responds to the needs of a profoundly transformed economic environment. The Law modernises incentives, simplifies procedures, and strengthens legal protection for investors.
The Code introduces full dematerialisation of procedures through a digital platform interconnected with administrations, reducing delays and costs. It also clarifies investment regimes and provides specific measures for strategic projects and socially responsible investments (SRI). SMEs and micro-enterprises are now included in eligibility schemes, reflecting a desire to extend the benefits of growth.
The text guarantees fundamental principles such as equality of treatment, freedom to undertake business, protection against expropriation, and freedom of capital transfer. Local content and environmental sustainability are at the heart of the framework, making this Code a tool for balanced development.
Customs and Tax Reforms: Towards a Modernised Administration
In parallel, Senegal is preparing a complete overhaul of the Customs Code and the General Tax Code (CGI). These structural projects aim to rationalise revenue collection, strengthen competitiveness, and support the digitalisation of administration.
The customs reform seeks to simplify economic regimes (drawback, temporary importation) and harmonise legislation with UEMOA community rules. The objective is to streamline trade, reduce logistical costs, and encourage international commerce, while integrating new challenges such as e-commerce, AI, and blockchain.
The tax reform, initiated by Law No 2025-17, introduces new measures on money transfers, gambling, tobacco, alcohol, and imported vehicles. These taxes aim to broaden the tax base without increasing rates, while promoting public health and financial transparency. A comprehensive overhaul of the CGI is also underway to simplify legislation and integrate digital taxation, particularly for online platforms.
These reforms reflect a clear intention: to modernise fiscal and customs tools to improve governance, strengthen business confidence, and ensure budgetary sustainability.
Sectoral Reforms with Structural Impact
Three recent laws complement this dynamic: the Public-Private Partnership (PPP) Law of 2021, the Local Content Law of 2022, and UEMOA Banking Regulation No 06/2024.
The PPP Law strengthens legal security for major infrastructure projects and creates a transparent framework for public procurement and dispute resolution. It also established the National Support Unit for PPPs (UNAPPP), responsible for supporting project design and bankability.
The Local Content Law aims to integrate national companies into the value chains of strategic sectors (oil, gas, mining). It encourages training, local subcontracting, and job creation, while requiring multinationals to contribute more directly to the development of Senegal’s economic fabric.
Finally, the new regional banking regulation introduces stricter obligations regarding currency repatriation and financial transparency. It increases legal security and CFA stability but also imposes additional formalities on foreign investors in line with monetary discipline.
The Digital Challenge: Reconciling Innovation With Legal Framework
While Senegal aims to become a technological hub in West Africa, its legislative framework still trails behind. The 2008 Digital Law does not adequately account for realities such as big data, AI, and international platforms. This gap creates uncertainty for tech investors and complicates fiscal and regulatory compliance.
Aware of these limitations, the government is working on reforming the digital legal framework and integrating these issues into the future CGI. The goal is to ensure appropriate taxation, better data protection, and secure online transactions while stimulating innovation.
Strategies and Perspectives for Investors
In this evolving environment, companies must adopt a proactive approach: anticipate reforms, engage with authorities, partner with local stakeholders, and include robust dispute resolution clauses in their contracts. International arbitration remains an essential mechanism for securing investments in a context of institutional transition.
Towards a Digitalised and Regionalised Senegalese Business Law
Digital transformation also affects justice and access to law. The government has launched court digitalisation and a pilot online justice platform in Pikine-Guédiawaye, enabling citizens and businesses to carry out legal procedures remotely. Digitisation of civil registry records and online publication of laws contribute to making law more accessible and transparent.
At the continental level, the African Continental Free Trade Area (AfCFTA) represents a new stage of legal and commercial integration. By harmonising rules and dispute resolution mechanisms, it will offer companies operating in Senegal a broader and more coherent framework for African trade.
Conclusion
Senegal is entering a pivotal phase where regulatory modernisation, digital transition, and regional integration combine to redefine its attractiveness. For investors, this market combines political stability, a clear economic vision, and a constantly evolving legal environment.
Success will depend on a fine understanding of these transformations and the ability to rely on experienced local partners. More than ever, Senegalese business law is becoming a strategic lever for development and competitiveness.