TRENDS AND IMPACTS OF FOREIGN INVESTMENT IN DEVELOPING COUNTRY AGRICULTURE
TRENDS AND IMPACTS OF FOREIGN INVESTMENT IN DEVELOPING COUNTRY AGRICULTURE
TRENDS AND IMPACTS OF FOREIGN INVESTMENT IN DEVELOPING COUNTRY AGRICULTURE
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from the unquestionable geographic advantage<br />
Senegal presents as a result of its proximity to<br />
the key European and American sea and airports<br />
of entry, the country has no choice but to be<br />
more aggressive towards investors contemplating<br />
investing in West Africa. Overhauling the Senegal<br />
free zone programme is an example of a good<br />
area to start reforming.<br />
3.4 Senegal special economic zone<br />
In terms of free zone institution buildings, the<br />
GoS also instituted an authoritative body for<br />
the administration of all special economic zones<br />
within Senegal, to deal with business licenses<br />
and registration thereof. This Authority is set to<br />
operate as a one stop-shop for the formation,<br />
registration and licensing of companies. A wide<br />
range of services, including the provision of<br />
buildings are also made available to companies<br />
operating within the zone, including the delivery<br />
of working and residence permits to foreign<br />
nationals. The Authority enjoys the powers of<br />
municipalities while serving as the Delegate of the<br />
Prime Minister and all ministers within the special<br />
economic zones. However, Senegal has not been<br />
particularly proactive about the development<br />
and use of special economic zones, such as the<br />
industrial areas that benefit from concentrated<br />
government services (utilities, licensing, customs,<br />
etc.), and tax incentives for export oriented<br />
companies of the kind successfully experienced in<br />
Ghana. Steps taken more recently have included<br />
moves to replace its free trade zone initiatives<br />
with the Enterprise Zone Franche d’Exportation<br />
(EZFE) scheme with aims at reducing taxes and<br />
offering duty free imports to companies located<br />
within the zones.<br />
Apart from the case of the old Dakar Free<br />
Industrial Zone (ZFID) which is virtually inactive 12<br />
now, it is perhaps worth recalling the US$800<br />
million Agreement which the GoS signed in<br />
2007 with Jafza International of Dubai with the<br />
view of establishing, constructing and running<br />
the Dakar Integrated Special Economic Zone<br />
(DISEZ), a special economic zone for sanctioned<br />
12 stopped issuing new licenses in 1999 although firms<br />
located there will continue to receive benefits until 2016.<br />
Part 4: Business models for agricultural<br />
investment: Impacts on local development<br />
investments outside of Dakar. This project was set<br />
at the time of its signing to be opened in 2010,<br />
with hopes for creating jobs as many as 30 000<br />
posts. These outcomes barely match the results<br />
Ghana has harnessed in this area (Table 39)<br />
considering the long list of free zone companies,<br />
whose impacts have been felt in various areas of<br />
the Ghana economy as discussed in the chapter<br />
on Ghana.<br />
3.5 Investment treaties<br />
As discussed earlier for the case of Ghana,<br />
Senegal has also signed a number of investment<br />
treaties with countries which have demonstrated<br />
interest in developing business relationships with<br />
West Africa. These include a bilateral investment<br />
treaty with the United States, signed and ratified<br />
by the US Congress in 1990. This treaty provided<br />
for “most favoured nations” treatment for<br />
investors, internationally recognized standards of<br />
compensation in the event of expropriation, free<br />
transfer of capital and profits, and procedures for<br />
dispute settlement.<br />
Senegal has also signed similar agreements<br />
for protection of investments with several other<br />
countries namely France, Switzerland, Denmark,<br />
Finland, Spain, Italy, Netherlands and Japan.<br />
The country is also member of the World Trade<br />
Organization (WTO), the African Organization<br />
of Intellectual Property (OAPI) and the World<br />
Intellectual Property Organization (WIPO)<br />
suggesting that it is adequately equipped with the<br />
legal instruments used to address the concerns<br />
of foreign investors in areas as sensitive as the<br />
protection of capital investments and intellectual<br />
property rights. As discussed earlier, these legal<br />
devices are important safeguards to minimize<br />
the risks for all involved be they from investors’<br />
host or home countries, but mirror very much<br />
the kinds of incentives other FDI competing<br />
destinations usually offer. This would imply that<br />
Senegal needs to go beyond just overhauling<br />
its investment package to make a difference.<br />
The country should adopt an integrated policy<br />
approach that comprises not only agricultural<br />
investment and investment policies, but also<br />
other crucial policy areas (good governance,<br />
infrastructures, competition, trade, R&D, land<br />
271<br />
SENEGAL
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