CASE STUDIES FROM AFRICA

Government Policies that Made a Difference
Policies targeting the domestic ICT ecosystem in Senegal greatly contributed to BPO and ICT
providers’ export success. Key policy steps included liberalising the sale of computer terminals
in 1997 and lowering tariffs on computer imports from 26% to 5% in 1999.
Other policies helping to create a more competitive and efficient telecommunications sector
included the introduction of a new telecommunication code in 1996, the privatisation of the
incumbent telecommunications provider (Sonatel) in 1997, and the pre-commitments on
telecommunications services undertaken by Senegal at the WTO in 1997 under the World Trade
Organization’s (WTO’s) General Agreement on Trade in Services (GATS) Protocol IV. The
adoption of the WTO Reference Paper on Basic Telecoms, adding an independent
telecommunications regulator to the economy was also key. (Senegal is one of only seven Sub-
Saharan African countries to do so.) These policies all helped develop the necessary layer of
telecommunication network operators and Internet service providers (ISPs) to support the
export of BPO and ICT services. These reforms also allowed ICT and BPO service providers to
access relatively competitively priced, robust electronic infrastructure to facilitate international
viability.
The Government of Senegal supplemented trade policy reform with reform policies in other
areas. The Investment Code included proactive foreign investment policies to provide
incentives to BPO/ICT firms. The Labour Code was amended to eliminate the distinction
between day and night labour rates, enabling workers to work an around-the-clock call centre
schedule. A 2011 amendment to the Telecommunications Code required the regulator to define
and maintain a list of value-added service categories. These policies and an associated Action
Plan constitute a long-term, coherent strategy to develop the BPO/ICT sector.
Constraints on Future Growth
The successful export growth of Senegalese BPO/ICT services may be constrained by a lack of
human capital and relevant skills. Senegal’s low literacy and low enrolment rates in higher
education translate into a lack of engineers and skilled ICT workers, especially in comparison to
other BPO/ICT hotspot locations in Africa. Human capital is critical to successful high
technology services such as ICT.
The education sector is already a constraint to BPO/ICT export expansion in Senegal; current
numbers of engineers and ICT technicians do not meet ICT sector demand. This can only be
remedied in the medium- to long-term through proactive government policies improving
schools, establishing more universities, and creating training centres for engineers and
computer specialists. The French language also constrains future growth; training workers in
English could facilitate further expansion of the BPO offshoring industry. Finally, the lack of
data parks and software technology centres offering ready-to-use infrastructure for hosting
companies (as in Southeast Asia and elsewhere) limits further expansion of ICT/BPO activities
in Senegal.
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