Senegal has one of the most democratic systems of governance in Western African and is one of the few countries in Africa never to have experienced a coup. The country presents favourable conditions for investment, such as fast business registration, a relatively robust telecommunications infrastructure and a stable regional currency, the XOF which is pegged to the EUR. The government encourages private sector growth and foreign companies are treated on the same footing as local ones. Despite some progress in improving business formation in recent years, corruption is still perceived as significant, and is also perceived by business executives as one the most problematic factors for doing business in Senegal. President Wade has made numerous pronouncements against corruption, but a significant gap persists between the rhetoric and its implementation.

Positive developments in relation to corruption and investment:

• Senegal has a well-developed commercial and investment law, and regulating authorities are also in place.
• The country has a comprehensive regulatory and institutional framework to combat corruption.
• Higher government officials and politicians have been indicted on corruption charges.

Risks of corruption:

• The institutions designed to combat corruption in Senegal are not able to operate effectively due to either lack independence from the executive or insufficient funding.
• The government lacks effective internal accountability mechanisms and the external checks and audits are deemed weak as well.
• The overall business climate is also an impediment to foreign investment due to a burdensome bureaucracy and heavy regulatory burdens.
• Companies usually settle disputes outside the courts due to the official and unofficial costs, as well as the low effectiveness of the judiciary.