Business and Regulatory Environment

Description

The latest World Bank Doing Business Report (2013) ranked Senegal 178th out of 189 countries. Among the 10 categories analysed by the report, Senegal performs well in trading across borders, whilst getting electricity and registering property are lagging behind. Private small enterprises in the informal subsistence economy and in peanut farming support the Senegalese economy. The weak regulatory and legal framework, as well as the endemic corruption, altogether undermines the emergence of a more vibrant private sector. For example, completing registration and incorporation of new business requirements are time-consuming and cost on average 192 per cent the level of average annual income. Moreover, the land ownership issue and the partial dissolution of state’ peanut-marketing monopoly contribute to the disintegration of the key agricultural sector. The presence of the state in the economy is still considerable, despite public-sector reforms initiated over a decade ago. For instance, the electricity sector, particularly the electricity transmission and distribution sectors, is dominated by monopolistic market structures of publicly owned enterprises. Electricity prices are therefore heavily subsidized by the state and electricity cuts are increasingly frequent, affecting many small enterprises. The regulatory inefficiency, such as non-transparent regulation, high factor costs and ownership limitation in key sectors, outweighing the Senegalese economic potential discourages the foreign investment which supplements the scarce capital in Senegal (Bertelsmann Stiftung 2014; U.S. Department of State 2013; the Heritage Foundation 2013).

The Business Environment: Doing Business

Multilateral Trade Instruments

Abstract


The Trade Treaties Map tool is a web-based system on multilateral trade treaties and instruments designed to assist trade support institutions (TSIs) and policymakers in optimizing their country's legal framework on international trade

Instrument ratified :
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Weighted score : /100
    Ratification Rate Rank Weighted Score Rank
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