A few days before the first trip of the new President of the Republic of Senegal to Paris, the debate remains lively on an alleged plunder by France of the resources of Senegal and beyond, of the countries of French-speaking Africa. Fake news, often brandished on the internet or via less careful media, fuels anti-imperialist rhetoric, and even anti-French sentiment which is unfortunately gaining ground among young people. Recently, a crazy rumor was circulating on Senegalese WhatsApp channels relating to the fact that 80% of companies present in Senegal are French-owned. Naturally this figure is false, but it pushes us to try to discern the truth from the false and to reestablish the truth of the economic relationship between the two countries, with factual arguments. First of all, France and Senegal are historic trading partners. For 10 years, trade between the two countries has been constantly increasing. France is also Senegal’s leading investor, with 43% of Ide stock. The activity of 270 French companies contributes up to a quarter of Senegal’s GDP and tax revenue. Finally, France is the leading bilateral donor in terms of public development assistance to Senegal.
Senegal and France, major trading partners.
According to the French Treasury, Senegal occupies 56th place among France’s clients and 3rd place in sub-Saharan Africa, after South Africa and Ivory Coast. In 2023, according to French Customs, trade between France and Senegal amounted to 1.1 billion euros, with a trade surplus in favor of France amounting to 937 million euros. It should be noted that in 2022, despite the political tensions linked to electoral matters in Senegal, trade between France and Senegal had reached 1,059 million euros, recording an increase of 18% compared to the year. former. This positive trend therefore seems to be continuing, with continued growth demonstrating the solidity of commercial ties between the two countries.
Data published by the Treasury show that the trade surpluses generated by France in Senegal have been constantly increasing for around ten years, due to the increase in French exports to Senegal. Between 2021 and 2022, for example, these increased by 17.8%. In addition, in 2023, 9.22% of regional French exports were made in Senegal. Continuing the figures published over the last 10 years, the results demonstrate the robustness of Franco-Senegalese commercial relations. Thus, despite increasing competition and demonstrations expressing “anti-French sentiment” among some of our compatriots, business dynamism remains unchanged.
As a result of the increase in its exports, and due to the increase in trade between France and Senegal, Paris once again became in 2023, according to the IMF, the leading supplier of goods to Senegal, with 12% of the share of market, followed by China which now holds 10.9%.
Effective participation of France in the Senegalese economy: Ide and taxation
In 2021, France remained the leading investor in Senegal with 43% of Ide’s stocks in its possession, thanks to the presence of more than 270 French companies established in our country, including just under a hundred French subsidiaries. French companies invest in different sectors: energy, infrastructure, telecommunications and agriculture. According to the online media Novethic, France represents 80% of foreign investments made in Senegal.
Although it is difficult to make a precise breakdown by sector of activity, mines represent an important segment of French investments, notably with the mining and metallurgy giant, Eramet, which is said to have invested 650 million USD in our country since 2014. Other major investors are visible in the banking sector (Société Générale, Bnp), mass distribution (Auchan), telecommunications (Orange, Free) or in industry (Vicat, Total Energies).
Regarding tax revenue, the subject of many fantasies, fake news about multinationals that do not pay tax abound, particularly at a time when tax issues are at the forefront of political and media news.
Thierno Thioune, economist and director of Crea at the University of Dakar, recently highlighted: “In accordance with the General Tax Code of Senegal, French companies with a physical presence in Senegal are required to fulfill their tax obligations in Senegal. This includes paying all relevant local taxes, including corporation tax, Value Added Tax (VAT) and other indirect taxes.”
Another economist, known for his acerbic positions against the Cfa franc and generally on our relations with France, moved in the same direction and conceded to Agence France Presse, in April 2024, that the payment of taxes to Senegal by foreign and particularly French companies was an “established fact”.
The economist also recalled that indirect taxes, which therefore concern businesses, remained the main sources of tax revenue for the Senegalese state, which was confirmed by the Ministry of Finance on the national strategy for mobilizing tax revenue. between 2020 and 2025.
On the investor side, voices were raised to reestablish the truth of the facts. French companies say they pay “not only their taxes in Senegal, but declare their employees and pay their social charges here in Senegal”. In addition, the 270 French companies present in Senegal make a major contribution to the Senegalese economy, particularly to formal employment with 30,000 direct jobs, for an overall figure of 340,000 formal jobs in Senegal.
In June 2023, the Senegalese subsidiary of Auchan revealed that it had paid 23 billion CFA francs in taxes, duties and levies to the State in 2022.
The bilateral aid situation
France is finally the leading bilateral donor of public development aid to Senegal. The latter is one of the 19 priority countries of France’s development policy. Between 2007 and 2024, Afd has committed nearly 2 billion euros to Senegal, “all financial products and all sectors combined”. Its portfolio is oriented towards various sectors such as urban infrastructure, agriculture, sustainable energy, water and sanitation, food security, professional integration of young people, support for the private sector, etc.
The newspaper Le Quotidien reported in December 2022 that France, following the Franco-Senegalese intergovernmental seminar in Paris, had agreed to budgetary support of 100 billion CFA francs, through the Afd, in order to enable the Senegal to face the shocks resulting from the Covid-19 pandemic and the Russo-Ukrainian war. Paris had also agreed to support the construction of the Diamniadio-Aibd section of the Regional Express Train, among other structuring projects. Far from the anathemas, the crude manipulations of social networks and the trials of intent, these figures demonstrate, if necessary, the privileged nature of relations between France and Senegal. The requirement for the new Senegalese authorities is to maintain this business model in line with the spirit of win-win partnership, to finally achieve emergence, a guarantee of growth and massive jobs.
Babacar P. MBAYE
Geopolitical expert
