SENEGAL: An Introduction to General Business Law

State of the Senegalese Economy 

Senegal’s economic panorama is characterised by a delicate interplay of growth and challenges, influencing both clients and the legal profession. Senegal’s recent discovery of significant oil and gas reserves has buoyed its growth prospects. However, the legal framework surrounding these resources is still under development, requiring expertise in navigating regulatory uncertainties. Additionally, ambitious infrastructure projects aimed at improving transportation and housing are creating demand for legal support in areas such as construction and public-private partnerships. Politically, despite the relative hurdles regarding the organisation of the 2024 presidential election, Senegal continues to consolidate its democratic credentials. This stability fosters an environment conducive to foreign investment.

Trends and Developments in Senegalese Business Law

The vitality of the legal sector is reflected in its level of activity, trends and ongoing developments. The legal profession within a firm brings together practitioners (lawyers) and theoreticians (doctors with a master’s degree in law). This collaboration is beneficial because it enables the different players to complement each other in terms of knowledge and practice of the law. It should be encouraged in order to better respond to the concerns of economic players. These two players (lawyer and jurist) must intervene upstream and downstream of economic activities. Downstream, they may be called upon to draft contractual clauses, give opinions and advice, etc. Upstream, they may be involved in resolving disputes, choosing the most appropriate method of resolution (judicial or amicable), etc.

The level of activity and developments is growing fast with the discovery and exploitation of gas and oil. New codes have been put in place to regulate its production and exploitation.

New Legislation 

The legal framework is a dynamic entity shaped by the constant introduction of new legislation. Today, for example, no sector of the economy is spared by new information and communication technologies, which is why it is essential to learn them so as not to be illiterate in the 21st century. This learning does not just concern customers. It must involve all economic players. It must be oriented towards the study of legislation in the digital field. This state of affairs is not obscured by the various Senegalese texts applicable in the economic sphere (Law No 2008-08 of 25 January 2008 on economic transactions in Senegal, Revised Uniform Act Relating to General Commercial Law (Article 5), WAEMU Regulation No 15 on payment systems (Article 18), Additional Act A/SA.2/01/10 of 16 February 2010 on electronic transactions in the ECOWAS zone, etc).

Potential Hurdles or Difficulties Faced by Clients and Strategic Solutions

Lack of knowledge of the legal factors involved in doing business can be a major concern for clients in their relationship with their partner. This relates in particular to knowledge of national and EU law governing business relationships in Senegal. While the relationship between Community law and national law may seem easy to understand, the same cannot be said in situations where several Community laws apply to the same case in the same geographical area. This is the case in business law, where there is a proliferation of several Community rules with the same legal value that apply directly and obligatorily in Senegal.

To remedy this situation, the services of legal practitioners and theorists can be salutary. These two players will play a decisive role in the relationship between the customer and his partner. They will act as drafters and advisers, helping to avoid contractual pitfalls, for example, and deciding which route to take in the event of a dispute (judicial or extrajudicial).

Oil production and environmental protection

With the advent of oil exploitation in Senegal, environmental concerns deserves particular attention. Oil production can have a number of negative effects on human health, the environment (air and sea pollution, etc) and the economy.

Fortunately, in Senegal, there is Law No 2023-15 of 02 August 2023 on the Environment Code and the various international conventions ratified , which take environmental protection seriously. A number of objectives have been set out in this law, including:

 – the rational exploitation of natural resources;

 – the adaptation of the legal framework of the environment to the new national and international context;

 – the fight against various kinds of pollution and nuisances;

 – the improvement of the living conditions of the population in respect of the balance of their relations with the surrounding environment; and

 – the implementation of a specific system of responsibilities guaranteeing damage caused to the environment.

As part of this drive to protect the environment, Law No 2023-15 of 02 August 2023 on the Environmental Code introduced a number of important new features, including:

 – strengthening the definitional framework;

 – improving the legal and operational framework for the environmental assessment process;

 – setting up a special environmental protection fund to finance environmental activities;

 – strengthening the framework for the management of hazardous and noxious substances and waste;

 – regulating the transport of hazardous materials;

 – enshrining the principle of the liability of legal entities; and

 – strengthening the provisions for the management of mining, oil and gas activities.

Youth unemployment 

Senegal’s population is characterised by its youth. Half of the country’s people are under 19, and 75% are under 35. Unfortunately, these young people are faced with chronic unemployment and under-employment. This is why various institutions have been set up to combat youth unemployment:

 – the Department of Projects and Economic Integration;

 – the National Youth Employment Agency;

 – the National Youth Promotion Fund (FNPJ);

 – the National Youth Integration Fund (FNIJ); and

 – the Youth Integration Fund (FIJ), etc. Despite the government’s determination, youth unemployment remains a reality in Senegal. It is one of the causes of illegal immigration, with its appalling death toll.

To combat youth unemployment, it would be advisable to

 – develop employment promotion policies geared towards sectors that provide employment (agriculture, livestock farming, etc) ;

 – further develop collaboration between the State and private sector employers, giving priority to public-private partnerships for the promotion and socio-professional integration of young people into the world of employment;

 – direct diversified and tailored training and work experience programmes towards sectors with employment potential, thereby creating a more effective employment policy; and

 – promote entrepreneurship among young people.

To achieve this, entrepreneurship training and support will be beneficial. In this training, it will be appropriate to include oil-related professions, especially as Senegal will soon be an oil-producing country.