Location: The Republic of Senegal is located in western Africa, and is bordered by Mauritania, Mali, Guinea-Bissau, Gambia and Guinea.

Area: Approximately 196,190 sq km.

Capital: The capital city is Dakar and other major cities are St. Louis, Thies and Koalack.

Climate & Terrain: Tropical, hot humid rainy season May to Nov with hot, dry and windy Dec to Apr. Terrain is generally low rolling plains rising to foothills in the southeast.

Population: Approximately 10.6 million (Jul 03).

Official Language: French.

Major Ethnic Groups: Wolof 43%, Pular 24%, and Serer 15%.

Religions:  Muslim 94%, Christian 5% and indigenous beliefs 1%.

Currency: The local currency is the CFA-franc (FCFA), which is guaranteed by the French government.

Gross Domestic Product (GDP):  US$15.6 billion.

Industries:  Economic activity largely consists of agricultural products, fish processing and petroleum refining.  Senegal’s mining industry is a small but important contributor to the country’s GDP. Phosphate and heavy mineral sands occur in the coastal basin. Gold, diamonds, iron ore, and base metal occurrences are known in the Precambrian of eastern Senegal but there is no major production.

In 1994, Senegal initiated economic reforms with the support of the international community. The reform program has produced an annual increase in GDP of 5% per year and inflation has been reduced to 2% per year. Investment has risen steadily and private sector activity now accounts for 82% of GDP.

Exports:  Fish, groundnuts (peanuts), petroleum products, phosphates and cotton are major exports.  Exports amount to approximately US$1.15 billon per annum (02).

Infrastructure:  Air France is the major international airline serving the country to the capital of Dakar. Regional airlines provide service from Senegal to other parts of west Africa. There is a good network of roads throughout the country.

Government:  The country gained independence from France in 1960 and has maintained a democratic political system. The President of the republic is democratically elected by popular vote to a five year term. The National Assembly is the legislative branch of the government to which members are elected by popular vote to serve five year terms. The country is subdivided into 10 administrative regions.

The last democratically held presidential and legislative elections were conducted in Mar 00 when Abdoulaye Wade was elected as the President for five year term. 

Regulatory Environment for Mining

Senegal's mining code is based on French civil law. The State owns all mineral rights with the terms of exploration and mining established by contract (a “Convention de Recherché”) between the company and the State. The Convention de Recherché incorporates the following terms:

• Exploration Licences are granted for four years and are renewable twice for three years, with a reduction in surface area each time the licence is renewed. The area of reduction is not specified. If the exploration is successful, the licence holder enters into a new contract agreement with the State. This agreement regulates the relationship between the licence holder and the State during the mining phase. Mining concessions are granted for 25 years and are renewable. Mining licences are granted for five years and are renewable. During the construction and commissioning period the permit holder benefits from a special tax regime aimed at promoting the development of the mining sector.

Investment Incentives: Companies operating in the mining sector are eligible for the benefits of the Investment Code, which incorporates various import duty and tax exonerations.