Senegal Economy Profile - Doing Business 2019
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Doing Business 2019 Senegal Economy Profile of Senegal Doing Business 2019 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality Page 2
Doing Business 2019 Senegal About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. More about Doing Business (PDF, 5MB) Page 3
Doing Business 2019 Senegal Ease of Doing Business in DB 2019 Rank Region Sub-Saharan Africa 190 1 Senegal Income Category Low income 141 DB 2019 Ease of doing business score Population 15,850,567 0 100 City Covered Dakar 54.15 DB 2019 Ease of Doing Business Score 0 100 59.22: Ghana (Rank: 114) 58.00: Côte d'Ivoire (Rank: 122) 55.20: Togo (Rank: 137) 54.15: Senegal (Rank: 141) 51.61: Regional Average (Sub-Saharan Africa) 47.78: Cameroon (Rank: 166) Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Senegal 1 28 55 64 82 94 Rank 109 118 127 140 140 139 142 136 144 163 171 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Ease of Doing Business Score on Doing Business topics - Senegal 100 89.94 80 59.60 61.37 60.85 57.47 Score 60 48.08 48.15 44.33 41.67 40 30.00 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Page 4
Doing Business 2019 Senegal Starting a Business This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the a company (number) business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes. • Preregistration (for example, name verification or reservation, notarization) The business: • Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type city of limited liability company in the economy, the most common among domestic firms • Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation registration, company seal) lawyers or the statistical office. - Operates in the economy’s largest business city. For 11 economies the data are • Obtaining approval from spouse to start a business or to leave the home to register the also collected for the second largest business city. company - The entire office space is approximately 929 square meters (10,000 square feet). - Is 100% domestically owned and has five owners, none of whom is a legal entity; • Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least company registration and operation or national 100 times income per capita. identification card - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does not perform foreign trade Time required to complete each procedure activities and does not handle products subject to a special tax regime, for example, (calendar days) liquor or tobacco. It does not use heavily polluting production processes. • Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the information amount of the annual lease for the office space is equivalent to the income per capita. • Each procedure starts on a separate day (2 procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits. - Has at least 10 and up to 50 employees one month after the commencement of • Procedures fully completed online are recorded operations, all of whom are domestic nationals. as ½ day - Has a company deed that is 10 pages long. • Procedure is considered completed once final document is received The owners: • No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are assumed to be 30 years old. Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record. income per capita) - Are married and the marriage is monogamous and registered with the authorities. - Where the answer differs according to the legal system applicable to the woman or • Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the • No professional fees unless services required by answer used will be the one that applies to the majority of the population. law or commonly used in practice Paid-in minimum capital (% of income per capita) • Funds deposited in a bank or with third party before registration or up to 3 months after incorporation Page 5
Doing Business 2019 Senegal Starting a Business - Senegal Standardized Company Legal form Société à Responsabilité Limitée (SARL) - Limited Liability Company Paid-in minimum capital requirement XOF 25,000 City Covered Dakar Indicator Senegal Sub-Saharan OECD high Best Regulatory Africa income Performance Procedure – Men (number) 4 7.4 4.9 1 (New Zealand) Time – Men (days) 6 23.3 9.3 0.5 (New Zealand) Cost – Men (% of income per capita) 32.0 44.4 3.1 0.0 (Slovenia) Procedure – Women (number) 4 7.6 4.9 1 (New Zealand) Time – Women (days) 6 23.4 9.3 0.5 (New Zealand) Cost – Women (% of income per capita) 32.0 44.4 3.1 0.0 (Slovenia) Paid-in min. capital (% of income per capita) 4.3 10.0 8.6 0.0 (117 Economies) Figure – Starting a Business in Senegal and comparator economies – Ranking and Score DB 2019 Starting a Business Score 0 100 93.70: Côte d'Ivoire (Rank: 26) 89.94: Senegal (Rank: 64) 88.70: Togo (Rank: 74) 86.26: Cameroon (Rank: 92) 84.29: Ghana (Rank: 108) 78.52: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. Page 6
Doing Business 2019 Senegal Figure – Starting a Business in Senegal – Procedure, Time and Cost Time (days) Cost (% of income per capita) 6 25 Cost (% of income per capita) 5 20 4 Time (days) 15 3 10 2 5 1 0 0 1 2 3 4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Page 7
Doing Business 2019 Senegal Details – Starting a Business in Senegal – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Deposit the founding capital with a bank 1 day included in the Agency : Bank following procedure The company can deposit the founding capital with a bank directly (“compte de societe en formation”) or through a public notary. The account is liberated once the company is registered at the RCCM. 2 Check the company name 1 day no charge Agency : Court The company can check the name availability at the Court. 3 Notarize company bylaws and bank deposit of subscribed capital 2 days XOF 130,000 for a Agency : Notary limited liability A public notary is required to notarize company bylaws and deposit subscribed company with a share capital at a bank. The procedure takes 3 days if the notary public prepares the capital between XOF articles of association and a day if notary only signs. The involvement of the 5,000,000 and XOF notary is required. 8,000,000 The statutes can be drafted either by notarial act or by any other act, provided that the authorized signatures are notarized. If by notarial act, the notary must (a) establish the statutes (if the promoter has not done so) and issue the declaration of conformity (déclaration de régularité et de conformité); and (b) register the statutes and declare the existence of the company with the tax authorities. The promoter may ask the notary to complete additional formalities, such as commercial registration at the court to obtain the company identification number (numéro d'identification national des entreprises et des associations, NINEA). 4 Register your business at the one-stop shop 2 days XOF 25,000 + XOF Agency : One stop-shop 30,000 + XOF 90 for Since November 2007, entrepreneurs can register at the one-stop shop which any other XOF takes care of what was formerly done in seven different procedures. 1,000,000 of share capital Four of the procedures are taken care of by having the four relevant agencies dispatch one of their civil servants to the one-stop shop. This is: • The tax authority to register the bylaws; • The Commercial Registry (‘Registre du Commerce et du Credit Mobilier’ - RCCM) to register the company bylaws; • The NINEA to get a company identification number (‘Numéro d’Identification National des Entreprises et des Associations’); and, • The Labor authority to register workers and commencement of operation. They are all physically located in the same location and there is a timesheet kept by the coordinator of the one-stop shop that indicates the precise time with which every person in the room delivers the document. Another two procedures are handled by the one-stop shop, and these are: • Registration at the Social Security (‘Caisse de Securite Sociale’ - CSS); • Registration at the Pension Fund (‘Institut de Prevoyance Retraite’ - IPRES). These two agencies are not physically located inside the one-stop shop but are a few minutes away. What is done is that when a new file comes in, the coordinator of the one-stop shop sends the information about the application by email to these two agencies. He then phones them to make sure that they received the email. Later in the afternoon (or if it afternoon, the next day), the one-stop shop sends a courier to go and fetch the approved documents. Fees, for firms with a capital lower than 10,000,000 FCFA, the applicant needs to pay: • Registration fees: XOF 25,000 for the statutes • Court Registrar fees: XOF 30,000 if the capital is XOF 1 000 000 + XOF 90 for any other XOF 1,000,000 of capital. Takes place simultaneously with previous procedure. Page 8
Doing Business 2019 Senegal Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of data collection was completed in May 2018. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the (number) construction company, the warehouse project and the utility connections are used. • Submitting all relevant documents and obtaining The construction company (BuildCo): all necessary clearances, licenses, permits and certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second • Submitting all required notifications and receiving largest business city. all necessary inspections - Is 100% domestically and privately owned; has five owners, none of whom is a • Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with sewerage the local association of architects or engineers. BuildCo is not assumed to have any • Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or completion topographical experts. - Owns the land on which the warehouse will be built and will sell the warehouse Time required to complete each procedure upon its completion. (calendar days) The warehouse: • Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery. - Will have two stories, both above ground, with a total constructed area of • Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the • Procedure is considered completed once final warehouse is valued at 50 times income per capita. document is received - Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further • No prior contact with officials documentation or getting prior approvals from external agencies, these are counted Cost required to complete each procedure (% of as procedures. income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements). • Official costs only, no bribes The water and sewerage connections: Building quality control index (0-15) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there • Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is • Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. • Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average • Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 • Liability and insurance regimes (0-2) gallons) a day. • Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Page 9
Doing Business 2019 Senegal Dealing with Construction Permits - Senegal Standardized Warehouse Estimated value of warehouse XOF 29,020,439.40 City Covered Dakar Indicator Senegal Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 14 14.7 12.7 None in 2017/18 Time (days) 177 145.7 153.1 None in 2017/18 Cost (% of warehouse value) 9.8 8.8 1.5 None in 2017/18 Building quality control index (0-15) 10.0 8.5 11.5 15.0 (3 Economies) Figure – Dealing with Construction Permits in Senegal and comparator economies – Ranking and Score DB 2019 Dealing with Construction Permits Score 0 100 66.16: Ghana (Rank: 115) 62.04: Cameroon (Rank: 132) 61.79: Togo (Rank: 133) 59.60: Senegal (Rank: 140) 59.37: Côte d'Ivoire (Rank: 142) 58.59: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the scores for each of the component indicators. Figure – Dealing with Construction Permits in Senegal – Procedure, Time and Cost Time (days) Cost (% of warehouse value) 3.5 160 3 Cost (% of warehouse value) 140 2.5 120 Time (days) 100 2 80 1.5 60 1 40 0.5 20 0 0 1 *2 3 4 5 6 7 8 9 10 11 * 12 13 14 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Page 10
Doing Business 2019 Senegal Figure – Dealing with Construction Permits in Senegal and comparator economies – Measure of Quality 15 13.0 11.0 Index score 10.0 10.0 10 8.0 8.5 5 0 Senegal Cameroon Côte d'Ivoire Ghana Togo Sub-Saharan Africa Details – Dealing with Construction Permits in Senegal – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain results of geotechnical study / soil test 30 days XOF 700,000 Agency : Private Firm According to Law N° 2009-23 dated July 8, 2009 (Loi N° 2009-23 Du 8 Juillet 2009 Portant Code De La Construction), the soil test is made for the stability of the construction and the authority have the right to request a copy of the results 2 Obtain property title documents (certificats de droit réel ou réquisition) 5 days XOF 600 Agency : Land Authorities (Bureau de la Conservation Foncière (Service des Domaines)) The property title documents include the history of the property and all loans associated with it. 3 Obtain a cadastral map 7 days XOF 16,700 Agency : Cadastre The Cadastre will visit the property to check the boundaries. 4 Obtain planning certificate (certificat d’urbanisme) 10 days XOF 20,000 Agency : Regional Urban Planning Authority (Service Régionale d’Urbanisme ) The planning certificate (certificat d’urbanisme) identifies whether a specific land can be used for the intended construction and if there are some specific rules that must be respected. The request must be addressed to the Mayor or to the president of the Rural Council along with a title deed or occupancy permit and an excerpt from the cadastral map of the plot. The request can be done online through teledac.sec.gouv.sn 5 Obtain building permit 45 days XOF 780,360 Agency : Ministry of Urbanism and Town Planning; Inspection Office; City Hall; Land Management; Hygiene Service; Civil Safety Office The application file is submitted either online on teledac.sec.gouv.sn or via five hardcopies. Each copy consists of an application form, along with the following: • Plans of all the levels and facades at a scale of 1:100 • Block and location plan • Two copies of the property title (per application) 6 Hire a private inspection agency and receive approval of the technical 1 day XOF 870,613 execution plan Agency : Bureau de Control It is rare to receive an inspection from the authorities. Thus, to ensure that building standards are met, BuildCo hires a private inspection agency. Private inspectors visit the site at least once a week to perform technical inspections. 7 Request final inspection from the Service d'Urbanisme to receive the 1 day XOF 5,500 certificate of conformity Agency : Regional Urban Planning Authority (Service Régionale d’Urbanisme) Once construction is completed, BuildCo must fill out a form requesting the certificate of conformity (certificat de conformite). A representative from BuildCo must go to the Service Regional in person with a copy of the authorized plans. 8 Receive final inspection 1 day no charge Agency : Inspection Agency (Direction Régionale de l’Urbanisme et de l’Architecture) This is an inspection that is done to verify compliance of the construction works with the regulations (prior to issuance of the certificate of conformity). Sometimes companies have to wait 2 weeks before receiving this final inspection. Page 11
Doing Business 2019 Senegal 9 Obtain certificate of conformity 10 days XOF 15,000 Agency : Regional Urban Planning Authority (Service Régionale d’Urbanisme) The declaration of the completion of construction (déclaration attestant de l’achèvement des travaux) must be submitted within 30 days from the date of the end of construction activities. 10 Apply for water connection 1 day no charge Agency : Société Sénégalaise des Eaux (SDE) BuildCo must apply for the connection at the private water company, SDE. They lack personnel and so the time to obtain the estimate (devis) for the payment of fees takes about 1 to 2 weeks. 11 Pay the fees and obtain water connection 25 days XOF 135,000 Agency : Société Sénégalaise des Eaux (SDE) The application form cost ranges from FCFA 14,000.00 to FCFA 20,000.00. The connection cost is around FCFA 115,000.00 for industrial companies. This cost increases if the building is far from the nearest source of water. The time estimate includes the time to obtain the estimated cost for extension of the grid Apply for sewage connection 1 day XOF 36,580 12 Agency : Office National d’Assainissement du Sénégal BuildCo must apply for the connection to sewage at ONAS. One of the mandatory documents to be provided is the first water bill. 13 Receive sewage inspection 1 day no charge Agency : Office National d’Assainissement du Sénégal BuildCo must visit the sewage company in person to retrieve the inspectors for the inspection of the sewage mains. Otherwise, it can take them a few weeks to come. An inspection is necessary to obtain the estimate (devis) for the works to be completed. 14 Pay the fees and obtain sewage connection 45 days XOF 250,000 Agency : Office National d’Assainissement du Sénégal ONAS inspectors prepare the quotation (devis) within a week of inspecting the site. BuildCo must then go to ONAS to sign the paperwork and pay the fees. After that, they will install the connection. ONAS may sometimes outsource the works to a private company. Takes place simultaneously with previous procedure. Page 12
Doing Business 2019 Senegal Details – Dealing with Construction Permits in Senegal – Measure of Quality Answer Score Building quality control index (0-15) 10.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during construction? Inspections by 1.0 (0-2) external engineer or firm; Inspections at various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 2.0 Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0 with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0 does not always occur in practice; Final inspection occurs most of the time. Liability and insurance regimes index (0-2) 2.0 Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0 once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction company; Owner or investor. Which parties (if any) are required by law to obtain an insurance policy to cover possible Architect or 1.0 structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance engineer; or Decennial Insurance)? (0-1) Construction company. Professional certifications index (0-4) 1.0 What are the qualification requirements for the professional responsible for verifying that the University degree 1.0 architectural plans or drawings are in compliance with existing building regulations? (0-2) in architecture or engineering; Being a registered architect or engineer. Page 13
Doing Business 2019 Senegal What are the qualification requirements for the professional who supervises the construction University degree 0.0 on the ground? (0-2) in engineering, construction or construction management. Page 14
Doing Business 2019 Senegal Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the (number) warehouse, the electricity connection and the monthly consumption are used. • Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. • Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are receiving all necessary inspections also collected for the second largest business city. • Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an purchasing material for these works area with no physical constraints. For example, the property is not near a railway. - Is a new construction and is being connected to electricity for the first time. • Concluding any necessary supply contract and obtaining final supply - Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square feet). The plot of land on which it is built is 929 square meters Time required to complete each procedure (10,000 square feet). (calendar days) The electricity connection: • Is at least 1 calendar day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed • Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 • Does not include time spent gathering kilowatt (kW). information - Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more • Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve follow-up and no prior contact with officials the crossing of a 10-meter road (such as by excavation or overhead lines) but are all Cost required to complete each procedure (% of carried out on public land. There is no crossing of other owners’ private property income per capita) because the warehouse has access to a road. - Does not require work to install the internal wiring of the warehouse. This has • Official costs only, no bribes already been completed up to and including the customer’s service panel or • Value added tax excluded switchboard and the meter base. The reliability of supply and transparency of The monthly consumption: tariffs index (0-8) - It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 • Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that • Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh. • Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest • Regulatory monitoring of utilities’ performance supplier. (0–1) - Tariffs effective in January of the current year are used for calculation of the price of electricity for the warehouse. Although January has 31 days, for calculation • Financial deterrents limiting outages (0–1) purposes only 30 days are used. • Transparency and accessibility of tariffs (0–1) Price of electricity (cents per kilowatt-hour)* • Price based on monthly bill for commercial warehouse in case study *Note: Doing Business measures the price of electricity, but it is not included in the ease of doing business score nor the ranking on the ease of getting electricity. Page 15
Doing Business 2019 Senegal Getting Electricity - Senegal Standardized Connection Price of electricity (US cents per kWh) 17.3 Name of utility Société Nationale d'Électricité du Sénégal (SENELEC) City Covered Dakar Indicator Senegal Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 6 5.2 4.5 3 (25 Economies) Time (days) 75 112.0 77.2 18 (3 Economies) Cost (% of income per capita) 3419.7 3456.5 64.2 0.0 (3 Economies) Reliability of supply and transparency of tariff 5 1.6 7.5 8.0 (27 Economies) index (0-8) Figure – Getting Electricity in Senegal and comparator economies – Ranking and Score DB 2019 Getting Electricity Score 0 100 74.02: Ghana (Rank: 86) 69.96: Togo (Rank: 105) 61.37: Senegal (Rank: 127) 61.04: Cameroon (Rank: 129) 56.23: Côte d'Ivoire (Rank: 143) 49.00: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the scores for all the component indicators except the price of electricity. Page 16
Doing Business 2019 Senegal Figure – Getting Electricity in Senegal – Procedure, Time and Cost Time (days) Cost (% of income per capita) 3500 70 3000 Cost (% of income per capita) 60 2500 50 Time (days) 2000 40 1500 30 20 1000 10 500 0 0 1 2 *3 4 *5 6 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Figure – Getting Electricity in Senegal and comparator economies – Measure of Quality 8 7 6 Index score 5 5 4 4 4 3 3 2 1.6 1 0 0 Senegal Cameroon Côte d'Ivoire Ghana Togo Sub-Saharan Africa Page 17
Doing Business 2019 Senegal Details – Getting Electricity in Senegal – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Hire electrical contractor to do technical study 7 calendar days XOF 1,610,500 Agency : Electrical Contractor The applicant hires an electrical contractor to conduct a technical study of the site and the external connection works. 2 Submit application and technical study to Senelec and await approval 8 calendar days XOF 179,000 Agency : Senelec The customer files a request of a new connection to Senelec. As part of the application package he/she to submit a copy of his/her identity card, a copy of his/her lease, a copy of the land title and the details of the connection. The copies do not have to be notarized. The technical study is also sent to Senelec for approval, and they will then need to undertake a site inspection. Moreover, Senelec will need to get an authorization from the 'ageroute' at the Ministry of Transport to go over the road and make sure there will be sufficient room between the road and the cabling. This authorization is an internal process between Senelec and the ageroute. Once the authorization is granted and the site is approved by Senelec, the customer is notified by letter. 3 Receive site inspection by Senelec 1 calendar day XOF 0 Agency : Senelec To approve the technical study, Senelec inspects the site 4 Electrical contractor conducts external connection works and gets 46 calendar days XOF 17,705,000 approval from Senelec Agency : Electrical Contractor The electrical contractor that carries out the technical study also orders and purchases the necessary material and brings it to the utility for approval. The meter board has to be bought directly at Senelec by the customer or the electrical contractor doing the external connection works. The transformer has to be bought privately and then be brought to Senelec for a control. During the works, the utility will supervise the works. For instance, an initial inspection happens at the beginning of the external works. The customer or the electrical contractor has to go to the utility after the first inspection to obtain a written note from the utility that confirms the inspection (procès verbal). The works in the meantime go on. When the works are finally done, the contractor will need to get approval from Senelec via a final inspection. 5 Receive inspection for external works and for electricity turn-on 14 calendar days XOF 0 Agency : Senelec After the external connection works are finished, the electrical contractor writes a letter to Senelec and within a week, the utility carries out an inspection of the works. After this, the client can make a request for electricity turn-on ('mise sous tension'). Officers from the Senelec from the network office (internal division of Senelec) will then come and evaluate the impact of the electricity turn-on and assess the length of the necessary power cut (neighbors have to be cut off in order to connect the new customer). After this, a date for the electricity turn-on can be scheduled. 6 Pay advance for consumption and await final connection by Senelec 14 calendar days XOF 353,997.74 Agency : Senelec After the final inspection of the external works and the inspection for the electricity turn-on, the customer goes to the commercial section of Senelec to pay a the security deposit. The exact amount depends on the requested load and the estimated monthly consumption. Once the advanced consumption is paid, the utility informs the equipment section and asks them to connect the customer. A meeting is held each Tuesday to program cuts, which usually occur on weekends. Power is restored once the new connection is made and electricity starts flowing. Takes place simultaneously with previous procedure. Page 18
Doing Business 2019 Senegal Details – Getting Electricity in Senegal – Measure of Quality Answer Reliability of supply and transparency of tariff index (0-8) 5 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) 53.3 System average interruption frequency index (SAIFI) 30.5 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes exceed a certain cap? Communication of tariffs and tariff changes (0-1) 1 Are effective tariffs available online? Yes Link to the website, if available online http://www.senelec.s n/tarification/ Are customers notified of a change in tariff ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Page 19
Doing Business 2019 Senegal Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the immovable property (number) parties to the transaction, the property and the procedures are used. • Preregistration procedures (for example, The parties (buyer and seller): checking for liens, notarizing sales agreement, paying property transfer taxes) - Are limited liability companies (or the legal equivalent). - Are located in the periurban area of the economy’s largest business city. For 11 • Registration procedures in the economy's largest economies the data are also collected for the second largest business city. business city. - Are 100% domestically and privately owned. • Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals. title with municipality) - Perform general commercial activities. Time required to complete each procedure The property (fully owned by the seller): (calendar days) - Has a value of 50 times income per capita, which equals the sale price. • Does not include time spent gathering - Is fully owned by the seller. information - Has no mortgages attached and has been under the same ownership for the past • Each procedure starts on a separate day - 10 years. though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes. online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required. - Consists of land and a building. The land area is 557.4 square meters (6,000 • Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is document is received located on the land. The warehouse is 10 years old, is in good condition, has no • No prior contact with officials heating system and complies with all safety standards, building codes and legal requirements. The property, consisting of land and building, will be transferred in its Cost required to complete each procedure (% of entirety. property value) - Will not be subject to renovations or additional construction following the purchase. • Official costs only (such as administrative fees, - Has no trees, natural water sources, natural reserves or historical monuments of duties and taxes). any kind. - Will not be used for special purposes, and no special permits, such as for • Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural payments are excluded activities, are required. - Has no occupants, and no other party holds a legal interest in it. Quality of land administration index (0-30) • Reliability of infrastructure index (0-8) • Transparency of information index (0–6) • Geographic coverage index (0–8) • Land dispute resolution index (0–8) • Equal access to property rights index (-2–0) Page 20
Doing Business 2019 Senegal Registering Property - Senegal Indicator Senegal Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 5 6.2 4.7 1 (4 Economies) Time (days) 41 53.9 20.1 1 (New Zealand) Cost (% of property value) 7.6 7.6 4.2 0.0 (Saudi Arabia) Quality of the land administration index (0-30) 10.0 8.8 23.0 None in 2017/18 Figure – Registering Property in Senegal and comparator economies – Ranking and Score DB 2019 Registering Property Score 0 100 58.03: Côte d'Ivoire (Rank: 112) 57.47: Senegal (Rank: 118) 55.54: Ghana (Rank: 123) 54.88: Togo (Rank: 127) 52.62: Regional Average (Sub-Saharan Africa) 37.93: Cameroon (Rank: 176) Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of the scores for each of the component indicators. Figure – Registering Property in Senegal – Procedure, Time and Cost Time (days) Cost (% of property value) 7 40 35 6 Cost (% of property value) 30 5 Time (days) 25 4 20 3 15 2 10 1 5 0 0 1 2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Page 21
Doing Business 2019 Senegal Figure – Registering Property in Senegal and comparator economies – Measure of Quality 30 25 Index score 20 15 10.0 10.5 9.5 10 8.0 8.8 7.0 5 0 Senegal Cameroon Côte d'Ivoire Ghana Togo Sub-Saharan Africa Details – Registering Property in Senegal – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain a non-encumbrance certificate from the Land Registry 5 days XOF 500 Agency : Land Registry ("Conservation Foncière") The certificate on the status of property rights affecting a property (certificat d'État de Droits Réels et Charges) helps to identify any pending encumbrances still linked to the property being transferred. It also verifies the integrity of the vendor’s ownership. 2 Promissory agreement drafted and executed by the notary 4 days XOF 500,000; Agency : Notary (Official notary fee It is standard practice that the notary drafts the sale and purchase agreement schedule: between the parties. Then they sign it in his presence and he notarizes it. Under XOF 40,000,000: flat fee of XOF 500,000. From XOF 40,000,000 to XOF 80,000,000: 3% of the property value; From XOF 80,000,000 to XOF 300,000,000: 1.5% of the property value; Over XOF 300,000,000: 0.75% of the property value.) 3 Request is filed at the Director of Taxes and Property to acquire an 1 day no charge authorization of transfer Agency : Land Registry ("Conservation Foncière") This notification allows the State to exercise its preemption rights and possibly to acquire ownership of the property. However, since 2014, the parties do not need to wait until the State notifies whether it exercises its preemption rights to continue with the registration of the property transfer. At the same time, if the Conservation Foncière considers that the property is undervalued, it will request an expert to value the property. 4 Deed of sale is written by the notary after the Director's approval 16 days no charge Agency : Notary The relevant charge is already included in the previous payment to the Notary. 5 Notary sends a request of ownership change to the Land Registry 15 days XOF 1,718,705.93; Agency : Land Registry ("Conservation Foncière") (2,000 XOF/page and The Notary submits the deed with all the required documents to the Property generally it is 8 pages Registry for registration. (2 000 * 8)+ 5% of the property value + At the Land Registry the name of the new owner is changed and inserted in the XOF 6,500 + 0.9% Registry Book. property value as a publication fee) Takes place simultaneously with previous procedure. Page 22
Doing Business 2019 Senegal Details – Registering Property in Senegal – Measure of Quality Answer Score Reliability of infrastructure index (0-8) 0.0 What is the institution in charge of immovable property registration? Conservation Foncière de Dakar In what format are the majority of title or deed records kept in the largest business city—in a Paper 0.0 paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0 and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Direction du Cadastre In what format are the majority of maps of land plots kept in the largest business city—in a Paper 0.0 paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the cadastral Separate 0.0 or mapping agency kept in a single database, in different but linked databases or in separate databases databases? Do the immovable property registration agency and cadastral or mapping agency use the No 0.0 same identification number for properties? Transparency of information index (0–6) 4.0 Who is able to obtain information on land ownership at the agency in charge of immovable Anyone who 1.0 property registration in the largest business city? pays the official fee Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5 publicly available–and if so, how? Link for online access: http://www.impots etdomaines.gouv. sn/fr/demarches- affaires- domaniales- cadastres Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available–and if so, how? Link for online access: http://www.impots etdomaines.gouv. sn/fr/demarches- affaires- domaniales- cadastres Does the agency in charge of immovable property registration commit to delivering a legally Yes, online 0.5 binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Link for online access: http://www.impots etdomaines.gouv. sn/fr/demarches- affaires- domaniales- cadastres Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available official statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Page 23
Doing Business 2019 Senegal Number of property transfers in the largest business city in 2017: Who is able to consult maps of land plots in the largest business city? Anyone who 0.5 pays the official fee Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, online 0.5 and if so, how? Link for online access: http://www.impots etdomaines.gouv. sn/fr/demarches- affaires- domaniales- cadastres Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 specific time frame—and if so, how does it communicate the service standard? Link for online access: http://www.impots etdomaines.gouv. sn/fr/demarches- affaires- domaniales- cadastres Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable property No 0.0 registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Land dispute resolution index (0–8) 6.0 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5 Is there a specific compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a property Yes 0.5 transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary; Does the legal system require verification of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary; Is there a national database to verify the accuracy of identity documents? Yes 1.0 For a standard land dispute between two local businesses over tenure rights of a property Tribunal de worth 50 times gross national income (GNI) per capita and located in the largest business Grande Instance city, what court would be in charge of the case in the first instance? de Dakar How long does it take on average to obtain a decision from the first-instance court for such a Between 1 and 2 2.0 case (without appeal)? years Are there any statistics on the number of land disputes in the first instance? No 0.0 Number of land disputes in the largest business city in 2017: Equal access to property rights index (-2–0) 0.0 Page 24
You can also read