Senegal Market Research: International Business

Introduction

An investor must have all relevant information about a potential area, he or she needs to inject his or her resources. Conducting a feasibility study and research on the intended location of an investment enables an investor make credible and reliable decisions. Information collected determines the viability of the location (Hallam, 2011). It is also important to understand the government rules and regulations on foreign businesses to avoid constant conflicts with the host country. This paper will focus on a market analysis of Senegal as an international investment destination. The analysis will adopt the perspective of an international business person, meaning the research will be detailed and unbiased.

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Senegal is located is located in the African continent. It is on the Western side of the continent. As at 2010, Senegal was classified as a lower-middle income country (Mithofer & Waibel, 2011). The country has experienced constant political conflicts that have made businesspersons to shy away from investing in the nation. However, within the last decade, political reforms in the country have evaluated the negative effects on the economic status of Senegal and formulated policies aimed at introducing changes in the nation that will initiate growth both in the short-term and in the long-term. Both private and public investors have been encouraged to invest in the urban and rural areas, with the aim of creating an enabling environment for positive progression (Hallam, 2011). Local investors have a comparative advantage over the foreign investors due to the fees and tariffs that external investors have to pay the government before they start operating in the country. The justification for this is to protect the infant industries in the country by keeping off foreign investors that have a competitive advantage of having large amounts of money for investments (Mezger Kveder & Beauchemin, 2015). For instance, bureaucratic processes and high costs may push some investors away.

Despite the challenge for international investors penetrate Senegal and start operating, the country's capital city, Dakar, the geographical position is strategic and is attractive for stakeholders in different industries. The capital city has a developed infrastructure and communication system that makes it easy for people to move from one place to another and exchange information (Mezger Kveder & Beauchemin, 2015). Most people in the capital city can comfortably speak in English, despite French being the Senegal's official national language. Established businesses in Dakar would motivate investors to apply strategic plans due to the stiff competition. Dakar is located near the Atlantic Ocean. The country has a tropical climate, meaning that weather changes and patterns rarely affect business activities in the urban and rural areas (Mithofer & Waibel, 2011). Most people in rural areas practice agriculture. Some farmers grow crops for resale while others farm for their personal uses.

Senegal is an attractive international business destination due to its dense population of more than fifteen million people. More than 50% of the population live in urban centers and make a ready market for products (Mezger Kveder & Beauchemin, 2015). The locals are friendly and are willing to interact with foreigners as long as respect is maintained amongst people. The government owns and runs most projects in Senegal but allows both local and international investors to operate businesses. Every business in the country is expected to file returns at the end of each financial year and remit its taxes to the government. Foreign businesses pay a higher percentage of revenue than the locally based organizations. International investors are given the right to own and dispose of property in accordance with the business regulations. Touba, a local rural city in Senegal is home to more than one million people (Hallam, 2011). External investors have a choice to invest in either the rural or urban areas, depending on the line of industry a stakeholder operates.

Most locals in Senegal practice Islam as a religious belief. Christianity is also allowed in the country. Business owners are expected to respect the religious practices of their employees by allowing them to exercise their freedom of worship (Mezger Kveder & Beauchemin, 2015). For instance, an international investor must allow his or her members of staff that practice Islam to conduct their prayers during lunchtime hours and on Fridays. Christians should also be allowed to attend their religious fellowships on the specified days. Religious differences may trigger conflicts which might position an international investment negatively (Mezger Kveder & Beauchemin, 2015). For instance, qualified personnel might avoid working for an international business for fear of being allowed to practice their religious practice and customs.

Culturally, Senegal has different ethnic groups who speak in diverse languages. The differences amongst the citizens does not affect the conduct of business both in the rural and urban centers, meaning that a foreign investor will not face challenges communicating with the locals. Most young people who form the largest percentage of the working population have gone through formal education which has equipped them with skills needed in workplaces. Any potential employer has a wide variety of employees that would be willing and able to work with the offered wage and salary rate. The use of English and French has made communication between locals and foreigners easy on the corporate world. In conclusion, international business in Senegal has a high probability of success as long as the investor meets and follows the necessary rules and guidelines from the government. It might be tedious and time consuming for an investor before he or she gets the letter of incorporation from the government to allow businesses to operate, but in the long term, wider market and political stability allow organizations to thrive within a short-time.

Annotated Bibliography

Hallam, D. (2011). International investment in developing country agriculture-issues and challenges. Food Security, 3(1), 91-98.

According to Hallam (2011), most developing countries depend on agriculture as the main source of export. Foreign investors that venture in another line of businesses have a high probability of succeeding since most locals have failed to diversify. In the recent past, leaders of developing nations have realized the worth of investing in other industries which has created a conducive environment for growth and an increase in the gross domestic product. However, food security remains a priority for most farmers in the country.

Mezger Kveder, C., & Beauchemin, C. (2015). The role of international migration experience for investment at home: Direct, indirect, and equalizing effects in Senegal. Population, Space and Place, 21(6), 535-552.

Mezger Kveder & Beauchemin (2015) stated that migration of people from other regions of Senegal has increased the amount of information in circulation. Senegal as a country has learned from others, creating an opportunity for the local investors borrow ideas from international stakeholders. This has led to the growth and development of the nation, both in the short-term and in the long-term.

Mithofer, D., & Waibel, H. (Eds.). (2011). Vegetable production and marketing in Africa: socioeconomic research. CABI.

Most African countries have focused on agriculture, with research institutes mushrooming in many regions to come up with new ideas for strengthening and increasing the yield reported every year. The level of education has also increased in the continent enabling citizens to diversify in other industries as they search for ways to improve the socioeconomic positions of every human being. Investment in other industries has also been encouraged and accepted in most African countries, allowing the continent to compete with other nations in the global platform.

References

Hallam, D. (2011). International investment in developing country agriculture-issues and challenges. Food Security, 3(1), 91-98.

Mezger Kveder, C., & Beauchemin, C. (2015). The role of international migration experience for investment at home: Direct, indirect, and equalising effects in Senegal. Population, Space and Place, 21(6), 535-552.

Mithofer, D., & Waibel, H. (Eds.). (2011). Vegetable production and marketing in Africa: socio-economic research. CABI.