Senegal Investment Funds: Discover FONSIS & More!
Are you seeking opportunities to invest in Senegal's burgeoning economy? The nation, located on the western coast of Africa, presents a landscape ripe with potential, from its strategic location to its diverse sectors, offering significant investment prospects for those with a vision for growth.
The Fonds Souverain d'Investissements Stratgiques (FONSIS) is at the forefront of driving economic development in Senegal. It operates as a sovereign wealth fund and investment holding company, entirely owned by the State of Senegal. FONSIS has aligned itself with international best practices, adhering to standards relevant to its status as a sovereign investor, including the Santiago Principles and agreements endorsed by Senegal, such as the Paris Agreement and the Sustainable Development Goals (SDGs). This commitment underscores FONSIS's dedication to responsible and sustainable investment practices.
FONSIS's investments are made with a keen awareness of their impact on communities and the environment. Its mission is to bolster the role of the Senegalese state as an economic driver, aiming to strengthen key sectors through strategic investments. FONSIS's commitment to environmental and social responsibility is a core tenet of its investment strategy, ensuring that projects contribute positively to Senegal's development while adhering to global sustainability standards.
FONSIS initiated Oyass Capital with a capitalization of FCFA 35 billion for its launch. This initial funding was secured through financing from the KfW (German Development Bank), the World Bank, and the State of Senegal. The remaining FCFA 15 billion needed to reach the target size of FCFA 50 billion will be raised from the private sector and impact investors. This phased approach to capitalization demonstrates a commitment to attracting diverse investment partners.
The financing agreement between the State of Senegal and KfW was signed on November 12, 2021. This marked an acceleration for the Oyass Capital fund, which benefited from an initial financial closing of 30 million euros, equivalent to FCFA 20 billion. This financial backing is a clear signal of confidence in Oyass Capital's mission and its potential to foster economic growth.
Senegal's economic landscape is characterized by a surge in growth following a period of slower expansion. The nation's economy achieved a growth rate of 6.5% in 2015, reflecting the country's strong economic performance and potential. The main economic activities are centered around mining, farming, and fishing. The nation, which covers an area of 196,722 square kilometers, had an estimated population of 15.3 million people as of 2016. The country has seen a boost in commercial activity, as real estate properties for sale are, on average, priced at FCFA 513.22 million. This demonstrates a strong economic landscape for various properties, ranging from the most affordable ones (FCFA 360,000) to the most exclusive properties (FCFA 6.5 billion).
Here's a detailed overview of the Fonds Souverain d'Investissements Stratgiques (FONSIS), including its key characteristics and strategic objectives:
| Category | Details |
|---|---|
| Fund Name | Fonds Souverain d'Investissements Stratgiques (FONSIS) |
| Type of Fund | Sovereign Wealth Fund / Investment Holding Company |
| Ownership | Fully owned by the State of Senegal |
| Mission | Promote the role of the State of Senegal as an economic driver; Invest in strategic sectors. |
| Investment Strategy | Adheres to international standards, including the Santiago Principles, the Paris Agreement, and Sustainable Development Goals (SDGs). Considers the impact of investments on populations and the environment. |
| Focus Areas | Strengthening key sectors |
| Oyass Capital | A subsidiary capitalized with FCFA 35 billion for its launch; Target size is FCFA 50 billion. |
| Funding Sources | KfW, World Bank, State of Senegal, Private Sector, Impact Investors |
| Recent Financial Milestone | Oyass Capital's initial financial closing of 30 million euros (FCFA 20 billion). |
| Commitment | Environmental and Social Responsibility |
| Website Reference | FONSIS Official Website |
A significant component of Senegal's development strategy involves the agricultural sector, and the establishment of "agropoles." The Socit dExploitation de lAgropole Sud (SCEAS) is in charge of managing the first of five agropoles planned for Senegal. However, this sector is facing challenges. These include the cost of energy, the absence of a well-structured value chain, the low level of development of local industries, and challenges in accessing funding.
The "Waqf" project is also a notable initiative. It includes the construction of a future Waqf building by the FSZ (Fonds Sngalais de Garantie des Investissements Prioritaires). The FSZ, established by the Senegalese government, aims to facilitate investment through guarantees and financial support.
For entrepreneurs with projects in mind and a need for financing, there are several options to explore. Crowdfunding is one path to consider, allowing individuals to seek support from the wider community. Additionally, the Senegalese government has set up a guarantee fund of 50 million to support investment projects. Furthermore, a specialized investment fund is dedicated to the hydrocarbons sector.
In the hydrocarbons sector, Senegal is developing a new market, with opportunities for clients in Senegal and West Africa. A dedicated mutual fund has been established to capitalize on the development of this new market.
For those looking to invest in commercial properties, Senegal presents various opportunities. The average price of commercial properties for sale is around FCFA 513.22 million, but prices vary widely, ranging from FCFA 360,000 to FCFA 6.5 billion, to accommodate diverse investment strategies.
FONSIS's commitment to sustainable development is evident in its investment approach. FONSIS realizes investments while considering their impacts on populations and the environment, ensuring that projects are both economically viable and socially responsible. This focus on sustainability aligns with Senegal's commitment to international agreements like the Paris Agreement and the Sustainable Development Goals (SDGs).
The investment landscape in Senegal is dynamic, and the projects underway and planned reflect the country's drive for growth and economic diversification. Whether it is through large-scale infrastructure projects, investment in key sectors, or support for entrepreneurs, Senegal is building a future of prosperity for all its citizens.
The presence of funds like FONSIS, which adheres to the Santiago Principles, alongside its focus on sustainable development, makes Senegal an attractive destination for investors.
The creation of Oyass Capital, with its backing from the State of Senegal, the World Bank, and KfW, further exemplifies the nations commitment to fostering a supportive and attractive investment ecosystem.
Senegal is actively creating an environment where businesses can thrive, offering prospects for diverse projects. By adhering to global standards, focusing on environmental impact, and supporting strategic projects, Senegal is becoming a model for development in Africa.
The strategic initiatives and financial backing support Senegal's potential for growth and the development of a robust investment climate.
