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Financial Sector Overview

Recent Economic Developments

Despite the threat of armed groups in the Sahel zone, Senegal remains a model of stability and democracy in Africa. The 2000 presidential election gave the country its first political change-over since independence. The economy of the second largest power in French-speaking West Africa after Côte d'Ivoire is dominated by the tertiary sector, which accounts for more than 60% of Gross Domestic Product (GDP). Recent oil and gas field discoveries are expected to increase the secondary sector's contribution to GDP in the near future. In 2017, GDP growth was estimated at 7.2% after reaching 6.5% in 2016, its highest level in the last 11 years. Senegal, like Côte d'Ivoire, has developed a programme entitled the Emerging Senegal Plan to implement transformative investments and reforms, especially aimed at improving the business climate.

Recent national accounts renovation projects undertaken by the National Agency of Statistics and Demography (ANSD) resulted in a 30% increase of 2014 GDP value. As a result, the ratio of public debt to GDP has fallen below 50%.

Financial Institutions

The Senegalese financial sector consists of 28 credit institutions, including 24 commercial banks and 4 financial institutions, 19 insurance companies (including 10 life insurance branches), and 208 Microfinance Institutions (MFIs). Like most African countries, the country’s financial sector is dominated by banks, which account for about 88% of the sector's assets, compared to 7% for MFIs and 4% for insurance companies. These financial institutions operate within a harmonized regulatory framework and are organized around several regional bodies, the most important being the Central Bank of West African States (BCEAO), the Banking Commission of the West African Economic and Monetary Union (WAEMU), the Regional Council for Public Savings and Financial Markets (CREPMF) and the Inter-African Conference on Insurance Markets (CIMA).

The Senegalese financial system remains the region’s second largest in terms number of financial institutions and market share of credit institutions.

There is no national financial market in Senegal, but the country shares a single financial market with the other 7 WAEMU countries, namely, the Regional Stock Exchange (BRVM) headquartered in Abidjan, Côte d'Ivoire. In 2017, 44 companies were listed on the BRVM, including 3 Senegalese companies (Sonatel, Total Senegal, and the Senegalese subsidiary of the Bank of Africa).

Banking Sector

The banking sector dominates the Senegalese financial system with nearly 28 banks and financial institutions, 5,150 permanent employees, 412 branches across the country and 1.6 million bank accounts. Access to banking services remains low (18%) and total banking income accounts for one-fifth of all banks’ income in the West African sub-region under BCEAO supervision. Bank credit has steadily increased in recent years, mainly driven by the increase in credit to the private sector. In March 2018, it amounted to CFAF 3,915.7 billion (USD 7.1 billion), compared to CFAF 1,755.3 billion (USD 2.9 billion) in 2009, more than double the 2009 level. The majority of banks' assets are held by international and regional banks.

As mentioned in the latest WAEMU Banking Commission report, the liquidity deficits of the banking system observed in all WAEMU countries have further increased, especially with a significant variation for Senegal (CFAF +311 billion) and Côte d'Ivoire (CFAF +575 billion). High levels of non-performing loans weaken the sector and pose significant risks to the country's economy. In March 2018, the parliament passed a law on credit information bureaus. Other reforms undertaken to establish a commercial court are likely to improve banks’ risk management activities and promote credit growth.

Financial Inclusion

Access to formal financial services remains low in Senegal. In 2017, the proportion of adults (aged 15 and above) with an account at a financial institution was 20.4%, while the average in sub-Saharan Africa was 32.8%. However, significant progress has been made in facilitating access to financial services via mobile phones. According to the latest World Bank's Global Findex survey (2018), about 31.8% of adults aged 15 and above in Senegal own a mobile money account compared to the sub-Saharan average (20.9%).

The informal financial sector, along with microfinance institutions, play a major role in financial inclusion in Senegal. With 208 decentralized financial systems, more than 2.5 million customers/members, outstanding savings above CFAF 285 billion, loans volume greater than CFAF 306 billion and a penetration rate of microfinance services at 18.4% of total population, Senegal is the leader in the WAEMU region in terms of financial services targeting the most vulnerable populations. In 2017, the sector contributed 10.4% to financing the national economy and 3.7% to the GDP. Outstanding loans in decentralized financial systems (DFS) totalled CFAF 359.7 billion (about USD 539.5 million) in the first quarter of 2018. A recent report by UNCDF (United Nations Capital Development Fund) revealed that microfinance institutions in Senegal have a greater presence in areas with high poverty rates compared to commercial banks. According to the report, these institutions provide services and products better aligned with the needs of people in rural areas.

The Senegalese government has drafted a financial inclusion strategy running until 2020, aimed at increasing the sector's performance through targeted actions and addressing constraints or weaknesses hindering the sector's development. These actions include: establishing a national microfinance fund; operationalizing the programme to promote Islamic microfinance; and, promoting digital finance through a renewed mobile banking project.

Insurance Sector

The Senegalese insurance market grew by 20% in 2017 and the sector achieved a cumulative turnover of CFAF 161.6 billion (about USD 258.6 million), all sectors combined. The insurance sector is made of 19 property and casualty insurance companies, compared to 18 in 2016, and 10 life insurance companies. The latter collected premiums estimated at CFAF 53.3 billion in 2017, a 16% increase year over year, according to data from the Association des Assureurs du Sénégal (AAS), an industry association for all insurance companies in Senegal. Growth is partly due to the use of Taxawuleen, a new joint casualty report enacted by the AAS to ease mobility and traffic. Nevertheless, insurance penetration in Senegal remains extremely low: about 1%, due to low income levels, poor industry reputation and insurers' lack of interest for micro-insurance.

Stock Exchange

Senegal hosts a branch of the Regional Stock Exchange (BRVM) headquartered in Côte d'Ivoire. Established in 1996, BRVM encompasses all eight member countries of the West African Economic and Monetary Union (WAEMU): Benin, Burkina Faso, Côte d'Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo. National branches ensure the effectiveness of real-time exchanges on the regional stock market. BRVM is considered to be the 6th largest stock exchange in Africa in terms of capitalization. As at 31 December 2017, only 3 companies incorporated in Senegal were listed on the regional exchange out of a total of 44 listed companies. The telecommunications company, Sonatel, a Senegalese subsidiary of the French Orange Group, has the largest market capitalization.

Social Welfare Scheme

Senegal passed a law in March 2018 establishing a secondary retirement pension scheme for civil servants and military officials. The Caisse de Sécurité Sociale (Social Security Fund - CSS) is the national body that collects premiums for work-related accidents and family benefits. Senegal is a member of CIPRES (Inter-African Conference of Social Welfare), which monitors and provides technical support to African social security funds (Caisses Africaines de Sécurité Sociale), comprising 15 French-speaking African countries.

The health insurance scheme covers only about 17% of the population. New reforms of the compulsory health insurance (AMO) introducing Universal Health Coverage (CMU), which came into force in March 2013, require employers with more than 300 employees to enrol their employees at a health insurance institution (IPM), guaranteeing health coverage. The 2003 law on mutual health insurance was passed to promote community health insurance schemes. Many people have decided to set up small groups with the aim of developing forms of social protection that best meet their needs. As is the case with micro-health insurance initiatives that bring together a wide variety of insurance systems for the poor and improve ease and access to care. Community health insurance are one of the most common forms of micro-insurance schemes. Senegal's objective through these reforms was to increase health coverage in the country from 20% to 65% by 2017.

Private equity

Senegal’s private equity market is still in its infancy and recent discovery of oil and gas reserves in Senegal should benefit the country which also enjoys political stability and solid economic growth. In 2016, about USD 6.5 million was raised for investments in Senegal by venture capital funds.


Contact Details Information of Banks operating in Senegal

 BANKS   CONTACTS   WEBSITE 
 ADDRESS   TELEPHONE   EMAIL 
 COMPAGNIE BANCAIRE DE L'AFRIQUE DE L'OUEST   1, Place de l'Indépendance  BP 3890 Dakar    (+221) 33 849 60 60   infocbao@cbao.sn   https://www.cbao.sn 
 (+221) 33 849 60 60 
 SOCIETE GENERALE DES BANQUES DU SENEGAL   19, Avenue du Président Léopold Sédar SENGHOR - BP 323 Dakar   (+221) 33 839 55 61   sgbs@socgen.com   https://societegenerale.sn/ 
 BANQUE INTERNATIONALE POUR LE COMMERCE ET L'INDUSTRIE DU SENEGAL   2, avenue L.S. SENGHOR BP 392-Dakar   (+221) 33 839 03 90   BICIS@BICIS.SN   https://www.bicis.sn/
 
 ECOBANK   Km 5, Avenue Cheikh Anta DIOP, BP : 9095 DC   (+221) 33 859 98 00    ecobanksn@ecobank.com   https://www.ecobank.com 
 BANQUE DE L'HABITAT DU SENEGAL   Boulevard du Général de Gaulle BP 229 Dakar   (+221) 33 839 33 28   (+221) 33 823 80 43   https://www.bhs.sn/ 
 CREDIT DU SENEGAL   Boulevard El Hadji Djily Mbaye Angle Huart BP 56 Dakar   (+221) 33 849 00 00   cl_senegal@creditdusenegal.com   www.creditdusenegal.com 
 CAISSE NATIONALE DE CREDIT AGRICOLE DU SENEGAL   Place de l'Indépendance  BP 3890 Dakar    (+221) 33 822 23 00   cncas@cncas.sn   www.cncas.sn/
 
 BANK OF AFRICA   4, Avenue Léopold Sédar Senghor Résidence Excellence Place de l'Indépendance BP 1992 RP Dakar   (+221) 33 865 64 67   information@boasenegal.com   https://www.boasenegal.com/fr
 
 CITIBANK   Immeuble SDIH 4éme étage BP 3391 Dakar   (+221) 33 849 11 11
   
 Kevin.a.murray@citi.com    http://www.citigroup.com 
 BANQUE ISLAMIQUE DU SENEGAL   Rue Huart Angle Amadou Assane Ndoye  Imm Faycal BP 3381 CP 18524 Dakar   (+221) 33 849 62 62    contact@bis-bank.sn   https://www.ta-holding.com/fr/intl/senegal 
 BANQUE REGIONALE DES MARCHES   Immeuble la Rotonde Rue Dr. Thèze x Assane Ndoye BP : 32040 Dakar Ponty   (+221) 33 889 60 80     brmbank.com/ 
 BANQUE SAHELO SAHARIENNE POUR L'INVESTISSEMENT ET LE COMMERCE   Place de l'Indépendance Angle Rue Malenfant BP 4106 Dakar     (+221) 823 66 10   bsic.senegal@bsicbank.com   www.bsicbank.com/senegal/ 
 BANQUE ATLANTIQUE DU SENEGAL   40 Boulevard de la République BP 50780 Dakar    (221) 33 849 91 24    infobasn@banqueatlantique.net   https://www.banqueatlantique.net/sen/ 
 (+221) 33 849 92 92 
 FIRST BANK OF NIGERIA   LOT N° 2 MERMOZ PYROTECHNIE   (+221) 33 869 75 07   enquiry@icbank-senegal.com   http://www.firstbanknigeria.com/ 
 BANQUE DES INSTITUTIONS MUTUALISTES D'AFRIQUE DE L'OUEST   Sacré Cœur 3 Pyrotechnie VDN BP 15098 Dakar   (+221) 33 869 05 76   bimao@bimao.sn    http://www.bimao.sn 
 UNITED BANK FOR AFRICA   Route des Almadies, Zone 12 Lot D, Dakar   (+221) 33 859 51 60    cfcsenegal@ubagroup.com   https://www.ubagroup.com/countries/sn
 
 BANQUE NATIONALE POUR LE DEVELOPPEMENT ECONOMIQUE   Place Soweto x Av. Pdt L. Gueye Imm Rivoria   (+221) 33 829 20 80     www.bnde.sn 
 ORABANK   40, Avenue Jean Jaurés X Carnot
BP : 14.634 Dakar 
 (+221) 33 889 80 00     https://www.orabank.net/fr/filiale/senegal 
 (+221) 33 889 85 60 
 DIAMOND BANK   41 Rue Carnot – Dakar   (+221) 33 829 69 00   asmbaye@diamondbank.com   
senegal.diamondbank.com 
 (+221) 33 829 69 35 
 CREDIT INTERNATIONAL   Dakar, Boulevard Djily Mbaye X Henry Dunan, Imeuble le GEOLAN
BP : 50.117 
 (+221) 849 00 00   cs_senegal@creditdusenegal.com   www.cisenegal.com/
 
 BGFI BANK   122 Rue Félix Faure, angle avenue de la République   (+221) 33 839 97 00   eqc.sn@bgfigroupe.com   https://senegal.groupebgfibank.com/
 
 INTERNATIONAL COMMERCIAL BANK   15 Boulevard de la République BP 11243 – Dakar Sénégal   [+221] 822 37 37    infosn@bci-banque.com   www.icbank-senegal.com 
 BANQUE DE DAKAR   7 Av. Léopold Sédar Senghor
BP 32283
Dakar - Sénégal 
 (+221) 33 849 86 00   bdk@bdk.sn   www.bdk.sn/ 
 BANQUE OUTARDE   20 boulevard de la République,
Dakar, République du Sénégal 
 (+221) 33.889.49.49     https://www.labanqueoutarde.sn/ 
 CORIS BANK   26 Avenue Jean Jaurès X André Peytavin
BP : 14310 Dakar  
 (+221) 33 829 66 66   coris-sn@coris-bank.sn   corisbank.sn/ 
 TOTAL                                   25          

 

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At a Glance

At a Glance Source
Population in thousands (2017): 15,850.57
GDP per capita (current US$) 2017 - World Average 10,721.61: 1,329.3
Account (%) age 15+) - (2014 vs 2017): 15% | 42%
Agriculture Orientation Index - Credit ( Agriculture, Forestry and Fisheries share of GDP) (2015 vs 2016): 0.14 (2015)
Financial Inclusion Strategies: n/a
Domestic credit provided by financial sector (% of GDP) 2017: 37.6
Made or received digital payments in the past year (% age 15+) (2014 vs 2017): 12% | 40%
Remittances % of GDP for 2017: 0.128
Mortgage Interest Rate / Mortgage Term (years): 7.62% | 15

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