SENEGAL Law and Practice Contributed by: Hariliva Andriamahefa and Mampionona Razafimamonjy, John W Ffooks & Co
• precious metals (gold and platinum group metals); • base metals (iron, copper, chrome, nickel); • industrial minerals (phosphates, industrial limestone, salts, etc); • heavy minerals (zircon, titanium, etc); and • ornamental stones and construction materi - als. This robust mineral wealth underlines Senegal’s ambitious efforts to solidify its position as a regional leader in the mining industry. 5.2 Foreign Investment Restrictions and Approvals in the Exploration and Mining Sectors Senegal has created an investment-friendly cli - mate through a legislative and regulatory frame - work that is transparent, flexible, competitive and non-discriminatory. This is the only way in which the Senegalese government has been able to attract both domestic and foreign inves - tors. As it stands, Senegal has a wealth of mining potential, most of which is underexploited. To enhance the value of its mineral resources, the Senegalese government has introduced a mining policy aimed at improving the return on extrac - tive activities, so that investors will invest more in the country. As such, this constitutes a measure that encourages foreign mining investment. Since Senegal is a member of WAEMU, inves - tors, particularly those holding mining permits, must comply with Central Bank of West African States ( Banque Centrale des Etats de l’Afrique de l’Oues t (BCEAO)) requirements, in particu - lar the foreign exchange regulations set out in Regulation No 09/2010/CM/UEMOA dated 1 October 2010 on external financial relations and its instructions. To this end, all foreign exchange
transactions as well as capital movements – ie, transfers and/or receipts of funds and settle - ments of any kind with foreign countries, must be carried out through the BCEAO, the admin - istration or a post office; an approved intermedi - ary; or a manual foreign exchange agent. 5.3 International Treaties Related to Exploration and Mining Senegal is a party to all major United Nations human rights instruments, including the Inter - national Covenant on Civil and Political Rights (ICCPR), the International Covenant on Eco - nomic, Social and Cultural Rights (ICESCR) and the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW). At the regional level, Senegal is a member of the African Union (AU) and ECOWAS. It is also a signatory to the African Charter on Human and Peoples’ Rights (the “African Charter”). However, given that any holder of a mining licence or concession is required to sign a com - prehensive mining agreement with the state – defining the relationship between the titleholder and the government as well as the general con - ditions for mineral prospecting or exploitation – the establishment of bilateral or multilateral treaties in the mining sector is also a primary focus of the Senegalese government, given the numerous treaties that they have already signed. 5.4 Sources of Finance for Exploration, Development and Mining The Senegalese government has implemented a strategy for local participation to maximise the involvement of the population (ie, the people, who are the rightful owners of natural resources according to Article 25.1 of the Senegalese Con - stitution, which states that “natural resources belong to the people and are used to improve their living conditions”) in the management of
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