Senegal Private Sector: Boycott Threat Over Unfair Foreign Competition

• Senegal's Unacois and Acis business associations have warned of a national economic crisis due to unfair foreign competition, high Port Autonome de Dakar costs, and a breakdown in public-private dialogue.
• They report widespread business closures, job losses, and excessive port charges, with goods incurring over 45% additional fees at Dakar Port.
• The associations demand urgent government action, including safeguard clauses, an independent competition authority, a port cost audit, and a quarterly consultation framework with binding decisions.
• Citing unanswered communications, the private sector has threatened to boycott shipping companies and DP World if rapid consultation does not occur.
• Key grievances include heavily subsidized imports, foreign monopolies, an untaxed parallel economy, and unregulated tariffs and container delays at Dakar Port.

Without swift consultation, they intend to suspend all collaboration with shipping companies and the operator DP World.

Senegal's leading business associations, the National Union of Traders and Industrialists of Senegal (Unacois) and the Association of Traders and Industrialists of Senegal (Acis), recently convened at the Dakar Chamber of Commerce, Industry, and Agriculture (Cciad) to paint a stark picture of the national economy. Joined by the Ceatlcs, these private sector representatives described a landscape marked by widespread business failures and significant job losses, warning that the sector is on the verge of collapse. This gathering was characterized as the initial phase of a broader mobilization effort by the commercial employers' federation.

Ousmane Sy Ndiaye, the Executive Director of Unacois, articulated three primary challenges currently stifling commerce, industry, and transportation within the country. These critical issues have prompted the organizations to demand immediate government intervention and have led to a serious threat of a boycott against shipping companies and the operator DP World, should their concerns remain unaddressed. The private sector is pushing for urgent measures to stabilize the economy and protect local enterprises from what they describe as an increasingly untenable operating environment.

A major point of contention highlighted by the private sector is the intense and often perceived as unfair foreign competition. National businesses are reportedly struggling to survive, with investments dwindling and weekly waves of layoffs occurring as local entities find themselves unable to compete with larger groups from Asia and the Middle East. Unacois and Acis attribute this to several factors, including the influx of heavily subsidized and under-invoiced imported goods, the near-monopolistic dominance of major foreign corporations, and the proliferation of an untaxed parallel economy. They estimate that each business closure directly eliminates between 10 and 50 jobs, underscoring the severe impact on employment.

Another significant grievance centers on the management and costs associated with the Port Autonome de Dakar. The executive director of Unacois criticized the port's billing practices and service delivery as excessive, calculating that goods unloaded at the port incur over 45% in additional charges. This substantial increase in costs directly contributes to higher living expenses and inflated prices for essential commodities. Businesses report unregulated tariffs imposed by stevedores and maritime companies, container immobilization periods ranging from 15 to 21 days, and daily demurrage fees between 150,000 and 300,000 F Cfa. Concerns also include containers being opened without the presence of importers, leading to calls for an independent audit of port costs, price caps, and the mandatory publication of tariff schedules.

The third critical issue identified by Ousmane Sy Ndiaye, which he considers the root cause of all other problems, is the breakdown in public-private dialogue. He expressed frustration that if the government were adequately informed of the risks and difficulties confronting the private sector, the current crisis might have been averted. The business associations are urging the executive branch to promptly implement recommendations from previous meetings with the Prime Minister's office and to establish a quarterly sectoral consultation framework, led by the Prime Minister, with the authority to make binding decisions.

Khadim Sylla, President of Acis, corroborated the communication breakdown, revealing that numerous correspondences sent to territorial and ministerial authorities have gone unanswered. In response to this lack of engagement and the unresolved issues, the traders have issued a warning: without swift consultation, they intend to suspend all collaboration with shipping companies and the operator DP World. This potential Senegal private sector boycott threat underscores the urgency of their demands for immediate activation of safeguard clauses and the creation of an independent Competition Authority to address the challenges of Senegal unfair foreign competition and high Port Autonome de Dakar costs.

Lawyers advising maritime companies, logistics providers, or businesses importing/exporting via Dakar Port should monitor the threatened boycott by Unacois and Acis, as well as potential regulatory changes or audits stemming from complaints about port costs and unfair competition. This situation could lead to operational disruptions or new compliance requirements related to trade and competition law in Senegal.

Source: Original reporting via Le Quotidien