Senegal

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In addition to a fund initially created with an envelope of 1.4 billion FCFA ('2.1 million), Senegal has taken 3 new measures to mitigate the effects of the coronavirus on its economy. These are the establishment of a Response and Solidarity Fund against the effects of COVID- 19 called "FORCE-COVID-19". Then the creation of a COVID-19 growth and economic watch committee. And finally, the development of a contingency plan following the evolution of the pandemic for an amount of 64 billion FCFA (97.6 million euros).

Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

• Tax rebates and suspensions granted to companies which undertake to keep their workers in activity for the duration of the crisis, or to pay more than 70% of the wages of non-active employees during this period. This cash facility concerns the deductions made from salaries and social contributions that private sector companies pay to the Social Security Fund and IPRES (Retirement pension fund institute in Senegal).

• Creation of a fund with an envelope of 1.4 billion FCFA ('2.1 million),
• Development of a contingency plan following the evolution of the pandemic for an amount of 64 billion FCFA (97.6 million euros).
• Referring to the private sector, Amadou Hott, Minister of the Economy, suggested that banks will provide facilities to the most affected companies and operators.
• Safeguarding macroeconomic and financial stability to support the private sector and maintain jobs through a liquidity injection program accompanied by fiscal and customs measures.
  
• Thus, 302 billion will be spent on payment due to the state’s suppliers;
• The rules and priorities of payment contributing to the objective of economic stability will be published and shared with companies, which will undertake to maintain salaries and wages to theirs employees;
• Establishment of an envelope of 100 billion specifically dedicated to the direct support of the sectors of the economy affected the most by the crisis, in particular transport, hotel industry but also agriculture;
• Establishment of a financing mechanism up to 200 billion, accessible to affected companies, according to a simplified procedure;
• Reorganization of the national budget by cuts on operating expenses and deferring investments; which corresponds to a saving of 159 billion. Also The government will secure 178 billion to partially cover losses in budget revenue caused by the crisis.

• Establishment of a Response and Solidarity Fund against the effects of COVID- 19 called "FORCE-COVID-19“.
• Creation of a COVID-19 growth and economic watch committee.
• President Macky Sall announced the creation of a "national crisis cell and a fund for response and solidarity against the effects of Covid-19". He asked his ministers to "each contribute one million CFA francs" (1,500 euros).

Other Social measures

• Support for the health sector to the tune of 64.4 billion, to cover all the expenses linked to the response against COVID-19.
• Reinforcement of the population’s social resilience based on the State’s following expenses’ assumptions:
  • 15.5 billion, for the payment of electricity bills of households subscribing to the social bracket, for a two-month period; or approximately 975,522 households;
  • 3 billion, to cover the water bills of 670,000 households subscribed to the social bracket, for a two-month period;
  • 69 billion, instead of the 50 billion initially planned, for the purchase of food for the benefit of one million eligible households;
  • 12.5 billion, to help the diaspora.

Main sources of information:

• Government of Senegal: Covid-19 official Portal

Tax: Ndiaga Sarr – ndsarr@kpmg.sn
Legal: Ndeye Diarra Diouf – ndiouf@kpmg.sn