September 08, 2008

Jafza to build USD 800 million Senegal SEZ

Khaleej Times reported that Dubai World Group's Jafza subsidiary has signed a USD 800 million deal to build and run a special economic zone in Senegal.

Mr Sultan Ahmed bin Sulayem chairman of Dubai World said that construction would start before the end of 2008 on the first phase of the project, covering 650 hectares next to a planned international airport 45 kilometres from the capital Dakar.

He added that Operations are due to begin in 2010 and should attract 1,000 companies and create some 30,000 direct jobs. Mr Sulayem said that "This will be an example to many African countries that when free trade operates with government support, you will see that businesses will come."

It is noted that Senegal hopes its strategic location between markets in the Americas, Europe and Asia will entice businesses to the low tax area, one of the first of its kind on the continent. The government has reserved a total of 10,000 hectares for the expansion of the zone, with the possibility of constructing a power station and refinery nearby to tackle a shortage of electricity capacity which has been one of the main obstacles to foreign investment.

Another affiliate of the Dubai World Group, ports operator DP World, in October 2007 signed a 25 year concession to develop and operate Senegal's main container port and invest more than USD 600 million in future port expansion. This involves plans to build a new shipping terminal near the Senegalese capital.