MIGA has issued a guarantee of $9.29 million covering an investment by Cotecna Inspection SA (Cotecna) of Switzerland in its Senegal Liaison Office. The coverage is for a period of three years against the risks of transfer restriction, expropriation, breach of contract and war and civil disturbance.
The project involves the provision of import verification services to importers on behalf of the Government of Senegal. Cotecna will provide the services under a 3-year Build-Operate-Transfer contract, which will include the provision, installation, and operation of X-ray scanners and goods in-transit tracking equipment, as a key part of the import verification system for goods entering Senegal.
The import verification services will consist of a risk assessment and the identification of the dutiable value and customs classification of each consignment. Where indicated by the risk assessment, an X-ray scanning of containerized imports at the main ports of entry will also be undertaken to verify their conformity with the import declaration.
Destination Inspection (risk assessment followed by scanning and/or physical inspection) is expected to significantly reduce the clearance time of import consignments at the points of entry, as well reduce opportunities for pilferage or damage to goods on arrival. This will in turn contribute to lowering the cost of doing business for importers and their clients.
A more rapid and effective assessment of the customs value of imports is expected to result in protecting or even raising government revenues from import duties and taxes. Moreover, the transparent audit trail provided by the import verification system can be effective in fighting duty evasion and issues in governance, which will also contribute to increasing revenue from duties and taxes.
The project will create jobs for the local population, provide transfer of technology and skills, and contribute to better governance and enhanced fiscal management in the country by creating a transparent documentation trail of trade activities.
This project is aligned with MIGA’s strategic objective of promoting investment in Africa.
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