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The Case Against Senegal

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February 04, 2010 – Comments (0) | RELATED TICKERS: MICC.DL

A must-read on Millicom's experience in Senegal. The title says it all: The Joy Of Doing Business In Africa: How Corrupt Senegalese Politicians Tried To Shake Down Millicom For $200 Million

The summary is:

Millcom has a license to do business in Senegal.
Senegal wants $200mm or else they will revoke said license.
Millicom counters to "renegotiate" and pay $20mm so the license also covers 3G (which it may already do).
Senegal says no, spitting at Millicom's investment in the country and the jobs it creates
Millicom takes the case to arbitration
The Sengalese government spends lavishly on parties and a $70 North Korean-made statue while most of the country's population lives in abject poverty.
The U.S. contemplates giving Senegal $540mm in aid, one of the requirements of which is good governance.

Ha!

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