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On 28th March 2022, Senegal adopted Decree No. 2024-847, which regulates digital chauffeur/client platforms and the operation of Chauffeur-Driven Vehicles (CDVs).
The expansion of the legal framework for public transport in Senegal, particularly with the regulation of CDVs (Chauffeur-Driven Vehicles), is part of a wider transformation of the urban and intercity transport sector. This transformation is driven by the integration of digital solutions and the digitalisation of procedures, which have significantly changed the way Senegalese people access and use transport services.
In the preamble to the decree, the main objective of the Senegalese authorities is to:
- Allow the legal operation of CDVs: The decree aims to integrate CDVs into the existing legal system so they can operate legally while complying with safety, taxation, and consumer protection standards.
- Prevent unfair competition: One of the key concerns was that the arrival of CDVs could create unfair competition for traditional taxis. The legislative framework is designed to prevent new transport companies from gaining an unfair advantage over traditional sector players.
- Prevent the displacement of traditional taxis: A major issue was to ensure that traditional taxis, which have long played a central role in urban and intercity transport, are not pushed out of the market by the growth of CDVs. The decree seeks to maintain fairness between both categories of transport providers and ensure harmonious coexistence.
This text, which will come into force upon publication in the Official Gazette, primarily addresses the conditions for the operation of CDV platforms, the specific characteristics of CDVs and their drivers, and the tax obligations related to the operation of digital platforms and CDVs.
➢ Conditions for the operation of CDV platforms
The decree governing the operation of digital transport platforms in Senegal outlines the conditions for entities that connect drivers and passengers, as well as the obligations of platforms and transport companies.
Firstly, the transport services provided by these platforms must concern trips within an urban or intercity perimeter, using vehicles with no more than eight seats, outside of public transport or carpooling contexts. Platforms cannot combine this activity with any other professional activity.
A centralised database of platforms and CDVs, managed by the Directorate General of Land Transport (DGTT), allows real-time tracking of active vehicles. Each registered CDV receives a unique identification number and must register with the DGTT to operate legally.
The necessary operating license for the platform’s matchmaking activity is issued by the DGTT after reviewing applications. This license is valid for five years and is granted only to legal entities under Senegalese law, with at least 51% of the capital owned by Senegalese nationals. Companies applying for the license must submit a complete file including administrative, financial, and legal documents, as well as a payment of 15 million CFA francs to the Land Transport Development Fund (FDTT).
The license is personal and non-transferable. In case of refusal, the entity can submit an appeal to provide additional documentation. Any change in the initial conditions for obtaining the license must be reported to the DGTT, otherwise, the license may be revoked.
Platforms may include both traditional taxis and CDVs, but cannot prohibit a taxi from picking up a passenger without a reservation if it is available. A limit of 5,000 vehicles is set for each platform, and transport companies can register no more than 500 CDVs.
Platforms must submit monthly reports to the DGTT regarding the number of active vehicles and trips made. Failure to comply with these regulations can result in fines ranging from 2 to 10 million CFA francs.
➢ Characteristics of CDVs and their drivers
o Characteristics related to CDVs
The operating conditions for CDVs are rigorously defined by a set of technical and operational rules aimed at ensuring safety, transparency, and effective management of the activity.
Chauffeur-driven vehicles, whether traditional taxis or private vehicles registered on a CDV platform, must meet strict criteria regarding type, age, safety, and maintenance.
Firstly, vehicles must be private cars (PC) with 5 to 9 seats, including the driver’s seat.
Depending on the type of vehicle, the maximum permitted age is 10 years for private vehicles and 15 years for taxis. They must have at least four doors and provide a certain level of comfort (including easy access and adequate cleanliness). An operational GPS device is also mandatory. Furthermore, vehicles must display clear signage indicating “CDV” and be covered by insurance that includes both the driver and passengers.
To ensure proper management, each CDV must be registered in a centralised file managed by the DGTT, and periodic technical inspections are required, including a semi-annual check-up for vehicles exclusively dedicated to CDV activity.
CDVs are strictly regulated in terms of their operating mode. They must operate on a reservation-only basis, and a CDV driver cannot pick up a passenger without such a reservation, whether digital, on paper, or via other electronic means. After a trip, a CDV cannot wait on public roads for new passengers, and seeking passengers is prohibited. However, under specific conditions, such as near train stations or airports, CDVs may temporarily park to wait for a reserved client.
Strict penalties are provided for violations, such as failure to have a prior reservation or illegal passenger solicitation, with fines ranging from 100,000 to 500,000 CFA francs, as well as vehicle impoundment and driver’s license suspension for repeat offenders.
For intercity travel, only intercity CDVs can operate trips between two cities, while urban CDVs are limited to operating within the urban area.
These rules are designed to effectively regulate the activity of CDVs, ensuring high standards of safety, transparency, and fair competition among the different players in the land transport sector.
o Characteristics of drivers
The operation of a CDV driver is strictly regulated with specific requirements and
responsibilities. Anyone wishing to operate a CDV must hold a professional licence in the form of a card issued by the DGTT. This card is essential for anyone wishing to engage in this activity.
Before each service, the driver must check the condition of the vehicle, cleanliness, and functionality of essential equipment, particularly the GPS device. They must also ensure that all necessary administrative documents, as per the regulations, are available and in order, ready to be presented during road inspections.
The conditions for access to the profession are strict. The driver must be aged between 25 and 60, hold a Senegalese driving licence with at least five years of experience, and have completed a professional training course specifically for CDV drivers, validated by a certificate.
The professional card is issued for a period of three years and is renewable. It is linked to the validity of the driver’s licence: if the driver’s licence is suspended, the professional card is automatically suspended. If the driver ceases activity, they must return the card to the DGTT. Renewal or reissue of the card is subject to a ministerial decree, which also defines its cost.
Throughout their activity, the CDV driver must present their professional card upon request from law enforcement or authorised agents during road checks. They must also undergo continuous training every three years, covering transport regulations, road safety, customer relations, and conflict management.
CDV drivers are also required to adopt a clean and appropriate dress code and display courtesy towards their passengers and other road users. Inappropriate behaviour (aggressiveness, dangerous driving, etc.) may result in suspension or permanent revocation of the professional card after an evaluation procedure. In case of recurrence, the driver can retrieve their card after attending recovery courses at their own expense.
Thus, the legal framework for CDV drivers in Senegal imposes a series of conditions and checks designed to guarantee safety, courtesy, and professionalism, while regulating access to and the exercise of this activity.
➢ Tax obligations related to the operation of digital platforms and CDVs
The decree introduces a fee system to regulate the operation of digital mobility platforms and CDVs. Two types of fees are established: a fixed annual fee on the operation of the platforms and an annual fee on the trips made by CDVs. The second fee is calculated based on a percentage taken from the fare for trips made, and is related to the total number of trips undertaken during the year by platforms or transport companies.
The exact amount of the fees will be determined by a joint order from the Ministries of Finance, Land Transport, and Digital Economy. The implementation of these fees will begin from the signing of the agreement related to Article 36 of the decree.
The methods of collecting and paying the fees to the Land Transport Development Fund (FDTT) will also be defined by a joint order from the relevant ministries. The funds collected will primarily be used to finance projects related to the management and monitoring of innovative mobility, as well as the modernisation of the transport sector.
These fees are designed to regulate the activity of platforms and CDVs while ensuring that the revenue generated is used to improve and support the land transport sector in Senegal.