The verdict in three sentences
For a 25-user Dakar SMB, a European vertical SaaS at 89 EUR per user per month costs about 80,000,000 FCFA (122,000 EUR) over three years once modules, integration and FX fees are added. A custom build costs 25,000,000 to 45,000,000 FCFA (38,000 to 69,000 EUR) plus 600,000 FCFA per month of maintenance, i.e. 46,600,000 to 66,600,000 FCFA over the same period. Custom wins when Senegalese tax rules, FCFA payments and specific business processes weigh heavily; SaaS wins when the need is standard and urgent.
The real three-year total cost
The manager of a pharmaceutical distribution company in Dakar, backed by a London investor, is testing a French SaaS for sales management and batch traceability. The list price looks reasonable, but total cost of ownership tells another story.
| Item over 36 months | Vertical SaaS (FCFA) | Custom build (FCFA) |
|---|---|---|
| 25 user licences (89 EUR/month) | 52,500,000 | 0 |
| Add-on modules (stock, batches, e-invoicing) | 8,900,000 | included |
| Setup and accounting integration | 6,000,000 | included |
| Tax adaptation (18 % VAT, DGID, local formats) | 5,000,000 | included |
| Bank and FX fees (about 3 % per euro payment) | 2,100,000 | 0 |
| Training and premium support | 5,500,000 | 2,000,000 |
| Initial development | 0 | 25,000,000 to 45,000,000 |
| Maintenance (600,000 FCFA/month) | 0 | 21,600,000 |
| 3-year total | about 80,000,000 | 48,600,000 to 68,600,000 |
From year four, the gap widens: the SaaS keeps billing about 22,000,000 FCFA a year, while custom software only costs maintenance, 7,200,000 FCFA a year. However, if the SMB has only 8 users, SaaS remains clearly cheaper.
The eight-criterion decision framework
Score each criterion from 1 to 5 by its importance to the business. If the weighted total leans more than 60 % toward one column, the decision is clear.
| Criterion | Favors vertical SaaS | Favors custom build |
|---|---|---|
| Number of users | Under 10 | Over 20 |
| Time to go live | 2 to 6 weeks | 3 to 6 months |
| Business specificity (batches, expiry, regulator) | Low | High |
| Senegalese tax rules and formats | Rarely native | Built in from day one |
| Supplier and customer payments via Wave or Orange Money | Missing or via plugin | Native |
| Data ownership and hosting | Vendor-side, in Europe | Yours or in Africa |
| Cost beyond 3 years | Rising | Falling |
| Vendor lock-in | High (price increases possible) | Low if code is handed over |
In pharmaceutical distribution, three criteria often outweigh price: batch traceability required by the regulator, mobile money collection from pharmacies, and invoicing that meets DGID expectations.
Risks to manage in each scenario
With SaaS, the main risk is annual price increases, often 5 to 10 %, and no Africa roadmap. With custom, the risk is a vendor that disappears: require source code assignment, a Git repository in your name, technical documentation and a maintenance contract with a 4 business-hour response time for blocking incidents. A hybrid approach also exists: keep accounting on standard software and build only the business core (orders, batches, delivery), bringing the budget down to 18,000,000 to 28,000,000 FCFA.
Mini case study
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Mr. Ndiaye runs a pharmaceutical distributor in Dakar with 25 connected staff. The tested SaaS would cost him 80,000,000 FCFA over three years. He picks a 38,000,000 FCFA custom build with 600,000 FCFA monthly maintenance: 59,600,000 FCFA over three years, saving 20,400,000 FCFA (about 31,000 EUR). With built-in Wave collection, his average collection period across 140 pharmacies drops from 45 to 21 days, freeing about 15,000,000 FCFA of working capital, a figure his London investor tracks quarterly.
FAQ
From how many users does custom become profitable?
As a 2026 order of magnitude, beyond 15 to 20 users on a SaaS above 60 EUR per month, custom becomes competitive over three years. Under 10 users, SaaS is almost always cheaper.
How long does custom business software take?
Plan 3 to 6 months for a 25,000,000 to 45,000,000 FCFA scope, with a first production-ready version by month three.
What does 600,000 FCFA monthly maintenance cover?
Bug fixes, security updates, server monitoring and about 4 to 6 days of small enhancements per month.
Does a European SaaS comply with Senegalese data law?
Law 2008-12 regulates transfers of personal data outside Senegal and may require a filing with the CDP. Controlled hosting simplifies compliance.
Can we start on SaaS and move to custom later?
Yes, provided all data can be exported. Check the reversibility clause before signing.
Let's scope your project. Describe your users, processes and tax constraints, and we will price custom software between 25,000,000 and 45,000,000 FCFA with maintenance, delivered in 3 to 6 months. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.