Senegal is full of natural resources discovered between 2014 and 2017. The key recent discovered resources are oil and gas. Reserves are estimated at around three billion barrels for oil and 450 billion cubic meters for gas. Actual exploitation is planned for 2024, thus promoting Senegal’s entry into the restricted circle of oil and gas producers’ countries. Revenue projections are estimated at more than $828 million per year.
Some key points to consider with the exploitation of these resources:
Economic contribution: The oil and gas sectors are expected to generate big returns in Senegal. In 2024, real GDP growth is expected to reach 8.8%. This represents a significant opportunity to finance national development.
Reduction of the energy bill: The exploitation of oil and gas will allow Senegal to reduce its dependence on energy imports. Today 90% of electricity production comes from imported fossil fuels. And according to the IMF the cost of this public support for the sector would represent 2% of GDP.
Governance and transparency: The financial revenues expected from oil and gas exploitation give rise to debates on governance and income redistribution. It is therefore imperative to guarantee transparency in the exploitation and management of these resources.
Senegal also has a great diversity of mining potential. This is the case, among others, for ores such as gold, iron, phosphate, zircon and titanium. Exploitation in this sector had been limited to phosphate since 1960 and constituted an important pillar of the economy. Today, the exploitation of other minerals is progressing; however, the country is not making the most of it. Hence, the need for a global review of the terms of the partnership with mining companies and other private organizations.
There is hope with the new presidential regime put in place in April 2024, which had made it an electoral promise. The government of Senegal is committed to working for good governance and transparency in the exploitation of these resources so that populations can benefit from their benefits in the areas of health, education and economic growth, job creation, infrastructure improvement and other public investments.
Sources
- www.itie.sn/apercu-du-secteur
- Sénégal : pétrole, gaz et emploi seront les priorités du prochain président (theconversation.com)
- www.cncd.be/L-exploitation-des-hydrocarbures?lang=fr
- www.cncd.be/L-exploitation-des-hydrocarbures?lang=fr
- au-afrec.org/fr/senegal
- www.proparco.fr/fr/actualites/grand-angle/le-senegal-veut-semanciper-du-tout-petrole