During the meeting in Washington with Senegal’s financial partners, the government mission was confronted with an unexpected requirement from the International Monetary Fund (IMF). He called for an urgent review of the 2024 budget, casting doubt on the viability of projected revenues from oil exploitation.
This questioning constitutes a serious blow for Senegalese public finances, which were counting on substantial revenues from oil for this year. However, hopes were dampened by less optimistic prospects for the effective start of oil production, reports Le Quotidien.
Initial forecasts anticipated significant revenues, estimated at 888 billion CFA francs over the period 2023-2025, from oil exploitation. However, operational reality appears to belie these expectations, with delays expected in the start of production, due to technical constraints during the initial testing phase.
International oil companies, already involved in the project, are expressing concerns about the future of their investments in Senegal. Recent speeches by the new Senegalese President, Bassirou Diomaye Faye, and his Minister of Oil, Energy and Mines, on the renegotiation of mining contracts, have sowed distrust among investors.
According to the newspaper, this situation raises questions about the stability of relations between Senegal and its economic partners, particularly in Mauritania where the sharing of gas resources is at stake. Uncertainties surrounding audits and possible contractual revisions add obstacles additional benefits to the future exploitation of hydrocarbon resources.
While Senegal and Mauritania harbor hopes of economic development thanks to their gas reserves, international pressure to reduce the exploitation of fossil fuels continues to weigh. The ability of President Bassirou Diomaye Faye to defend the country’s interests on the international stage remains a key question in this complex context.
Senegal faces major economic and political challenges, requiring prudent and strategic management of its natural resources to ensure sustainable and equitable development.
