With the election of Bassirou Diomaye Faye as president in April 2024, Senegal is entering a new era full of promises that could affect the country’s oil and gas.
Indeed, driven by the discovery of vast offshore oil and gas reserves, this West African country could position itself as a key emerging player on the global energy scene.
However, this windfall will only be fully beneficial if it is managed judiciously and sustainably.
Projections show substantial tax revenues for the Senegalese state, potentially reaching 6 to 7% of GDP over the next two decades.
Considerable financial leverage to invest in infrastructure, education and essential public services. At the same time, the exploitation of natural resources should create thousands of direct and indirect jobs, stimulating local economic activity.
Beyond the financial benefits, this energy boom represents a unique opportunity to diversify the country’s productive sectors, currently very dependent on agriculture and the informal sector.
Developing manufacturing, tourism and technology sectors would reduce exposure to the vagaries of global raw material prices.
However, this transition to an oil and gas economy carries notable risks to be avoided.
Transparent and inclusive revenue management is essential to counter the pernicious effects of “resource curse”. It is also crucial to invest massively in the training of a qualified workforce capable of meeting the needs of these new industries.
Finally, the preservation of the marine and coastal environment must remain an absolute priority in the face of the expansion of offshore extractive activities.
Sustainable exploitation of oil and gas, while respecting the strictest environmental standards, is the only way for Senegal to take full advantage of this unprecedented energy potential.
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