Senegal seeks to learn from the mistakes of other African countries and reverse the “resource curse” – OpEd – Eurasia Review
Senegal recently organized a well-representative meeting to seek dialogue with a cross-section of civil society leaders, experts from different economic sectors and public and private business leaders for oil and gas revenue management, of the country’s hydrocarbons and energy resources. in the countryside.
Senegal, located on the West African coast, has approximately 15.9 million inhabitants. While the economy is primarily driven by mining, construction, tourism, fishing, and agriculture, it derives state revenue from the exploitation of certain natural resources. These revenues largely constitute the national budget.
With the greatest ambition and the greatest desire of all Senegalese to benefit and prosper from the natural resources of their country, President Macky Sall has demonstrated his determination to implement reforms to exploit Senegal’s hydrocarbon potential. The decision to come up with a framework that will require accountability and transparency in the management of resources to ensure that oil and gas production will be conducive and meaningful to the well-being of the entire nation.
Senegal seeks to learn from the mistakes of other African countries in an attempt to reverse the so-called “resource curse” that plagues many African oil and gas producing countries. In another demonstration of public opinion mobilization, such a large meeting was called to brainstorm ideas and integrate them into a national development agenda.
“It is extremely important to remind you today that we remain convinced that the promotion of a participatory, multi-institutional and collaborative approach is imperative for competent governance and guaranteeing sustainable prosperity,” said President Macky Sall of the Republic of Senegal.
Under this new legislation, the citizens of Senegal will have a seat at the table, with civil society playing a leading role in driving the debate around the monetization of the country’s oil and gas industry. This historic act will guarantee a spin-off economy that guarantees investments in petrochemicals, agriculture, electricity, gas and transport, thus developing the economy and facilitating the creation of many jobs for Senegalese citizens.
While the undeniable impacts of climate change continue to be taken into consideration, Senegal is committed to the eradication of energy poverty, and notes that the development of the nation must be a priority, and this will be done through oil. and gas.
On the way to catalyzing Senegal’s economy, oil and gas exploration and production are at the forefront of providing efficient and low-cost energy solutions in line with the main objectives of the Plan for an Emerging Senegal. Thus, with the country’s first oil production scheduled for 2023, President Macky Sall has put in place the necessary mechanisms to strengthen revenues from exploration and production of hydrocarbons for the benefit of Senegalese civil society.
The Senegalese Presidential Council is however praised for the distribution and the supervision of the management of the revenues derived from the exploitation of hydrocarbons. It marks an important step towards the will of the leader that oil and gas are conducive to the well-being of all the Senegalese people. It further shows the efforts made to involve civil society in important issues relating to socio-economic growth.
Abdoulaye Wade’s decision to run for a third presidential term sparked a public backlash that led to his defeat to current President Macky Sall. His election was mainly due to the support of broad-minded democratic groups. The 2016 constitutional referendum limited future presidents to two consecutive five-year terms. In February 2019, Macky Sall won his candidacy for re-election; his second term will end in 2024.
Reports show that Senegal is committed to harnessing its oil and gas resources to stimulate socio-economic growth and support a national development model – the Emerging Senegal Plan. Senegal works in collaboration with external and regional partners to position itself as a competitive hydrocarbon producer on a global scale. In 2021, the country recorded several significant achievements regarding its two main energy projects, according to reports provided during African Energy Week (AEW) held in Cape Town, South Africa.
As one of the main natural gas markets in Africa, with more than 450 billion cubic meters of reserves, Senegal is actively pursuing the expansion of its industry with the aim of making the country a producer and exporter of gas. regional.
Senegal’s National Oil Company (NOC), for example, has advanced the industry. With a stake in all upstream hydrocarbon business activities, the company has accelerated exploration and production of oil and gas, effectively positioning Senegal as a regional gas hub and global competitor.
The company has effectively navigated the global pandemic, improving industry activities and introducing key investment opportunities for international stakeholders and leading a solid discussion on Senegal’s role in Africa’s energy future.
Its largest project, the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project, is the continent’s deepest offshore project and is expected to release around 15 trillion cubic feet of gas. Jointly developed by BP, Kosmos Energy, SociÃ©tÃ© des PÃ©troles du SÃ©nÃ©gal (Petrosen) and SociÃ©tÃ© Mauritanienne des Hydrocarbons (SMHPM), with BP as operator, the project has set a high standard for other African gas markets seeking to improve their development. .
Senegal maintains mostly cordial relations with its neighbors – Guinea, Guinea-Bissau, Mauritania, Mali and The Gambia. It is a member of the Community of Sahel-Saharan States and also belongs to the regional bloc of 16 members, the Economic Community of West African States (ECOWAS).