5 Sectors to Benefit from Oil and Gas Development in Senegal

WOODSIDE ENERGY OIL SENEGAL

Senegal has officially become an oil-producing country with production starting at the Sangomar field in June 2024. First gas production from the Grande Tortue Ahmeyim (GTA) field – developed by international oil companies bp and Kosmos Energy – is also expected to come online before the end of 2024. These developments are expected to drive Senegalese economic growth – which has been revised upwards to 10.1% in 2025 – while supporting the development of other strategic sectors across the country through increased revenue. 

Renewable Energy

Senegal joined a Just Energy Transition Partnership with France, Germany, the EU, the UK and Canada in June 2023, securing up to $2.69 billion over three to five years for clean energy development. This initiative includes comprehensive renewable energy studies in eight regional centers, the construction of new high-capacity renewable power stations, the introduction of green hydrogen production and support for the photovoltaic industry. Additionally, Senegal plans to enhance its hydropower capacity by 400 MW by 2030, leveraging the Gambia and Senegal rivers. The government plans to leverage revenue and capacity from the extractive sector to increase the share of renewables in the energy mix to 40% by 2030.

Power

The state-owned utility company Senelec has reached 50% completion of its network modernization and reinforcement project as of June 2024. Senegal aims to achieve universal access to electricity by 2030, tapping into hydrocarbon resources to boost power developments. To this end, several gas-to-power plants are under construction and are expected to be operational by 2026, including the 300 MW Cap des Biches plant, the 540 MW Sandiara plant and the 120 MW Malicounda plant. The government is also building pipelines to transport associated gas from Sangomar and eventually from Yakaar Teranga – a Kosmos Energy-led offshore gas project.

Agriculture

The government unveiled a plan in May 2024 to establish Agropoles – zones dedicated to agricultural development – in each province of the country over the next five years. These agropoles will feature farms, cultivation areas and agro-industrial spaces and are expected to be funded by revenue from the hydrocarbon sector. This initiative aligns with President Bassirou Diomaye Diakhar Faye’s vision to make agriculture a cornerstone of Senegal’s food sovereignty. The goal is to boost production, achieve food self-sufficiency and reduce dependence on imports, particularly rice.

Transport

Senegal launched the World Bank-funded bus rapid transit project in May 2024 aimed at alleviating urban congestion. This initiative is part of Senegal’s broader efforts to modernize infrastructure, driven by increased goods mobility and hydrocarbon exports. Key projects include a new international airport, improvements to the road network, a toll highway and a railway expected to be connected to the airport by 2025. Senegal is also enhancing its railway sector through Grands Trains du Senegal, a project aimed at rehabilitating 209 km of rail, constructing stations and depots and acquiring rolling stock and terminals – all aimed at boosting logistics efficiency and restoring historical rail links, including to Mali.

ICT

Senegal’s Digital Senegal 2025 strategy aims to increase the digital economy’s GDP contribution from 3.5% to 10% by equipping citizens with internet skills. This long-term plan prioritizes digital skills development, particularly for rural residents. Despite progress, 42% of the population lacks internet access. Key to this transformation is the Diamniadio Technology Park, set to host ICT firms and data centers. This flagship project – part of the Emerging Senegal Plan which aims to achieve emerging status for the country by 2035 – will be partially funded by financial returns from the Sangomar and GTA projects.

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Onur Yilmaz

Onur Yilmaz

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