As Senegal officially commences the exploitation of its oil and gas reserves, national stakeholders are pushing for local content to become a powerful catalyst for economic transformation.
The goal is to maximize wealth creation, generate employment, and foster a sustainable industrial base. This is the second installment in a three-part series examining the governance of Senegal’s emerging hydrocarbon sector.
With the full-scale exploitation of its oil and gas resources now underway, Senegal is intensely focused on a critical strategic question: how to leverage these natural resources for sustainable and inclusive national development. A clear consensus among various stakeholders points to the necessity of prioritizing local processing and strengthening the national private sector.
This ambition is set against a backdrop of tangible progress. The first barrels of crude oil have been extracted from the offshore Sangomar field, and initial cargoes of liquefied natural gas (LNG) from the Grand Tortue Ahmeyim (GTA) project have been delivered. While these achievements mark a crucial milestone, long-term economic success hinges on the effective implementation of local content strategies.
To that end, Senegal enacted a specific law on local content for the oil and gas industries in May 2022. This legislation aims to promote the utilization of national goods and services across the entire value chain, simultaneously increasing the participation of local labor, technology, and capital. The stated objective is ambitious: to achieve 50 percent local content by 2030, thereby maximizing economic benefits for Senegalese companies and workers.
Empowering the national sector
Mor Bakhoum, Technical Secretary of the National Committee for Monitoring Local Content (CNSCL), under the Ministry of Energy, Petroleum, and Mines, underscores the need for a clear strategic vision. He stresses that implementing local content demands a well-defined national strategy, viewing the challenge as more than just fulfilling contractual obligations; it’s about “empowering” the national private sector to play a central role in the extractive economy.
This sentiment is echoed by Papa Samba Ba, Director of Operations Control and Monitoring at Petrosen Holding, the national hydrocarbon company. He emphasizes the need to “find the right balance” between attracting foreign investment and ensuring tangible benefits for local populations. For Ba, the focus must extend beyond investor-led projects to ensuring revenues are channeled into genuinely “productive” initiatives that modernize key sectors.
A recent protocol signed between Senegal and Mauritania for the GTA project represents a step forward, aiming to harmonize their local content policies and encourage skill-sharing among national companies. Petrosen identifies initiatives like the “Gas to Power” strategy (converting gas into electricity) and the development of industrial sectors such as petrochemicals and metallurgy as foundational to Senegal’s economic transformation.
Civil society and parliamentary perspectives
Civil society is an active participant in this critical debate. A roundtable organized on July 9 by the Observatory for Monitoring Economic Development Indicators in Africa (OSIDEA) brought together experts and institutional representatives to discuss industrialization driven by natural resources. Cheikhou Oumar Sy, OSIDEA’s president, stressed the need for clear and shared planning, advocating for “building a roadmap for the transformation of our raw materials.” He also called for a review of existing contracts and equitable management of exploitation revenues, emphasizing that “the main focus of the discussion revolves around the renegotiation of contracts and the use of resources for the benefit of the population.” Sy also highlighted the necessity of greater community involvement, fair redistribution, and enhanced environmental vigilance.
At the parliamentary level, Ayib Daffé, president of the Pastef parliamentary majority group in the National Assembly, acknowledges that the concrete results of local content implementation remain limited. “There is a law, an institutional framework, but the impact is limited. Much more needs to be done to ensure our national companies benefit from it,” he declared.
Seven months into the 15th legislature, the parliamentary energy committee has conducted several field visits and consultations, though no legislative reforms have yet been proposed. Mr. Daffé nevertheless announced that “the oil, gas, and mining sector will be a priority in the evaluation of public policies” and indicated the potential for commissions of inquiry, particularly concerning transparency in revenue distribution.
As Senegal steps into the circle of hydrocarbon-producing nations, expectations are high. While a legal framework is in place, its successful implementation demands concerted coordination among the state, private sector, local authorities, and civil society. The shared imperative is clear: oil and gas must serve not as a transient revenue source, but as a lasting opportunity for comprehensive economic transformation benefiting all Senegalese citizens.