How is Senegal catalyzing growth through regional integration?

With a favorable geographical position on the westernmost point of Africa, an abundance of natural resources, and strong political leadership and stability, Senegal is set to transform its economy through the development of its energy sector. The country is endowed with vast natural resources, including significant natural gas reserves and renewable energy sources, and has committed to the diversification of its energy mix to meet rising energy and electricity demand. With a clear presidential vision in which the energy sector is seen as a key driver of economic growth, H.E. President Macky Sall is pursuing increased investment in Senegal’s growing energy industry. Through the promotion of an attractive business environment, the implementation of industry supportive regulation, and an integrated sectoral approach, H.E. President Sall is transforming the country into an energy hub.

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Senegal boasts immense oil and gas discoveries offshore, estimated at more than 1 billion barrels of oil and 40,000 cubic feet of natural gas. The country has prioritized the exploitation of these resources through the development of the Greater Tortue Ahmeyim project, the deepest offshore project in Africa. The project aims to develop approximately 10 million tons of Liquified Natural Gas (LNG) per year from the offshore basin on the border with Mauritania and expects commercial production to commence in 2022. In addition to LNG, Senegal shows significant renewable potential and is focusing on the sector as a power generation solution. Since 2014 the country has commissioned eight solar plants; launched the Taiba N’diaye wind farm in 2020 and is capitalizing on its 1,400MW hydropower potential. By focusing investment in the renewable sector, H.E. President Sall aims to dramatically transform the country’s energy mix.

In a bid to transition the country into an emerging economy by 2035, Senegal has enacted the Plan Senegal Emergent (PSE) 2023, a comprehensive ten-year strategy that focuses on the structural transformation of the economy, human capital and sustainable development, and governance, peace and security. Notably, the PSE sets access and cost of power as primary areas of investment. With access to electricity currently estimated at 66.9% of the population in 2020, and government objectives to increase this figure to 100% by 2025, the government has made power generation and distribution a key component of the PSE. Accordingly, the country aims to significantly increase its renewable energy and natural gas capacity, capitalizing on these abundant resources as a power generation alternative, and expanding grid connectivity across the country. By stimulating investment in power generation – in which a range of opportunities are present – Senegal aims to meet rising demand through domestic supply.

What makes Senegal such an attractive investment destination lies not only in its own developments, but in the number of growing regional developments surrounding the country. Developments including Morocco and Algeria’s multi-million-dollar solar projects, Côte d’Ivoire’s hydropower opportunities, Gambia’s recent exploration initiatives and Guinea’s new hydrocarbons policy are enacting regional industry growth. Through regional integration and collaboration, specifically regarding joint project development with neighboring countries, Senegal is not only spurring growth across the regional energy value chain, but is driving a post-COVID-19 economic recovery through regional job creation, industrialization, and infrastructural developments. Accordingly, projects such as the Grande Tortue Ahmeyim LNG project and Niger’s pipeline project demonstrate regional cooperative success.

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In response to the increasing regional opportunities, and to reaffirm Senegal’s position as a central energy hub, Africa Oil & Power (AOP) will host the first-ever MSGBC Oil, Gas & Power 2021 conference and exhibition on 26-27 October 2021 in Dakar. The event will be hosted by AOP, under the auspices of H.E. President Macky Sall, and in partnership with the Ministry of Petroleum and Energy, COS Petrogaz, Petrosen and various United U.S. and Canadian energy industry associations. Representing the official networking and investment platform for the region’s energy industry, MSGBC 2021 will unite major energy players from Mauritania, Senegal, Gambia, Guinea-Bissau and Guinea, as well as industry leaders and executives from Algeria, Morocco and Côte d’Ivoire. By hosting investor delegations from the U.S., Australia, Europe, Asia, and the Middle East, MSGBC 2021 will be the elite energy gathering for one of Africa’s more compelling energy investment destinations.

MSGBC will take place with full support and endorsement by Senegal’s government and the U.S.-Africa Committee of the African Energy Chamber, and currently represents the only energy event in Senegal with full government support that presents national and regional opportunities across all facets of the energy sector. With a program focused on the entire energy value chain – representing oil and gas exploration, renewable energy developments, local goods and service provision, infrastructure, finance, and power production and distribution -, MSGBC 2021 prioritizes investment and growth on a regional basis.