Will Senegal leverage oil to transform its economy? [Business Africa]

Oil: Economic Rebirth in Senegal?

Senegal has entered the league of oil-producing nations with the first barrels extracted from the Sangomar field off Dakar on June 10. This project, requiring $5 billion in investment, targets 100,000 barrels per day. Ameth Guisse, CEO of Maak Petroleum Company, sees it lowering energy costs and enhancing competitiveness.

Concerns linger over the exploitation contracts. Currently, Australian company Woodside holds 82% of Sangomar, leaving 18% to Senegal, with profits ranging from 15% to 40%.

Senegalese economist Ousmane Dieng highlights the financial windfall aiding double-digit growth and local economy funding, stressing the need for strategic public policy priorities.

President Bassirou Diomaye Faye promises transparency and audits in mining, oil, and gas sectors. Prime Minister Ousmane Sonko vows equitable terms for Senegal against multinational corporations.

Dieng urges swift local refining and production capacity expansion to impact energy costs. Sangomar anticipates over $1 billion annually for Senegal for three decades. Concurrently, Greater Tortue Ahmeyim aims 2.5 million tons of LNG yearly on the Mauritania border.

These mark Senegal's significant economic shift, promising substantial growth prospects.

Air Travel in Africa: Costly Challenge

Traveling across Africa remains complex and expensive due to intra-African flight challenges. Passengers often detour through Europe or the Gulf, inflating costs, among the world's highest.

In 2021, African passengers paid $50 in taxes, versus $30 in Europe and the Middle East. Only 19% of potential 1,431 routes among AU's 54 countries had weekly direct flights, per IATA.

SAATM initiatives since 2018 slowly promise 81% traffic surge, €1.3 billion and 155,000 jobs, attracting foreign investors like Qatar Airways in RwandAir.

Zimbabwe: Blooming Horticulture

Southern Africa faces severe El Niño-induced drought, hurting agriculture.

In Zimbabwe, horticulture booms with small-scale farmer Clarence Mwale's Kuminda assisting 2,500 for exports and training amid drought-acknowledged growth by the Agriculture Ministry.