Report In Senegal, the new leaders want to renegotiate contracts signed with foreign companies, particularly for the management of natural resources

A committee in charge of the subject was set up on Monday, in line with a campaign promise by the new authorities elected in April, to prepare to renegotiate the conditions of contracts made with the private sector in certain strategic sectors.

It was one of the great promises of the victorious campaign of the duo Bassirou Diomaye Faye and Ousmane Sonko during the presidential election in Senegal : renegotiate contracts signed with foreign companies in strategic sectors, particularly energy resources. Contracts which, according to the new authorities, who came to power at the beginning of April, are not favourable enough for Senegal. A group responsible for steering operations on the subject was installed on Monday 19 August.

The committee, made up of legal, tax and energy sector experts, will first have to familiarise itself with many contracts because things must be done carefully, insists Senegalese Prime Minister Ousmane Sonko. : “Contrary to what some have said, the logic has never been to raze everything, or even nationalize as some think. The logic is to work in a rigorous, methodical manner.”

The announcement comes as much-anticipated new oil and gas facilities in the country, co-financed with foreign partners, begin operating. The move is therefore a new economic direction, but not only according to Abdoulaye Ba, program officer at the Natural Resources Governance Institute, NRGI : “It is really an approach that goes in the direction of repositioning the interest of the State of Senegal in the management of its natural resources by providing itself with the best possible advantages : whether economic, social or environmental.”

For the Senegalese authorities, the stated objective is to return to the negotiating table with companies well prepared. “This is a tedious task which will allow the State to have the means to pose or impose the discussion with the partners to rediscuss, reorient these different conventions”explains Ousmane Sonko.

But the way in which exchanges with companies will be conducted is not without risks and represents a real challenge for the authorities according to Abdoulaye Ba, of the NRGI. : “If the State negotiates badly or if there are suspicions of corruption, if this process does not take into account the principles of governance and transparency in the management of extractive resources, there may be a risk for Senegal.”

“It is up to the State to safeguard its image to attract investors.”

Abdoulaye Ba, program officer at the Natural Resources Governance Institute

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The fear of seeing foreign partners no longer invest, or even disengage from Senegal, is the main argument taken up by critics of the government and this new committee. At the beginning of the year, Macky Sall, who was still President of the Republic, even stated that these renegotiations would have “disastrous economic consequences”.