COUNTRY IN FOCUS
A number of greenfields projects are appearing in the Birimian belt of Senegal.
interest from industry actors. In 2017, mining activity
generated USD167.8-million or 89.2% of extractive industry
revenue. Most of the activity was carried out at the
Faleme iron ore mine by Turkey-based Tosyali
Holdings,” she says.
According to independent consultant
Nicolaas Steenkamp, preference is
given to companies that offer the
best conditions and guarantees
to government when applying
for exploration licences. He says
that the tax provisions in the
2003 mining legislation were
also moved to the general
tax code of 2012. “The 2012
code introduced changes to
royalty from 3% to 5% and tax
calculations and the introduction
of production share agreements.
It also encourages sourcing of
local skilled services and goods,”
Steenkamp explains.
Mbulle-Nziege mentions further that
in November last year, a situation
emerged in which Senegal’s urban
water management contract was
granted to France-based Suez
at the expense of the previous
service provider, Senegalaise
des Eaux (SDE) a branch of
France-based Eranove. SDE
accused the water and energy
ministry of flouting the process
as they had presented the best
financial offer. The decision
went through an appeal until
Suez was confirmed in June.
“Issues of grand
corruption come to the
fore periodically. Nevertheless,
Senegal is a country which
is significantly less exposed
than many of its African
counterparts.
Politics affect the economy
Mbulle-Nziege says that Senegal’s main economic risks
are linked to the country’s politics. “In the past these have
led to asset expropriation and political intervention in
the commercial operations of foreign-owned companies.”
Moreover, corruption continues to be a headache. In October,
www. africanmining.co.za
opposition MP Ousmane Sonko accused the Senegalese
government of granting a mining concession to Tosyali
Holdings on terms which were unfair to the Senegalese
state as well.
African Mining Publication
“Issues of grand corruption come
to the fore periodically. Nevertheless,
Senegal is a country which is significantly
less exposed than many of its African
counterparts,” says Mbulle-Nziege.
Low to moderate political risks
Ott regards the political risk in Senegal as low to moderate
with relative stability in terms of risk trends and developments.
African Mining
African Mining February 2020
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