Faced with the prospect of oil and gas production, the ‘Mouvement des Entreprises du Senegal’ (Employers’ Associations, MDES MDES) is calling for the country’s natural resources to be “fully appropriated.”
Long regarded as a poor, heavily indebted country, Senegal is preparing to become an oil and gas state. The Senegalese are pinning their hopes on the exploitation of these hydrocarbons, which could remove many of the “obstacles” to the country’s socio-economic development. This development is undermined by youth unemployment (75 percent of Senegal’s population is under 25 years of age), limited access to finance for small and medium-sized enterprises and regional disparities in development.
Aware of this situation, the ‘Mouvement des Entreprises du Senegal” invited the Senegalese government and a number of development players to Dakar on Thursday 14 September, for the 22nd edition of its ‘Assises économiques,’ to reflect together on how to “shape a radiant economic future for our beloved country.”
“In these times of global challenges and constant change, it is imperative that we, economic players and decision-makers, join forces to meet the challenges facing us. Senegal is rich in resources and potential, and it is up to us to transform these assets into engines of sustainable and inclusive growth,” declared MDES President Mbagnick Diop, opening this meeting on the theme of “Ownership or appropriation of natural resources for sustainable economic and social development.”
Speaking before former Prime Minister Mouhamed Boun Abdallah Dionne, university professors and many of the country’s economic players, Mr. Diop said that Senegal’s private sector had a “pivotal role” to play in this transformation. “As the private sector, we must work together to create an environment conducive to innovation, investment and job creation. This requires courageous structural reforms aimed at simplifying administrative procedures, strengthening the rule of law and promoting transparency in business,” he stressed.
Noting that “this is a very topical issue” for Senegal, Mouhamed Boun Abdallah Dionne, Prime Minister from 2014 to 2019, said that his country should “draw inspiration” from the Norwegian model. According to him, this Scandinavian country, rich in natural resources, such as oil, natural gas and iron ore, “has made its resources its own” by managing to overcome the “extraversion” of the wealth derived from their exploitation. This is not often the case in Africa, where foreign mining companies repatriate their profits, lamented the former head of government.
“It is important for sub-Saharan countries to adopt winning strategies” to avoid the syndrome of “rich countries with poor people” that symbolizes many of the continent’s nations, Mr. Dionne advocated. “And for hydrocarbons to generate revenue for a country, governments must hold a significant share” of the companies” revenues, he concluded.
