The government of Senegal has launched one of its most significant resource sector reforms in recent years, revoking 71 mining licences, freezing corporate accounts linked to a major industrial operator and questioning the fairness of a major offshore gas agreement.
The sweeping overhaul was announced by Prime Minister Ousmane Sonko, who said the government is reviewing a number of resource contracts signed under previous administrations to ensure that the country receives fair economic benefits from its natural wealth.
Among the most controversial aspects of the reform is the government’s criticism of the gas agreement linked to the Greater Tortue Ahmeyim gas project, a major offshore development operated by energy giant BP.
The Greater Tortue Ahmeyim project, located offshore between Senegal and Mauritania, is one of the largest natural gas discoveries in West Africa in recent years and is expected to play a major role in the region’s energy sector.
However, Sonko said a government review concluded that the contract governing the project was heavily unbalanced and economically disadvantageous to Senegal.
“The contracts that have been signed are unfair contracts, which we intend to discuss in detail,” Sonko said during a televised address, signalling that negotiations with international partners may be reopened.
The government’s actions form part of a broader effort to strengthen Senegal’s financial position while ensuring that revenues from natural resources contribute more directly to national development.
Authorities have also frozen the bank accounts of a subsidiary linked to Singapore based industrial group Indorama Corporation until it settles an outstanding debt of approximately €380 million, equivalent to about 438 million dollars, owed to the state.
The frozen accounts are connected to Industries Chimiques du Sénégal, a major industrial operator involved in phosphate processing. Government officials say the measure will remain in place until the debt is repaid.
In addition to the financial dispute, the administration has revoked 71 mining licences after determining that several companies had failed to comply with contractual obligations or regulatory requirements.
The decisions come as Senegal faces mounting economic pressures. According to the International Monetary Fund, the country’s public debt reached approximately 132 percent of gross domestic product by the end of 2024 after a government audit revealed that some debt figures had previously been misreported.
Following the discovery of the discrepancies, the IMF suspended its lending programme to Senegal while authorities worked to clarify the country’s financial position.
The resource sector review is therefore being presented by the government as part of a wider strategy to rebuild public finances, improve transparency and reduce the cost of energy for both industries and households.
Sonko has argued that renegotiating certain contracts could allow Senegal to secure more favourable terms for gas production and potentially lower domestic energy costs.
The reforms are also linked to broader fiscal measures aimed at reducing government spending. The administration has announced plans to close 19 public agencies as part of cost cutting efforts designed to stabilise the national budget.
Economic tensions have already triggered social unrest in parts of the country, including strikes by teachers and protests at universities over delayed student financial aid payments.
Analysts say Senegal’s actions reflect a growing wave of resource nationalism across Africa, where governments are increasingly reassessing agreements with foreign investors in the mining and energy sectors.
Earlier this year, Niger revoked licences held by several mining firms after alleging contract violations, while countries such as Ghana and Zambia have introduced stricter regulations aimed at capturing a larger share of revenues from natural resources.
Experts say these policy shifts are partly driven by rising domestic expectations that Africa’s mineral wealth should deliver more direct economic benefits for local populations.
They also reflect growing competition among global companies seeking access to strategic commodities such as natural gas, rare earth minerals and industrial metals.
Despite the tougher stance, Senegal’s government has emphasised that it remains open to foreign investment and intends to maintain partnerships with international energy and mining companies.
However, officials have made clear that existing contracts will be scrutinised to ensure that they align with the country’s economic interests.
The government’s actions send a strong signal that Senegal intends to assert greater control over its natural resources while pursuing reforms aimed at improving fiscal stability and strengthening long term economic sovereignty.
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