To attract further interest in Senegal’s Special Economic Zones (SEZs), heads of investment management company APIX and Senegalese Customs recently visited the Sandiara SEZ to encourage private sector companies to participate in the country’s economy.
With aims to combat power outages, lower electricity costs, stimulate economic growth and enhance cooperation in the MSGBC region, Senegal’s Sandiara SEZ is poised to result in the creation of approximately 20,000 jobs, while attracting over $200 million in investment. The Sandiara SEZ will target activities in the industry, agribusiness, information and communication technologies, logistics and energy sectors and falls in line with Senegal’s ambitions to achieve economic emergence by 2035.
Gas-to-Power Initiative
With construction poised to commence this year, the Sandiara gas-to-power facility will feature a nameplate capacity of 360 MW, utilizing natural gas resources from Senegal’s upcoming Greater Tortue Ahmeyim conventional gas development and Yakaar-Teranga gas project. The plant will be situated in the Sandiara SEZ and provide electricity to the state utility Senelec under a 25-year power purchase agreement. Due to start operation by 2026, the project is currently in its permitting stage and is being developed by engineering firm TSK, in collaboration with consulting firm LFR Energy. The combined-cycle gas turbine power plant will have an annual production capacity of 2,900 GWh, with surplus energy set to be exported to neighboring West African countries.
Industrial Development
Last year, manufacturing company Hercules finalized the construction of an oil and tire recycling plant at the Sandiara SEZ. With aims to produce more innovative and sustainable Senegalese products to balance the country’s trade deficit, the project transforms motor oil and tires into automotive lubricants and carbon black powder, respectively, using state-of-the-art technology. The facility houses three plants, which include a lubricant mixing unit with a capacity of three million tons per year; a plant transforming tires into carbon black powder; and an aluminum alloy plant with a capacity of 10,000 metric tons per year.
In June 2023, Senelec partnered with the municipality of Sandiara to build the SEZ’s first high-voltage substation. Supporting Senegal’s ambitions to ensure universal access to electricity, the 90 kV to 225 kV transmission network will transport electricity generated from the Sandiara gas-to-power facility to consumption centers throughout the country.
Regional Growth
Poised to increase foreign direct investment while facilitating commerce and creating employment across the West African energy value chain, Senegal’s Sandiara SEZ stands to accelerate economic growth, rebalance trade and support domestic value creation across the wider MSGBC region. The Sandiara SEZ has the opportunity to provide local and regional investors with an array of business set-up services that streamline their registration and licensing processes. This year’s MSGBC Oil, Gas & Power 2024 conference – taking place in Dakar on December 2-3 – is set to showcase how SEZs in the bloc stand to expand the regional energy industry, while driving local content and socioeconomic development. The Sandiara SEZ serves as a model for neighboring countries to develop their respective economic zones that have the potential to attract new business and investments.
