DAKAR, Senegal (AP) — Senegal’s government is revoking 71 mining licenses and freezing accounts totaling over $438 million, a move prompted by disputes over payments and contract terms with several companies. The sweeping overhaul of the country’s resource sector, announced Friday by Prime Minister Ousmane Sonko, signals a significant shift in how Senegal manages its natural resources and aims to ensure fairer benefits for its citizens.
The government is also taking back all assets of ICS, one of Africa’s largest phosphate fertilizer producers, ending the license held by Asian group Indorama Ventures. Sonko stated the Senegalese state had been “short-changed… throughout the entire time” that Indorama ran ICS, estimating the “loss of revenue” at nearly 1,076 billion CFA francs ($1.88 billion).
According to a statement released by the Prime Minister, the actions follow a review that uncovered major irregularities, including “non-payment of taxes and duties, undue tax and customs benefits, and exemptions granted without legal basis.” The government initiated the contract review in September 2024, following a pledge made during President Bassirou Diomaye Faye’s election campaign.
Faye, a close ally of Sonko, promised to renegotiate contracts with foreign partners to secure greater economic advantages for Senegal’s 18 million people. The move comes as Senegal grapples with substantial debt, with the government alleging the previous administration concealed the full extent of the country’s financial challenges.
Sonko announced Thursday that a string of contracts – primarily with foreign firms – in key sectors including mining had been renegotiated, and licenses withdrawn from companies that had violated regulations. The revoked mining licenses span sectors including gold, diamonds, and iron ore. RFI reports the government is seeking greater transparency and fairness in the mining sector.
The dispute over a BP-operated gas contract is also at the center of the government’s actions, with officials deeming the terms unfavorable to Senegal. Impuls Radio Africa notes that the revocation of licenses and account freezes have elicited mixed reactions from industry stakeholders, with some welcoming the reforms although others express concerns about potential impacts on investment and economic stability.
ICS, a leading industrial complex, was acquired by the Asian petrochemical group Indorama in 2014 and employs thousands of people in the West African nation. Yahoo Finance reports that the government’s actions mark a decisive step in reclaiming control over key national assets.
