Senegal Opposition Coalition Promises New Currency and Revamp of Oil Contracts
In a significant move that could reshape Senegal’s economic landscape, a key opposition coalition, energized by the support of the influential Ousmane Sonko, has unveiled an ambitious presidential campaign platform. The platform, revealed on Saturday, outlines a bold vision that includes the introduction of a new national currency and a thorough renegotiation of the country’s mining and energy contracts.
With the presidential election looming on March 24, Bassirou Diomaye Faye, the coalition’s chosen candidate, has emerged as a prominent figure among the 19 candidates vying for the nation’s top office. The outcome of the election holds considerable weight for both the West African Economic and Monetary Union and Senegal’s burgeoning aspirations in the oil sector.
“Convinced that full independence cannot be achieved without controlling the economy, livestock management, fisheries, and agriculture, we are fully committed to achieving food, digital, fiscal, energy, and scientific sovereignty,” Faye stated while introducing the coalition’s comprehensive 84-page agenda.
In the wake of Ousmane Sonko’s disqualification due to a defamation conviction, his party, Pastef, was dissolved, and its members joined forces with other parties to endorse Faye’s candidacy. Sonko’s appeal to his supporters to back Faye has significantly amped up the competition, considering his massive following, especially among the youth who are disillusioned by the economic challenges and unemployment issues plaguing the 17-million-strong nation.
The coalition’s platform is not only focused on addressing inequalities and generating employment opportunities but also proposes several governance alterations. Among these are the introduction of a vice-presidential role and the elimination of the Prime Minister’s position. However, it is the proposed economic reforms that may stir concerns among regional allies and investors. These reforms encompass tax and customs restructuring, the launch of a national currency, and the revision of crucial contracts in sectors such as mining, hydrocarbons, public procurement, and infrastructure.
Before the implementation of a new currency can be considered, the platform acknowledges that numerous preparatory measures would need to be put into place. This proposition presents another potential challenge to the stability of West Africa’s CFA franc, a currency which some countries in the region, currently led by military governments, have also considered abandoning.
While the platform lacks detailed strategies on contract restructuring, it emphasizes the coalition’s intention to “make the mining industry an important lever of our socio-economic development” and “to maximise revenues from oil production.” With the anticipated commencement of production at Senegal’s first offshore oil development — the Sangomar oil and gas project operated by Woodside Energy — slated for mid-2024 and expected to generate about 100,000 barrels per day, these proposed changes could have far-reaching implications for the country’s economic trajectory.
