EITI Report 2024: In Saint-Louis the fallout from gas is progressing, but the challenge of local content remains unresolved

The Saint-Louis region confirms its rise in power in the Senegalese extractive sector. During a Regional Development Committee (CRD) dedicated to the presentation of the 2024 EITI Report, the authorities highlighted the strong increase in revenues from gas exploitation. However, the low impact on local businesses and employment shows that local content remains a priority area.

The start of operation of the Grand Tortue Ahmeyim (GTA) gas project is beginning to produce its first economic effects. Gathered on Wednesday in Saint-Louis, administrative authorities, territorial elected officials, representatives of civil society and extractive sector stakeholders took note of the results of the 2024 EITI Report. President of the National Committee for the Initiative for Transparency in Extractive Industries (CN-ITIE), Thialy Faye recalled that 2024 constitutes a pivotal year for Senegal with the country’s entry into the era of oil and gas production. “The year 2024 ushers in a new economic cycle called to reposition the extractive sector in the national landscape,” he declared. According to the data presented, the extractive sector contributed 455.99 billion FCFA to the national economy.

The Saint-Louis region alone generated 39.6 billion FCFA, or nearly 8.7% of the country’s extractive revenues. More than 38 billion FCFA were directly injected into the state budget. For the governor of Saint-Louis, Al Hassan Sall, these results reflect the strategic role that the region now plays in the development of the Senegalese gas sector. “The gas sector makes a significant contribution to the state budget, but also to the daily lives of populations through several targeted interventions,” he underlined. Despite this progress, the report highlights a persistent weakness in local content. Companies operating in the region carried out 7.2 billion FCFA in transactions with local suppliers compared to 23.8 billion with foreign suppliers.

A situation that concerns the authorities. For Thialy Faye, it is imperative to provide more support to local companies so that they can access the markets generated by gas exploitation. “We need to strengthen local content and allow St. Louis businesses to win more markets to create more jobs,” he said. The report reveals that the extractive sector currently only has 207 jobs in the region, a figure still considered insufficient given the expectations raised by the exploitation of hydrocarbons.

The social and environmental benefits also remain modest. In 2024, social spending recorded in the region amounted to 904 million FCFA while environmental payments reached 523 million FCFA. For the authorities, the next step consists of further involving local communities, particularly fishing stakeholders, in discussions on the future of the extractive sector. “Natural resources belong to the people. It is normal that the profits from their exploitation benefit populations across the State and local authorities,” recalled Governor Al Hassan Sall.