SENEGAL Law and Practice Contributed by: Mampionona Razafimamonjy and Tiavina Rakotonaivo, John W Ffooks & Co
• the acceleration of gold and zircon production; • the development of the phosphate and fertiliser industries; and • the regulation and promotion of artisanal mining activities. Senegal offers a wealth of mineral resources within its subsoil, including: • precious metals (gold and platinum group metals); • base metals (iron, copper, chrome and nickel); • industrial minerals (eg, phosphates, industrial lime - stone and salts); • heavy minerals (eg, zircon and titanium); and • ornamental stones and construction materials. This robust mineral wealth underlines Senegal’s ambi - tious efforts to solidify its position as a regional leader in the mining industry. 5.2 Foreign Investment Restrictions and Approvals in the Exploration and Mining Sectors Senegal has created an investment-friendly climate through a legislative and regulatory framework that is transparent, flexible, competitive and non-discrim - inatory. This is the only way in which the Senegalese government has been able to attract both domestic and foreign investors. As it stands, Senegal has a wealth of mining poten - tial, most of which is under-exploited. To enhance the value of its mineral resources, the Senegalese government has introduced a mining policy aimed at improving the return on extractive activities, so that investors will invest more in the country. As such, this constitutes a measure that encourages foreign mining investment. Since Senegal is a member of WAEMU, investors, particularly those holding mining permits, must com - ply with Central Bank of West African States ( Banque Centrale des Etats de l’Afrique de l’Ouest (BCEAO)) requirements, in particular, the foreign exchange regu - lations set out in Regulation No 06/2024/CM/UEMOA dated 20 December 2024 on external financial rela - tions, and its instructions. To this end, all foreign exchange transactions as well as capital movements
– ie, transfers and/or receipts of funds and settlements of any kind with foreign countries – must be carried out through: • the BCEAO, the administration or a post office; • an approved intermediary; or • a manual foreign exchange agent. 5.3 International Treaties Related to Exploration and Mining Senegal is a party to all major United Nations human rights instruments, including the International Cov - enant on Civil and Political Rights (ICCPR), the Inter - national Covenant on Economic, Social and Cultural Rights (ICESCR) and the Convention on the Elimina - tion of All Forms of Discrimination Against Women (CEDAW). At the regional level, Senegal is a member of the African Union (AU) and ECOWAS. It is also a signatory to the African Charter on Human and Peo - ples’ Rights (the “African Charter”). However, given that any holder of a mining licence or concession is required to sign a comprehensive mining agreement with the state – defining the rela - tionship between the titleholder and the government as well as the general conditions for mineral pros - pecting or exploitation – the establishment of bilateral or multilateral treaties in the mining sector is also a primary focus of the Senegalese government, given the numerous treaties that they have already signed. 5.4 Sources of Finance for Exploration, Development and Mining The Senegalese government has implemented a strat - egy for local participation to maximise the involvement of the population (ie, the people, who are the right - ful owners of natural resources according to Article 25.1 of the Senegalese Constitution, which states that “natural resources belong to the people and are used to improve their living conditions”) in the management of mining activities through local financing. Specifi - cally, local participation is defined as “the level of con - tribution made by Senegalese citizens in the imple - mentation of projects, measured in terms of capital, labour, acquired technology, or goods and equipment provided or sold”.
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