SENEGAL Law and Practice Contributed by: Mampionona Razafimamonjy and Tiavina Rakotonaivo, John W Ffooks & Co
6. Mining: Outlook and Trends 6.1 Two-Year Forecast for the Mining Sector Growth in the energy sector is one of the key priorities for Senegal in its sustainable and economic develop - ment strategy, with the aim of achieving the status of an emerging economy in line with the PSE. Adopted in 2024, the PSE outlines the economic and political framework that will guide Senegal in lifting its popu - lation out of poverty by 2035. Additionally, the PSE is implemented through five-year action plans devel - oped by the respective ministers, focusing on three main strategic axes: • structural transformation of the economy and growth; • human capital, social protection and sustainable development; and • governance, institutions, peace and security. The institutional framework for implementing the PSE consists of a strategic orientation committee, headed by the President of the Republic, a steering commit - tee, chaired by the Prime Minister, and an operational bureau, which is responsible for monitoring the PSE’s progress. Senegal’s commitment to combating climate change is closely aligned with its development objectives, given the crucial role played by international aid in supporting its efforts. The country’s climate policy is fully in line with the PSE, which sets out the national priorities for sustainable development. On another note, industrialisation plays a central role in structural transformation and economic growth, particularly in this third phase of the PSE. This phase will mark the start of a new era of industrial develop - ment on a national scale, making full use of the assets and specific skills of each region of the country. The mining sector falls within this industrialisation effort. The ambition of this key initiative is to make the min - ing sector in Senegal a powerful driver of sustainable economic and social growth.
Additionally, the Senegalese government is actively involved in the industrialisation strategy for the period 2021–35, which aligns with the National Strategy for the Development of Local Content (SNDCL) for the mining sector. The purpose of this strategy is to moni - tor and mobilise funding for major projects impacting the mining sector, in order to regulate the competitive - ness of regions, particularly industrial platforms. On another note, financial support is also available from funders such as the African Development Bank. However, it is worth noting that accessing finance in Senegal presents some challenges, particularly the limited impact of guarantee funds on the financing of small and medium enterprises ( petites et moyenne enterprises (PME)). 5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining The authority regulating the securities in exploration financing is not yet established in Senegal. However, tax regulations are in place. Income derived from secu - rities is subject to withholding tax in Senegal, with the rate varying depending on the nature of the income. Specifically, dividends from shares, partnership inter - ests and equity stakes in companies are taxed at a rate of 10%, with certain rate caps applicable. Since the 2016 Mining Code, income from securities has not been eligible for any tax exemptions. 5.6 Security Over Mining Tenements and Related Assets In the absence of specific legislation regulating sure - ties, Senegal, as a member of OHADA, is bound by the provisions of the OHADA Uniform Act dated 15 December 2010 on the organisation of securities, which governs sureties and related matters.
340 CHAMBERS.COM
Powered by FlippingBook