SENEGAL Law and Practice Contributed by: Hariliva Andriamahefa and Mampionona Razafimamonjy, John W Ffooks & Co
5.6 Security over Mining Tenements and Related Assets In the absence of specific legislation regulating sureties, Senegal, as a member of OHADA, is bound by the provisions of the OHADA Uniform Act dated 15 December 2010 on the organisa - tion of securities, which governs sureties and related matters. 6. Mining: Outlook and Trends 6.1 Two-Year Forecast for the Mining Sector Energy sector growth is one of the key priori - ties for Senegal in its sustainable and economic development 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 population out of poverty by 2035. Additionally, the PSE is implemented through five-year action plans developed by the respective ministers, focusing on three main strategic axes: • structural transformation of the economy and growth; • human capital, social protection and sustain - able development; and • governance, institutions, peace and security. The institutional framework for implementing the PSE consists of a strategic orientation commit - tee, headed by the President of the Republic, a steering committee, chaired by the Prime Minis - ter, and an operational bureau, which is respon - sible 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 inter -
mining activities through local financing. Specifi - cally, local participation is defined as “the level of contribution made by Senegalese citizens in the implementation of projects, measured in terms of capital, labor, acquired technology, or goods and equipment provided or sold”. 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 pur - pose of this strategy is to monitor and mobilise funding for major projects impacting the mining sector, in order to regulate the competitiveness of regions, particularly industrial platforms. On another note, financial support is also avail - able from funders such as the African Develop - ment Bank. However, it is worth noting that accessing finance in Senegal presents some challenges, particu - larly 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 explora - tion financing is not yet established in Senegal. However, tax regulations are in place. Income derived from securities is subject to withholding tax in Senegal, with the rate varying depending on the nature of the income. Specifically, divi - dends from shares, partnership interests 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.
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