Africa Finance Corporation (AFC), the prominent infrastructure solutions provider in Africa, is teaming up with the Senegalese Government to finance the significant Sangomar oil field project.
In a strategic partnership, AFC will contribute €50 million to enhance Senegal’s burgeoning oil and gas sector while also bolstering energy accessibility and security. Situated 100 kilometers southwest of Dakar, the Sangomar oil field covers 7,490 square kilometers and is believed to contain roughly 500 million barrels of crude oil.
The Corporation’s investment in the Sangomar oil field will be used to drive the first phase of development towards achieving first oil, a key milestone in the advancement of the country’s hydrocarbons sector. The facility will provide a significant boost to Senegal’s economy, supporting the country’s ambitions to become a regional hub for the oil and gas industry. It will also generate significant revenues for the government through taxes and royalties, create employment opportunities for local workers, and contribute to energy security by reducing dependence on imported oil and gas.
“We are pleased to support the development of the Sangomar field, which we expect to have a transformative impact on the Republic of Senegal and its people through the reduction of import reliance, the generation of increased government revenues, the creation of local jobs, and an overall contribution to accelerated industrialization and economic development,” said Mr. Samaila Zubairu, President and CEO of the Africa Finance Corporation.
Since the Republic of Senegal acceded to membership in the Corporation in 2019, AFC has helped finance several critical sectors of the country’s economy. These include: the 300 MW combined-cycle gas power project in Cap des Biches, the country’s largest Independent Power Project (IPP); the construction and rehabilitation of road networks in Senegal through Fonds d’Entretien Routier Autonome (FERA); and the provision of funding to the Ministry of Economy and Finance for projects such as the 128 MW Sambangalou Hydro Power Dam in the Kedougou region and the procurement of petroleum products for power generation.
AFC has emerged as a significant investor in the largest renewable energy platform on the continent, achieved through its recent partnership with Infinity Power in acquiring Lekela Power. This influential platform oversees 1.3 GW of solar and wind power projects across South Africa, Egypt, and Senegal, alongside a project pipeline of 1.8 GW at diverse stages of development.
