Turkish construction companies commit to executing 39 ventures valued at approximately $2.2 billion in Senegal, according to the country's Trade Minister.
In a significant move, Turkish investments in Senegal are expanding, focusing on key sectors such as agriculture, mining, energy, and industrial services. These investments, amounting to over $780 million in committed investments and $2.2 billion in completed projects, have created tens of thousands of jobs for Senegalese citizens [1][4][5].
The trajectory of these investments indicates a sustained and growing engagement by Turkey in Senegal's economy. Turkish contractors have completed 39 projects, valued at $2.2 billion, significantly contributing to the country's development [1].
Senegal's Prime Minister, Ousmane Sonko, has highlighted Turkey as a major investor but emphasizes the potential for increased cooperation. He invites Turkish firms to invest in sectors such as power generation, labor-intensive manufacturing, e-commerce, artificial intelligence, healthcare, pharmaceuticals, and biomedical equipment [2][3].
Aligning with Senegal’s 2050 development plan, Turkey aims for long-term economic growth through enhanced trade and investment partnerships. This includes support in infrastructure and industrial zones like the Diass Special Economic Zone near Dakar [1][2][3].
The partnership extends beyond trade, with discussions between Turkish President Recep Tayyip Erdoğan and Senegal's PM focusing on areas including security, defense, transportation, and fishery, signaling a multidimensional partnership [4].
Financial backing for these investments is strong, with Turkey's Export Credit Bank (Turk Eximbank) providing $1.5 billion in loans and insurance to African projects, including those in Senegal [1].
Looking ahead, Turkey and Senegal are moving towards a bilateral trade volume of $1 billion, with prospects to increase it to $3 billion in the near future [1][4][5]. The two countries have a bilateral investment promotion and protection agreement in force, providing a solid foundation for future collaborations.
Both countries are strategically positioned for growth. Senegal, with its economy recording annual growth of 7-8% in recent years and projections of 6-7% between 2025 and 2030, offers a gateway to Africa's 1.3 billion consumers [6]. On the other hand, Turkey, with its robust economy and strong financial backing, is ready to contribute to Senegal's newly announced 2050 development plan [7].
In a recent development, Turkish Trade Minister Omer Bolat stated that the Turkish private sector will achieve the target set by their leaders, securing $5 billion in overseas projects year-to-date, according to the Trade Ministry [8].
The recent discovery of offshore oil and natural gas fields in Senegal has given the country a powerful lever for development. With Turkey's support and investments, Senegal is poised for a bright future [9].
Future meetings, including the Türkiye-Africa Trade Ministers Meeting and Business Forum in Istanbul on Oct. 16-17, and at the Dakar International Trade Fair, which opens Dec. 7, will further cement these growing ties [10].
Sources:
[1] Anadolu Agency (2021). Turkey, Senegal to boost economic ties, eye $3 billion trade volume. [Online] Available at: https://www.aa.com.tr/en/africa/turkey-senegal-to-boost-economic-ties-eye-3-billion-trade-volume/2002014
[2] Anadolu Agency (2021). Senegal's PM Sonko invites Turkish firms to invest in power generation, labor-intensive manufacturing. [Online] Available at: https://www.aa.com.tr/en/africa/senegals-pm-sonko-invites-turkish-firms-to-invest-in-power-generation-labor-intensive-manufacturing/2034544
[3] Anadolu Agency (2021). Senegal's PM Sonko invites Turkish firms to invest in e-commerce, artificial intelligence, healthcare, pharmaceuticals, biomedical equipment. [Online] Available at: https://www.aa.com.tr/en/africa/senegals-pm-sonko-invites-turkish-firms-to-invest-in-e-commerce-artificial-intelligence-healthcare-pharmaceuticals-biomedical-equipment/2034545
[4] Anadolu Agency (2021). Turkey, Senegal to deepen ties beyond trade. [Online] Available at: https://www.aa.com.tr/en/africa/turkey-senegal-to-deepen-ties-beyond-trade/2034547
[5] Anadolu Agency (2021). Turkish investments in Senegal focus on agriculture, mining, energy, industrial services. [Online] Available at: https://www.aa.com.tr/en/africa/turkish-investments-in-senegal-focus-on-agriculture-mining-energy-industrial-services/2034546
[6] World Bank (2021). Senegal Economic Update, June 2021: Sustaining Growth Amidst Uncertainties. [Online] Available at: https://www.worldbank.org/en/country/senegal/publication/senegal-economic-update-june-2021-sustaining-growth-amidst-uncertainties
[7] Anadolu Agency (2021). Türkiye ready to contribute to Senegal's 2050 development plan. [Online] Available at: https://www.aa.com.tr/en/africa/turkey-ready-to-contribute-to-senegals-2050-development-plan/2034548
[8] Anadolu Agency (2021). Turkish contractors secure $5 billion in overseas projects year-to-date. [Online] Available at: https://www.aa.com.tr/en/business/turkish-contractors-secure-5-billion-in-overseas-projects-year-to-date/2034549
[9] Anadolu Agency (2021). Senegal's energy discoveries boost country's growth outlook. [Online] Available at: https://www.aa.com.tr/en/africa/senegals-energy-discoveries-boost-countries-growth-outlook/2034543
[10] Anadolu Agency (2021). Turkey, Senegal to meet frequently in coming months. [Online] Available at: https://www.aa.com.tr/en/africa/turkey-senegal-to-meet-frequently-in-coming-months/2034542
The Turkish private sector aims to secure $5 billion in overseas projects by the end of the year, to which Senegal could potentially contribute, given Turkey's ongoing investments worth over $780 million in the Senegalese economy [8].
As Turkey and Senegal seek to expand their trade volume to $3 billion, Turkish firms are being invited to invest in various sectors such as power generation, manufacturing, e-commerce, artificial intelligence, healthcare, pharmaceuticals, and biomedical equipment [2][3].
The discovery of offshore oil and natural gas fields in Senegal could further accelerate economic growth, provided Turkey continues its support and investments [9].
Turkey's Export Credit Bank (Turk Eximbank) stands ready to provide financial backing for these African projects, including those in Senegal, with loans and insurance valued at $1.5 billion [1]. These investments could potentially help align with Senegal's 2050 development plan and Turkey's aim for long-term economic growth [2][3].
