Senegal: Africa Finance Corporation grants 50 million euros for Sangomar project

Africa Finance Corporation's (AFC) investment in the Sangomar oil field will be used to support the first phase of oil production start-up, a key milestone in the promotion of the country's hydrocarbon sector.

Africa Finance Corporation (AFC) enters into a partnership with the Senegalese government to finance the development of the Sangomar oil field.

Through this strategic move, AFC will invest 50 million euros in the Sangomar oil field to boost the country's emerging oil and gas sector and improve energy access and security in Senegal.

Located 100 kilometers southwest of Dakar, the Sangomar oil field covers 7,490 square kilometers and has an estimated capacity of around 500 million barrels of crude oil.

AFC's investment will be used to support the first phase of the launch of oil production, a key milestone in the promotion of the country's hydrocarbon sector. The site will provide a real boost to the country's economy and support Senegal's ambitions to become a regional hub for the oil and gas sector. It will also generate significant revenues for the government in the form of taxes and royalties, create employment opportunities for local workers, and contribute to energy security by reducing dependence on oil and gas imports.

Diversified AFC financing in Senegal

Since Senegal became a member of AFC in 2019, the Company has helped finance several critical sectors of the country's economy, including the 300 MW Cap des Biches combined-cycle gas-fired power project, the country's largest independent power project (IPP); the construction and rehabilitation of Senegal's road networks through the 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 hydroelectric dam in the Kédougou region and the purchase of petroleum products for power generation.

AFC is a leading investor in the continent's largest renewable energy platform, thanks to its recent acquisition of Lekela Power in partnership with Infinity Power. The platform operates 1.3 GW of solar and wind sites in South Africa, Egypt and Senegal, and has a project portfolio of 1.8 GW at various stages of development.

AFC

AFC was created in 2007 to become the catalyst for private sector-led infrastructure investment across Africa. AFC's approach combines sector expertise with financial and technical advice, project structuring and development, and venture capital to meet Africa's infrastructure development needs and promote sustainable economic growth.

Sixteen years on, AFC has a proven track record as the partner of choice in Africa for investing in key, high-quality infrastructure assets that provide essential services in the core sectors of power, natural resources, heavy industry, transport and telecommunications. AFC has 40 member countries and has invested USD 11.5 billion in Africa since its creation.