Senegal: Dangote targets the "Natural gas to urea" industry

Aliko Dangote, Chairman of Dangote Industries Limited, met Senegalese President Bassirou Diomaye Faye on Thursday, on the bangs of a courtesy visit to the New York metropolis. The meeting marked a key stage in the expansion of the Dangote Group's investments in Senegal, notably in the urea and fertilizer sectors, confirming the Nigerian businessman's desire to strengthen his presence in the country.

Already firmly established in Senegal through his cement plant with a production capacity of 1.5 million tonnes per year, Aliko Dangote is keen to diversify his investment portfolio. This diversification would primarily target the fertilizer sector, an area deemed strategic for the country's economic development. Senegal, an agricultural country par excellence, is seeking to increase its agricultural production while meeting the growing needs of regional markets.

At the meeting, Senegalese President Bassirou Diomaye Faye praised Dangote's commitment to Senegal's economic development, particularly as a catalyst for foreign investment. Discussions focused on opportunities in the fertilizer industry, notably through the project led by Senegal Fertilizer Company (SEFCO), a subsidiary of PETROSEN Trading & Services. This company is responsible for setting up a urea plant in Senegal, an essential nitrogen fertilizer for improving soil quality and boosting agricultural productivity.

SEFCO's planned urea plant will help meet growing local demand for fertilizers and improve Senegal's agricultural competitiveness. The country, although largely agricultural, remains dependent on fertilizer imports to support its production. In collaboration with PETROSEN Trading & Services, Dangote sees a strategic opportunity to participate in the structuring, development and operation of this new industrial infrastructure. This major project has the potential not only to generate considerable economic benefits, but also to provide concrete solutions to the challenges of food security in Senegal and West Africa.

“L’objectif est de produire des engrais complexes de type NPK (Azote, Phosphore, Potassium), des éléments clés pour améliorer la productivité agricole. En plus de répondre aux besoins locaux, l’usine pourrait également devenir un hub régional, alimentant les pays voisins et contribuant ainsi à réduire la dépendance de la région à l’égard des importations internationales d’engrais” avait souligné Fary Ndao, Responsable du Projet SEFCO, lors d’une interview donnée à Jeune Afrique en octobre 2023.

The cooperation between the Dangote Group and the Senegalese government holds great promise for the future of the country's agricultural sector, particularly in terms of job creation, strengthening industrial infrastructure, and increasing the productivity of arable land. This strategic partnership is in line with President Bassirou Diomaye Faye's vision of strengthening the country's food self-sufficiency while creating an attractive environment for foreign investment.

On the sidelines of the meeting, Dangote reaffirmed its commitment to supporting the industrialization of the African continent. "We firmly believe that the future of Africa lies in strategic investments in key sectors such as agriculture and industry. Senegal has enormous potential, and we are determined to play an active role in its development," said Aliko Dangote.

The diversification of Dangote's investments in Senegal reinforces the group's position as an African leader in a variety of sectors, from cement and agro-industry to energy and infrastructure. This new fertilizer initiative promises to strengthen cooperation between Senegal and one of the continent's most influential companies, while creating sustainable economic opportunities for both parties.

With this meeting, President Bassirou Diomaye Faye and Aliko Dangote are sending out a strong message: Senegal is open for business and ready to seize investment opportunities that will enable it to position itself as a key player in industrial and agricultural development in West Africa.

The construction of the urea plant, an integral part of this vision, is part of a drive to modernize Senegal's agricultural and industrial infrastructure. It represents a major step forward in the government's efforts to encourage local processing of resources and reduce imports, while supporting domestic farmers and ensuring sustainable production.