Senegal’s economic growth (GDP) rate surged to a record 8.9% in the third quarter of 2024, driven by the commencement of oil production and expansive exports.
The country’s bureau of statistics, the National Agency of Statistics and Demography, stated that the growth between June and September was spurred by an increase in oil exports during this period, as per a Bloomberg report.
According to the agency, the economy expanded by 11.5% in the three months through September compared to the same period last year, with the gross domestic product increasing by 8.9% from the previous quarter.
The West African country became an oil and gas producer for the first time after Woodside Energy announced the first oil production at its Sangomar project off the country’s coast on June 11, pumping 100,000 barrels per day of medium sour oil.
According to Cheikh Niane, secretary-general of the Ministry of Energy, Petroleum, and Mines, economic growth is expected to gain momentum as Senegal begins exporting gas from BP Plc’s Greater Tortue Ahmeyim liquefied natural gas project.
Although Senegal anticipates the first cargo from BP Plc’s Greater Tortue Ahmeyim LNG project at the “beginning of next year,” Deputy Energy Minister Cheikh Niane stated that the project remains “on track” and the first gas extraction is expected this year.
Niane made these comments on the sidelines of the Adipec conference in Abu Dhabi in November.
This economic growth aligns with Prime Minister Ousmane Sonko’s announcement last week, where he stated:
“They [the reforms] will enable us to embark on a new budgetary trajectory, which will combine a gradual consolidation towards a budget deficit of 3% within a maximum of three years and a controlled assumption of structural and production support investments, as well as sensitive social and climate-related expenditure.”
This surge in economic growth positions Senegal as a rising star in West Africa, with the IMF’s forecast of a 9.3% expansion next year further solidifying this positive outlook.
