• SONACOS signed a deal with Focus Investment Group for a new processing unit in Touba.

• The plant aims to boost processing capacity, create jobs, and support food security.

• The company faces heavy losses, with CFA33.04 billion in deficits over 2023–2024.

The National Oilseeds Marketing Company (SONACOS) announced on October 2 the signing of a memorandum of understanding with Focus Investment Group (FIG) to build a new peanut processing unit in the Touba Special Economic Zone.

“This partnership with Focus Investment Group is a key step in SONACOS’ development strategy. The new modern unit in Touba will strengthen our processing capacity, create jobs, and contribute significantly to Senegal’s food security,” said SONACOS CEO Elhadji Ndane Diagne, as quoted by RTS.

The project’s implementation schedule and technical details have not yet been disclosed. However, the move signals SONACOS’ ambition to consolidate its leadership in the national peanut sector.

The announcement comes as the state-owned company continues to face structural challenges, including its inability to fully use its installed capacity. In the 2024/2025 peanut marketing season, SONACOS collected 155,000 tons of raw material, well below its crushing capacity of 300,000 tons.

This underperformance is linked to several factors: competition from foreign exporters, aging equipment, and financial constraints. Official data shows SONACOS posted cumulative losses of CFA33.04 billion ($59.11 million) over the 2023 and 2024 fiscal years.

The losses have pushed the company into a severe situation, with negative equity of CFA9.5 billion ($16.9 million), underlining the deterioration of its financial structure.