• Foreign firms secured $1.4 billion in mining contracts vs. $452 million for locals

• Local suppliers face challenges meeting strict industry standards

• Authorities promote financing and matchmaking to boost local content

Foreign suppliers secured CFA810 billion ($1.4 billion) worth of contracts in Senegal’s mining sector in 2021, while local suppliers obtained just CFA256 billion ($452 million). Although the gap has narrowed in recent years, stakeholders agree that stronger efforts are still required.

In the first half of 2024 alone, foreign suppliers obtained a minimum of CFA429 billion ($758 million) in mining contracts, compared to CFA193 billion awarded to local firms, according to a report published in May 2025 by the Extractive Industries Transparency Initiative (EITI).

Foreign suppliers, who won more than twice the value of contracts as local businesses, continue to dominate the supply of goods and services to Senegal’s gold, phosphate, and mineral sands mines. This trend is not new. Over the past four years, foreign firms have consistently secured contract volumes far exceeding those granted to local providers.

In principle, mining companies are required to give preference to local suppliers for the procurement of goods and services. However, national legislation stipulates that these supplies must be competitively priced, meet high quality standards, and be delivered on time. In practice, whether for mining equipment, drilling, explosives, transport, or logistics, foreign contractors continue to dominate procurement in Senegal and across much of Africa—largely due to their greater technical and financial capacity.

According to industry expert Ahamadou Mohamed Maïga, one of the key challenges facing local businesses in securing contracts lies in their inability to meet the technical standards demanded by mining companies. “Mining companies operate to strict standards in terms of quality, safety, and performance. Consequently, local businesses that cannot meet these criteria struggle to be selected,” he said.

Speaking at the EITI Global Conference held in Senegal in June 2023, researcher Papa Fara Diallo echoed this view. In addition to technical and technological limitations, he emphasized the issue of limited access to finance as a key barrier facing domestic suppliers.

The EITI notes that its figures are based on company disclosures, which are reconciled across multiple reports. The data does not identify the companies that won the contracts or specify contract types. While not exhaustive, the findings highlight a persistent trend that Senegalese authorities are working to reverse.

In 2024, the technical secretariat of the National Committee for Monitoring Local Content (ST-CNSCL) partnered with the National Bank for Economic Development (BNDE) to offer financing solutions tailored to Senegalese businesses in the mining and hydrocarbons sectors. The ST-CNSCL also launched a digital platform designed to connect local suppliers directly with mining companies.