Senegal’s shifting economic landscape: China’s ascent over french firms
The landscape of major public works in Sénégal has dramatically shifted, with French enterprises now holding a marginal position. Reports indicate that French companies account for approximately 5% of public contracts, a stark contrast to Chinese firms, which have become ubiquitous in the nation’s foundational projects, securing over 30% of the market. This transformation marks a significant realignment in Sénégal’s economic partnerships over the past two decades, as the focus of large-scale contracts has moved away from traditional French dominance.
In Ndayane, south of Dakar, a monumental deep-water port is under construction, a project valued at over $2 billion. This complex, designed to accommodate the largest container ships in the Atlantic, is heralded as a game-changer for Sénégal’s logistics, job creation, and global connectivity, poised to propel the nation into the future. While the Emirati company DP World leads this ambitious undertaking, an international consortium primarily composed of Chinese enterprises has been entrusted with its construction.
David Gruar, the construction director for DP World, noted that numerous global companies, including many French firms, competed for the project but ultimately did not succeed. Information suggests that the consortium led by Eiffage submitted a bid approximately 20% higher than the chosen offer, leading to its rejection.
Just a few kilometers away, the burgeoning new city of Diamniadio, envisioned to alleviate congestion in Dakar, further illustrates this evolving dynamic. Here, Turkish companies have largely secured tenders for the stadium, railway station, hotels, and the majority of residential buildings. An industrial platform, designed to attract foreign investors, completes the urban development. Bohoum Sow, Secretary General of APROSI, highlighted the presence of a Tunisian company and a Chinese enterprise on the platform, confirming the absence of any French companies.
China aligns with Senegalese requirements
Bohoum Sow suggests that Chinese stakeholders have demonstrated a superior understanding of the local market and governmental expectations. An example cited is a carton packaging factory where Chinese technicians are training Senegalese employees. “This is an example we commend,” Sow stated, emphasizing that “this type of industry did not exist before. They are responding to specific needs and managing to diversify. It’s very flexible.”
Over the past two decades, China has strategically invested heavily across Africa, positioning the continent as a crucial pillar of its economic diplomacy. Consequently, “it is their flag that flies here,” as observed. Bohoum Sow fully embraces this shift, describing it as a “win-win” situation because “it is real. As you’ve seen, Sénégal needs infrastructure, and China has understood that.” He acknowledged that “times have changed, and so have the partners.”
For many decades, major Senegalese contracts in infrastructure, energy, and banking were predominantly controlled by French corporations. Today, their share of public markets has dwindled to about 5%, while Chinese entities command over 30%. This rebalancing is further accentuated by the growing influence of other international partners, including Turkish, Emirati, and Tunisian firms.
How french companies are adapting
Despite this decline, French businesses continue to secure contracts by rethinking their engagement strategies. The Ragni group, a family-owned company from Cagnes-sur-Mer specializing in public lighting, is deploying 36,000 state-of-the-art solar streetlights, manufactured in France, across Sénégal. This project, valued at approximately 70 million euros, receives partial funding from the French Development Bank.
To win this contract, Ragni established a local presence and committed to transferring expertise. A subsidiary was created on the ground, led by a Senegalese executive rather than an expatriate. Birama Diop, director of Ragni’s Sénégal subsidiary, explained the key factors: “There was flexibility first, then quality and cost. That was the right combination. And local jobs, especially.”
Caroline Richard, head of Proparco’s office in Sénégal, believes French companies still have opportunities, provided they embrace this new operational model. “I believe they will continue to grow and win markets because demands are increasing. French companies are highly competitive when requirements are high. This is where there are labor markets and significant growth potentials,” she affirmed.
The solar streetlights illuminating various Senegalese cities symbolize a new paradigm: French groups are compelled to be more adaptable, forge numerous local partnerships, and demonstrate price competitiveness against Chinese, Turkish, and Emirati rivals who are now firmly entrenched in the market.
