Abdoulaye Ly: PPP Analysis for Senegal Highlights Risks, Opportunities

• Abdoulaye Ly, the Executive Director for the Club des Investisseurs Sénégalais, presented an analysis of Public-Private Partnerships in Senegal, highlighting both significant opportunities and inherent risks.
• Senegal requires an estimated 18,000 billion CFA francs to achieve over 7% economic growth, making PPPs a strategic necessity as the state cannot bear the financial burden alone.
• The revised legal framework, loi n° 2021-23, mandates the creation of Senegalese-registered companies and includes a national preference margin, but strictly rejects projects under 5 billion CFA francs or those lacking budgetary sustainability.
• Ly warned of critical risks, particularly traffic risk, citing the Baux Maraîchers station where over 200 million CFA francs in private investment was lost due to insufficient regulation.
• Successful PPPs depend on "collective discipline" and robust protection for investors by public authorities to mitigate risks and ensure project viability.

The analysis underscores that effective risk management strategies and strong public protection mechanisms are indispensable for navigating the complexities of PPP projets.

Abdoulaye Ly, the Executive Director of the Club des Investisseurs Sénégalais (CIS), presented a comprehensive Abdoulaye Ly PPP analysis Senegal during the Grand Débat économique held on Wednesday, September 16, 2026. Speaking at the Chambre de Commerce, d’Industrie et d’Agriculture de Dakar, Ly underscored the critical need for Public-Private Partnerships (PPPs) in the nation's development strategy. He emphasized that while these Partenariats Public-Privé Sénégal offer immense financial opportunities, they also carry substantial risks of failure, necessitating a pragmatic approach.

Ly framed the discussion by highlighting Senegal's vast national development financing requirements, which are estimated at 18,000 billion CFA francs. This significant investment is crucial for achieving an economic growth rate exceeding 7%. Given that the state alone cannot shoulder such a financial burden, PPPs emerge as a strategic imperative to leverage and transform local resources effectively.

He clarified the fundamental nature of a PPP as a structural collaboration where the public sector delegates the execution of infrastructure projects and services to private entities. This transfer typically occurs when the public sector lacks the requisite expertise or resources to undertake these initiatives independently. Ly cited the petrochemical sector and the ambitious "Gas-to-Power" project as prime examples of such strategic partnerships. The successful implementation of "Gas-to-Power" is projected to dramatically reduce electricity costs from 110 to 60 CFA francs per kilowatt-hour, thereby enhancing the competitiveness of both the agricultural and digital economy sectors.

Ly further elaborated on the various contractual models employed within Partenariats Public-Privé Sénégal. These range from concessions where users pay tolls, exemplified by national highways or the DP World container terminal at the Port of Dakar, to publicly funded PPPs. In the latter, the state directly compensates the private sector over the long term for social infrastructure projects that are not financially viable for user fees, such as prisons or hospitals.

The consultant also identified several new "PPPable" opportunities across Senegal. These include the management of railway networks, the development of regional logistics platforms like the one in Sandiara, and the implementation of social highways and Bus Rapid Transit (BRT) systems. These areas represent significant potential for private sector involvement, contributing to national infrastructure and service delivery.

The legal landscape governing Partenariats Public-Privé Sénégal has been significantly refined by loi n° 2021-23 PPP Sénégal. This revised framework introduces crucial safeguards designed to protect public interests and ensure project viability. Key provisions include the mandatory establishment of a company registered under Senegalese law for PPP projects and the granting of a national preference margin during procurement processes.

Despite these new protective measures, the selection process for PPP projects remains exceptionally stringent. The framework dictates the systematic rejection of infrastructure projects valued at less than 5 billion CFA francs. Furthermore, any project deemed to lack budgetary sustainability will also be automatically disqualified, underscoring the government's commitment to fiscal prudence and the long-term success of these partnerships.

Despite the clear opportunities, Ly issued a stern warning to economic operators regarding the inherent risks associated with PPPs, particularly emphasizing the challenge of traffic risk. He illustrated this point with the stark example of the Baux Maraîchers station, where a private investment exceeding 200 million CFA francs was entirely lost due to inadequate regulation. This case highlights the critical importance of robust gestion risques PPP Sénégal.

Ly stressed that the primary determinants of a project's success are "collective discipline" and the active protection of investors by public authorities. This emphasizes that while the private sector brings capital and expertise, the state's role in creating a stable, predictable, and regulated environment is paramount for mitigating risks and fostering successful Partenariats Public-Privé Sénégal. The analysis underscores that effective risk management strategies and strong public protection mechanisms are indispensable for navigating the complexities of PPP projets.

Lawyers advising on Public-Private Partnerships in Senegal should note the revised legal framework (loi n° 2021-23) and the strict project selection criteria, including minimum investment thresholds. This analysis underscores the critical need for robust risk management strategies and strong public protection mechanisms to ensure investor success and navigate potential pitfalls in Senegalese PPP projects.

Source: Original reporting via SenePlus