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Deal #3433 Version #89990

Senegal
Created at
2013-03-22
Last update
2023-03-24
Last full update
2022-06-21

Land area

Intended size
20 000 ha
Size under contract (leased or purchased area)
  • [2012-04-12, current] 20000 ha
Size in operation (production)
  • 6000 ha
  • [2021, current] 300 ha
Comment on land area
Senethanol signed the original 20,000 ha lease with the rural community of Fanaye to grow sweet potatoes for biofuel production for the European market. However, political tensions within the community and opposition to the project escalated into a violent conflict on October 26, 2011, resulting in two deaths, several dozen serious injuries, and a country in shock. The project was quickly suspended by President Abdoulaye Wade. Shortly thereafter, Macky Sall was elected president. By presidential decree, he reapproved and relocated the project to the Ndiael nature reserve, where he reclassified 20,000 hectares of forest land as agricultural land for use by investors. Since then, the project has been implemented by Senhuile SA, a joint venture between Tampieri Financial Group, Italy, and Senethanol SA, based in Dakar (https://grain.org/e/4814). The company is still testing the crops it will produce on its 20,000 hectare concession, of which only 5,000 or 6,000 hectares have been cleared and planted to date (Grain, 2018). But since 2021 they have started to grow fodder crops for sale on an area of 300ha.

Intention of investment

Intention of investment
  • [2011-03, current] Biomass for biofuels, Food crops (20000 ha)
  • [2012-04-12, current] Food crops, Livestock (20000 ha)
Comment on intention of investment
Some reports suggest that sunflower production has halted in April 2014. A report states that the company continually changes the produce: first was sweet potato, then sunflower, now corn, rice and peanuts. The company committed to have 2000ha of rice by 2017 for domestic markets. The company has planted acacia trees, however these are only for wind breaks and is not the intention of the investment. The company planned to use its expected annual output of 180,000 tons of sunflower seeds to produce biofuels. According to the maps (in the sources) we note the Senhuile plots (project) that surround the Ndiael special wildlife reserve with areas of 2000, 4000, 2500, 1420 and 1500ha respectively. The total area of the project is 11420 hectares. But according to our last field mission on July 2nd 2022, Les fermes de la Teranga had not been producing for several years. Between 2013 and 2014, they started producing Toursol again. Between 2014 and 2016 of Chilli, Potato, Watermelon and Peanut. Between 2017 and 2020 the land was not exploited. Since 2021 they have started to grow fodder crops.

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
  • [2011-03] Concluded (Contract signed)
  • [2012-04-12] Concluded (Change of ownership)
  • [2012-04-12, current] Concluded (Contract signed)
Comment on negotiation status
20,000 ha allocated to Senhuile (ferme de la Teranga now) by presidential decree. Back in March 2011, local authorities signed a protocol granting a 20,000 hectare land concession to a company called Senhuile SA, which at the time said it would use it to produce biofuel for export. Population at original site protested and forced the government to halt and relocate the project. The project was re-approved and relocated in 2012. Until May 2015, the company claims to have invested 30 million Euros.

Implementation status

Implementation status
  • [2013] Startup phase (no production)
  • [2014] In operation (production)
  • [2017] In operation (production)
  • [2020] Startup phase (no production)
  • [2021, current] In operation (production)
Comment on implementation status
According to Gagné, the company is still technically operating, although it has not farmed since at least 2018. 5,000ha cleared. Planting of sunflowers in process. More than 24,000 signatures were collected in one week through an international petition launched by ActionAid and Re:Common to ask Tampieri Group, a food processing company that operates in Faenza, to withdraw from a project in the Senegalese reserve of Ndiael. The company is producing on the land regardless of the fact that their operations are not transparent. The company has changed management several times during the operation of the project. Another report states that the company has brought in a consultant to look at the possibility of selling the company. Key equipment is already being sold. Sources within the country state that the project is still operational (March 2017). Workers on strike in September 2017 due to unpaid wages and unpaid contribution to social security fund. One report states that the Italian management have left the country. In 2017, the Italians pulled out and left nothing.The communities want the state to cancel the 20,000 ha concession and give them their lands back. They also want reparations for the damages suffered over the years – loss of lives, livelihoods, land and animals – and are thinking of going to court for that. Sources within the country state that the project is still operational (March 2017). Since 2021 they have started to grow fodder crops on an area of 300ha.

Leasing fees

Annual leasing fee
40 000 000
CFA Franc BCEAO
for specified area
Annual leasing fee area
5 000 ha
Comment on leasing fee
Land has been attributed for free. Another report states leasing fee of USD 100,000 a year. The land around Fass Ngom (5000ha) is leased for 40 million FCFA per year.

Contract farming

Contract farming
No