Iran promises investment in Senegal

By Stewart Douglas

The governments of Iran and Senegal have made an agreement to construct a petrochemicals plant and oil refinery in the West African nation of Senegal, a statement issued by the government in Dakar says.

In addition, Iran has also pledged to expedite development of an automobile assembly plant in Senegral that will produce cars for the Iranian state-owned car company, Iran Khodro. The plant is to be called Senlan Auto. Senegal claims that Iran Khodro will start producing its Samand model of cars in as soon as 16 months.

Iran will put up $80 million for the car plant in Senegral. It will take 60% ownership over the plant, with the government of Senegal taking 20% and the other 20% going to Senegalese private investors.

The statement says, “The head of state, on this occasion, highly appreciated the decision taken by the Iranian authorities to implement the agreements signed with our country which are, among others, speeding up the building of a car assembly plant — Iran Khodro — (and) the construction of a petrochemicals factory and refinery in Senegal”. Few other plans regarding the proposed developments were revealed in the statement.

These plans come after a meeting held last week between Iranian officials and President Abdoulaye in Senegal.

Foreign investors have recently taken an interest in Sengal due to the relative stability of the nation. Of all the West African nations, Senegal is the only one to never have been subject to a coup since it first declared independence.

The democratically elected President Abdoulaye was reelected for a second time this past March. Investment activity, especially in sizeable infrastructure projects, has markedly increased since the beginning of his time at office in 2000.

Many analysts see Islamic and Middle Eastern nations as natural supporters for the development of Senegal, since the country is majority Muslim.