Senegal’s palm oil deal with Indonesia: reactions, debate and what happens next

Senegal’s plan to team up with Indonesia on palm oil is drawing fresh attention — and fresh questions. The 60,000-hectare proposal has sparked debate over funding, land use and whether Dakar can finally end a costly import habit.

A quiet meeting in Dakar on 11 September could reshape a sector that has been stalled for a decade. Senegal’s Ministry of Agriculture, Food Sovereignty and Livestock (MASAE) presented Indonesia’s ambassador with an ambitious plan: develop 60,000 hectares of oil palm plantations in the centre and south of the country. That would multiply current cultivated area by five.

Both sides are now working to set up a joint technical working group, which will steer the next phase of the file. On sensitive points such as a precise timeline and the financing structure, Senegalese officials remain silent for now.

Fallout from a decade of stagnation

The stakes are high, given how far the sector has fallen behind. Data compiled by the FAO is stark: between 2015 and 2024, the area devoted to oil palm cultivation in Senegal never exceeded 12,000 hectares, hovering around 11,800 hectares. That stagnation has naturally held back industrial palm oil output, which also stayed flat at roughly 14,000 tonnes over the period.

As a result, Senegal has had little choice but to open the import taps wide to meet steady domestic demand. On average, 148,100 tonnes of palm oil were bought abroad each year between 2015 and 2024 — peaking at 195,937 tonnes in 2017 — with an average annual bill close to $108 million, climbing to $172 million in 2020. It is a costly dependency that Dakar clearly wants to target under its food sovereignty strategy.

Why Indonesia is a heavyweight partner

Choosing Indonesia is no accident. With production estimated at 46.7 million tonnes for the 2025/2026 season, according to the US Department of Agriculture (USDA), the Asian archipelago sits unchallenged at the top of global palm oil production — and also ranks first in exports. That dominance rests on decades of expertise in varietal selection, plantation management and industrial processing.

For Dakar, the goal goes beyond simply expanding cultivated area: it is about capturing that know-how through technology transfer and local skills building — a prerequisite for creating a productive, better-structured sector.

A model already tested on the continent

Senegal is not breaking new ground: other African countries have already forged similar partnerships with Jakarta. In Tanzania, authorities signed a cooperation agreement in 2025 with the Indonesian Palm Oil Association (GAPKI), covering training, technical support and skills transfer. In Nigeria, Africa’s largest palm oil producer, a 2024 memorandum of understanding between local producers and GAPKI pursues the same goals: sharing knowledge and technology to boost productivity.

The question now is whether Dakar can turn the plan into results where others have only laid the groundwork.

By Daniel Mbami — Politics and Security