Arabfields, Maleeka Kassou, East, West and Central Africa Agriculture Correspondent — Senegal is looking to revive its palm oil industry with technical support from Indonesia, as the country seeks to reduce its reliance on imported vegetable oils and create more value from agricultural production in its southern regions.

The initiative comes as palm oil remains the dominant vegetable oil on the Senegalese market. Government data compiled in a 2026 study of the vegetable oil market show that palm oil accounted for around 80% of Senegal’s vegetable oil imports in 2024. Total vegetable oil imports reached about 217,000 tonnes that year, valued at roughly 90 billion CFA francs.

For farmers in Casamance, the renewed attention to the crop carries a more personal significance. Palm trees have long been part of the landscape and rural economy of the region, where households have traditionally produced palm oil and palm wine on a small scale. For many producers, however, the sector has struggled to move from traditional production towards a more productive and commercially integrated industry.

Indonesia’s experience could provide a model for that transition. The Southeast Asian country has built one of the world’s largest palm oil industries, combining plantations, processing facilities, logistics and increasingly large domestic demand for biofuels. Senegal is expected to focus instead on adapting selected elements of that experience to its own agricultural and environmental conditions.

The economic case is becoming stronger. Senegal’s imports of palm oil have increasingly shifted towards crude oil destined for local refining. In 2024, crude palm oil represented about 62% of imported palm oil by volume, compared with 20% in 2020, according to the 2026 market assessment. The change reflects the growing role of domestic refining and creates an opportunity for locally produced palm oil to compete further along the value chain.

The market remains heavily dependent on foreign suppliers. Malaysia increased its share of Senegal’s palm oil imports to about 71% in 2024, while Indonesia has consolidated its position as another important supplier. The concentration of supply underlines the potential economic benefit of developing domestic production, particularly if new plantations can supply local processors at competitive prices.

The challenge is productivity. Earlier assessments of Senegal’s palm oil sector estimated production at around 14,000 tonnes of crude palm oil in 2020, with most production concentrated in Casamance. That remains small compared with domestic demand and the volumes entering the country through imports.

A successful revival would therefore require more than planting new trees. Farmers need improved planting material, technical support, irrigation where economically viable, better collection systems and access to processing equipment. Without those investments, expanding acreage alone would be unlikely to generate a significant change in the country’s import dependence.

For small producers, the stakes extend beyond trade figures. A stronger value chain could provide additional income for farming households while creating jobs in harvesting, transportation, processing and marketing. Women, who have historically played an important role in processing palm products in Casamance, could also benefit if modernization reaches the village level rather than remaining concentrated in industrial facilities.

The outlook for the sector is cautiously positive. If Senegal succeeds in improving yields and expanding processing capacity over the coming years, domestic production could gradually capture part of a market that currently relies heavily on imports. The shift towards crude palm oil imports and local refining suggests that an increase in domestic supply would have a ready industrial outlet.

The global market could provide another incentive. Indonesia’s decision to raise its palm oil-based biodiesel blending programme in 2026 is expected to increase domestic consumption of palm oil and potentially reduce export availability. That could keep international prices relatively firm and make domestic production more strategically valuable for import-dependent countries such as Senegal.

Still, the country will have to balance agricultural expansion with environmental concerns, particularly in Casamance, where palm landscapes are closely linked to local ecosystems. A revival based on higher productivity from existing agricultural areas would offer a more sustainable path than uncontrolled expansion.

For Senegal, the Indonesian partnership is therefore less about copying a global palm oil giant than about adapting its experience to a local industry that has struggled to reach its potential. If investment, farmer support and processing capacity move together, palm oil could gradually become a larger contributor to rural incomes and food supply, while reducing the country’s exposure to volatile international markets.