Scrap metal industry: The inside story of a crisis threatening 70,000 businesses and billions in investments

The iron and scrap metal sector is going through a turbulent period. Faced with falling scrap metal purchase prices and the difficulties encountered by local industries, Serigne Momar Sokhna, president of the Kaolack Scrap Metal Dealers Cooperative, is directly appealing to the authorities and demanding urgent measures. Nearly 70,000 scrap metal dealers and collection operators are directly or indirectly affected by the crisis. More than 155 billion CFA francs in industrial investments and 2,700 direct jobs are also at risk.

The alarm bell has been rung. In a statement dated September 30, 2026, Serigne Momar Sokhna calls on the President of the Republic Bassirou Diomaye Diakhar Faye, the Prime Minister Al Aminou Lo, the Minister of Industry and Trade Serigne Guèye Diop, as well as the entire Government to intervene to prevent a worsening of the situation in the iron and scrap metal sector.

At the heart of his concerns is the drop in the purchase price of scrap metal, which has fallen from 170 to 150 FCFA per kilogram. According to the head of the scrap metal dealers in Kaolack, this decrease represents a loss of 20,000 FCFA per ton for collectors. He believes this situation constitutes a significant economic shock for the thousands of young Senegalese who earn their living from this activity.

70,000 scrap metal dealers in turmoil

According to estimates from professionals, nearly 70,000 scrap metal dealers and collectors are directly or indirectly affected. Serigne Momar Sokhna highlights the thousands of families, jobs, and incomes that depend on this activity.

But for the president of the Kaolack Scrap Metal Dealers Cooperative, the crisis extends far beyond the scrap metal collection sector. It also affects the entire Senegalese iron ore industry ecosystem, particularly FABRIMETAL, SOMETA, and METALSEN. According to the information contained in his warning document, these companies represent over 155 billion CFA francs in investments, an annual production capacity of 1.1 million tons, and 2,700 direct industrial jobs. Yet, this capacity remains significantly underutilized.

Fair competition demanded

Serigne Momar Sokhna is not calling for the closure of the Senegalese market to imports. His demand focuses instead on establishing more equitable competitive conditions. Specifically, he wants imported products to comply with current standards and for exemptions and other advantages granted to imports to be reviewed when they are likely to create unfair competition with companies established in Senegal.

The document also highlights that the combined capacities of FABRIMETAL, SOMETA and METALSEN would reach 1.1 million tonnes, while national demand is estimated at around 600,000 tonnes.

A call for national consultation

To resolve this situation, the president of the Kaolack Scrap Metal Dealers Cooperative is calling for the swift launch of national consultations on the sector. Among the proposed measures are stabilizing the sector and protecting scrap metal dealers' incomes, assessing the impact of imports on domestic industries, strengthening customs controls and adherence to quality standards, and reviewing exemptions that could encourage unfair competition.

He also advocates the creation of a permanent consultation mechanism bringing together the State, industrialists and scrap metal professionals, as well as measures enabling Senegalese industries to better utilize their production capacities and preserve their jobs.

For Serigne Momar Sokhna, the challenge now is to preserve an entire economic chain. From the scrap metal dealer to the transporter, from the manufacturer to the workers, each link contributes to the value chain. If one of them breaks down, the entire sector is weakened.

His message to the authorities is clear: act "now," before businesses close and thousands of jobs are lost. He urges them to play their role as "firefighters" to prevent the crisis from turning into an economic and social catastrophe. The president of the Kaolack Scrap Metal Cooperative thus places the preservation of the 70,000 people involved in the sector, national industries, and jobs at the heart of the emergency.