Africa's economic growth

Oil slide threatens Africa's economic growth

Plunging oil prices are threatening Africa's economic ascent.

Recent oil and gas discoveries were hailed as a godsend for African nations aspiring to middle-income status. But billions of investment dollars are moving into projects just as crude prices have tumbled, raising fears that some may be put on hold.

Total SA, Exxon Mobil Corp. and other companies are at work on a $16-billion oil project in Angola that will be profitable only if oil prices average more than $70 a barrel, Citigroup analysts estimate. The price of Brent crude closed at a new five-year low on Thursday, falling nearly 1%, or 56 cents, to $63.68 a barrel.

Anadarko Petroleum Corp. and Eni SpA have spent more than $5 billion developing natural-gas fields in Mozambique that threaten to become much less profitable if global supply expands too rapidly. Ugandan officials say they fear lower oil prices could deter companies, including Tullow Oil PLC and China's Cnooc Ltd., from following through on plans to invest up to $15 billion to develop the country's oil fields.

Cheaper fuel will help many African countries suppress inflation by keeping energy import costs down. But the continent's biggest economies have staked their futures on robust prices for oil and gas. Pumping high-price crude has generated rapid economic growth and spending that spilled across borders.

Now, those flows are set to slow sharply. Capital Economics says falling commodity prices will cut growth across sub-Saharan Africa by one percentage point next year, to around 4%, the slowest rate since the late 1990s.

"It's bad for all of Africa," said Jack Allen, an economist at the research firm.

Nigeria is a case in point. Africa's top economy and crude producer has grown 7% a year for the past decade. As retail and telecommunications companies have taken off, the oil industry has shrunk to a more balanced 14% of economic activit

But Nigeria's government revenue hasn't evolved with its economy. Oil still fuels more than 70% of the budget, leaving public institutions dependent on the ebb and flow of global energy prices. As Brent crude prices fell below $70 a barrel this month, Nigeria's naira currency plummeted to record lows.
Nigeria's Finance Minister Ngozi Okonjo-Iweala says the drop in oil prices could drag economic growth down by a percentage point to 5.3% in 2015.
Earlier this month, the central bank raised interest rates to draw back investors as the currency fell. The higher rates will now make it more expensive for the government to borrow.
Now Ms. Okonjo-Iweala is scrounging for new revenue to hold elections in February and fight the Islamist insurgency Boko Haram. She plans to raise taxes on yachts, private planes and sparkling wine. She has said she may even impose a mansion tax--small steps toward filling a big hole.
"Undoubtedly, it's going to be tough times," she said in an interview.[/font][/color]
Cheaper oil is also complicating nearby Ghana's efforts to dig out from deep trade and budget deficits. Ghana's cedi currency was tumbling even before oil prices started dropping. In August, the country requested a bailout from the International Monetary Fund that could be worth around $500 million
To meet the IMF's terms, Ghana is taxing oil at the pump, which Ghanaians won't notice, since the tax is being rolled in as prices fall. But the long-term picture is murkier. Ghana is set to nearly double oil production from around 100,000 barrels a day to 190,000 by 2016--output the government hoped would finance road, power and port expansions to help the economy grow. Now it isn't clear where that revenue will come from.
"We are woefully short," said Sydney Casely-Hayford, a financial consultant and former adviser to Ghana's treasury.[/size]

phuck black africa!  deh corrupt, rotten to the core, traitorous to their wn best interest, love the white skin no matter what white man do to them.

I am sooprise that america have send soldiers ..AFRICOM.  all deh have to do is to arks the african for africa.  deh wud give the white Africa..as deh have given them so much already for nothing.  deh wud give deh all if deh wud jess arks

maybe deh fraid the chiney man arks fus' an' get it all and send militaty to take it..so deh sen' deh own military fus'

lol.

It's far more crazy. Look at Sudan, for example. A massively wealthy country in terms of oil, and once the largest nation in Africa. How do the West get that oil? Split the country into a North and South, like you did Vietnam, Ireland, Korea, India etc etc, and tell both halves they're better off seperated. Even better, arm them to fight each other. If the north or south vote for a decent leader, have him die in a mysterious helicopter crash. When they vote for their next guy, have him couped and replaced, preferably with the help of the extremist, Islamic factions you're arming. Not working? Give them factions some more guns and money. Oh crap, those factions trying to take over countries for themselves? Switch sides and arm the government in exchange for more resource rights. Government winning? Arm the muslims. Not chaotic enough? Lather, rinse, repeat.

So Trindaddy,....why don't you advise them to get smart, since what the west did is common knowledge to all and sundry, and stop the fighting and killing, increase production and productivity and learn to live in peace and harmony. That will definitely build the respective economies. And right the wrongs inflicted by the evil west.

Or is it now that corruption is endemic and the Africans are more corrupt than brainwashed by the west?

the west is there to save them from the Saudis stealing their oil and gold

No man...the west is big and bad and are there to steal from them.

What I cannot undersatnd is why people think that the leaders of African nations are so foolish? That they can't hink for themselves, that they can be manipulated by the west without them being complicit???? Some of the leaders attend the best universities, but they are corrupt, not because of the west, but because of unadulterated greed.

yeah well!  at some point you had to realize something... to get something right

yes..the african elites..totally corrupt.

Meles Zenawi the american sponsored ethiopian dictaor..just 57 years, died.  that MF left 8 billion dollars for is family in swiss banks and elsewhere
pheeeew!
::LOL:: ::LOL:: ::LOL::

so did Burnham and wan trickie woman