News
Gabon resolves long-running oil dispute
Gabon is the fifth largest liquid fuels producer in Sub-Saharan Africa, although its production is a fraction of that in the region’s two largest producers (Nigeria and Angola). However, recent developments in Gabon are promising and could pave the way for increased foreign investment and rising production levels over the next five years. The Gabonese government finally settled a long-running oil license dispute with Addax (a subsidiary of the Chinese national oil company Sinopec) in January 2014. The dispute had emerged in 2012 when the...
read moreBotswana’s economy is in reasonably good shape
Botswana’s economy is in reasonably good shape as economic growth continues to expand at a healthy pace. According to the latest available data, real GDP rose by 7.1% year on year in the third quarter of 2013, and is estimated to grow by around 6% for the year as a whole. Also, the government is on target to eliminate the budget deficit in fiscal year 2013/14 (April-March) and the current account is likely to post a surplus in 2013. The countries improving trade balance reflects strong growth in mining output and the successful transfer of...
read moreECOWAS close to agreeing EPA with the EU
The 15 member states of the Economic Community of West African States (ECOWAS) appear close to agreeing a new Economic Partnership Agreement (EPA) with the EU. A deal was under discussion at negotiations held in late January between the two trade blocks and an agreement appears to have been reached in principle which could be formally ratified during the first quarter of 2014. Dialogue with the EU broke down in 2012, but was given fresh impetus in late 2013 as compromise on both sides finally led a breakthrough. As yet full details are...
read moreTanzania gas pipeline to be completed in 2014
A new gas pipeline in Tanzania, which will run from Mtwara in the south east to Dar es Salaam, is scheduled for completion in 2014. The pipeline will include around a 500km stretch on land and a 30km long stretch through the Indian Ocean. The pipeline is part of a larger project, part funded by Exim Bank of China, which will include construction of gas processing plants at Madimba in Mtwara and Songo Songo Island in Lindi, as well as two new power plants at Kinyerezi with total additional generation capacity of 390MW. The government intends...
read moreSudan devalues again
The government of Sudan devalued the Sudanese pound by around 25% against the US Dollar in November as the country continued to struggle with an economic crisis exacerbated by the secession of South Sudan in mid-2011. This is the second large devaluation of the past twelve months and one that had been pre-empted by a widening of the gap between the official and black market exchange rates. Exchange rate reforms are being encouraged by the IMF and could be introduced in 2014, resulting in the unification of the country’s various exchanges...
read moreGabon deep sea licensing round gets underway
The discovery of gas condensate in a pre-salt layer earlier this year has raised expectations that Gabon is on the verge of an offshore oil windfall that could offset declining output from mature fields and provide much needed finance to the domestic economy. The government hopes that new discoveries will eventually raise oil production to 500,000 barrels per day (bpd) from a projected 230,000 bpd in 2014. In October, Gabon awarded various offshore oil and gas blocks to a range of international oil companies as part of the current deep water...
read moreDRC takes tentative steps towards peace
The government of the DRC and the leaders of the March 23rd Movement (M23) rebels are on the cusp of signing an important peace agreement brokered by members of the African Union (AU), particularly Uganda. The M23 rebels recently ceased military operations following an intense campaign by the DRC forces and the introduction of a beefed up UN ‘intervention brigade’. If the peace deal goes through, it could be a catalyst for greater security in the Great Lakes region and facilitate opportunities for regional trade and commerce. However, even...
read moreBotswana well placed to see tourism boom
The contribution of the tourism sector to economic growth in Botswana has been stifled in recent years by fall-out from the global recession as well as the legacy of years of under-investment in infrastructure and staff training to raise standards in the sector. However, a recent study by the World Bank suggests that Botswana is amongst the best placed countries in Sub-Saharan Africa to grow the sector rapidly over the next five years. There are signs that the government is willing to invest much more of its development spending on the...
read moreDRC connects weak local network to WACS
After several delays and missed opportunities, DRC was finally connected to the West African Cable System (WACS) in July this year, which links Europe to West Africa and South Africa through a 14,530 km submarine fibre-optic cable system. The connection provides potential for DRC to expand internet connectivity and benefit from faster and cheaper internet access, more reliable connections and more advanced services. However, the national transmission network is in poor condition and requires a significant upgrade before the country can...
read moreDRC intervention brigade gets busy
The United Nations (UN) deployed a new 3,000 strong ‘intervention brigade’ in July to support MONUSCO operations in eastern DRC. The peacekeeping mission aims to establish a security zone around Goma (near the border with Rwanda) to protect the population from renewed fighting between government forces and M23 rebels, and has a specific mandate to target offensive operations and neutralise and disarm rebel groups. The introduction of the brigade represents a more aggressive stance for the UN, which has been severely criticised for inaction...
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