Africa Briefs
SA plans summit to finalise AfCFTA
South Africa will in May hold an extraordinary summit of the African Union to finalise a continental free trade agreement, president Cyril Ramaphosa told parliament on Thursday.
Ramaphosa said the meeting would finalise rules defining what goods are made in Africa and which tariffs would be removed in the next five years.
This follows the launch of the Africa Continental Free Trade Agreement (AfCFTA) last July, that if successful, would unite 1.3 billion people and create a US$3.4 trillion economic bloc. – Nampa/Reuters
Nigeria's oil output could fall 35%
Cost increases and uncertainty in Nigeria's crucial energy sector could lead to a 35% decline in oil output over 10 years as companies delay investments in key oilfields, consultancy Wood Mackenzie said in new research due published on Friday.
The company warned that three deep offshore fields, which would generate more than US$2 billion a year for the government at peak production, are likely to be delayed as companies put their money in regions with better and clearer terms.
Wood Mackenzie delayed its projected startups for the deepwater projects Bonga Southwest Aparo, operated by Shell, and Preowei, operated by Total, by two years to 2027 and 2025 respectively, and for ExxonMobil's Owowo by four years to 2029.
It cited changes to tax and royalty laws and uncertainty over oil reform as the main reasons for delays, although it also estimated that the three projects are "not economically viable" under current terms, and with oil under $60 per barrel.
"These are still world class resources. What makes some of the other regions more attractive is just higher returns [from] lower costs and less regulatory uncertainty." – Nampa/Reuters
Somalia closer to debt forgiveness
The World Bank and the International Monetary Fund (IMF) on Thursday said they had taken a next historic step toward forgiveness of Somalia's US$5.3 billion in debt, with a final decision possible by the end of March.
The executive boards of the IMF and World Bank have agreed that the East African country is eligible for assistance under the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative, based on a preliminary assessment.
Somali finance minister Abdirahman Beileh welcomed the news and said Somalia would press on with its reforms.
Beileh in October said his country would press ahead with poverty reduction efforts and a major regional ports and corridors initiative if the debt forgiveness process continued as expected.
IMF managing director Kristalina Georgieva said the decisions provided "a clear recognition of Somalia’s sustained commitment to key economic and financial reforms" under challenging circumstances. – Nampa/Reuters
South Africa will in May hold an extraordinary summit of the African Union to finalise a continental free trade agreement, president Cyril Ramaphosa told parliament on Thursday.
Ramaphosa said the meeting would finalise rules defining what goods are made in Africa and which tariffs would be removed in the next five years.
This follows the launch of the Africa Continental Free Trade Agreement (AfCFTA) last July, that if successful, would unite 1.3 billion people and create a US$3.4 trillion economic bloc. – Nampa/Reuters
Nigeria's oil output could fall 35%
Cost increases and uncertainty in Nigeria's crucial energy sector could lead to a 35% decline in oil output over 10 years as companies delay investments in key oilfields, consultancy Wood Mackenzie said in new research due published on Friday.
The company warned that three deep offshore fields, which would generate more than US$2 billion a year for the government at peak production, are likely to be delayed as companies put their money in regions with better and clearer terms.
Wood Mackenzie delayed its projected startups for the deepwater projects Bonga Southwest Aparo, operated by Shell, and Preowei, operated by Total, by two years to 2027 and 2025 respectively, and for ExxonMobil's Owowo by four years to 2029.
It cited changes to tax and royalty laws and uncertainty over oil reform as the main reasons for delays, although it also estimated that the three projects are "not economically viable" under current terms, and with oil under $60 per barrel.
"These are still world class resources. What makes some of the other regions more attractive is just higher returns [from] lower costs and less regulatory uncertainty." – Nampa/Reuters
Somalia closer to debt forgiveness
The World Bank and the International Monetary Fund (IMF) on Thursday said they had taken a next historic step toward forgiveness of Somalia's US$5.3 billion in debt, with a final decision possible by the end of March.
The executive boards of the IMF and World Bank have agreed that the East African country is eligible for assistance under the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative, based on a preliminary assessment.
Somali finance minister Abdirahman Beileh welcomed the news and said Somalia would press on with its reforms.
Beileh in October said his country would press ahead with poverty reduction efforts and a major regional ports and corridors initiative if the debt forgiveness process continued as expected.
IMF managing director Kristalina Georgieva said the decisions provided "a clear recognition of Somalia’s sustained commitment to key economic and financial reforms" under challenging circumstances. – Nampa/Reuters
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