29 October 2015, News Wires – The big players in Africa’s oil industry are meeting in Cape Town to discuss the ongoing turmoil in the industry. Falling oil prices are not just causing doom but could be beneficial to the continent.
You may think it’s all over for Africa. This is a continent that for the past half century has heavily relied on the rise of commodity prices. Even in recent years, while Europe and the United States economies slumped, many African economies were booking double digit growth figures.
Magazines like The Economist and Time that previously declared Africa the ‘dark’ and ‘forgotten’ continent, ran front pages with ‘Africa is rising.’ Most of this growth was driven by the mineral wealth of the oldest continent and most enduring land mass. It is not only home to big reserves of platinum, gold, or copper but also to one tenth of the worlds oil reserves.
Now that oil prices have fallen with more than 50 % many African economies are in deep trouble. “he industry is under a global shock,” said renowned oil strategist Duncan Clarke. He is one of the speakers at the 22nd Africa Oil Week in Cape Town, where oil companies and African governments are meeting this week to discuss the ongoing turmoil in the industry.
“ll the countries that are producing it, even the countries that are not, are going to see less capital coming in for exploration into their countries,” said Clarke.