News & Analysis: Oil prices
“Slightly indebted, (42% of GDP according to the latest IMF data, including 25.6 points of state-guaranteed debt), Chad is nevertheless approaching a liquidity crisis due to a high debt burden and low oil revenues.”
“Like several other African countries, Chad is struggling with a high debt burden against a backdrop of the coronavirus crisis and low prices for oil, its major export.”
“The economic impact of the coronavirus pandemic will send personal incomes in Nigeria, Africa’s largest economy, back four decades. If Africa’s biggest oil producer is to avoid a prolonged recession, it will have to enact a series of potentially politically unpopular reforms.”
“South Sudan’s economy is dead on its feet. Falling oil prices have squeezed government revenues, sending hard currency reserves tumbling and inflation soaring. Political stability may now rest on the ability of leaders to maintain discipline in their ranks and confidence in each other, as the financial bargain at the heart of the 2018 peace agreement comes under pressure.”
“Africa’s biggest economy has sunk into its second recession in less than five years, battered by the oil price crash brought on by the coronavirus pandemic.”
“The prices for Nigerian Bonny Light and Angolan Cabinda crudes have regained some lost ground in November thanks to the Pfizer vaccine news and the U.S. elections. Given that both countries face enormous debt servicing challenges, these higher oil prices will help to replenish government coffers.”
“Before the conflict and COVID-19, South Sudan was drilling more than 250,000 barrels of crude oil per day, which has now dropped to 180,000 barrels per day. In an extraordinary meeting, the Central Bank Monetary Policy Committee made five resolutions aimed at tackling the devaluation of crude oil.”
“Over the past five years, Lagos has become Africa’s fintech centre and the continent’s most vibrant tech hub, attracting large investment in financial networks across Africa.”
“As the COVID-19 pandemic and economic crisis continues to spread, the amount of money migrant workers send home is projected to decline 14 percent by 2021 compared to the pre COVID-19 levels in 2019”
“Nigeria’s oil dependence has come back to haunt it once again, as the government battles to manage a severe contraction of revenues and foreign currency in the wake of plummeting oil prices brought on by the COVID-19 global crisis.”
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