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In a significant development for the oil and gas sector across the African continent, Ghana, along with eight other African nations, is poised to reap the rewards of new investments, according to the latest report by the Economist Intelligence Unit (EIU). The report, titled “Africa Outlook 2023: The Challenges Ahead,” sheds light on the potential windfall awaiting African energy suppliers.
The primary catalyst for this optimistic outlook is the decision by several European countries to shift away from Russian oil and gas supplies, seeking alternative sources. This transition is expected to provide a substantial short- to medium-term boost in demand for energy resources from African nations.
The countries set to benefit from these developments include not only Ghana but also Nigeria, Angola, Gabon, Libya, Algeria, Egypt, Congo-Brazzaville, Equatorial Guinea, and Chad. These African nations are likely to become attractive destinations for new investments in the oil and gas sector.
The EIU report also underscores the broader impact on African mining ventures. It suggests that Western-based mining companies and commodity traders could increasingly turn to African suppliers for resources such as copper, cobalt, diamonds, gold, iron ore, manganese, nickel, platinum, palladium, tungsten, uranium, vanadium, and zinc. Countries like Botswana, the Democratic Republic of Congo (DRC), Namibia, Nigeria, Sierra Leone, South Africa, Tanzania, Zambia, and Zimbabwe are among those that may witness heightened interest.
Foreign oil and gas investors are already showing keen interest in exploring opportunities within resource-rich African countries. This trend is expected to contribute to economic growth and development across the continent.
Additionally, the EIU report identifies less resource-intensive and more diversified trading economies in Africa, such as Kenya, Côte d’Ivoire, and Mauritius, as being among the region’s fastest-growing. These countries are likely to continue to experience economic expansion in the coming years.
However, the report also acknowledges that African exporters may encounter challenges in the external business environment in 2023. The European Union, the United States, and China are key markets for African exports, and some businesses may experience decreased demand in these regions. The EIU predicts a potential recession in the EU (including the UK) in 2023, slower economic growth in the US due to high inflation and monetary policy adjustments, and subdued economic performance in China, partly attributed to ongoing pandemic-related issues and challenges in the real estate sector.
While challenges lie ahead, the overall outlook for African nations, including Ghana, remains cautiously optimistic as they stand to benefit from shifting global dynamics in the oil, gas, and mining sectors.
Tagged EIU, ghana, oil and gas
