Recently renewed by U.S. President Barack Obama, the African Growth and Opportunity Act, or AGOA, allows qualifying African countries to export certain products to the U.S. duty free. U.S. exports to Africa, however, are subject to customs duties. Incoming President Donald Trump isn’t going to go for that, says Herman Cohen, a former U.S. ambassador to several African countries. “I have the feeling that he will ask African governments to accept reciprocity in trade relations,” Cohen said.
Oil & Gas: Latest News
Peter Pedroncelli, 1:25 am AFKI Original
The year 2016 was not an easy one for South Africa, but investor outlook for the year 2017 certainly looks more positive. Having survived a tough year, investors are now looking at South Africa to gauge whether or not to invest their funds in the emerging market, but there are a flurry of reasons to give the country a second glance in 2017. We take a look 12 things that are expected to improve investor outlook in South Africa during 2017.
Kevin Mwanza, 5:04 am
Nigeria, the second biggest oil producer in Africa, is likely to enjoy increased earnings from its exports by the end of 2017, when global prices are expected rise to $60 per barrel, an increase that will boost the nation’s struggling economy. Global oil prices fell from a peak of $115 per barrel in June 2014 to below $35 in February last year before recovering to $50 per barrel in December.
Dana Sanchez, 11:28 am
Chevron South Africa assets include a refinery in Cape Town that produces 110,000 barrels a day, a lubricants plant in Durban and about 800 Caltex service stations. It’s one of South Africa’s top five petroleum brands and has done business in the country for more than 100 years. Low oil prices and uncertainty about future prices will make it difficult for potential buyers to fund an acquisition themselves or to raise capital externally, a stakeholder said.
Dana Sanchez, 6:15 pm
Teodorin Obiang, the vice president of Equatorial Guinea, is in line to succeed his father, the president. The son also faces 10 years in prison and a $105 million fine for money-laundering. The country’s treasury paid almost $115 million into Obiang’s personal account. Africa’s only Spanish-speaking country is often criticized for repression, torture, corruption and unlawful killings. France is preparing cases against relatives of other African leaders including from Congo, Gabon and CAR.
Kurt Davis Jr., 8:15 am AFKI Original
Mozambique had a tough 2016. The country is unable to pay its debt until gas revenues are available after 2021. Public debt is expected to be near 130 percent of GDP by the end of 2016. The IMF continues to help Mozambique negotiate with creditors – a bright spot considering the IMF suspended aid to the country in April after evidence of $2 billion in hidden loans came to light. This “hidden debt” by state-owned firms has destroyed creditors’ trust in Mozambique.
Kurt Davis Jr., 10:11 am AFKI Original
It is the end of the year, a time when companies close the books and forecast 2017. As African governments roll out 2017 budgets or budget adjustments, it’s an ideal time to take an early look at the two gigantic problem countries — sub-Saharan Africa’s second- and third-largest economies. A sustained low oil price could all but doom these African budgets and burden their economies. Will debt markets be willing to service Nigeria? President dos Santos said he is prepared to step down — not bad timing. Angola may be the giant taking the hardest punches.
Dana Sanchez, 12:15 pm
The deal could create a new liquified natural gas hub in Africa. BP is on a spending spree, bulking up its new drilling resources after years of selloffs. BP sold assets worth $40 billion since 2010 to cover the $60 billion costs of the Deepwater Horizon oil spill in the Gulf of Mexico. When Kosmos discovered the gas field off the coast of Mauritania and Senegal, investors were skeptical. “We think we’ve opened up one of the largest areas in the Atlantic basin in the last 15 years,” said the Kosmos CEO.
Kevin Mwanza, 7:17 am
Nigeria, Africa’s largest oil producer, and its neighbors, Benin, Ghana, Togo and Cote d’Ivoire banned the importation of dirty fuels from Europe, in a move that the United Nations said will save at least 250 million people from air-borne infections. They took the decision after meeting with UNEP, in a move that banned fuels that cannot be sold to European markets because of their high sulphur levels.
Kevin Mwanza, 5:33 am
Nigeria has signed a deal with Morocco to construct Trans-African gas pipeline that will connect the continent’s largest oil producer to Europe’s lucrative gas market. The 4,000 kilometer-long pipeline, to be funded by the Nigeria Sovereign Investment Authority and Ithmar Capital, a Moroccan sovereign wealth fund. The two governments signed the joint partnership during a state visit by Morocco’s King Mohammed to his Nigerian counterpart,
Dana Sanchez, 2:22 pm
In June 2016, Angolan President José Eduardo dos Santos controversially appointed his billionaire daughter Isabel head of the state-owned oil company Sonangol. The collapse of oil prices is nothing new, but the nature of Angolan politics and the stranglehold of the dos Santos family are threatening economic collapse. Under Isabel’s watch, Sonangol can’t afford to pay for toilet paper, never mind repay $1.135 billion in debt. Soon after Isabel became CEO of Sonangol, Angola pulled out of discussions with the IMF for a $4.5 billion loan. Isabel’s banking monopoly is the reason, an analyst said. The richest woman in Africa, Isabel owns stakes in five of the largest Angolan banks.
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