Energy & Corporate Africa
Ebola leaves a question as it ravages the global economy
The death of Thomas Duncan the Liberian Ebola victim that died in Dallas hospital the early hours of today left much question to be answered and it also exposes the vulnerability of man. Ebola which has become a hold-no bar disease has also shown that the global economy is not insulated and could capsize at any time. Unfortunately, Ebola has taken about 3,339 lives with its devastating intensity much in West African countries of Guinea, Sierra Leone and Liberia. The emergence of Ebola victims in USA, Spain and may be in other parts of the world is a call for humanity to come to terms that the problem of one nation is the problem of all.
It becomes glaring that eradication of poverty in the world which could be one of the significant drivers of the colossal spread of Ebola disease should be a task that must be done. It should also be a food for thought for African leaders that pay little attention to the health, environmental and economic well being of their people. Thanks to United States government that have sent more than 2,000 troops and United Kingdom that sent about 700 troops to help in monitoring and assisting Ebola victims in West Africa.
Ebola is not only decimating humanity, it is also crippling the world economy. The World Bank estimated the economic cost of Ebola could be more than $365 billion dollars. More than $600 million dollars have so far been sunk into the fight to cure victims of Ebola and ensure its control. So far, the war on Ebola has not been won and it has shown the unpreparedness of man when certain catastrophe strikes.
The struggle to find cure for HIV was a thorn in the flesh of the global health system. Same condition perplexed the world’s oil industry, when the Macondo (Deep water Horizon) accident in the Gulf of Mexico happened in 2010. It took more than 6 months before a solution to the mass well leakage was found. The aftermath of Macondo accident cost the oil companies’ involved huge amount of money in ensuring control and payment for several loss and damages. Hopefully, sooner or later the cure for Ebola disease will be found. But definitely, human race would have suffered tremendously and the economy buffeted.
As a result of the Ebola menace international operations in most West African countries have dwindled and foreign investment will also suffer. A case in point is Exxon Mobil, one of the major oil companies have stopped its workers from operating in some of their West African sites. International traveling is also been affected and this will impact negatively the global economy. According to a Reuter news report, Exxon Mobil has seen some of its oil and gas activities disrupted in West Africa by the Ebola outbreak, including plans to drill offshore Liberia. Exxon Mobil’s operation in Nigeria and their advances in some African countries will be restricted for now. It is not only Exxon Mobil; many international companies have come out with plans to reduce international operations and traveling of personnel to West Africa. It is unfortunate that Ebola was done contained and eradicated in West Africa Africa. It has found its way outside the shores of Africa. Ebola has gone global and the effect will be monstrous.
It is certain that the Ebola outbreak will affect the number of merger and acquisition deals this year. The upcoming oil licensing round in Liberia scheduled for November will receive the greatest blow. In the same vein, upcoming licensing round and promotions in some other African countries will be deferred till next year. Liberia is still struggling to rebound after many years of war. The same are the cases with Sierra Leone and Guinea where the national economies are still crawling. This is another woeful time for poor economies of West Africa and a global tragedy.