A new wave of economic growth in Africa
By Sunny Oputa.
It is no longer an industry secret that a new wave of economic stardom and growth is blowing towards Africa and Sub-Saharan Africa will be the epicenter. The region’s GDP has been forecasted by experts to continue soaring and gaining momentum based on prevailing socio -economic indices and also spurred by market dynamics in the extractive sector.
Africa, at present, has about 10% of the world’s oil reserves and 13% of the global natural gas reserves propelled by the new discoveries in Ghana, Kenya, Uganda, Tanzania and Mozambique. Africa’s major oil reserves are located in Sub-Saharan Africa. According to Consultants, Wood MacKenzie, by 2018, Sub-Saharan Africa could be producing an extra 400,000 bb/d of oil.
It is envisaged that by 2020 more discoveries will be made in the region and production of oil and gas will soar. This has the tendency of impacting growth in the economy, if well managed. With the fluctuation in the price of oil, market uncertainties and the imperative need to ensure ROI, it
becomes germane to institute a global search for energy solution. Amid the search for paradigm shift takes off, Sub-Saharan Africa continues to show great potential in oil and gas production.
As the population of Africa continues to grow amid geopolitical situations, surging discoveries and production in the petroleum sector which are key drivers of the envisaged growth; it is becoming more apparent that Africa is about attaining its golden age. However, for this to happen, Africa would have to achieve potentials in the upstream, downstream, nascent shale revolution, and ensure capacity building through quality human capital.