Kenya joins the Group of Oil Producing Countries in Africa

Proshare

Friday, June 28, 2019   / 05:00PM / United Capital Research / Header Image Credit: Wikipedia

 

Earlier in the week, the Kenyan government signed an agreement with oil majors; Total, Tullow Oil, and Africa Oil Corp, to develop a 60,000-80,000 barrels per day crude processing facility for oil discovered in the country’s northwest region. In addition to the processing facility, a crude oil export pipeline from Lokichar to Lamu on Kenya’s coast was also part of the deal. Additionally, the country’s Petroleum and Mining Minister said the partners were now focusing on securing financing for an export crude oil pipeline.

Evidently, the East African giant plans to position itself as a crude oil exporter, joining continental majors like Nigeria and Angola. However, the closest comparable economy is Ghana, which recently transited from a Gold mining and Cocoa producing economy to an oil-producing country. Similar to Ghana where the crude oil sector now is complementing output from the mining and the Agric. sectors, Kenya will be looking to diversify its mainly Agric based economy (Horticultural products, Tea and Coffee) to an oil mining economy.

We believe this development brightens the outlook for the East African Country, which currently leads the world in mobile money. Although the proven reserves in question is relatively small, our only concern remains the theoretical Dutch Disease - the paradoxical decline in other sectors of the economy which occurs when good news, such as the discovery oil reserves, harms a country's broader economy. 

 

Top African Stories

·         South Africa's records FDI inflows of 11.7 bln rand in Q1: South Africa’s foreign direct investment swung to inflows in the first quarter from outflows in the final quarter of last year as domestic private firms received equity and debt funding from foreign parent companies, the central bank said on Thursday. Reuters

 

·         South Africa's Mminele quits as central bank deputy governor: Daniel Mminele will retire as deputy governor of the South African Reserve Bank at the end of the month after 10 years in the job, the central bank said on Thursday, making him the third member of its policy committee to quit the regulator recently. Reuters

 

·         Uber Plans to Launch Boat Taxis in Nigeria’s Biggest City: Uber Technology Inc. is planning to launch its boat business in Lagos, Nigeria’s commercial capital and biggest city, to beat traffic congestion.  Bloomberg

 

·         Zambian court blocks asset sale by Konkola Copper Mines liquidator: Vedanta Resources said on Thursday a Zambian court has issued an order halting any move by the provisional liquidator of its Konkola Copper Mines (KCM) business to dispose of KCM’s assets or make arrangements with its creditors. Reuters

 

                                                

Looking Forward

Egypt

Jun-19 Inflation - July 10th

Policy Rate Decision - July 11th 

 

Ghana

Jun-19 Inflation - July 10th

 

Kenya

May-19 (CPI) Inflation - June 29th

 

South Africa

Policy Rate Decision - July 18th

 

Tunisia

Jun-19 Inflation - July 11th

 

Visit African Markets in Proshare MARKETS

 

Proshare Nigeria Pvt. Ltd.



Proshare Nigeria Pvt. Ltd.

 

Proshare Nigeria Pvt. Ltd.

 

Related News

1.            Moody’s Downgrades the Democratic Republic of Congo’s Rating to Caa1

2.           Remarks By President Donald Tusk After The Euro Summit Meeting On 21 June 2019

3.           South Africa’s Q1-19 GDP Result: On the Way to Another Recession?

4.           Togo Gets S and P’s ‘B and B’ Rating: To Join The Eurobond Bandwagon?

5.           South Africa's Rand Continues To Tumble On Central Bank Worries

6.           South Africa’s Economic Slump-A Huge Signal for Structural Reforms

7.           No-Deal Brexit More Likely; Path Ahead Remains Unclear

8.          Cabinet reshuffling in South Africa: Any lesson for Nigeria?

9.           London Cedes World’s Financial Centre Status To New York As Brexit Worries Weigh On The City

10.       The USA-ChinaTrade War – A Ploy To Colonise China?

11.         BMW, Daimler Most at Risk of US Tariff Rise, China Reprisal

12.        New Tariffs Would Signal Prolonged US Corporate Headwind

13.        African Countries: Taking the Easy Way Out?

14.        Emerging Market Demand Responsive to Global Financing Conditions – Fitch

15.        Tough Economic Lessons From Ghana

16.        Banks in AAA Jurisdictions Face Rising Household Debt Risk

17.        South Africa’s Credit Rating Postponement: A breather?

18.        Global Trade Growth Slows Down To 3.3% In 2018

19.        Minutes Of The Federal Open Market Committee, January 29-30, 2019 - Key Takeaways

20.       Eurozone 2019 Growth Forecast Cut to 1%; ECB Could Restart QE

21.        Open-Ended Bond Funds a Potential Risk to Financial Stability - Fitch


Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP