Browsing: oil prices

For decades, the world has known that the Democratic Republic of Congo has immense natural resources which make even the wealthiest nations green with envy.

If well utilized, these resources could transform the nation from the poor and chaotic country we know today to a leading light in the global economy.

The DRC’s untapped deposits of copper, gold, diamonds, cobalt, uranium and coltan are some of the raw minerals estimated to be worth more than US$ 24 trillion. This makes it the richest country in the world due to its natural resources.

Read: China’s strategy for Africa’s minerals, electric cars

While these minerals are beneath the ground, the country has limitless water from the Congo River which is the world’s second-largest river in addition to a benign climate and rich fertile soil. Despite all these endowments, the country’s ranking on the UN Human Development Index is consistently rated lowest.

This …

It is not secret that South Sudan relies on oil to fuel most of its economy and state coffers, and that the revenue of such oil is dependent upon its export via pipeline to Port Sudan.

As a result, oil cooperation between both countries is at the centre of key economic activity: Sudan’s economy benefits from transit fees paid by South Sudan, and South Sudan’s economy benefits from Sudan’s oil export infrastructure. While one doesn’t go without the other, oil prices instability disturbs a tricky balance put in place between both countries.

In December 2016, as oil prices had fallen drastically below $40 dollars a barrel, the Agreement on Oil and Related Economic Matters (AOREM) between Sudan and South Sudan, known popularly as Cooperation Agreement, was due to expire, and Transitional Financial Arrangements (TFA) fees of $3.02bn due to Sudan were not yet fully paid, the two sisterly countries, mindful …