Nigeria’s Loss Is East Africa’s Gain as Oil Prices Plummet ===== Investors targeting Africa are looking east as an oil-market rout depresses economic growth prospects in Nigeria and other crude-producing nations. Stocks have surged 22 percent in Tanzania (DARSDSEI), 18 percent in Uganda and 9.4 percent in Kenya since oil began falling from a peak of $115.71 a barrel on June 19. Lower fuel-import costs are helping to keep inflation and interest rates in check and bolster their economies. That contrasts with a 24 percent slump in the benchmark stock index in Nigeria, which relies on oil for 95 percent of foreign-exchange income and faces political instability ahead of elections in February. Despite a lack of oil wealth, economic expansion in East Africa has been resilient. The International Monetary Fund is forecasting GDP growth of 7 percent next year in Tanzania, 6.3 percent in Uganda and 6.2 percent in Kenya. (NSEASI) Nigeria’s Finance Ministry on Dec. 10 cut its growth forecast by 1 percentage point to 5.3 percent, while Capital Economics estimates Angola’s economy will contract about 2 percent. ==== bloomberg
Posted on: Fri, 12 Dec 2014 09:22:18 +0000