Skip to content

Falling Oil Prices Spell Deep Losses for Africa

With oil prices plunging amid concerns over a price war between Russia and Saudi Arabia, and the coronavirus outbreak obliterating stock markets, Africa’s largest economy is in a precarious position. The International Monetary Fund (IMF) on Thursday said it will be working closely with the Nigerian authorities in the coming days to assess any vulnerabilities which may be exposed by the sharp decline in crude prices, as Nigerian and Angolan dollar bonds sank to record lows. An oil price crash has wiped $4.8 billion off the market value of South African petrochemicals group Sasol, adding to the government’s difficulties in shoring up business confidence as giant state-backed companies flounder. The destruction of value at one of South Africa’s biggest companies is another problem for a government grappling with a heavily-indebted state power company and airline.