COVID-19 threatens African oil industry [Business]

The Coronavirus is putting the world’s economy under severe strain and the consequences are already being seen in oil production.

The benchmark barrel of North Sea Brent crude oil plunged heavily in Asia, losing nearly 25% to $33.29 per barrel.

For experts, this is a loss of nearly 50% since January 1. It’s a concern in oil-producing African countries. Many oil-backed African countries have projected their revenues with an average assumption of $70 a barrel, which does not balance the budget.

If oil stays at $36 a barrel for six months, it will be a disaster for African countries.

On the Business segment of the Morning Call, our Jean David-Mihamle speaks to Secretary General of the Organization of African Petroleum Exporting Countries, Mahaman Gaya on the need for economic diversification within African economies.