SHARED DESTINY OF AFRICANS AND AMERICANS

UGANDA

2010-04-22T09:20:00.000-07:00

When the country Uganda comes to your mind what do you think of?

For most people the word Idi Amin is the first thing. Idi Amin was cruel dictator who took many lives in Uganda and affected the economy negatively. But gone are the days of strife and here come the days of hope.

Uganda is referred to the "Pearl of Africa" for its attractive scenery which includes lakes, rivers, game parks and mountains. Some of the most notable attractions are the R. Nile (with the source of the Nile in Uganda}, Lake Victoria {largest lake in Africa}, Mt. Rwenzori {A snow-capped mountain famous for its gorillas, and Queen Elizabeth National Game Park which attracts tourists with its variety of animals. These attractions provide an avenue for tourism which contributes to the national income.

Agriculture is also a major contributor to the national income. Cash crops like coffee and cotton are significant exports and earn the country a lot income. Agriculture used to account for 56% of the economy in 1986, with coffee as its main export, it has now been surpassed by the Services sector, which accounted for 52% of percent GDP in 2007

Recently, oil has been a pleasant discovery and the spirits of the country have been raised. An article on commodityonline.com recently highlighted the country's discovery of oil:

"Uganda's oil assets are situated in the Lake Albert basin, in the west of the country. The country has proven reserves of 700 million barrels of oil although this figure has serious upside. Uganda has even established an elite army unit to protect its oil fields. Nearly thirty years ago Shell started with exploration activities in Uganda's Lake Albert region but pulled out because of falling oil prices and political uncertainty. Five years ago, United Kingdom-based Tullow Oil, however, returned to Lake Albert and found large crude deposits. The firm is currently the largest operator in the country. Tullow and Heritage Oil Plc were originally 50% partners in two Ugandan oil blocks but Heritage decided to dispose of its assets. Tullow is awaiting final Ugandan government approval for its $1.5 billion purchase of Heritage Oil's 50% stake in the two blocks. It is also in discussion with Total and the China National Offshore Oil Company to take over a part of its assets. In an effort to decrease reliance on fuel imports, the Ugandan government has contracted an engineering company to undertake a feasibility study into the development of an oil refinery. Such a refinery has the potential to be very profitable for Uganda as it can sell fuel to its neighboring countries. "

Of recent 2 billion barrels have been discovered as quoted from Today's Zaman, "This is where the mighty River Nile is born to give life to a vast land as it flows through Egypt to its final destination, the Mediterranean Sea, and from here that a new African star is rising on the horizon. Following its recent discovery of 2 billion barrels of crude oil, Uganda has come under the spotlight" What is certain is that the L.Albert basin has crude oil which is only going to benefit the country's economy.

The discovery of oil echoes the fact that days of Idi Amin are a distant memory and days of hope are around the corner. Uganda needs the right minds to push the country forward as the country's potential is fascinating.

Sources
Today's Zaman, April, 26, 2009

http://www.commodityonline.com/news/Ghana-Uganda-to-lead-Africa%E2%80%99s-oil-quest-26382-3-1.html

THE DEMOCRATIC REPUBLIC OF CONGO

2010-04-19T11:06:00.001-07:00

Did you know that the untapped mineral wealth of DR Congo is estimated at$24 trillion, equivalent to the GDP of Europe and the United States combined?

The fact that DR Congo is as large as Britain, France, Belgium, Germany, Ireland, Netherlands, Denmark, Portugal, Switzeland, Armenia, Spain, Albania and Italy combined, it is quite astonishing that DR Congo is still developing. DR Congo needs the right brain power to drive it forward, considering its size and mineral wealth.

Congo has a variety of mineral exports with the major exports being diamond, copper, cobalt and gold. Coltan is another mineral which earns the country the most profits. It is a black tar-like mineral which when crushed becomes a heat- resistant powder capable of holding very high levels of electric charge. Given these properties, it is an excellent heat-resistor and is used in the power-storing capacities of many electronic devices like cell-phones, laptops, spacecraft and much more. It's use has led to the reduction in size of many electronic devices as well as today's advanced wireless technology.

Unfortunately, widespread mineral wealth has led to unrest like in eastern Congo. Illegal trafficking has destabilized eastern Congo and been the catalyst for major conflicts. The conflicts have led to a death count estimated to be five million since 1996.

DR Congo is a country with a lot of potential that needs the right mind to move forward.

References:
NewAfrican issue 494

http://www.nationsencyclopedia.com/Africa/Congo-Democratic-Republic-of-the-DROC-MINING.

NORTH AFRICA: LIBYA

2010-03-11T16:33:00.000-08:00

Until the late 1950s, Libya was one of the poorest countries in the world. In 1950, per capita annual income was about $40, while Libya's most valuable source of foreign earnings was the revenue received for leasing bases to the UK and United States (the bases were vacated in 1970). But with the discovery of the Zaltan oil field in 1959, the economic horizons of the country were dramatically enlarged. The first oil pipeline, from B'ir Zaltan to the coast, was opened in 1961. More oil fields were subsequently discovered, until in 1970 a peak oil output of 159.9 million tons was achieved. Production has fallen since then, but its value has increased, and Libya remains one of the world's leading oil producers. Petroleum, petroleum products, and natural gas accounted for almost all the value of exports and for one-quarter of GDP in 2002. As of 2002, Libya had 12 oil fields with reserves of 1 billion barrels or more each, and two others with reserves of 500 million–1 billion barrels.

Until the late 1950s, about 80% of the population was engaged in agriculture and animal husbandry; in 1999, however, only 18% of the labor force was engaged in agricultural pursuits. Agriculture, forestry, and fishing represented only 5% of GDP in 1999. A massive water pipeline project, called the Great Manmade River (GMR) project was initiated in 1984, and was expected to take 25 years to complete. The GMR is built to carry water in a 267-mile-long pipeline from 225 underground wells to an 880,000 gallon reservoir. This scheme envisaged providing irrigation large areas devoted to cereal cultivation. The government believed that this project would help Libya achieve self-sufficiency in grain (the country has to import at least 75% of its food needs). Total costs of the GMR were likely to exceed $25 billion.

The GDP was believed to have fallen 20% during 1984–86 due to low oil prices. After 1985, growth rates fluctuated sharply, reflecting changes in the oil market. Growth in GDP fell by 3% in 1998 due, once again, to falling oil prices, but prices rose in 1999–2000, leading to an increase in export revenues and a rise in GDP growth to 3% in 2001. In 2002, Libya devalued the official exchange rate of the dinar by 51% to increase the competitiveness of its firms and to attract foreign investment. At the same time it cut its customs duty rate by 50% on most imports to offset the effects of the currency devaluation.

Between 1992 and 1999, during the UN-imposed air embargo, many large projects were postponed because of budget restrictions. Libya's isolation slowed the pace of oil exploration through the absence of major foreign oil companies. Lack of outlets limited the development of refineries, petrochemicals, and gas facilities. In 1999, economic sanctions were lifted because of the extradition of two suspects in the bombing of the Pan Am flight over Lockerbie. Oil companies are eager to exploit Libya's resources, and Libya as of 2003 was actively courting foreign companies to help develop its production capacity from 1.5 million barrels per day to 2 million barrels per day over a five-year period. Libya is looking to cast itself as a key economic intermediary between Europe and Africa.

http://www.nationsencyclopedia.com/Africa/Libya-ECONOMY.html

SOUTHERN AFRICA: ANGOLA

2010-02-20T12:57:00.000-08:00

http://www.angola.org/

Angola is temporarily the leading exporter of oil in Africa, with a production of 1.81 barrels per day. Their goal is to reach 2 million barrels per day by the end of the year.

In addition to diamonds and iron ore, Angola is also rich in several other mineral resources that had not been fully exploited by the late 1980s. These include manganese, copper, gold, phosphates, granite, marble, uranium, quartz, lead, zinc, wolfram, tin, fluorite, sulfur, feldspar, kaolin, mica, asphalt, gypsum, and talc. The government hoped to resume mining in the southwest for crystalline quartz and ornamental marble. It has been estimated that 5,000 cubic meters of marble could be extracted annually over a period of twenty years. A state-owned company mined granite and marble in Huíla and Namibe provinces and in 1983 produced 4,450 cubic meters of granite and 500 cubic meters of marble. Since then, the company has ceased production to re-equip with modern machinery. Quartz production, however, was suspended indefinitely because of the military situation in the areas close to the extraction sites in Cuanza Sul Province.

The government established a company in 1980 to exploit phosphate deposits located in the northwest. There were 50 million tons of deposits in Zaire Province and about 100 million tons in Cabinda. Although studies of the deposits in both locations have been made by Bulgarian and Yugoslav companies, as of 1988 production had not started at either site.

Check this link for an interesting video about oil in Angola.

http://www.youtube.com/watch?v=kMOxUZAHNLk