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AFRICA MACRO

ANALYSIS AND STRATEGY

first 8 months, Libya accounted for only 0.1% of all US oil imports.

US Imports of Oil by Vol 2011 Jan- Aug

that have interests in Africa are Exxon/Mobil, Chevron/Texaco, Conoco Philips, Hess Oil, Anadarko Petroleum, Marathon Oil, Noble Energy, Occidental Petroleum and Apache Oil. France France maintains close political relationships with its former colonies in West, North and Central Africa. In fact, its military assistance was critical in helping to capture Laurent Gbagbo on April 11, 2011 after he refused to give up power following his defeat in the 2010 Ivory Coast Presidential elections. Every year, a Franco-African summit is held in France to discuss relations. France also has military bases in Djibouti and Libreville, Gabon and troops in the French territory of Reunion in the Indian Ocean.

Russia Ecuador Algeria Brazil Angola Colombia Nigeria Others Venezuela Mexico Saudi Arabia Canada 0%

5%

10% 15% 20% 25%

Source: US Census Bureau

In 2010, motor vehicles accounted for 10.8% of US exports to Sub-Saharan Africa, petroleum and coal products were second with a 7.7% share and oil seeds and grains had a 7.5% share. With respect to imports, 80.9% was oil, 3.2% consisted of platinum and motor vehicle and parts were 2.5%. In May 2000, the US Congress approved the African Growth and Opportunity Act (AGOA) which was designed to bolster the economic development of Sub-Saharan Africa by offering trade preferences for duty free entry into the US for certain goods, notably textiles and apparel but also cut flowers, horticultural products, automobiles and steel and oil. Largely because of oil Nigeria and Angola are the largest exporters under AGOA. In 2008, AGOA was set to expire but was extended by Congress to 2015. Most Sub-Saharan African countries are eligible for AGOA privileges with the notable exception of Zimbabwe. Preferential rights for Guinea, Niger and Madagascar were suspended in 2010 because of concerns over political developments. Despite the existence of AGOA, US imports of textiles and garments from Africa have not risen sharply because African producers have been undercut by China and more recently Bangladeshi producers. US Foreign Direct Investment in Sub-Saharan Africa is very small, particularly outside of the natural resources sector. In 2009, it accounted for less than 1% of total FDI (book value). It is also heavily concentrated with South Africa ($5.9 billion), Nigeria ($5.4 billion), Mauritius ($3.6 billion), Equatorial Guinea ($3.5 billion), Angola ($2.6 billion) and Liberia ($862 million) accounting for 96.4% of the total. Much of the FDI is in the oil and natural gas sectors. Among the major US oil companies Joab’s Technologies and Research, Natu Court Flat B.

France’s importance as a trading partner and a source of investment has diminished as Chinese influence has increased. It was, however, still the fourth largest export market for SubSaharan Africa in 2009, with a 4.9% share, and the third largest source of imports, with a 5.4% share. It is the major trading partner of Algeria, Morocco and Tunisia. France accounts for 15% of Libya’s oil exports (by volume), 5% of those of Equatorial Guinea, 4% of Angola’s, 3% of Nigeria’s, 13% of Egypt’s liquefied natural gas exports and 12.6% of Algeria’s natural gas exports. As noted earlier the French Central Bank has very close relations with the central banks of the West and Central African CFA zones. Most of the major French companies have a presence in Africa. Total has exploration, production or refinery operations in Algeria, Angola, Cameroon, Egypt, Gabon, Ivory Coast, Libya, Madagascar, Mauritania, Nigeria, the Republic of the Congo, Sudan, South Africa and Tunisia. Areva is active in uranium mining in Niger. It operates 2 mines and is developing the Imouraen uranium mine in the north of the country. When completed, it will be the largest mine of its kind in Africa with an eventual production of 5,000 tons of uranium over an expected lifespan of 35 years. The main water and electricity company in Gabon, SEEG (Société d'énergie et d'eau du Gabon), has been 51% owned by the French company Veolia since 1997. Accor has hotels throughout Africa and Bouygues has worked on major construction projects in Algeria, Benin, Botswana, Egypt, Equatorial Guinea, Gabon, Ivory Coast, Kenya, Mali, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Republic of the Congo, South Africa, Tanzania and Togo. GDF Suez has oil or natural gas exploration and or production operations in Algeria, Ivory Coast, Libya and Mauritania. Private French water companies, such as Suez, have also been active in Africa. Japan Bilateral trade between Japan and Africa has been growing at a Page 27 of 104

Equity Research in Africa, Like an Electric Train Africa is picking up, a True Emerging Market  

Economic analysis of Africa as a whole, as well as of particular countries and sectors, with special regard to their potential as investment...

Equity Research in Africa, Like an Electric Train Africa is picking up, a True Emerging Market  

Economic analysis of Africa as a whole, as well as of particular countries and sectors, with special regard to their potential as investment...

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