High dependency and varying revenue projections make the use of Extractive Industries (EI) revenues central to the political economy of many African countries and the region as a whole:
􀂃 In 2001, oil production generated 20 percent of the combined GDP of sub-Saharan Africa.
􀂃 Oil revenues made up between 64 and 82% of government revenues in Angola, DRC, Equitorial Guinea, Gabon and Nigeria.
􀂃 Between 2003-2012, it is estimated that oil production will be worth more than $500 bn, and represent a significant increase in petroleum revenues for some governments (e.g. a rise of 105% for Angola, 46% for Sudan, 36% for Nigeria, 10% for Congo-Brazzaville)
􀂃 However, others will suffer serious declines (e.g. Equitorial Guinea –1%, Gabon –33%).
􀂃 In 2002, mining constituted about 8% of the GDP of the Southern Africa Development Community and 43% of the region’s exports. Botswana, DRC, Namibia and Zambia all derived over 50% of their export earnings from mining.

Globally, Africa is becoming increasing important to world energy supplies:
􀂃 Africa supplied just over 4% of the world’s oil in 2003. It is expected to contribute a fifth of the global increase in production between 2004 and 2010.
􀂃 Proven reserves have doubled in the last decade. The Atlantic Ocean off the coast of west and southern Africa continues to be one of the world’s most active areas for oil exploration.
􀂃 Africa is seen a key strategic source of oil especially when security of supply is threatened by instability in the Middle East.
􀂃 It is estimated that the US will source 15-25% of its oil from Africa by 2015.
􀂃 The continent is also well placed to respond to rising global demand for gas.
Stability of supplies from Africa is clearly vital from both a regional and global perspective and the huge revenues would, on the surface, appear to offer an important means to fund progress towards the Millenium Development Goals.
The

COUNTRIES IN AFRICA

ALGERIA

ANGOLA

BENIN

BOTSWANA

BURKINA FASO

BURUNDI

CAMEROON

CAPE VERDE

CENTRAL AFRICAN REPUBLIC

CHAD

COMOROS

REPUBLIC OF CONGO

DEMOCRATIC REPUBLIC OF CONGO

COTE D'IVOIRE

DJIBOUTI

EGYPT

EQUATORIAL GUINEA

ERITREA

ETHIOPIA

GABON

THE GAMBIA

GHANA

Guinea

Guinea-Bissau

Ivory Coast (Cote

d'Ivoire)

Kenya

Lesotho

Liberia

Libya

Madagascar

Malawi

Mali

Mauritania

Mauritius

Morocco

Mozambique

Namibia

Niger

Nigeria