Effects that the increase in oil prices has had on the economies of the oil-importing countries of Africa
The countries spend more of their foreign exchange on the importation of oil, thus negatively affecting other sectors of their economies There has been increasing cost of transport causing a rise in the cost of movement of both people, goods and services Production costs have increased leading to an increase in prices of commodities thus reducing the demand on the commodities Some industries that rely on by- products of petroleum have collapsed leading to redundancy and unemployment The countries have experienced low economic growth leading to general poverty among the citizens It has led to the need to establish/ look for cheaper sources of energy to replace/ supplement the oil It has created an awareness on the need to conserve energy The countries with oil potential have started exploring the possibilities of drilling their own oil to reduce/ stop importation. RELATED POSTS 9 CONDITIONS FAVOURING IRRIGATION FARMING IN EGYPT 5 CAUSES OF RURAL-RURAL MIGRATION IN KENYA 10 AIMS...