Capitalism: July 2007 Archives

"Governments get huge amounts of money from a resource that belongs to the people. But in Africa there is little sign of profit sharing...''

By Stephanie Nieuwoudt

NAIROBI (IPS) - Africa's abundance in natural resources, especially oil, has been called a curse because of the fierce global thirst that exists for these assets.

Oil and other mineral resources have led to conflict and corruption in countries like Sierra Leone (diamonds), Nigeria (oil), Equatorial Guinea (oil), the Democratic Republic of the Congo (diamonds, timber, rare fauna), Gabon (oil) and Angola (oil).

According to the Energy Information Administration, which supplies official statistics to the US government, there is more trade in oil globally than in any other product as oil from producing countries is shipped to consumer countries.

Millions of dollars are annually poured into Africa by international oil companies. Millions more are being spent in exploratory enterprises. It is a resource that is indispensable to the world economy. Therefore it should generate money to address the health and social issues of the oil-producing countries on the continent.

Full story: Africa: How to Turn The Curse of Oil Into a Blessing

Kenya: A Sugar Sector in Search of Muscle

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by Joyce Mulama

NAIROBI (IPS) - Kenya is in talks with the Common Market for Eastern and Southern Africa (COMESA) about extending a period of preferential treatment given to the country's sugar sector four years ago. This is in response to fears that local producers will not be able to survive open competition from their counterparts in the trade bloc when the period ends in March 2008.

Preferential treatment was granted so that Kenya could carry out reforms in its sugar industry to make the locally produced commodity competitive -- notably with sugar from Malawi, Mauritius and Sudan.

Full story: Kenya: A Sugar Sector in Search of Muscle

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This page is a archive of entries in the Capitalism category from July 2007.

Capitalism: May 2007 is the previous archive.

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