Huge coal deposits in Africa expected to draw foreign investment, new oil and gas wells also, says World Bank

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4/15/13, "UPDATE 1-Africa to have robust 2013-15 growth, must work on poverty -World Bank," Reuters

"Among the positive developments was the spreading energy exploration in East Africa that had led to the opening of several oil and gas wells.

In Southern Africa, Mozambique was expected to attract increased foreign investment in its huge coal deposits and offshore gas discoveries and Zambia would continue to see increased investments in its copper sector.

In West Africa, investment was likely to keep flowing into the minerals sectors of Ghana, Guinea, Liberia, Nigeria and Sierra Leone.

But the bank saw some problem spots, singling out labour unrest in South Africa, the region's largest economy, and political unrest in Central African Republic, Mali and Togo.

Food price spikes could also be a cause for concern.

Also on the risk side, the World Bank said a fragile global recovery, whether characterised by a deterioration of market conditions in the euro zone or a weaker pickup in the United States, could still undermine the positive African outlook.

It added that with Chinese demand accounting for 50 percent of many industrial metals exported from Africa, a sharper-than-envisaged downturn there could lead to a slump in commodity prices, which would hurt resource-reliant African states."



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