Soaring Oil Bills Hurt Africa’s economies

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When prices rise, it is the poor who suffer most. This year’s surge in the oil price towards $100 a barrel has been no exception: it is a concern for rich countries but its greatest threat is to the poorest.

The oil shocks of the 1970s were one of the roots of the developing-country debt crisis of the 1980s. Fatih Birol, chief economist of the International Energy Agency, argues that as soaring oil import bills put pressure on fragile economies, there is a danger the pattern will be repeated.

He calculates that the additional cost of oil imports for his sample of 13 countries since 2004 is $10.6bn: equal to 3 per cent of their gross domestic product over that period. “It is a worrying trend,” he said.

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