![]() ![]() For instance, South Africa is, after Russia, the world’s second-biggest producer of palladium-a critical input into automobiles and electronics-and therefore could experience growing demand as a result of international sanctions placed on Russia. Europe is likely to be a key financer, bolstered by the EU’s controversial decision in early February to label investments in natural gas as “green” energy.īesides natural gas, further sanctions on Russia might benefit other natural resource exporters in the region. On February 16, the three countries signed an agreement to develop the pipeline, estimated to cost $13 billion. Nigeria, already a supplier of l iquified natural gas (LNG) to several European countries, is also embarking with Niger and Algeria on the Trans-Saharan Gas Pipeline to increase exports of natural gas to European markets. Several other countries could similarly benefit from Europe’s energy diversification, including Senegal, where 40 trillion cubic feet of natural gas were discovered between 20 and where production is expected to start later this year. Hassan, however, favors a more business-friendly approach and has revamped negotiations with energy companies in the hopes of attracting $30 billion in foreign investment to revive construction of offshore liquified natural gas projects in 2023. Her nationalist predecessor, the late President John Magufuli, suspended talks with natural gas investors in 2019 to review the country’s production sharing agreement regime. For example, Tanzania’s president, Samia Suluhu Hassan, stated in an interview on the sidelines of the European Union (EU)-African Union (AU) summit in mid-February that the tensions in Ukraine are generating growing interest in the country’s gas reserves, which are the sixth-largest in Africa. Specifically, Africa’s natural gas could reduce Europe’s dependence on Russian energy. Benefits for natural resource exportersĪ few countries are sensing long-term growth opportunities from the crisis. Although some African countries may benefit from a shift in global markets away from Russia due to the crisis, the short-term potential impacts on economic livelihoods are worrying while the implications for pan-African solidarity and adherence to multilateralism increasingly uncertain. ![]()
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