IEEFA Africa: Is Angola a cautionary tale for Guyana’s oil wealth hopes?
After 25 years of deepwater drilling, African nation sinks $76B deeper in debt
The South American country of Guyana, the latest nation to have discovered commercial reserves of oil and gas, hopes to raise its standard of living, cut its debt, eliminate its deficit and create a sovereign wealth fund. It is in a weak position to accomplish these goals.
Consider the example of Angola, which has hosted world oil developers for the last 25 years and is a cautionary tale for nations hoping to cash in on oil and gas development. Angola is deeply in debt, owing $20 billion to China. Annual budget deficits plague the nation. Its president is offering another round of oil reforms.