Wednesday, 23 May 2012

South Africa to buy oil from Nigeria

South Africa looks set to start buying oil from Nigeria when US sanctions on Iran kick in. SA is unlikely to set up its own sanctions ('cause we don't do that) but is not willing to risk penalties from the US.

So it looks like SA's largest economy might start buying oil from an African supplier - a refreshing boost to intra-African trade, even if it is a boost to the country predicted to overtake South Africa's economic power in the next few years.

Nothing wrong with connecting two centres of economic growth. Although maybe wishing a little South Africa would pick less volatile places to get oil.

Wonder what the unemployment rate in Nigeria is?

Update: Excellent analysis of SA-Nigeria relations from Daily Maverick here

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