#EarlySignals - July 2022

11 July 2022


Our monthly selection of news, quotes and figures that slipped through the radar but could have significant implications


Uganda makes several gold discoveries worth an estimated USD 12 trillion

The Ugandan government announced on 8 June the discovery of several gold deposits for an estimated volume of 31 million tons. Wagagai, a Chinese company, is expected to begin operations at a site in the Busia region in the eastern part of the country following the granting of a license by the government. These discoveries, estimated at USD 12 trillion, come at a time when gold export volumes have been declining since the introduction in July 2021 of a 10-15% tax on exports. A new mining law, passed in February and awaiting enactment by President Museveni, includes investor-friendly provisions for new licensing, taxation and local content. Whether this will be enough to convince major investors in the sector remains to be seen.  


“What we are trying to get them (ENI) to do is to reduce the 2026 deadline as much as possible, because local demand is now growing by 10% annually" Sangafowa Coulibaly, Ivorian Minister of Energy
The new Ivorian minister of Energy, Sangafowa Coulibaly, has asked the Italian hydrocarbon giant, ENI, to accelerate work on the exploitation of the "Baleine" field, which will produce its first barrels of oil by 2023. ENI plans to invest USD 11 billion by 2026 to finalize the development of the oil and gas field. The acceleration of field production responds to the increase in local energy demand, linked to the sustained growth of the economy, and would allow Ivorians to benefit more quickly from the economic spin-offs of the field. In a global context where gas importers are seeking to diversify their supply chains, the challenge for Sangafowa Coulibaly is also to be able to quickly position Côte d'Ivoire on the international market and compete with other producers such as Algeria, Mauritania or Mozambique.  


USD 83 billion - The amount of investment flows to Africa in 2021

After the drop in foreign direct investment recorded in 2020 due to the Covid-19 pandemic, African countries attracted more than USD 83 billion in 2021, a significant increase of 113%. In the southern region, the leading destination for FDI in Africa, inward FDI flows have been multiplied by almost 10 in 2021. On a continental scale, investments are mainly concentrated in renewable energy, infrastructure and hydrocarbons. While FDI flows to the continent still only account for 5.2% of global flows, strong growth in the technology, renewable energy, agribusiness, and fintech sectors is expected to attract new international capital.