The Global GDP for 2022 is estimated at US$ 102.4 trillion and that of last year (2021) was at US$ 94.9 trillion. Global GROWTH forecast shows that it will slow from an estimated 6.1% in 2021 to 3.6% in 2022 and 2023.
In 2021, GDP (combined) of the 54 African countries was estimated at around US$ 2.7 trillion in nominal terms (IMF). This is less than that of France (US$ 2.9 trillion, 7th in the world) and India
(US$ 3.3 trilion, 6th in the world).
IMF projections for 2022 GDP per capita of some African countries are as follows: Seychelles 17, 693 US $ per person per annum, Mauritius (8,892), Djibouti (3,775), Zimbabwe (2,301), Kenya (2,252), Comoros (1,371), Zambia (1,330), Tanzania (1,260) and Uganda (US$ 1,060 per person per annum)
WHICH OF THE AFRICA'S EARTH RESOURCES CAN ACCELERATE ITS GROWTH?
Earth resources of almost all types are abundant on the African continent and its ocean floors. This is because Africa has rocks of all ages, spanning from about 4 billion years to present. Thus, it possesses all known resources which were formed in that time range (about 4 billion years ago to today).
EARTH RESOURCES ON HIGH DEMAND
If we consider a 20- year horizon, Earth Resources on high demand are for:
^Electric vehicles
^Aerospace
^Defense
^Clean energy
^Industries & Transport
^Tools for the 4th Industrial Revolution
Consequently, the following Earth Resouces are on high demand:
(1) HYDROCARBONS
By December 2021, the world's proved OIL RESERVES was estimated at 1,724.5 billion barrels while its (oil) worldwide demand per day in 2022 is estimated at 99.4 million barrels and in 2025 is at 103.2 million barrels per day.
The global NATURAL GAS RESERVES are now estimated at 7,257 tcf
The IEA has reported that the GLOBAL GAS demand in 2022 is forecasted at 4.086 Tcm (trillion cubic metres)
The Saudi-led cartel, in its 15th Annual World Oil Outlook (WOO) of 1 October 2021, said that Global natural gas demand is projected to increase from 64.2 million boe/d (barrels of oil equivalent per day) in 2020 to 85.7 million boe/d in 2045.
The above described global demands for hydrocarbons ought to compel Africa to increase its world's market shares in those two commodities.
The 2020 report on the estimate for Africa's crude oil reserves revealed 125.8 billion barrels.
Natural gas reserves in Africa are estimated to be over 630 trillion cubic feet.
As we all know Africa is still poorly explored, and thus, we are very certain of new hydrocarbon deposits to be discovered in the near future!
(2) CRITICAL OR STRATEGIC METALS
For the reasons mentioned above, the following are metals on very high demand:
Cobalt, chromium, lithium, palladium, cerium, nickel, zinc, manganese, gallium, germanium and indium.
Some of those mentioned above do appear on the list of the highly demanded RARE EARTH ELEMENTS (REE) and PGM (platinum group metals) groups.
Also on demand is tantalum, tungsten, titanium, iron, copper, silver, aluminium and tin.
While traversing across the Africa's terrains looking for the above mentioned technology metals, we should now start looking for MANGANESE NODULES on our SEA BEDS, and also estimate heavy minerals (HM) found in SAND DEPOSITS.
Manganese (Mn) nodules are ploymetallic and contain metals such as iron, manganese, copper, nickel and cobalt.
Sand deposits or also known as monazite sands contain metals on high demand such as zirconium, titanium, thorium, tungsten, and REE.
(3) HELIUM GAS
The novelty of this gas is in its boiling point of -268.9 °C. This means that liquid helium cools superconducting magnets used in aerospace, health and reserach facilities.
NMR (nuclear magnetic resonance) spectrometers can not function without helium!
The global demand for helium stands at 6 billion cubic feet per annum with an increase rate of 3-5% annually.
It is estimated that the 2023 global helium market will be US$ 15.7 billion, with NASA (USA) being the biggest consumer, about 100 million cubic feet per annum.
Consequently, AFRICA'S HELIUM GAS may also be used to bring about the required accelerated economic growth.
(4) GOLD & GEMTONES
These two commodities are ubiquitous on the African continent and thus, they also should be utilized to accelerate growth.
Africa with approximately 13% of the known global gold reserves, is the third-largest gold producing continent in the world. Ghana, the leading producer on the continent produced approximately 150 metric tons of gold in 2020 out of the 663 metric tons produced by the continent in that year.
GOLD RESERVES IN AFRICA'S CENTRAL BANKS
The Africa's Central Banks have to establish GOLD RESERVES for the following benefits: (i) a reserve asset alongside government bonds, (ii) enhancing the strength and safeguarding the values of national currencies and (iii) a very reliable hedge against inflation.
Countries with largest GOLD RESERVES, as of September 2021, include: (i) USA 8,133 tons, (ii) Germany (3,359), (iii) Italy, 2,452, (iv) France (2,436), (v) Russia (2,302), and (vi) China (1,948 tons).
From the above, it is evident that African countries have to increase their GOLD RESERVES. Algeria has 174 tons, South Africa (125), Mauritius (12.4), Ghana (8.7), Mozambique (3.9), Burundi (0.03) and Kenya (0.02 tons)
ECONOMIC GROWTH IN AFRICA
In 2021, The World Bank (WB) reported that Africa's real GDP was projected to grow by 3.4%.
The World Bank's latest Africa's macroeconomic outlook estimates growth at 3.6% in 2022
The above mentioned AFRICA'S EARTH RESOURCES are now very vital to resuscitate our economies and bring about accelerated growth for creation of wealth and jobs to the 1.4 billion people on the continent (as of today, 2.5.2022). The continent will have a population of 1.7 billion people in 2030.
Contribution by:
Sospeter Muhongo
*Former Vice President of the Commission of the Geological Map of the World.
*Former President of the Geological Society of Africa
*Fellow and Life Member of the Geological Society of Africa
*Editor-in-Chief Emeritus of the Journal of African Earth Sciences, Elsevier (publisher)
Date:
Monday, 2.5.2022
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