Business Day: Delay in PIB passage, pipeline vandalism masking growth of non-hydrocarbon sector, says IIF

Underinvestment arising from the extended delay in passing the Petroleum Industry Bill (PIB), decline in oil production occasioned by theft and vandalism of pipelines and related uncertainty over fiscal terms, among others, are masking the 7.4 percent growth target of the non-hydrocarbon sector, says Institute of International Finance (IIF) in a report.

According to the regional economic report on sub-Saharan Africa, covering also South Africa, Kenya, Ghana, Tanzania, Côte d’Ivoire and Zambia, the non-hydrocarbon sector is spearheaded by manufacturing, trade, and agriculture, which have potentials for accelerating growth in the country.

“Hydrocarbons are becoming more important in sub-Saharan Africa, and will continue to do so going forward. Oil and gas discoveries in East Africa could be a game changer over the next decade, providing revenue for much-needed infrastructure development and turning around large current account deficits,” the report noted.
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