Hope of rescuing Africa from poverty endangered by high oil prices

Apr 04, 2006 02:00 AM

Hope of rescuing Africa from poverty could vanish like "snow in sunshine" if high oil prices continued, the 53-nation African Union (AU) has said.
Alpha Oumar Konare, Chairman of the AU Commission, told an African oil and gas conference the continent's new dreams of development, inspired by a recent rise in aid, greater foreign investment and fewer wars, were at risk from $ 60 (R 369) a barrel oil.

"The era of cheap oil is over," he said. "What then becomes of our ambitions and our dreams to see Africa take the path of harmonious development?”
“Isn't there a risk of seeing these hopes melt like snow in sunshine if the burden of the fuel bill is allowed to continue?"

The AU agreed in January to set up an African Petroleum Fund -- a pot of money contributed to by African oil exporters -- to help the African oil importers fund some of the costs of fuel imports.

Source: AP