Eni makes major offshore oil discovery in Cote d’ivoire

Italian oil giant Eni has made a groundbreaking discovery of a major offshore oil and natural gas reservoir in the West African nation of Cote d’Ivoire. The newly discovered reservoir is estimated to potentially hold up to 2 billion barrels of oil and approximately 51 million cubic meters of gas, marking a significant milestone for the country's economy. The discovery comes at a crucial time for Cote d’Ivoire, which has been grappling with the economic fallout from the COVID-19 pandemic. To shed more light on the implications of this significant find, Charles Levy, an economist, joined CNBC Africa for a discussion on the potential impact on the country's economy. Levy highlighted the importance of this discovery in the context of Cote d’Ivoire's efforts to diversify its economy and attract new investors. He emphasized that the oil and gas sector, which currently contributes less than 1% to the country's GDP but accounts for about 60% of export revenue, is poised for a substantial boost with this new discovery. Levy underlined the positive signal this find sends to international investors and the potential for a significant increase in GDP as a result. Despite the global economic challenges posed by the COVID-19 pandemic, Cote d’Ivoire has maintained a relatively strong economic outlook, with a GDP growth projection of 6.5% for the year. Levy pointed out that Cote d’Ivoire's diversified economy and the resilience of its private sector have played a crucial role in mitigating the impact of the pandemic. He commended the country's efforts in promoting entrepreneurship and supporting SMEs to navigate the challenging economic landscape. While acknowledging the ongoing impact of fluctuating commodity prices, particularly in the cocoa industry, Levy expressed confidence in Cote d’Ivoire's ability to leverage the newfound potential in the oil sector to drive further economic growth. He noted that local consumption and trade have been key drivers of growth, with initiatives in place to support businesses and ensure economic resilience. Despite concerns about inflation and the tough economic environment, Levy remains optimistic about the country's prospects for recovery and future growth.