The rush to exploit Africa's vast reserves of natural resources is expected to slow dramatically as the current financial crisis forces sharp cutbacks in exploration budgets. A weakening outlook for African oil is already being seen. Major mineral projects on the continent are now expected to be postponed or scrapped altogether as mining firms confront the twin blows of decreasing demand for raw materials and unfavorable financing terms.
The impact of this credit crisis on the leading economies Africa will be enormous, where mining activities have accounted for signifcant recent growth. The downturn is expected to hit mineral-rich Guinea and Congo (DR) especially hard.
> Financing pinch may squeeze Africa mining projects [Reuters]
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