Economic crisis hits African countries

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African countries, specifically those who strongly rely on the export of their natural resources, are feeling the crunch of the global economic crisis.

Together with stock exchanges around the world, commodity prices have plunged to all time lows, including the oil price. One of the countries affected by this is Angola, situated north of Namibia en south of the Democratic Republic of Congo (DRC).

When the civil conflict, which lasted for 27 years, drew to a close, the government's first priority was to rebuild and reconstruct the country. The vast oil fields played a crucial role in this process.

Overtime Angola grew as an oil producing country and eventually became Africa's largest oil exporter, kicking Nigeria to a second on the list a few months ago. Thanks to among other things the oil industry, the country has had one of the best performing economies in Africa.

It does not require an IQ of 160+ to realize that the credit crisis and the dropping oil prices have and will continue to have a significant impact on Angola.

Another victim of the credit crunch is the Democratic Republic of Congo (DRC), a country that already struggles with countless problems.

Similar to oil oil, the price of copper has tumbled. It is estimated that the metal has lost 70% of its value. As digging for copper is no longer as lucrative as it used to be, mines are forced to close their doors.

According to an article on the Dow Jones Newswire, half of half of the mineral processing firms in Congo's Katanga province - the heart of the copper mining industry - will close down.

For a country that struggles with a gruesome conflict in the North-East, and where unemployment and chronic poverty (GNP per capita comes down to 200$ a year and salaries are often not paid out for over 2 years) are widespread the global economic crisis could not come at a worse time.