Originally published November 1 2014
How Ebola will disrupt world supply of rubber and oil
by J. D. Heyes
(NaturalNews) The worsening Ebola outbreak in West Africa is causing deepening harm to the economies of the affected nations, as well as other African countries where, so far, there is no virus, over fears that the pandemic could widen further.
Particularly hard-hit are African economies that depend largely on commodities like oil and agricultural products to sustain themselves. Healio, an infectious disease news site, has identified a number of operations and industries that are currently suffering or are about to suffer because of the outbreak:
-- The oil industry: Oil production in resource-rich Africa is a major source of income for a number of countries, but the virus is chilling expansion. ExxonMobil CEO Rex Tillerson told reporters during a press conference October 2 that the corporation's plans to drill off Liberian shores has now been postponed. "The company is prohibiting some employees from traveling to countries involved in the outbreak," Healio reported. Other drilling planned by ExxonMobil will move ahead.
-- Agricultural production: The Food and Agriculture Organization (FAO) notes that food production and other agricultural operations account for more than half -- 57 percent -- of Sierra Leone's gross domestic product, 39 percent of Liberia's, one-fifth, or 20 percent, of Guinea's and about the same, 22 percent, of Nigeria's. "The price of the staple crop cassava has risen as high as 150% in some areas, while rice and maize harvests later in the year are expected to fall short. This is primarily due to worker health and quarantine zones reducing labor, according to a World Bank report on Ebola's economic impact," Healio reported. In addition, Liberia's rubber production has also been disrupted; the World Bank has estimated that 2014 export revenues for West Africa's worst-hit country will plunge 20 percent, down from an initial estimate of $148 million.
-- Tourism: Africa is a top tourist destination, and Ebola is certainly affecting travel to the continent. That is especially true in the three worst-hit countries: Liberia, Guinea and Sierra Leone. "Screenings and restrictions for air travel from countries at the heart of the outbreak have limited international flight," Healio reported. The World Bank said that commercial flights to those three countries have fallen sharply since August, when the outbreak really began to pick up steam.
-- Drop in chocolate: Some two-thirds of the world's cocoa is produced in the Ivory Coast and Ghana, the FAO says, and though the outbreak has not yet spread to those nations, "harsher border restrictions affecting migrant workers have, much like other industries, resulted in restricted laborer availability, according to the World Bank," reports Healio. Needless to say, the labor effects have been worse in West Africa.
-- Service industry: Because travel to the affected countries and beyond has fallen, that has affected the international business travel and leisure industry, leading to declines in hospitality revenue. The World Bank report said that average hotel occupancy in Liberia has fallen off dramatically, down to 30 percent from a high of 70 percent; some hotels are down to 10 percent occupancy.
In Sierra Leone, the service industry accounts for 30 percent of the country's economy. There is a similar drop-off in business there; both nations' service industries have had to reduce worker hours or cut staff altogether.
Healio adds:
World Bank data concerning reduced commercial flying and low hotel occupancy rates within outbreak countries translate into a decline in tourism income. However, the rest of the continent is also feeling Ebola's effect on their tourism industries.
-- Mining: In Sierra Leone and Liberia, mining comprises 17 percent and 14 percent of their economies, respectively. Since the outbreak, Tawana Resources, an Australian firm, said in a recent project report that it has cut back or suspended operations in high-risk areas, even as the company is providing support to local officials trying to contain the disease.
Finance, health insurance and public education is also suffering, Healio reported.
Learn all these details and more at the FREE online Pandemic Preparedness course at www.BioDefense.com
Sources:
http://rt.com
http://www.healio.com
http://www.livemint.com
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