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With the major discovery of 13 oil reservoirs, the country is preparing to enter the select group of African producing countries, with the potential to revolutionize its economy

Written by Rafaela Fabris
Published 19/01/2025 às 21:10
With the major discovery of 13 oil reservoirs, the country is preparing to enter the select group of African producing countries, with the potential to revolutionize its economy
Rwanda has discovered 13 oil reservoirs in Lake Kivu, a first for the country. This discovery could transform its economy, placing it among Africa's largest exporters.

Rwanda announces the major discovery of 13 oil reservoirs in Lake Kivu, with basins up to 3,5 km thick filled with hydrocarbons, promising to transform its economy, reduce fuel imports and stand out among Africa's largest exporters.

The discovery of oil in Rwanda’s Lake Kivu represents a significant milestone for the country’s economy. This achievement not only opens up new economic opportunities, but also represents a decisive step in Rwanda’s efforts to diversify its sources of revenue, which have historically focused on agriculture and tourism. But what does this “major discovery” really mean for the country and the region?

The great discovery in Lake Kivu

Rwanda has officially announced the identification of 13 oil reservoirs along its border with the Democratic Republic of Congo. Located in Lake Kivu, these reservoirs are in a basin about 3,5 kilometers thick, containing large amounts of hydrocarbons. This discovery not only puts the country on the map as a potential oil producer, but also aligns it with neighbors such as Uganda and the DRC, known for their reserves in the Albertine Rift system.

This “major discovery” marks Rwanda’s entry into a select group of African countries that export oil, such as Egypt and Nigeria. The expectation is that this new natural wealth will reduce the country’s dependence on fuel imports and transform its economy.

Economic impact of the discovery

The discovery was made in Lake Kivu because it is part of the Albertine Rift, an area rich in natural resources such as oil and gas due to its geological formation. The lake basin has deep layers where hydrocarbons have accumulated over millions of years, making it a strategic location for exploration.
The discovery was made in Lake Kivu because it is part of the Albertine Rift, an area rich in natural resources such as oil and gas due to its geological formation. The lake basin has deep layers where hydrocarbons have accumulated over millions of years, making it a strategic location for exploration.

The economic impact of this discovery promises to be revolutionary. Currently, extractive industries contribute only 2% to the country's GDP, but this could change radically. Oil has the potential to increase this share, attracting international investment and fostering domestic growth.

Rwanda could follow the example of African oil-producing countries that have used their wealth to finance infrastructure, health and education. However, the challenge lies in balancing economic development with responsible resource management.

Opportunities and challenges for the future

While the opportunities are immense with this discovery, exploiting these reserves presents considerable challenges. Rwanda will need to invest in infrastructure to extract, process and transport the oil. Then there is the question of sustainability. How can these riches be exploited without compromising the Lake Kivu ecosystem or harming local communities?

The experience of other African countries shows that poor management of natural resources can lead to instability. Therefore, Rwanda must tread carefully, ensuring transparency and effective governance.

Rwanda’s global contributions beyond oil

Rwanda is already recognized globally for its relevance in the minerals market. In 2022, the country was responsible for 31% of global tungsten exports and 14% of tin. Its gold exports, for example, generated more than half a billion dollars. The entry into the oil sector with the major discovery only reinforces Rwanda's position as a relevant player on the global stage.

This market diversification is essential to ensure sustainable economic growth. Oil may be the initial driver, but other industries, such as technology and services, must be nurtured to sustain long-term progress.

Oil as a driver of Rwanda’s new era

The discovery at Lake Kivu it is more than an economic opportunity; is a catalyst for a new era in Rwanda. Growth projections indicate that the country can achieve unprecedented levels of regional development. This achievement serves as an example to other emerging economies in Africa, demonstrating how natural resources can be used strategically for progress.

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Everardo
Everardo
20/01/2025 07:18

No, no, this is false news. They are going to divide it up into lots, sell it and keep the money as if it were their own property. The pre-salt layer can tell you that! The people, if they want, should continue to pay dearly for gasoline. Take note so you don't forget.

Pedrosa strawman
Pedrosa strawman
20/01/2025 09:02

It will only be available to the USA, just like pre-salt in Brazil.

Roberto
Roberto
20/01/2025 09:12

It will be the same as in Brazil, nothing will change, on the contrary, if oil prices go up, fuel prices will follow suit, Africa is like Brazil with extremely corrupt countries, like here in Brazil, and the people are the same: **** who love to fight for corrupt politicians. 🤡😡💩
If Brazil had the GDP of the USA+EUROPE+JAPAN+AUSTRALIA+INDIA+CHINA combined, it would have the same poor people as it does now, streets and highways full of potholes and the same poor and unmaintained infrastructure that we currently have.
Has anyone seen maintenance on any bridge or viaduct that Brazil has built in the last 50 years? I doubt it!

Last edited 21 days ago by Roberto
Rafaela Fabris

He talks about innovation, renewable energy, oil and gas. With over 1.200 articles published in the CPG, he updates daily on opportunities in the Brazilian job market. Suggestions for topics: rafafabris11@gmail.com

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