Financial Times FT.com

Rising cost of oil counters Africa debt relief

By Kevin Morrison and Chris Giles in London

Published: July 1 2005 20:13 | Last updated: July 1 2005 23:21

Africa's poorest countries could lose the benefits of a debt relief package because of a sharp jump in the cost of their oil imports.

The debt deal, agreed by Group of Eight finance ministers last month, is set to save sub-Saharan African nations about $1bn (€840m) a year. But International Energy Agency officials believe the rise in crude prices will cost the region an additional $10.5bn a year in oil imports.

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