IMF warns African oil producers to avoid "white elephants"
23 October 2012
(Reuters) - The International Monetary Fund has urged African oil and gas producing nations to direct their revenue in infrastructure and education rather than on "white elephants".
Exploration in east and southern Africa has been high in recent months as a result of big oil and gas discoveries in Tanzania, Mozambique, Kenya and other regional countries.
Antoinette Sayeh, the IMF's director for Africa, said on Monday the oil and gas sector does not create as many jobs as other sectors of the economy, but if the revenues were directed to education and transport links they would help create jobs.
Sayeh said nations could set up sovereign wealth funds to invest for future generations and to provide cash, which could be used to help their economies navigate times of volatility in the global economy.