The bigger picture on KK and and East Africa oil market
DUBAI/GENEVA (Reuters) - East Africa's emerging oil products market has sparked intense competition between traders hunting for better profits to bolster tight margins in Europe and the Middle East.
Oil traders with Gulf operations based in Dubai are looking to sell into an East African market now worth $15 billion a year to supply oil products to power emerging economies growing on the back of a rising population and robust mining activity.
The Swiss commodities giant Trafigura revealed that Africa generated $29 billion worth of revenues in 2012, almost a quarter of its revenues, highlighting the big growth story albeit high risks.
Its Africa-focused subsidiary Puma, which is being prepared to float, has shown strong interest in buying downstream assets in Africa and last year started talks to acquire majority stake in Kenyan fuel marketer KenolKobil but the outcome is not clear.
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