New IGC Research looks at how Ghana can use its new-found oil wealth to stimulate growth
The IGC’s research which looks at how Ghana can use its new-found oil reserves to stimulate growth was featured on the Africa@LSE blog.
Ghana, a country known for its gold mines and cocoa, began producing oil from the offshore Jubilee field for the first time this year. Based on current proven reserves, production from the Jubilee field is expected to peak from 2013-2015 at 120,000 barrels of oil per day, and last for 20 years (Oil, March 2011).
This has the potential to generate up to US$1.8 billion per annum at peak production. Ghana’s oil reserves are relatively small on a global scale – even if these reserves are ultimately at the upper end of estimates they still place Ghana approximately 50th in the world by proven oil reserves. However, due to Ghana’s current levels of income, reserves comprise a significant proportion of its GDP. The challenge for Ghana is not only to avoid succumbing to ‘Dutch Disease’, but also to use its oil welath to help the country grow.
The piece written by Guido Rizieri Cocco, an IGC Research Fellow can be found here.