Expectations of Ghanaians from the Oil and Gas are high

Isaac Twumasi Quantus is business development manager at Africa Business Communities

www.africabusinesscommunities.com

Written By: Isaac Twumasi Quantus

Ghanaians are excited about the discoveries of Oil and lately Gas thus Ghana now stands on the brink of becoming an oil exporting country, following the historic 2007 offshore discovery known as the Jubilee Field.

The discovery of Oil and Gas, have ignited the advent of many old buildings being put up for sale or for rent in the twin-city catchment area. This tells me the discoveries will truly bring the needed business atmosphere for the anticipated investments and opportunities that the people need.

It is estimated that total oil reserves range from 800 million to 1.8 billion barrels and is expected to generate over US $1 billion per year in export revenue over the next 20 years.

I stand for correction, whatever hopes Ghanaians had over the discoveries that put Ghana’s oil and gas revenues at that staggering amount is simple mathematics.

But one question that I keep asking is was it wise enough for government to dampen some of the excesses of enthusiasm that started building up around the oil?

I think I will answer my own question by saying YES! It was very prudent since revenue forecasting for policy planning purposes, in direct contrast to revenue forecasting for commercial public relations purposes, should be conservative. It revised anticipated oil revenues for 2011 from $1 billion to a conservative $400 million. Wow!

An economy boost for Ghana which I believe is causing the influx of servicing outfits, oil companies and workers flooding the western coastline. The country now has become an investment destination and everyone should take advantage of this exciting opportunity for accelerated economic development.

I am optimistic about the fact that government has reiterated the revenue from the oil and gas industry will benefit the ordinary Ghanaian.

It is my expectation that nothing should be done to misapply revenue from the oil and gas but rather use to improve infrastructure for the benefit of all particularly the Western Region and for the general development of the country.

Whether this dream can become a reality depends on how prepared we are and how well we manage its revenue over time. Ghana has a lot to learn from countries like Angola and Nigeria, where oil revenue and operations have caused serious problems.

However, Ghana my beloved country has the benefit of learning from best practice example from Botswana, which has managed their oil revenue without much crisis.

This article was originally posted on West Africa Business Communities

Are you interested in Market Research, Recruitment and Business Leads?

Join the Africa Business Panel, powered by Africa Business Communities.

www.africabusinesspanel.com.