News / Africa

Warning Signs Gather Over Ghana's Oil Fields

Civil society advocates are calling for more transparency in oil revenue
Civil society advocates are calling for more transparency in oil revenue

While Ghana has just started making money from  its offshore oil, civil society advocates and economists are warning not enough is being done to make sure oil wealth is a benefit and not a curse to Ghanaians.  At a Washington event late Thursday, they said Ghana's government needs to have more planning and transparency to avoid a repeat of the massive corruption and violence that has plagued other oil-rich African countries.

The World Bank country director for Ghana, Ishac Diwan, said the stakes were high for Ghana's new oil reality, as more and more offshore fields are discovered in West Africa's Gulf of Guinea.

"Can Ghana do it is a big question. It would be a premiere actually and it would show the way to the Sierra Leones, the Liberias and Guineas, new democratic Guineas. So it is an extremely important experiment if I may say," Diwan said.

A report gave a grade of C to all involved in Ghana's oil quest
A report gave a grade of C to all involved in Ghana's oil quest

At an event organized by the non-governmental organization Oxfam America, Ghanaian civil society groups presented a report called "Ghana's Oil Boom: A Readiness Report Card."

It gave a mark of Cs, or fair, to all involved in the process, including donors like the World Bank, and civil society groups themselves.

Mohammed Amin Adam said civil society was trying hard but so far failing to get new laws signed and put into effect to force full contract disclosures between the government and oil companies as well as make the government show how it spends its oil revenue.

Adam said this transparency is necessary given the huge expectations Ghanaians have. "If you are transparent of how much you are receiving, how much you are spending, where you are spending it, those expectations will be moderated by themselves.  And so the key here is transparency," Adam said. "And this is why I will even build more expectations back in Ghana to put pressure on our government to invest this money well and transparently so that everybody knows where the money is going to and they can tell realistically what oil can offer and what oil cannot offer."

He also expressed disappointment Ghanaian delegations had been sent to far away Trinidad and Tobago and Norway to learn from their oil experiences, rather than going to nearby Nigeria, to find out more about the difficult lessons learned there.

Another civil society representative, Nana Ama Yirrah, said Ghanaian villagers in western coastal areas nearest to the oil fields were already complaining about higher prices, pollution, fishing restrictions, and a lack of opportunities in the oil sector.

"The skills required for the oil industry is nowhere found within the communities, the kind of businesses that people are managing today in Ghana, the standards within those businesses are not the type that can fit into the oil industry.  So it has become a very dicey issue that production has started and yet people are not seeing what they thought they would see," Yirrah said.

Production started in December, and should reach output of 120,000 barrels per day within the next few months.  Estimates are that Ghana could earn more than $1 billion a year from its existing Jubilee offshore oil field, and that further discoveries could boost these numbers.

Peter Allum, the chief of the Africa department at the International Monetary Fund, said it was essential Ghana's government started making longer budget planning to figure out what to do with this money, and extend the current year to year approach.

"The budget ought to have a medium term vision so there is a clear relationship in the budgetary process between the medium term revenue stream or wealth associated with oil and what is envisaged to be done with that in the way of financing projects over a multi-year timetable," Allum said.

Ghana's ambassador to the United States Daniel Ohene Agyekum said it was important to focus on the positives, and the vibrant debate that is taking place to make sure Ghana's oil is a benefit.

"There is no need to apportion blame to any particular group. We all recognize the good work that as a collective we have done to move the oil industry much ahead of time.  And I am proud to say this as a Ghanaian," Agyekum said.

The ambassador also agreed with other panelists that while a lot of focus is being put on oil, this should not mean Ghana's important agricultural sector should be diminished.

You May Like

Video For West Ukraine City, Conflict Far Away Yet Near

Physically and culturally close to Western Europe, Lviv feels solidarity with compatriots in country’s east but says they need to decide own future More

West African Women Disproportionately Affected by Ebola

Women's roles in families and the community put them at greater risk for contracting the disease, officials say More

Video NASA's MAVEN Spacecraft Arrives at Mars

Mars Atmosphere and Volatile Evolution craft will measure rates at which gases escape Martian atmosphere into space More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
NASA’s MAVEN Probe Enters Mars Orbiti
X
September 22, 2014 9:20 PM
NASA’s newest Mars probe, called MAVEN, has successfully entered its designated orbit around the Red Planet. Scientists will use its sophisticated instruments to try to learn what happened to the atmosphere Mars had a few billion years ago. VOA’s George Putic has more.
Video

Video NASA’s MAVEN Probe Enters Mars Orbit

NASA’s newest Mars probe, called MAVEN, has successfully entered its designated orbit around the Red Planet. Scientists will use its sophisticated instruments to try to learn what happened to the atmosphere Mars had a few billion years ago. VOA’s George Putic has more.
Video

Video For West Ukraine City, Conflict Far Away Yet Near

The western Ukrainian city of Lviv prides itself on being both physically and culturally close to Western Europe. The Russian-backed separatists in the eastern part of the country are 1,200 kilometers away, and seemingly even farther away in their world view. Still, as VOA’s Al Pessin reports, the war is having an impact in Lviv.
Video

Video Saving Global Fish Stocks Starts in the Kitchen

With an estimated 90 percent of the world’s larger fish populations having already vanished, a growing number of people in the seafood industry are embracing the concept of sustainable fishing and farming practices. One American marine biologist turned restaurateur in Thailand is spreading the word among fellow chefs and customers. VOA Correspondent Steve Herman reports from Bangkok.
Video

Video Chinese Admiral Key in China’s Promotion of Sea Links

China’s President last week wrapped up landmark visits to India, Sri Lanka and Maldives, part of a broader campaign to promote a new “Maritime Silk Road” in Asia. The Chinese government’s promotion efforts rely heavily on the country’s best-known sailor, a 15th century eunuch named Zheng He. VOA's Bill Ide reports from the sailor’s hometown in Yunnan on the effort to promote China’s future by recalling its past.
Video

Video Experts Fear Ebola Outbreak ‘Beyond Our Capability to Contain’

Each day brings with it new warnings about the deadly Ebola outbreak already blamed for killing more than 2,600 people across West Africa. And while countries and international organizations like the United Nations are starting to come through on promises of help for those most affected, the unprecedented speed with which the virus has spread is raising questions about the international response. VOA's Jeff Seldin has more from Washington.
Video

Video Natural Gas Export Plan Divides Maryland Town

A U.S. power company that has been importing natural gas now wants to export it. If approved, its plant in Lusby, Maryland, would likely be the first terminal on the United States East Coast to export liquefied natural gas from American pipelines. While some residents welcome the move because it will create jobs, others oppose it, saying the expansion could be a safety and environmental hazard. VOA’s Deborah Block examines the controversy.
Video

Video Difficult Tactical Battle Ahead Against IS Militants in Syria

The U.S. president has ordered the military to intensify its fight against the Islamic State, including in Syria. But how does the military conduct air strikes in a country that is not a U.S. ally? VOA correspondent Carla Babb reports from the Pentagon.
Video

Video Iran, World Powers Seek Progress in Nuclear Talks

Iran and the five permanent members of the U.N. Security Council plus Germany, known as the P5 + 1, have started a new round of talks on Iran's nuclear program. VOA State Department correspondent Pam Dockins reports that as the negotiations take place in New York, a U.S. envoy is questioning Iran's commitment to peaceful nuclear activity.
Video

Video Migrants Caught in No-Man's Land Called Calais

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Westgate Siege Anniversary Brings Back Painful Memories

One year after it happened, the survivors of the terror attack on Nairobi's Westgate Shopping Mall still cannot shake the images of that tragic incident. For VOA, Mohammed Yusuf tells the story of victims still waiting for the answer to the question 'how could this happen?'
Video

Video Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

The International Whaling Commission, meeting in Slovenia, has voted to uphold a court ruling banning Japan from hunting whales in the Antarctic Ocean. Conservationists hailed the ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015. Henry Ridgwell reports from London.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid