- Title: VARIOUS: Ghanaians celebrate after oil find, but fear threat to good governance
- Date: 26th June 2007
- Summary: PETROL STATION PETROL ATTENDANT FILLING A CAR TANK WITH PETROL METER SIGNPOST READING, "V-POWER", "SUPER", "DIESEL" ATTENDANT FILLING CAR UP WITH PETROL VARIOUS OF ATTENDANT COUNTING MONEY
- Embargoed: 11th July 2007 13:00
- Keywords:
- Topics: Industry
- Reuters ID: LVA17Q1P6Y4UI8HCFPU9CVU7B4J1
- Story Text: This weeks announcement of the discovery of substantial amounts of oil off the coast of Ghana leads to jubilation not only in Ghana's streets but also at an EU-Africa business forum in the country. But as many Ghanaians celebrate the find, others warn that the "black gold" could just as easily lead to misery as to riches.
Ghana's leaders are hailing a big oil discovery as a blessing, but some fear that a "black gold" bonanza could curse the West African state with the corruption, inequality and conflict plaguing other regional oil producers.
"What is very positive and we look at as very positive development is the discovery of oil which of course will even increase the capacity of Ghana entering into a better economy and so we cannot but be extremely happy of this discovery because, they will even provide a clear push to the growth of the Ghanaian economy," said Luis Reira Figueras, the Director of Directorate General For Regional Policy, European Commission, who was attending the EU-Africa Business Forum in Accra.
Ghanaian newspapers headlined London-based Tullow Oil Plc's announcement of the discovery of up to 600 million barrels of high-quality oil at an offshore block in Ghana owned with Texas-based Anadarko Petroleum Corporation.
The government hopes that the oil boost will consolidate Ghana's position as a small but prospering African economy. The country is already the world's No. 2 cocoa grower and Africa's second biggest gold producer.
Ghanaians are looking forward to a stronger economy.
"I think it's a good news that oil has been discovered in Ghana, I think it's one thing that is going to help all of us if it is well explored and the benefit of it at least, we will have a full enjoyment of it," said Edward Pappoe, a marketing executive.
Others pegged the successful exploitation of the find and use of resources on good governance and strong leadership capabilities.
"Well, I cannot say that its all going to be rosy with us, it has always been an issue of leadership, Ghana as a country, is a very resourceful country, so I don't think that oil can add anything new, but with the right leadership, with the right personnel in place, I think that we can, this country can really move forward," said Mohammed Alhaji Yussif, a social welfare worker.
More sober voices have warned that joining sub-Saharan Africa's club of oil producers, headed by Nigeria, Equatorial Guinea and Angola, could be as much a curse as a blessing.
Ghana suffered a spate of bloody coups and political upheaval after its ground-breaking independence 50 years ago. But today, it is viewed as a respected bulwark of democracy in an otherwise volatile region. The current President, John Kufuor is expected to step down next year after elections on completion of two terms in office.
Some analysts fear Ghana's democratic structures are vulnerable to corruption and the growing threat of drug-trafficking by organised crime gangs in West Africa.
They worry that a surplus of oil income could inflict the same kind of "resource curses" that have plagued nearby Nigeria - endemic corruption, exacerbated social divisions, enduring poverty, chaos and rebellion in the oil-rich Niger delta.
Development campaigners criticise fellow producers Equatorial Guinea, Angola and Gabon for similar problems, although recently-democratic Mauritania, also blessed with carbon resources may be a shining light for oil-producing west African countries. - Copyright Holder: REUTERS
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