As the current economic climate increasingly squeezes up and financial pockets grow ever-deeper, it’s perhaps refreshing to hear that smaller economies such as Ghana are attracting the investors eyes.
Refreshing too, that a relative wealth of oil supplies could soon contribute to a notoriously tight energy market.
Attention may have previously centred on Nigeria, Zimbabwe or elsewhere, in the Middle East region for example. Ghana with its nascent oil industry, is rapidly merging as an exciting economic opportunity.
According to a report from African Energy, Ghana is creeping up as a viable source of investment in West Africa and an area of oil resource to be explored as supply tightens.
While swathes of the financial world scratch around for credit, Ghana could well have to beware the calling cards of bankers looking to invest in West Africa. The country remains a relatively small economy, but real GDP growth has averaged 5.% per year over the last five years and could be raised to 8% annual growth as first crude production in the Tullow Oil-operated offshore plot is scheduled for 2010, according to African Energy.
Ghana’s financial sector transformation, coupled with the potential of a blossoming oil industry and possible gas-fired independent power projects (IPP’s) raises both optimism and excitement. The country is under immense development and hope remains that it could embark upon a second phase of IPP’s once gas feedstock is secured from Nigeria via the West Africa Gas Pipeline (WAGP).
An evolving energy sector offers promise, while an ‘easier’ business climate and political stability also favour Ghana over neighbouring countries.
Andrew Kairu, COO of London-based Ghana International Bank, is quoted as saying, “We are at the stage now where private equity capital wants to use Ghana as an entry point for West Africa.”
The advent of oil production, just as it’s needed most, is likely to trigger a further perception change of Ghana and, garner more investment interest.
To find out more, read the insightful report from African Energy media and visit www.africa-energy.com