Economist Dr. John Kwakye urges Ghana to leverage natural resources, to boost revenue, reduce borrowing, amid oil revival plan, move that could support economic recovery amid rising fiscal challenges.
The Ghanaian government appears to be gaining some support for its plan to re-engage key oil-producing companies that have either ceased operations or become idle in the country. The government’s objective in reviving Ghana’s oil sector is to revive activities at oil fields, aiming to generate significant revenue to bridge its financing gap, which has been exacerbated by the country’s economic challenges.
Dr. John Kwakye, Head of Research at the Institute of Economic Affairs (IEA), on Saturday expressed support for this approach in a social media post, emphasizing the importance of leveraging Ghana’s natural resource wealth rather than relying on loans or foreign aid. ” We should tap our natural resource wealth to develop the country and reduce our reliance on loans or aid.” Dr. Kwakye wrote.
This call comes at a critical time for Ghana, as the country is emerging from a debt restructuring programme triggered by an overwhelming debt burden that reached unsustainable levels. The planned restructuring led to a downgrading of Ghana’s sovereign rating, effectively shutting the country out of international capital markets. With this backdrop, there are concerns that returning to the markets for loans as a primary funding source could once again plunge the country into unsustainable debt.

Ghana’s economy has been struggling under significant debt, which was one of the main factors leading to the debt restructuring programme. The programme resulted in painful adjustments for both local and international creditors, but it has helped stabilize the country’s finances in the short term. However, with the massive financing gap still looming, many are worried about how the new government will navigate these economic challenges.
Sources close to the government have revealed to Brand Focus Africa that reviving oil exploration and production by bringing back international oil companies is a top priority. Boosting oil production could help raise much-needed revenue and reduce Ghana’s reliance on borrowing. The plan also aligns with advice from industry experts who have urged the government to accelerate efforts to tap into its oil reserves, particularly before the global shift towards cleaner energy reduces the long-term value of crude oil.
Oil and gas have long played a crucial role in Ghana’s economy. The country is one of Africa’s significant oil producers, with oil revenues forming a substantial part of the national budget. However, in recent years, exploration activities have slowed down, with some major oil companies exiting the country or putting projects on hold. This has resulted in lower-than-expected revenues from the sector, contributing to the widening fiscal deficit.
The revival of oil production is also critical as Ghana’s economy faces growing challenges in other sectors. Agriculture and manufacturing, once pillars of economic growth, have been hindered by a range of issues, including climate change and lack of infrastructure. As a result, the government is under pressure to diversify revenue streams, and the oil sector provides a promising avenue to do so.
Dr. Kwakye’s post reinforces the belief that natural resources, when properly managed, can offer a way out of Ghana’s current financial difficulties.

One of the most promising opportunities is the development of the onshore Voltaian Basin, which is believed to have significant oil and gas potential. Exploration of this region has been slow, but if tapped, it could complement offshore production and provide additional revenue streams. The government has been urged to make a decisive push in this area as part of its broader strategy to maximize oil and gas reserves.

However, despite these optimistic projections, there are still challenges to consider. The global energy landscape is shifting toward renewable energy sources, and as more countries and companies commit to reducing carbon emissions, the demand for oil could decline. Ghana must, therefore, act swiftly to capitalize on its oil wealth before the global transition to cleaner energy diminishes the profitability of its oil reserves.
To ensure success, the government must also address structural issues within the oil and gas sector. These include improving regulatory frameworks, ensuring transparency in oil revenue management, and strengthening partnerships with both local and international stakeholders. Additionally, investment in infrastructure, such as pipelines and refineries, will be necessary to support increased production and distribution.

Dr. Kwakye’s call to tap into Ghana’s natural resources is timely and resonates with the government’s ongoing efforts to revitalize the oil and gas sector. By focusing on domestic resource exploitation and reducing reliance on borrowing, Ghana can create a more sustainable path to economic recovery and long-term growth. However, to fully realize this potential, the government must act quickly and strategically to overcome both local challenges and the evolving global energy landscape.