GHANA’S OIL PROCEEDS EXCEED COCOA FOR THE FIRST TIME
Ghana’s earnings from oil exports exceeds that of cocoa for the first time.
According to current figures from Ghana’s central bank, revenue from oil have surpassed revenue from cocoa for the first time. Since January this year the country have made more money from the Oil sector than the Cocoa sector. Making the Oil sector Ghana’s second highest foreign exchange earner.
The total receipts from oil exports in January was US$400.1 million, while that of cocoa was US$302.2 million. In February, oil revenue increased to US$664.9 million, while cocoa revenue was US$619.5 million.
In March, April, May, June and July oil revenues were still higher than receipts from cocoa exports. Oil exports values were US$1.05 billion, US$1.42 billion, US$1.91 billion, US$2.1 billion, and US$2.4 billion respectively while cocoa values were US$858.6 million, US$1.05 billion, US$1.2 billion, US$1.29 billion, and US$ 1.3 billion.
In August, due to rise in production from the Jubilee Fields and the introduction of TEN and Sankofa Gye Nyame, oil exports climaxed at US$2.91 billion. Certainly more than double of cocoa’s sector US$1.45 billion. This resulted in an increase in trade surplus from US$1.26 billion in July to US$1.4 billion in August 2018. The value in August represents 2.7 per cent of GDP.
Trade Surplus vs Country’s Reserves
Although there was a growth in the country’s trade surplus, there was no corresponding reflection in the gross international reserves. Gross international reserves decreased from US$7.05 billion in July to US$6.69 billion.
Since the oil sector was responsible for trade surplus, there was little local content, hence no impact on the reserves.
Ghana’s central bank Governor said there’s a need for improvement of local content in the oil sector, in order to enjoy full benefits of its services.
According to him, “Once we begin to be more integrated in the sector and have local participation in the sector improved through provisions of services, we will benefit from the services and it will translate into our reserve.”