Analysts at Rand Merchant Bank (RMB) have said they expect further oil exploration in Ghana in the next few years, as oil production output is expected to pick up supported by higher oil prices.
“This year, the economy has shown a steady recovery, with the GDP print in 2Q21 at 3.9 percent, supported by performance in both the secondary and tertiary industries. Over the next few years, oil production output will pick up in the near term, supported by higher oil prices that should encourage further oil exploration in Ghana,” the analysts said in RMB’s Where to Invest in Africa 2021 report.
The analysts also revealed that there are similar expectations for gold production, which is supported by government efforts to curb illegal mining activity, thereby promoting the formal sector.
According to the author, RMB Africa Economist Daniel Kavishe, this year’s report assesses the extent of the pandemic’s impact by sketching the landscape of the continent pre-COVID-19, and then painting a picture of both its actual and potential outcomes through and post-pandemic.
He said Ghana entered the current crisis on a relatively stronger footing than its African peers.
“The economy managed to avoid a recession in 2020 and registered growth of 0.4 percent—outperforming the SSA economies, which contracted by 3.2 percent on average. Based on the rankings, Ghana has further outperformed other West African countries in terms of its investment attractiveness, emerging as the top destination, followed by Côte d’Ivoire, Senegal and Nigeria,” he added.
He said structurally, Ghana’s economy has seen major shifts over the past few years, positioning it for significant growth going forward. This, he said, is supported not only by primary-sector industries like oil and gold but accelerated development in the tertiary sector.
We see the construction, agriculture, and services sector as the main catalysts for strong 4.2 percent average growth between 2022 and 2023, he added.