Revenue Watch Calls on Ghana and the U.S. to Secure Oil Wealth Through Oversight and Openness

PWYP Member the Revenue Watch Institute Says U.S. Must Be a Partner, Not Just a Customer

On the eve of President Barack Obama’s historic visit to Ghana, the Revenue Watch Institute called on the West African country to make good governance the centerpiece of its energy policy. With Ghana poised to become a major African oil power, Ghanaian and American leaders must hold both their countries to the highest standards of transparency.

A top exporter of gold, Ghana has managed to avoid some of the development problems that can cripple resource-rich nations. It consistently ranks higher than its neighboring countries in measures of stability and political freedom.

“Ghana has made great strides in the transparency of its mining industry,” said Karin Lissakers, director of Revenue Watch, “and President John Atta Mills should be congratulated for his inaugural commitment to disclose oil contracts.”

However, Ghana has been in the grips of an “oil fever” since the 2007 discovery of offshore reserves estimated at between 600 million and one billion barrels. The expected windfall presents both an opportunity and a risk: Ghana can extend its progress managing mineral wealth to the emerging oil sector, or it can fall prey to the same “resource curse” that has impeded economic progress and stability in places like Nigeria and Equatorial Guinea.

“Transparency and sound governance practices are a nation’s best tools in fighting the resource curse to build public trust and economic security,” said Lissakers. “By choosing Ghana for his first official visit to Africa, President Obama is recognizing the country’s commitment to proper governance and its desire to translate the coming oil windfall into successful economic development.”

Revenue Watch urges the United States to actively support Ghana’s efforts to turn newfound oil into long-term prosperity. “U.S. partnership should mean more than securing supply lines,” said Lissakers. “It must mean working with Ghana to secure the well-being and economic participation of all who live there.”

Unlike the United States, Ghana is one of 29 candidate countries in the Extractive Industries Transparency Initiative, a voluntary standard for openness in government management of oil, gas and minerals. President Obama would send a powerful signal to resource-rich nations in Africa and around the globe by declaring that the U.S. will join Ghana in implementing the EITI.

Media contact:
Emmanuel Kuyole, +233 244 407 949, ekuyole@revenuewatch.org (Ghana)
Jed Miller, +1 917 257-0670, jmiller@revenuewatch.org (US)

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