Ghana’s oil and gas sector offers significant opportunities to transform the country’s economy and overall development. Yet, experts caution that sustainable growth in this sector depends on much more than simply extracting resources. Central to long-term success is the deliberate and ongoing investment in building local capacity, from developing skilled personnel to strengthening institutions and businesses within the industry.
At a recent X Space discussion hosted by the Public Interest and Accountability Committee (PIAC), Kwame Jantwa, a veteran lawyer and energy expert with over forty years of experience in multiple countries, underscored this point. He explained that sustainable petroleum development involves producing oil and gas over an extended period while simultaneously developing the capabilities of the people and institutions involved.
Jantwa highlighted that Ghana’s oil sector experienced an unusually fast development timeline, moving from exploration to production in just three years, a process that often takes between six and ten years in other nations. This rapid pace, while impressive, created gaps in regulatory frameworks and limited the readiness of local systems to fully manage the industry.
He explained that foreign companies entered the sector quickly with their capital and technical expertise, but Ghana’s legal structures and domestic industry were not adequately prepared. This mismatch has posed challenges in translating petroleum wealth into enduring benefits for the country.
According to Jantwa, the cornerstone of a sustainable oil and gas industry is one where local companies are integrated, domestic expertise is developed, and competitive industries can function independently. “If you don’t have a sustainable oil and gas industry, where local capacity, laws, and business ecosystems are firmly in place, then the benefits of extraction will be fleeting,” he warned.
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Despite more than a decade of oil production, Jantwa expressed concern that much of Ghana’s petroleum revenues have been consumed rather than invested in ways that enhance the country’s productive capacity. He emphasized that adhering to the investment priorities outlined in the Petroleum Revenue Management Act, such as infrastructure, education, and industrialization, is critical for maximizing the sector’s long-term impact.
Jantwa advocates for a strategic approach to managing petroleum revenues, focusing on investments that build lasting development beyond the lifespan of oil production. “The oil will eventually run out, but what you do with the revenues can create lasting development,” he said.
As Ghana looks to deepen its oil and gas industry, prioritizing local capacity building remains essential.
