Ghana’s abundant natural resources have been described as holding the key to transforming the domestic revenue for the country if properly utilized.
Economist at the Institute of Economic Affairs, Dr. John Kwakye maintains that if the incoming John Dramani Mahama administration prioritizes the natural resource sector as a major source of revenue, it could generate an additional US$10 billion annually.
This, the Director of Research at the IEA believes could bridge the country’s revenue gap and stimulate economic growth and development.
Currently, Ghana’s domestic revenue mobilization averages US$12 billion annually. However, Dr. Kwakye believes this annual domestic revenue could be increased by 83% to US$22 billion if the natural resource endowment of the country is properly utilized and managed.
In an X post cited by The High Street Journal, the economist argued that there is a need for the next administration to diversify the country’s revenue streams to enhance domestic revenue.
“Gov’t should make the natural resource sector the main source for raising resources to develop the country. It can bring an additional USD10 bn to supplement domestic revenue of just about USD12 bn,” Dr. John Kwakye indicated.
He added that, “No amount of effort can raise enough revenue exclusively to develop the economy.”
Many analysts, economists, and development experts have questioned why a natural resource-rich country like Ghana has not been able to transform its economic growth and development to create better living conditions for Ghanaians.
For some, it has become a mystery yet to be unraveled that a country rich in natural resources, from gold, and bauxite to oil and gas among many others is grappling with the basic necessities of development.
Although many theories have attempted to explain the underdevelopment of Ghana despite the abundance of valuable resources, Dr. Kwakye argues that there is a need for effective governance, transparent contracts, and strategic investments in the management of natural resources.
This, he believes could deliver much-needed funds for critical infrastructure, healthcare, education, and other developmental priorities.
Effectively harnessing the natural resource sector will also reduce the country’s dependence on external borrowing which the successive governments have grappled with.
