The World Bank is calling on Ghana to turn its new oil operated by Pecan Oil and windfall revenues from mining into a springboard for long-term prosperity in the area of human capital development.
The Bank warns that without deliberate investment in people and infrastructure, the country risks wasting another resource boom.
In its 9th Ghana Economic Update, the Bank singles out the upcoming production at the Pecan oil fields and the anticipated expansion of mining activities as rare opportunities to reshape the economy.
It says the windfall revenues should not simply be absorbed into day-to-day spending but instead be strategically repurposed to build the skills, infrastructure, and industries that can generate sustainable jobs.
From Boom to Backbone
According to the World Bank, the long-term development goals should prioritize today’s resource wealth to prepare for tomorrow’s economy. That means directing proceeds into human capital development such as education, vocational training, and healthcare, so that Ghana’s young, growing workforce is ready to compete in higher-value industries.
At the same time, the Bank urges heavy investment in critical infrastructure like roads, ports, power supply, and digital networks to support business growth and industrial diversification.
“Long-Term Policies Aligning the macro-policy framework with long-term development goals is essential for faster growth and job creation. Repurposing the economic benefits from oil and mining windfalls as tools for development and economic diversification should help drive development and economic diversification,” parts of the 9th Ghana Economic Update read.
Avoiding the Resource Curse
Ghana’s past experience with resource booms has been mixed. While resource exports have driven short-term growth, they have often failed to translate into broad-based prosperity.
The World Bank cautions against repeating the “resource curse,” where windfalls fuel consumption and debt rather than productive investment, leaving the economy vulnerable to price swings and external shocks.
A Chance to Diversify
According to the Bank, the Pecan oil field revenues and increased mining output should be leveraged as tools for economic diversification. This will enable Ghana move beyond its dependence on a few raw exports and create more resilient, job-rich sectors.
It also warns that expansion in extractive industries must be managed to minimise environmental harm and macroeconomic instability.
“The commencement of production at the PECAN oil fields and anticipated expansion of mining activities should be directed toward building human capital and robust infrastructure necessary for diversification efforts while mitigating potential macroeconomic and environmental impacts,” the bank recommended.
With the right policies, the Bank believes this wave of extractive-sector activity could mark the turning point where Ghana’s natural resource wealth is finally converted into lasting human and physical capital, laying the foundation for faster growth, better jobs, and a more resilient economy.
