Business News of Mon, 24 Oct 20164
Oil & Gas to serve as main driver of 2017 economy
Two months to the end of the year, Citi Business News has gathered the Oil and Gas industry is marked to be the main driver of economic growth in 2017.
The Ghana National Petroleum Corporation (GNPC) is expected to lead the task as the Gye Nyame Sankofa project progresses, as well as oil production at the TEN field ramp up to its full capacity of 80,000 barrels a day by first quarter of 2017.
Confirming the development to Citi Business News, the Finance Minister Seth Terkper stated that government intends to develop the services part of the oil and gas industry to increase its revenue from the sector to over 5 percent.
According to him, the Oil and Gas industry has the potential to multiply the growth of the economy if the services part of the industry expands to employ more Ghanaians.
“The main driver for 2017 obviously will be the oil and gas, but we must keep an eye on services sectors which is growing and continue to implement policies that would make it grow, so even when it comes to Oil and Gas it is important to look at oil services, to add to transportation services, financial services,” he said.
He observed that even though Oil and Gas has good projections, its direct contribution to the economy in terms of revenue is relatively small, but could be expanded if linked to the services sector.
“Even though we welcome Oil and Gas, as we have been pointing out it constitutes something less than 5 percent of our revenue and 1percent to 1.5 percent of our GDP,” he said, adding that the full impact on the economy can be realized if the industry is connected to the services sector.
Outlining some more benefits, Mr. Terkper stated that the financial sector and transportation industry are two major areas that could provide jobs for many Ghanaians.