Ghana’s energy sector will be one of the biggest benefactors from a huge IMF loan.
The IMF (International Monetary Fund) board have approved a $918 million (£620m) loan to support Ghana’s growth and create jobs, including support for the oil and gas and electricity sectors.
The Ghanaian government predicts a spurt in economic growth to start in 2016, driven by expected large increases in its hydrocarbon production. The West African country started oil production from offshore wells in 2010.
The loan could help lower inflation and interest rates, combined with a more stable exchange rate this would help support private sector investment.
Increased oil exports and lower oil imports on the back of domestic gas production would help improve the current account and support reserves over the medium term predict anaylsts.
Ghana is one of Africa’s frontier emerging markets, having entered the global capital market for the first time in September 2007.
Its past wealth lay in gold and cocoa. Oil is now a principle driver for the economy.