Ghana’s reliance on imported fuel, gold exports exposes economy to shocks – Prof Quartey

Economist Professor Peter Quartey has expressed concern that Ghana's economy is highly vulnerable to external shocks due to its reliance on imported fuel and gold exports. The expert pointed out that countries such as Iran and the U.S. have buffers in the form of oil reserves that they can draw on during times of global disruption.

In contrast, Ghana lacks such protections, leaving it susceptible to external shocks. Quartey specifically highlighted the country's limited buffer in the energy sector, noting that Ghana does not produce enough processed fuel from its oil production. This continued importation of processed fuel leaves Ghana exposed to fluctuations in international conditions.

Furthermore, the economist criticized Ghana's heavy reliance on conventional fuels like petrol and crude oil, as well as the slow pace of transitioning to green energy sources. This reliance on traditional fuels, along with the lack of diversification in energy production, increases Ghana's vulnerability to external shocks. Quartey also raised concerns about the concentration of Ghana's export earnings, noting that gold accounts for about 60% of the country's export earnings.

Such a high dependence on gold exposes Ghana to significant risks should international gold market conditions deteriorate, potentially leading to negative consequences for the economy.