 Oil and Ghana, the driving force behind Ghana's economy. In 2007, Ghana discovered significant oil reserves, and production began in December 2010. Ghana's 15.0% GDP growth rate in 2011 was primarily due to oil output. Non-oil growth was 9.4%. Similarly, oil dominated growth in 2013, accounting for 5.4% of total growth, while non-oil growth accounted for 3.9%. As a result, petroleum has become an important component of Ghana's economy. This video looks at the historical importance of oil in the Ghanaian economy, as well as Ghana's history with non-oil mineral production and how that resource has shaped the overall economy and local surroundings. It also examines the institutions put in place to avoid the oil curse, as well as changes in institutional quality since the discovery of petroleum. The Ghanaian domestic economy was centered on services in 2012, accounting for 50% of GDP and employing 28% of the workforce. Aside from mineral and oil-related industrialization, Ghana's industrial development has been rudimentary, with plastics being a common example, such as for chairs, plastic bags, razors and pins. In 2013, agriculture employed 53.6% of Ghana's workforce. Ghana's economy is diverse and resource-rich, with industries such as digital technology production and exportation, automotive and ship construction and exportation, and the exportation of diverse and valuable resources such as hydrocarbons and industrial minerals. As a result of these factors, Ghana now has one of the highest GDP per capita in West Africa. As a result of a GDP rebasement, Ghana became the world's fastest growing economy in 2011. Hello and welcome to another day on Africa Reloaded. In today's video, we'll look at how much oil has contributed to Ghana's economy. Stay tuned as we unwind more of Ghana's riches. As of October 2021, Ghana's crude oil production capacity was 174,000 barrels per day. The volume was lower than estimated in October 2020, when the country's capacity was 194,000 barrels per day. Since March 2020, the amount of crude oil that Ghana could produce has been decreasing. Despite this, the country's oil production in 2020 was 173,000 barrels per day. According to the country's head of production, Ghana's oil production will drop in 2022 as a result of coronavirus-related restrictions that forced the country's state-owned oil business to postpone work programs and other operations in 2020. The Evolution Ghana, a West African country, has recently joined the ranks of sub-Saharan African oil producing states following the discovery of offshore oil reserves and subsequent investigation and development of these deposits. Ghana, on the other hand, is a modest producer, producing 103,000 barrels per day on average. In comparison, Nigeria and Angola produce 1.867 million barrels per day and 1.754 million barrels per day, respectively. Ghana ranks 10th in Africa in terms of oil output. Despite a drop in international oil prices, Ghana's oil and gas industry has expanded steadily in recent years, unlike many other African oil producers. As oil production began, Ghana hoped that the money generated by the numerous oil fields would propel the country into the next economic leak. However, as numerous incidents in other oil-producing countries have demonstrated, oil production can be both a curse and a blessing. Ghana's oil discoveries, combined with lower development costs, have drawn Western oil corporations, such as Tullo Oil of Ireland, Exxon Mobil of the United States, and Acre Energy of Norway, which is currently in the process of purchasing Hess Corporation's Ghana operations. To name a few, businesses can quickly grow in Ghana at a very solid profit, with the potential to make a lot of money, with some companies owning up to 50% of the areas in which they operate and a break-even price of less than $35 per barrel. Ghana's economic revival has been heavily reliant on the rise of the petroleum industry. Crude oil trade generates much needed foreign currency, and the growth of Ghana's indigenous gas industry should help the country overcome its electricity shortage. Ownership According to Article 257-6 of the Republic of Ghana's 1992 constitution, every mineral in its natural state and under or upon any land in Ghana, rivers, streams, and water courses throughout Ghana, the exclusive economic zone, and any area covered by the territorial sea or continental shelf is the property of the Republic of Ghana and shall be vested in the President on behalf of, and in trust for, the people of Ghana. In 2004, the Ghanian government sold the rights to explore, develop, and produce certain offshore blocks. The current Jubilee partners are Tullo Oil Ghana, 35.48%, Cosmos Energy, 24.08%, Anadarko, 24.08%, GNPC, 13.64%, and Petro SA, 2.73%. The 10 fields are operated by Tullo Oil Ghana, 47.18%, with Cosmos Energy, 17%, Anadarko, 17%, GNPC, 15%, and Petro SA as partners, 3.82%. The current Jubilee partners are Tullo Oil Ghana, 35.48%, Cosmos Energy, 24.08%, Anadarko, 24.08%, GNPC, 13.64%, and Petro SA, 2.73%. The Sankofa field, also known as the Offshore Cape 3 Points Integrated Oil and Gas Development Project, is operated by any 44.44%, and VITOL 35.56%, 20%, contributions from other sectors, manufacturing. Ghana's industry accounts for around 24.5% of the country's total GDP. Due to government industrialization programs, Ghana's industrial production is growing at a 7.8% annual rate, making it the world's 38th fastest growing industrial production. Electronics manufacture, vehicle manufacturing, electric car manufacturing, automotive manufacturing, light manufacturing, aluminum smelting, food processing, cement, and small commercial shipbuilding are among Ghana's most prominent industrial industries. Because of the high quality sand available from the Tarqua mining area, a modest glass making sector has emerged. In recent years, foreign money has surged. The majority of the products are intended for local use and export. Food and beverage production, textiles, chemicals and pharmaceuticals, and metal and wood processing are among the other sectors. Mining. Ghana's mining industry predates colonialism. Ghana was formerly known as the Gold Coast. Ghana is Africa's top gold producer, surpassing South Africa with 4.8 million ounces produced in 2019. Ghana's greatest commercially exploited mineral is gold, which accounts for nearly all of the country's mining revenue. Manganese, bauxite, and diamonds are among the other commercially exploited minerals in Ghana. Iron ore, limestone, column by tantalite, felt spar, quartz, and salt are also found in the country. As are tiny concentrations of ilmenite, magnetite, and rutile, Ghana discovered commercial amounts of lithium in 2018 and is hoping to attract investors to explore and develop lithium mining and processing. Ghana's mining industry was once state-owned, but beginning in the 1980s, the country began to privatize and divest itself of its assets, including through inviting foreign investment. Newmont Gold Corp, American, as well as Chinese, Canadian, South African, and Australian firms are among the biggest mining companies in Ghana. Private parties are granted mineral rights, which allow them to mine the minerals in the ground. Even if it does not make a financial contribution, the Ghanning government is entitled to a 10% equity stake in the mineral operations. By reaching an agreement with the investor, the government can increase its involvement in mineral activities. Tourism Visitors to Ghana come from all over the world, including South and Latin America, Asia, and Europe. Tourists flock to Ghana for its year-round tropical warmth and diverse fauna. Ghana has waterfalls, including the Contample Waterfalls and the Taiko Falls, which is the largest waterfall in West Africa. Palm line sandy beaches, caverns, mountains, rivers, and a meteorite impact crater. Reservoirs and lakes, such as Lake Basemtwee or the Basemtwee Meteorite Crater and Lake Volta, the world's largest man-made lake by surface area, are other attractions. There are dozens of castles and forts in Ghana, as well as UNESCO World Heritage Sites, wildlife reserves, and national parks. Ghana's tourism business brought in $2.19 billion in 2011, thanks to an anticipated 1.1 million overseas visitors. Ghana's tourism industry brought approximately $1.7 billion in 2012 from 993,600 international visitors, employing 359,000 people. Ghana would earn $8.3 billion per year from tourism by 2027, based on an expected 4.3 million worldwide visitor visits. Except for specific business incubators and business magnets on business travels, all visitors to Ghana must acquire a visa issued by the Ghanaian government. Transport. According to the Ghana Statistical Service, the transport and storage sector contributed 24.6 billion Ghana studies or $5.3 billion to the GDP in 2017. It accounted up 12.8% of GDP, matching the average of 12.5% from 2006 to 2016. After expanding by 2.2% in 2016 and 3% in 2015, the sector only grew by 0.4% in 2017. The new government's fiscal consolidation program, macroeconomic headwinds, and a slowdown in investment around the December 2016 elections were all mentioned as factors that slowed growth. While fiscal tightening may have slowed the economy in the short term, the measures were intended to restore the health of Ghana's beleaguered exchequer and raise investor confidence over time, and they have been reasonably successful. Indeed, Ghana's improved fiscal condition has enabled a major rise in state investment in 2019, which will assist the transportation sector. The importance of the sector in the country's ongoing economic development is reflected in its GDP contribution. Sound transportation infrastructure and equipment investments can encourage broader economic growth, creating a virtuous circle. These improvements to roads, trains, ports, and airports, as well as the operating environment for logistics enterprises, have been considered by successive governments as critical to boosting Ghanaian producers' competitiveness and accelerating growth and diversification. Aside from being the major income supplier in Ghana, the oil sector supplies the world at large. Ghana has a lot of riches that are yet to be exploited, especially in the mining and tourism sectors respectively. Even though this video had to do with oil production in Ghana, the finding would have been incomplete without making mention of the other sectors that also contribute to Ghana's wealth. Thanks for watching this video on Africa Reloaded. Please don't forget to subscribe to our channel for more updates and do well to hit the notification button so as to always be updated when a new video comes up.