Ghana Needs to Use Future Oil Revenue to Get Loans, Vice President Says

Ghana should use future oil revenue as collateral for infrastructure loans because the country requires more financing to help build schools, roads and hospitals, Vice President John Mahama said.

“We don’t have the luxury to wait for revenue to drip annually,” Mahama told reporters today in Riyadh, Saudi Arabia, at a conference. “You need some flexibility.”

The West African country plans to change a petroleum revenue bill to allow it to use future income as collateral for loans, Deputy Information Minister Samuel Okudzeto Ablakwa told reporters in the capital, Accra, on Dec. 2.

Ghana, set to begin exporting oil this month, will see reserves reach 5 billion barrels in the next five years as more fields start production, Moses Asaga, a member of President John Atta Mills’ ruling National Democratic Congress party, told lawmakers in Accra, the capital, on Dec. 1.

To contact the reporter on this story: Glen Carey in Riyadh at gcarey8@bloomberg.net.

To contact the editor responsible for this story: Peter Hirschberg at phirschberg@bloomberg.net.

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