Ghana’s New Oil Wealth May Trigger Borrowing Spree
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Ghanaian President John Atta Mills says the country will learn from the mistakes of other African oil producers and save some of the revenue for future generations after production starts today. Government agreements to borrow more than $14 billion say otherwise.
Ruling party lawmakers amended a bill on Dec. 9 to allow the government to borrow against future oil revenue and are weighing plans to delay the creation of a sovereign wealth fund. The move comes on the heels of September loan accords with China worth about 45 percent of the country’s gross domestic product.