Economist Dr Adu Owusu Sarkodie is urging government to channel any oil revenue windfall from rising global crude prices into targeted support for drivers and vulnerable groups in society.
Speaking on Joy News’ PM Express Business Edition last Thursday, he said the escalating tensions in the Middle East could present both risks and opportunities for Ghana, given the country’s position as an oil exporter.
“The war in the Middle East is somehow expected, but the war in Europe (Russia- Ukraine) is not.”
According to him, higher global crude prices could increase Ghana’s oil revenues if production levels remain unchanged.
“I have already stated that Ghana will also export crude oil, so when the international crude oil price increases, Ghana stands a chance.”
“If we keep the quantity the same, then we stand a chance of getting more revenue than projected.”
He said the government should use any additional revenue generated by the price surge to cushion the most vulnerable from rising fuel costs.
“So we could use that difference that went for to cushion maybe they’re very vulnerable people in the society.”
Dr Sarkodie proposed targeted support mechanisms for transport operators who are directly affected by fuel price increases.
“More like maybe provide coupons to trotro drivers and to taxi drivers, Uber drivers.”
He explained that such interventions would help absorb some of the pressure on public transport fares and protect ordinary commuters.
“So as we are keeping them, we are cushioning them from a possible negative impact of this.”
While acknowledging the geopolitical tensions, the economist said the impact of the Middle East conflict has not yet been strongly felt locally.
“We are also hoping that the war does not travel that far.”
“So far, so good, not good in terms of war, but so far, we haven’t felt the impact yet.”
However, he warned that if the conflict drags on for months or years, similar to the Russia–Ukraine war, the consequences could become more severe for economies like Ghana’s.
“So we are just praying that it doesn’t travel because if it travels for months and years, as the Russian-Ukraine one has been, then we need to really strengthen our economy.”
He said Ghana must go beyond short-term economic stability and focus on strengthening its real productive sectors.
“Not just the stability, but go deep down to the real economy in terms of production, agricultural production, in terms of industrial production and services.”
Dr Sarkodie recalled how the Russia–Ukraine war disrupted supply chains and pushed up prices of key inputs and commodities.
“It will interest you to know that even when the war broke out in Russia, Ukraine, fertiliser was difficult to find, and prices were rising.”
He noted that even staple inputs used by local businesses became difficult to access during that period.
“Even wheat, the wheat flour, which we used to bake bread, I remember you interviewed some of the biggest in the country.”
He said the experience highlighted Ghana’s heavy reliance on imports for essential products.
“And the question was, why don’t you use local wheat flour to bake the bread?”
“The answer was that Ghanaians had developed a taste for the wheat from Ukraine.”
Dr Sarkodie believes the current global uncertainty should push Ghana to rethink its production strategy.
“So I think this is the time to re revisit the conversations of looking within and looking at the very things that we can really produce fertiliser.”
“What does it take to produce a fertiliser? Why should we depend on Ukraine, which is fighting a war for fertiliser and other countries?”
He said Ghana must prioritise local production of basic goods to reduce exposure to external shocks.
“I know our economy is still in transition. Our economy is so young, but there are small, small items like poultry and sugar, small things that we can at least try to produce them in here.”
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Source: www.myjoyonline.com