Ghana's Extractive Sector - PSA or Royalty? An Obvious Choice

As I shared last week, we had an insightful session last Sunday as we explored why Ghana continues to be cash strapped in spite of her enormous resource wealth - Oil, Gas, Gold, Diamond, Bauxite, Manganese, Cocoa and now Lithium.

Our resource persons were very convinced, and so were we, that a big chunk of our problem lies in the agreements we've signed, and our seeming love affair with the Royalty system, a colonial relic that enables others, usually the west, to take all of the resources and leave next to nothing to the Country and the host communities. 

It was clear that Ghana's choice of the Royalty/Hybrid system over the more superior PSA (Production Sharing Agreement) means that, for just one oil field alone (ie the Jubilee Field), Ghana has lost not less than $4bn US Dollars over 10 years. The miserable state of Obuasi, Ghana's flagship mining town (compared to say Johannesburg) is a good example of what the inability of our leaders and technocrats to negotiate better for our resources has done to our country.

As we continue our advocacy for our destroyed rivers and our environment, we call for immediate review of #ACT919. It's time to go for PSA and ensure that Ghana benefits fully from her resources.