Ghana

Investment & Operational Criteria

Key Indicators

Risk Premia

3.750

%

Outlook

Uncertain

Rating

BB|3S|§

Ranking

47

Reserves (1P)

Total

mm boe

Oil

83

%

Summary

Following the significant Jubilee discovery, the Ghanaian government has continued to make changes to petroleum agreements with investors. With the increased interest shown by operators in investing in the country, the potential still exists for fiscal changes to become tougher in the near term.

Updated

February 10, 2024

Country Basics

Region

Africa - West

Reserves (1P)

Oil

mm bbl

Gas

bcf

Location

GhanaGhana

Western Africa, bordering the Gulf of Guinea, between Cote d'Ivoire and Togo.

Outline

Tax Regime
Type

PSC/PSA

Tax Regime
Notes

All licences in Ghana are governed by concession terms. The main elements are royalty, income tax and an additional profits tax (called Additional Oil Entitlement, or AOE) which is based on rates of return. Specific terms exists for deep-water developments, with lower royalty and AOE rates.

Investment & 
Operational
Climate

Ghana’s economy encountered strong headwinds in 2022. Gross Domestic Product (GDP) growth which reached 5.4% in 2021, is estimated to have slowed to 3.2% in 2022, with projections of 1.6% GDP growth in 2023, according to the International Monetary Fund (IMF). However, rising inflation, which reached just over 54% in December, but has since moderated slightly, and the rapid depreciation of the Ghanaian cedi, along with global supply chain constraints and fiscal shortfalls, have affected the economic outlook. Russia’s invasion of Ukraine exacerbated these strains, provoking food and gas price hikes. With international capital markets closed and domestic financing drying up, in July 2022, the President authorized the Finance Minister to enter into talks with the IMF to address the balance of payments crisis and the Government of Ghana (GOG) concluded a Staff-Level Agreement (SLA) for a $3bn, three-year arrangement under the Extended Credit Facility (ESF) in December, pending IMF Board approval. Ghana suspended debt service payments on the majority of its external debt on December 19. Among the burdens weighing heavily on government finances are the sizeable arrears in the energy sector due to excess generation capacity, excess gas supply, high technical and commercial losses, and declining oil production.

Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.

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