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THERE WILL BE INK - Initiative for Policy Dialogue

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Background 101Ghana is widely considered to be a hospitable place <strong>for</strong> non-profit organizations and developmentwork. With its most recent elections, which were successful, Ghana once again lived up to itsreputation of being one of the most stable and democratic countries in all of Africa. Ghana’s steadydemocratic consolidation has not only buoyed its reputation, but has also brought other dividends,including fueling its economic development. Interviewees said on several occasions that regionalbusinesses from across West Africa are starting to relocate their headquarters to Accra because ofGhana’s more stable political and economic situation. One journalist called this “a dividend ofdemocracy” and noted that the influx of regional businesses meant that good Ghanaian economicjournalism was now even more important. Another journalist said that even Nigerian banks arebeginning to relocate some of their operations to Ghana.Accra is also home to a sprawling new American embassy complex, which serves as the U.S.’sregional hub <strong>for</strong> West Africa (rather than supporting full embassies in countries like Guinea, the U.S.government is basing more staff in Accra).ExtractivesWhile agriculture dominates Ghana’s economy, extractives are also an important part of itseconomy. The recent discovery of oil in Ghana is one of the main reasons that it was chosen <strong>for</strong>study in this report. Because the discovery is recent, proponents of Ghana’s steady and sustainabledevelopment hope that it may be able to avoid some of the problems that have plagued, <strong>for</strong>example, Nigeria. One of the problems to avoid – and a place where good journalism can be ofparticular importance – is the opacity of the contracts, deals and the industry in general.Ghana’s extractive industries’ sector is currently dominated by the mining of gold, diamond, bauxite,and manganese. According to the EITI’s profile of Ghana, gold represented 34 percent of thecountry’s exports (12 percent of GDP) from 2000 to 2003. 102 Indeed, until its independence fromthe British in 1957, Ghana was known as the Gold Coast <strong>for</strong> its rich gold stores. Ghana is currentlythe second largest producer of gold after South Africa. Ghana’s mining industry is dominated by themulti-national AngloGold Ashanti, the South African mining company Gold Fields Ltd and UnitedStates-based Newmont, all of which represent a large percentage of Ghana’s <strong>for</strong>eign directinvestment. 103Major oil deposits off Ghana’s Gold Coast were discovered in 2007. These deposits have beenestimated at between 1 and 3 billion barrels of oil. 104 Ghana is expected to reach an output of120,000 barrels a day by 2010, and 200,000 barrels a day by 2013, which could make Ghana theseventh largest oil producer in the world. 105 Oxfam America estimates that “depending on oil pricesand future production levels, Ghana could soon see more than $1 billion added to government101 Photo on previous page: Seneviratne, Isuru, photographer. “Yellow Beast.” Photograph. 2007. From: Flickr:isurusen’s photostream, http://www.flickr.com/photos/isurusen/2124495758/.102 Extractive Industries Transparency <strong>Initiative</strong> website, Ghana profile: http://eitransparency.org/Ghana103 “Ghana: Mining Overview,” Mbendi In<strong>for</strong>mation Services website. Accessed 12 December 2008:http://www.mbendi.com/indy/ming/af/gh/p0005.htm#top.104 Chris Hufstader, “The Coming Oil Boom in Ghana,” Oxfam America website, 1 October 2008. Accessed 11December 2008: http://www.oxfamamerica.org/whatwedo/where_we_work/west_africa/news_publications/thecoming-oil-boom-in-ghana105 “Ghana consults stakeholders on managing oil,” Ghana Update, Spring 2008, The Whitaker Group. Accessed 13December 2008: www.thewhitakergroup.us/uploads/home/pdf/Ghana%20Update%20Spring%202008.pdf.– 36 –

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