Making Petroleum Investments Work for Sustainable Agriculture and Education in Ghana

Ghana passed the Petroleum Revenue Management Act (PRMA), 2011 (Act 815) to provide the framework to manage petroleum revenues aer commercial producon began in 2010. The PRMA prescribes allocang of a poron of petroleum revenue to budgetary support through the Annual Budget Funding Amount (ABFA). Further, the Act requires the priorisaon of a maximum of four areas for ABFA funding. Priorising areas for ABFA funding is relevant to maximize the rate of economic development and promote equality of economic opportunity to ensure the wellbeing of all cizens. Achieving this objecve requires investments in the priority areas such that oil revenues will act as addional funds that must complement, and not replace, exisng development finance efforts of the government in these areas.

For almost a decade, physical infrastructure and service delivery in educaon, and agriculture modernisaon have featured as priority areas for ABFA allocaon. While it is important to assess the impact of petroleum revenue on all the priorised sectors that receive petroleum revenue, this study focused on the educaon and agriculture sectors. This is because these are important sectors that can significantly contribute to economic diversificaon and provide human capital for economic growth. The African Union (AU), recognising the importance of the agriculture sector to the economic development of its member states is commied to sustaining its growth and development through the Maputo Declaraon in 2003.

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