Oil Discovery In Ghana Spurs Attraction From South African Firms

Oil Discovery In Ghana Spurs Attraction From South African Firms
Ghana’s Jubilee oil field

AFRICANGLOBE – There’s been an increase in enquiries streaming in from South African firms wanting to invest in Ghana’s tourism, telecoms and health sectors, according to reports.

These firms have been attracted to Ghana following the discovery of oil and gas in the West African country, which have triggered economic growth in the country.

Jeff Blackbeard, Africa Strategy Advisor for accounting and consulting firm, Moore Stephens South Africa, said: “We are seeing huge opportunities for the private sector in Ghana in spin-off and support industries. This will create the platform for further growth.”

The World Bank said the Ghanaian economy is forecast to surge by over seven percent this year.

The bank said the country’s economy has been lifted by gold production and the recent commercialization of oil and strong cocoa production.

The African Development Bank (AfDB) has estimated that Ghana would see an 8.7 percent economic growth in 2014.

Moore Stephens has been networking with South African firms in the telecoms sector, hospital management and tourism sectors.

The consulting firm believes there’s an opening for South African firms keen on investing in mid-tier industries.

“The next two years are an excellent time to get a foothold in Ghana,” Blackbeard said.

Moore Stephens is pondering starting up a sister firm in Ghana to service the rising interest from South African firms, as well as those from other countries.

Earlier this week, Old Mutual said it will buy a major stake in the Ghana-based Provident Life Assurance Company Limited (Provident) for an undisclosed amount.

This is part the international wealth manager’s plans to expand its presence in the African continent.

Provident is the fifth biggest life assurer in Ghana, providing life insurance through agency force.

Old Mutual said the deal depends on the authorities’ approval. All the parties are expected to close the deal by the end of the year.


By: Mzwandile Jacks