Ghana’s sovereign credit outlook boosted by oil in 2010

Ghana’s sovereign credit outlook is expected to improve in 2010 when the country begins commercial production of oil.

This is against the backdrop of increased worries about sovereign credit risk in Europe and the U.S., the MarketWatch has reported citing economic strategist, Jan Randolph, director of sovereign risk analysis at IHS Global Insight.

“Public finances have deteriorated nearly everywhere, but the situation is more bearable in some countries than in others,” he wrote.

Adding, “in Africa, Uganda and Ghana may be in line for upgrades to their sovereign debt ratings in 2010, thanks to new oil discoveries in each country, and Ghana’s “relatively robust democratic system.”

Ghana found oil in commercial quantity in June 2007. Commercial production is due to start in June 2010. The country has the largest oil field discovered in West Africa in the last 10 to 15 years, the Jubilee oil field.

By Emmanuel K. Dogbevi

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