Is Ghana’s Petroleum Revenue Management Act(PRMA), 2011 (ACT 815 ) An Effective Public Financial Management Tool For Public Investment And Consumption Smoothing?

It came into force in 2011, a year after the commercial production of oil began in Ghana. For all
the advocates of oil revenue management legislation, the Petroleum Revenue Management Act
(PRMA), 2011 (Act 815) could not have come at a better time. It held the key to avoiding the
resource curse phenomenon. Its implementation will make Ghana perhaps one of the few resource
rich nationsto put the “demon” of resource curse behind it and lead it to the path of success. Having
gone through its first amendment in 2015, this paper sought to analyse the implementation realities
of the PRMA for whether the PRMA has been an effective tool for public investment and
consumption smoothing. The key finding is that after 8 years of petroleum revenue receipts, there
is not much to show that revenues have been invested to achieve development priorities.
Discretionary powers of the Minister to select priority areas for Annual Budget Funding Amount
(ABFA) investment, and to cap the Ghana Stabilization Fund (GSF) remain the Achilles heel of
achieving the objectives of the ABFA and the GSF. Section 24(1) of the PRMA also creates severe
accountability loopholes that risk intentional diversion of unutilized ABFA for other purposes
through a joint operation between that provision and sections 26 and 49 of the Public Financial
Management Act, 2016 (Act 921).

MTN Investors Anxious Over Undisclosed IPO Results

Investors who purchased MTN shares are anxious over the seeming delay in announcing the results for the Initial Public Offering. The telecom company concluded its IPO in July 2018 and it is expected to list the proceeds on the Ghana Stock Exchange by September 2018. MTN seeks to raise 3.47 billion cedis from the investing […]

UK gives Ghana £20m grant

Ghana and the United Kingdom have signed an agreement under which the UK will give Ghana a 20-million pound grant under a jobs and economic transformation programme. The expected outcome of the programme, which will be implemented in the next six years, includes economic diversification and trade boost that will deliver 15,000 formal jobs in […]

Statistical service starts mapping exercise for 2020 census; urges public support

The Ghana Statistical Service (GSS) has started a mapping exercise throughout the country as part of the preparations towards the conduct of the 2020 Population and Housing Census. The mapping exercise seeks to update the 2010 Census enumeration areas. An enumeration area is the smallest spatial unit for one enumerator to work in, during the […]

Databank not going into commercial banking – CEO

Databank Financial Services Limited has said its partnership with commercial banks is in no way a merger with any of those banks. In a statement signed by Group CEO Kojo Addae-Mensah, the investment bank said its partnership with the universal banks should not be misinterpreted by the public “as part of the ongoing consolidation exercise […]