oil for food in africa

8/12/2019 Oil for Food in Africa

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OIL FOR FOOD & EDUCATIONAfrica Centre for Energy Policy

Benjamin Boakye


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Ghanas oil Background

Ghana Discovered oil in 2007

Several other discoveries

Since then

Commercial production

Started in late 2010And Ghana joined the club

Of oil producers


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Oil money and National Economies

Many oil producingcountries mismanageoil revenues -Oil curse

Dutch Disease infestmany other


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Ghanas Strategy Against oilCurse & Dutch Disease The Petroleum Revenue Management

law

Local content Regulation

E&P Bill


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Oil Revenues Already Flowing

petroleum revenues of about US$1.5billion.

This comprises US$444 million in 2011,

US$541 million in 2012 and

about US$575 million by August 2013


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PRMA 815

Ministerial Discretion to prioritize

Four Sector of the Economy

Based on Medium term framework

Aligned with National developmentplan


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Area of spending oil revenue1. Agriculture and industry;

2. physical infrastructure and service delivery in education;

science and technology;3. potable water delivery and sanitation;

4. infrastructure development in telecommunication, road, railand port;

5. physical infrastructure and service delivery in health;

6. housing delivery;

7. environmental protection, sustainable utilisation andprotection of natural resources;

8. rural development;

9. developing alternative energy sources;10. the strengthening of institutions of government concerned

with governance and the maintenance of law and order;

11. public safety and security; and

12. Provision of social welfare and the protection of the

physically handicapped and disadvantaged citizens.


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Socioeconomic Indicators ofGhana


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Prioritization for 2011-2013


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Agriculture


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Deficiency of the Agricprioritisation Whilst these projects promote small

holder farming particularly fertilizersubsidy and agricultural

mechanization, it fails to address Technology for smallholder farmers,

improved seedling,

extension service, access to credit and

market access, among others.


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Examples of Oil for Agric

Malaysia Oil- Oil palm and forestry

Chile Copper- agriculturalcommodities

Indonesia, oil- Green revolution. Agricresearch and new commodities


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Returns on Agric-Researched

One marginal Cedi on Agric returnsGH16.8.

This is against a marginal cedi

invested in feeder roads with returnsof GH8.8,

and that of health sector investment

with returns of GH1.3 Ghana Long-Term Funding for Agricultural Growth,

Poverty Reduction, and Food Security- CAADP Brochure 4


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Basic Education

Education in Ghana remains an important priority andhas attracted significant attention from past andcurrent governments

coverage expanded to about 84 percent of

the relevant age population in primary, basic services extended to 11 years,

expansion of access at secondary and

tertiary levels, and growth of public expenditures both in scale

and in the share of Governmentexpenditures.


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Basic Education Challenges

Socioeconomic disparities in accessand quality;

Significant and stubborn regional

differences; Poor quality of learning;

Inefficient use of resources; and,

Insufficient measures to ensure thatschools and administrators areaccountable for delivering theeducation services in line withex ectations.

Ch ll ti


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Challenges continue While access rates between rural and

urban areas are already large, the gap in

learning outcomes appears even larger. 6thgraders low NEA English scores (38 or

below) went to school within districts of the

Northern region, while the highestconcentration of students with high scores(44 or above) attended schools in thedistricts of Greater Accra

High performing schools had over 90percent trained teachers -- 36.4 percent

more trained teachers than low performingschools


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Challenges Continue

Pupil Teacher Ratio (PTR) at theprimary level which has remainedunchanged during the past decade,

Between 2001/02 and 2008/09 thenumber of primary teachers grew from80,552 to 114,421

However, the portion of primaryteachers who were untrained grewfrom 35.1 percent to 52 percent


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Technical Education

Enrollment in public TVET institutes hasbeen declining over the last few years

In the NVTI total enrollment 2005-2007 fell

by just less than 10% from 7,297 to 6,710 This is very worrying as it has implications

for building the required technicalmanpower necessary to support economic

growth. The gender gap is much bigger at the

countrys Technical and VocationalEducation and Training (TVET) institutions.


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Women in Vocation


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0

1

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Jan-08 Jan-09 Jan-10 Jan-11

Public Spending on Education (%GDP)

Ghana SSAfrica LMIncome


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Examples of Oil for Education

Brazil also developed a National Education Planwith a focus on improvements in quality and access(educational infrastructure).

Brazil recently passed a new law which allocates 70% of

royalties to finance education Botswana has consistently spent over 5% of its

GNP on education since the mid-1970s, reaching8.2% in 2010

Today, it is one of the richest countries inSub-Saharan Africa

achieved universal primary education

its secondary gross enrolment ratiostands at 82%, double the average for the


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conclusion

This proposal follows criticalanalysis of the situation prevailing

in Ghanas small holder agricultural

development and the challenges ofthe education sector particularly

basic and technical education.

Based on the above analysis, werecommend that Government

should prioritise agricultural

modernization as one of the four

riorit areas for ABFA for the


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We also recommend that as a resultof the challenges facing the

education sector particularly at the

basic and technical levels,Government should consider

technical education as one of the

four priority areas for the spendingof the Annual Budget Funding

Amount (ABFA).


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oil for food in africa

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