Ghana’s economic outlook, particularly in the gold and oil sectors, could face serious challenges due to rising tensions between the US, Israel, and Iran, according to Oliver Barker-Vormawor, Constitutional Rights and Policy Strategy Advisor at Democracy Hub.
Speaking on a recent episode of JoyNews’ Newsfile, Barker-Vormawor explained that although Ghana has limited trade with Iran and Israel, instability in the region could disrupt key export routes. He highlighted that a significant portion of Ghana’s small-scale gold output around 32% of total production is processed in Dubai.
The ongoing conflict may complicate the transportation of gold through Dubai, potentially forcing Ghana to explore alternative markets such as India. With gold exports generating roughly $10 billion, the main concern isn’t price volatility but ensuring smooth trade and monetization amid the geopolitical turmoil.
Barker-Vormawor also raised concerns about Ghana’s oil industry. Since the UAE serves as a key hub for oil logistics, regional hostilities could affect operations at the Tema Oil Refinery. This might compel Ghana to implement emergency measures to maintain domestic supply and prevent sharp price increases.
He stressed that economic planners will likely develop strategies to mitigate these risks, while hoping for a swift resolution to restore stability in Ghana’s trade and revenue systems. Barker-Vormawor concluded that exploring alternative trade channels and proactive planning will be crucial for strengthening Ghana’s economic resilience in the months ahead.
