Oil has recently been discovered in commercial quantities in Sekondi/Takoradi, off the Western coast of Ghana. Estimates are that 100,000 barrels are extracted daily, raking in one billion USD to Ghanaian exports for the next 20 years. Since oil has been discovered, costs of living have gone up in the areas of Sekondi/Takoradi. Population and vehicular traffic in the twin city and its environs have increased tremendously. Current infrastructure strains to cope with the influx. Ghanaian firms are furthermore finding it hard to compete for bids with multinational companies and are therefore almost excluded from the oil gain. Issues pertaining to the protection of the environment have been mentioned but so far received little attention. Ghana is yet to take a cue from the effect of oil discoveries to economies like Nigeria and its attendant “resource curse” and to undertake necessary legal and infrastructural adjustments, such as a local content bill.

This is a short summary of the article “Disquiet in the Oil City” by Raquel Flecher, published in the African Business Magazine No. 379, October 2011.