Oil in Ghana but not a drop in its fuel pumps

 

By Charles Onyango-Obbo

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One hopes that the soon-to-be oil exporting countries in East Africa, especially Kenya and Uganda, have taken note of recent events in Ghana.

Ghana is one of the better-run African countries. Its elections are stolen only about 50 per cent of the time, not 100 per cent like in many other African nations. And it has less corruption than most of the continent.

Yet in recent weeks, its fuel pumps were empty and there were long queues everywhere. Strange, because Ghana is now exporting oil.

Something puzzling tends to happen in Africa — when a country hits oil and begins selling it, you can almost be sure that it will have fuel shortages. Nigeria is one of the worst examples of this on earth.

Wiser men speak broadly that this is a result of what they call the “Oil Curse”. This is the situation where a country strikes oil, and begins to stagnate economically.

This is because, to exaggerate a bit, many people leave other productive things they were doing and try to cash in on the easy oil wealth.


Other sections of the economy begin to wither away in neglect and corruption grows.

However, Africa has its unique ways and, besides coups and war, oil tends to do something else that you perhaps see only parts of the Middle East—it leads to the growth of religion.

In northern Nigeria, the politics of oil led to the rise of radical mullahs and sheikhs. In the south to all manner of miracle-purveying preachers and prophets. Easily the most powerful man in Nigeria, and indeed Africa today, is Prophet TB Joshua.

It seems nothing happens in Africa, and increasingly abroad without Prophet Joshua foreseeing it. The other day I read that 60 per cent of the VIPs that travel to Nigeria, go to seek divine intervention at the feet of Joshua. Among them is Malawi president Joyce Banda, who consults him even on cabinet reshuffles.

Though it is now in oil, the Ghanaian currency, the Cedi, has lately taken a beating at the hands of the US dollar.

The colourful and charismatic “Archbishop” Duncan Williams, of the Christian Action Faith Ministries, took to the pulpit to command the Cedi to rise against the dollar, and the economy to rebound.

This time, Adam Smith beat the bishop. The free hand of the market continued to exert pressure on the Cedi, but William says the good Lord will eventually deliver on his prayers.

I couldn’t find any economist who has studied this matter, so I will speculate. In Nigeria where corrupt oil deals have made some folks overnight millionaires, it is understandable that they should think their good fortune is an act of God.

It is only reasonable that they should go to a prophet or sheikh to thank God for his munificent intervention, and to protect their newfound wealth. Pastors’ earnings would therefore rise in oil-rich African nations.

Because some of those who miss out from the great oil boom think it can be because Satan is standing in their way, they turn to God to reverse their misfortune. And a holy man on the opposite side of the food line also grows rich and influential. Hail oil!