The effect of the COVID-19 pandemic on the global oil sector, which has led to a fall in oil prices, is allowing Ghana an opportunity to re-strategize from its dependence on the oil and gas sector that has been a major contributor to the economic growth of the country in recent years.

The decline in demand and the cut in production of oil in the global market has caused a projection of the slowest pace of growth of the country’s economy in 37 years. This precedes the last three years in which the oil sector has reportedly more than doubled to fuel annual growth of 6.3% or more.

Investments have also declined (as predicted by the International Energy Agency in their latest report) in the West African country with the second-biggest economy. Aker Energy ASA, an oil explorer in the country, has suspended plans for the development of new fields. Oil is projected to contribute nearly a billion dollars less than what was initially projected, which will widen the deficit of the budget.

Godfred Bokpin, a lecturer of finance in the University of Ghana described the pandemic as a “blessing in disguise.” He suggests that the boost of the oil sector in recent years has provided the government with little incentive to develop other sectors that can contribute hugely to the revenue of the country. “Ghana can realign its economy with a focus on the non-oil sectors, particularly agriculture. Ghana cannot miss it a second time.”

Part of the policies of President Nana Addo Danquah Akufo-Addo, after he took over from former President John Dramani Mahama, was planting for food and setting up factories. One very popular campaign point of the president before assuming office was the “One district One factory” initiative. He said at least one factory would be built in each district. The government has achieved remarkable success in the agricultural sector, although it can’t be compared to that of oil.

Unlike Algeria, Angola, Gabon, and its “near neighbour,” Nigeria, Ghana does not rely majorly on the export of oil. Gold is the country’s biggest export, while services are said to account for nearly half of its gross domestic product.

Albert Touna Mama, the International Monetary Fund‘s representative in Ghana said, “Countries like Ghana should continue to chase diversification of the country’s growth drivers. That will make the economy more resilient to commodity price shocks.”