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The Ghana Stabilisation Fund: Relevance and Impact so far

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  • Gyeyir, Denis Mwinkpeng

Abstract

Ghana in response to global best practices in managing volatile petroleum revenues included in its petroleum revenue management framework, the Ghana Stabilisation Fund (GSF). This study sought to evaluate the impact of volatile petroleum receipts on the GSF and measure the effect of discretionary capping on the ‘stabilisation’ role of the Fund since its establishment in 2011. Using qualitative comparative analysis and sensitivity analysis techniques, the study found that transfers into the GSF has been influenced to various degrees by total petroleum receipts, the variance between benchmark and actual revenues, transfers to the National Oil Company and discretion around transfers into the Fund in its initial years of operation. Out of the total of US$ 714,608,340 withdrawn from the GSF between 2014 and 2018, 86.72 percent has been transferred into the Debt Service Account/Sinking Fund (DSA/SF) and used to retire some marketable debt instruments (loans). It concludes that the GSF has impacted minimally on its primary object of cushioning or sustaining public expenditure capacity during periods of unanticipated petroleum revenue shortfalls and that, the Fund has been largely applied for debt repayment purposes than economic stabilisation over the past eight years.

Suggested Citation

  • Gyeyir, Denis Mwinkpeng, 2019. "The Ghana Stabilisation Fund: Relevance and Impact so far," Energy Policy, Elsevier, vol. 135(C).
    • Handle: RePEc:eee:enepol:v:135:y:2019:i:c:s0301421519305762
    DOI: 10.1016/j.enpol.2019.110989
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    References listed on IDEAS

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    1. Naotaka Sugawara, 2014. "From Volatility to Stability in Expenditure: Stabilization Funds in Resource-Rich Countries," IMF Working Papers 2014/043, International Monetary Fund.
    2. Bruno Merlevede & Koen Schoors & Bas Van Aarle, 2009. "Russia from Bust to Boom and Back: Oil Price, Dutch Disease and Stabilisation Fund," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 51(2), pages 213-241, June.
    3. Balding, Christopher, 2012. "Sovereign Wealth Funds: The New Intersection of Money and Politics," OUP Catalogue, Oxford University Press, number 9780199842902.
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