ACCRA, Sept 26 (Xinhua) -- Experts on oil governance from 10 African countries convened in Accra on Monday to discuss the continent's economic prospects in the face of global oil price slump.
Opening the two-day Second Africa Oil Governance Summit, Ghana's deputy minister of Petroleum Ben Dagadu called for the diversification of African economies to avoid the shock occasioned by oil price volatility.
A low crude oil price environment as seen in the world, the minister said, necessitates a review and possible reduction in capital expenditure budget.
"Additional complexities include potential currency price devaluation and possible inflation, both of which can compound the adverse effect of low crude oil prices. In general, many governments in oil-exporting countries, including Ghana, are forced to cut public budgets and consequently risk social and political turmoil," he added.
Mohammed Amin Adam, Executive Director at Africa Centre for Energy Policy (ACEP), expressed satisfaction that an unprecedented number of Africa's resource-rich countries are undergoing Extractive Industry Transparency Initiative (EITI) validations to determine the level of progress made on the governance of natural resources.
"These are great moments on our continent confirming the increasing consensus among stakeholders on the best way to manage our rich resources. And I would like to acknowledge the role played by civil society activists, our governments and legislatures and, of course, our development partners for this growing optimism about Africa," he added.
This year's summit seeks to shift the focus to the impact of oil price shocks on the economies and development of African countries and how governance dividends as well as other fiscal measures can help address these challenges.
The first Africa Oil Governance Summit held last year called for the strengthening of good governance practice through necessary legal and institutional framework in African oil exporting nations.
