Instead, the oil cash should be invested in education and roads as well as supporting traditional sectors to avoid the â€śoil curseâ€ť trap, said the former Rwandan Finance Minister.
Ghana, Kenya, Mozambique, Tanzania and Uganda have all discovered oil and gas in recent years, thrusting them into crossroads between following the likes of diamond-rich Botswana into prosperity or the likes of Nigeria into over-dependence on oil.
In an interview with the Reuters news wire April 3, 2012, Donald Kaberuka said governments should resist using windfalls from oil and gas exports to pursue populist policies like sharply raising public sector wages.
â€ś(They should) avoid using the resources to rapidly increase recurrent expenditure. That is what people will be expecting but that would be the wrong thing to do,â€ť Reuters quoted Mr Kaberuka as saying during the interview.
Ghanaâ€™s President Prof. Atta Mills on February 16, 2012 announced at Parliament that the countryâ€™s wage bill has been increased to GHÂ˘5 billion. He said the minimum wage has been increased from GHÂ˘2.55 to GHÂ˘4.48.
According to him, other countries have done well without use of oil and other minerals citing nations in East Africa as examples.
â€śThis region (East Africa) has done very well without oil, without gas, without minerals. These are finite resources. In other countries they have become a curse, so make the right public policy choices,â€ť Kaberuka said.
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