Atuabo gas would further stabilise Cedi - Analyst predicts

Managing Partner of Trust Consult, Charles Mensah, has predicted a further stability in the value of the cedi if gas from the Atuabo gas project comes on stream.

Mr Mensah’s prediction follows recent gains by the cedi against its major trading currencies.

The marginal appreciation of the cedi against the Dollar, Pounds and Euro has been attributed to the country’s latest Eurobond and inflows from the cocoa syndicated Loan.

Contributing on Starr Fm’s Business Analysis programme, ‘Business in Focus’, Mensah said pressure on the dollar will reduce tremendously when the Atuabo gas project comes on stream.

“If we are getting gas to power our energy sector, the cost will reduce tremendously because we import crude and the cost of crude is very high, so if we are using gas it will reduce our cost of energy and once there is a reduction in the cost of energy, there will be a reduction in the forex required” Mensah told host Paa Kwesi Asare on Tuesday.

He further described the Atuabo gas project as a savior and must be given the attention it deserves.

He also cautioned the Finance Ministry to stick to its promise of channeling about 750 million of the Eurobond into infrastructure or economic projects that will yield dividends.