Kwaku Boateng, the Director of Local Content at the Petroleum Commission (PC), has announced that over 10,000 direct jobs have been created through the implementation of local content initiatives in Ghana’s upstream petroleum sector.
Speaking at the Ghana Energy Week held in Takoradi, Mr. Boateng highlighted how local content has become a cornerstone for job creation and economic transformation in the industry.
During his presentation, he disclosed that Indigenous Ghanaian Companies (IGCs) have been awarded contracts worth $3.6 billion, while $6.3 billion went to Joint Ventures (JVs), and foreign companies secured contracts totaling $8.7 billion. These figures represent significant investments that have strengthened Ghana’s upstream petroleum sector and supported the growth of local businesses.
In-country investments facilitated by the local content policy include the establishment of cementing units, waste management and thermal absorption plants, fabrication yards, hydraulic and engineering facilities, aviation hangars, bolts and nut manufacturing, chemical blending plants, and training centers for specialized trades. These developments have not only created jobs but also boosted local capacity in critical areas of the petroleum value chain.
Mr. Boateng emphasized the broader vision of local content development, stating, “The commission will ensure transparency, cooperation, development, growth, and the mutual benefits from the sector. The country is committed to providing the enabling environment for investment in the upstream petroleum sector by enacting the appropriate laws, regulations, and guidelines to govern the sector.”
Despite the success in job creation and investment, Mr. Boateng acknowledged that the industry has faced significant challenges. He explained that despite creating thousands of jobs and making key investments, the sector is hampered by a low level of activities, limited technical capacity, lack of infrastructure, and overlapping policies and regulations in other sectors.
He pointed out that, “there is also the absence of wider strategic planning in trade and industry to complement local content regulations, high cost of capital and fronting, and a weak manufacturing and industrial base.”
However, Mr. Boateng remains optimistic about the future of local content in the petroleum sector. He outlined strategies to promote investment, which include intensified government investment promotion to increase the level of activities, activation of incentive provisions under Regulation 25 of LI 2204 to enhance technological development, and ensuring a credible atmosphere for industrial collaboration and transfer of competence and technology.
“Promotion of local material substitutions and incentives for International Oil Companies (IOCs) to use Ghana as a hub to serve their operations in the sub-region would also be pursued,” he added.
He further highlighted the importance of encouraging in-country spending, empowering local businesses through strategic alliances and partnerships, incubating IGCs by larger companies, and developing suppliers through subcontracting.
Mr. Boateng stressed, “We will emphasise domestic value creation rather than ownership, focus on critical issues like access to financing, local content fund, and increased infrastructure through the rehabilitation of Tema Shipyard.”
