-To Boost Local Companies And Create Jobs
The Petroleum Commission (PC) has awarded over US$3.6 billion in contracts to Indigenous Ghanaian Companies (IGCs), Director of Local Content, Mr. Kwaku Boateng, has said.
Additionally, foreign companies received US$8.7 billion worth of contracts, while $6.3 billion was allocated to joint ventures (JVs).
At the recently concluded Ghana Energy Week in Takoradi, Western Region, Mr. Boateng highlighted that more than 10,000 direct jobs have been created through local content development in Ghana’s upstream petroleum sector. Key in-country investments include cementing units, waste management plants, fabrication and engineering facilities, chemical blending plants, and the establishment of training centers for specialized trades.
During his presentation on “Building Value and Promoting Investment Through Local Content,” Mr. Boateng emphasized that sustainable management of Ghana’s oil resources is vital for the country’s socio-economic development.
The Ghana Energy Week event was hosted by the Western Regional Coordinating Council and focused on the theme, “Renaissance of Ghana’s Energy; the Renewed Commitment Towards Inclusive and Sustainable Energy Transition, Decarbonisation, and Energy Poverty History for Economic Development.”
Mr. Boateng reassured attendees that the Petroleum Commission is committed to ensuring transparency, cooperation, growth, and mutual benefits in the sector.
He further outlined several strategies to promote investment, including the government’s intensified promotion of investment to boost local content development, activation of incentives under Regulation 25 of LI 2204 to enhance technological development, and ensuring a conducive environment for industrial collaboration and the transfer of technology and competence.
The Commission is also pushing for the promotion of local material substitutions and providing incentives for International Oil Companies (IOCs) to use Ghana as a hub for their sub-regional operations. Mr. Boateng noted the importance of empowering local businesses through strategic partnerships, incubation of IGCs, and supplier development via subcontracting.
He stressed that the Commission will focus on creating domestic value rather than ownership, by addressing issues like access to financing, developing a Local Content Fund, and rehabilitating critical infrastructure such as the Tema Shipyard.
Despite the progress made, Mr. Boateng acknowledged several challenges facing local content development, including limited local capacities in technical areas, a lack of key infrastructure, overlapping policies and regulations in other sectors, and the high cost of capital.
He also pointed to the need for a broader strategic plan in trade and industry to support local content regulations and address the weak manufacturing and industrial base.
Mr. Boateng noted that many emerging countries have used local content as a catalyst for economic development. He emphasized that the objective is to maximize national value creation along the petroleum value chain. At the same time, workforce development should focus on creating direct and indirect jobs for host communities, strengthening supply chains, and establishing new businesses.
The ultimate goal is stimulating economic growth, increasing the country’s Gross Domestic Product (GDP), and ensuring infrastructure development across various sectors.
