Mr. Benjamin Boakye, the Executive Director of the Africa Centre for Energy Policy (ACEP), has highlighted the critical importance of empowering local companies to actively participate in Ghana’s natural resource sector. The move aims to enhance local capacity and expertise while boosting revenue to support the country’s economy. During a media interaction session before the 2023 mid-year budget review, Mr. Boakye expressed concern over some companies working as fronts for foreign firms due to inadequate support and capacity.
To achieve sustainable growth in the natural resource sector, Mr. Boakye emphasized the necessity of proper cost accounting and production volume tracking. According to him, headline contractual fiscal terms alone are insufficient to generate significant returns. Instead, it is crucial for local entities to be actively involved in decision-making across the entire value chain to increase revenue effectively.
Mr. Boakye pointed out that there have been missed opportunities to expedite oil production due to slow government action since Ghana began exploiting oil resources. He stressed the need to integrate resource exploitation into the country’s economy while maintaining control over costs and volume estimation.
Regarding the Gold-for-Oil policy, which was introduced as an innovative measure to exchange gold for petroleum products rather than US Dollars, Mr. Boakye projected a review under the new International Monetary Fund program. He called for public involvement in the review process to ensure transparency in decision-making.
The Government’s intention with the Gold-for-Oil policy was to reduce the demand for US Dollars for petroleum imports, given the approximately $400 million monthly requirement for petroleum products, with the Bank of Ghana supplying only $120 million to petroleum importers. By empowering local companies and involving the public in policy reviews, Ghana can chart a course toward sustainable economic growth and better management of its natural resources.
