A new local content and participation policy in the downstream petroleum industry has been approved by cabinet, the Minister of Information, Mr Kojo Oppong Nkrumah has announced.
According to him the
new policy which received approval on Thursday, March 14, was intended to
ensure a fully Ghanaian-owned and driven petroleum downstream industry capable
of attracting increased local value-added investments.
The policy would also
seek to enhance job opportunities, while increasing indigenous knowledge,
expertise and technology in the industry for the overall benefits of Ghanaians.
“Though there has been
significant progress in the role and participation of Ghanaians in some of the
downstream activities, the government believes there are still lots more space
for Ghanaian participation,” he emphasised.
The minister who
disclosed this at the Sunday edition of the bi-weekly media briefings by the ministry
said the new policy framework covered areas such as; trading, shipping and bulk
distribution of petroleum products.
It also covers
infrastructure development in the petroleum sector such as construction of port
discharge facilities, processing and petrochemical plants as well as supply of
petroleum products to strategic sectors of the economy and the general
procurement of goods and services for the downstream industry.
Mr Nkrumah who sounded
upbeat about the new policy said it would provide a grace period for building
local capacity as well as on boarding best practices from other jurisdiction
where this was being practiced.
He noted that the
Minister of Energy would in the coming days provide more details on the policy
nuances per activity after which petroleum downstream Ghanaian content
committee would be established under the National Petroleum Authority (NPA) to supervise, coordinate, administer,
monitor and manage the development of local content in the downstream industry.
Mr Oppong-Nkrumah said
government was of the firm belief that efforts such as these would assist in
strengthening the Ghanaian Economy as well as ensuring that Ghanaian capital
has signed a 40million euro facility with the European Union to aid Ghana in
promoting investment and increasing job creation.
The facility which is a
grant, forms part of the financing agreement signed from Ghana’s indicative
allocation of 323 million euros under the 11th European Development
Fund and the National Indicative Programme which spans between 2014 and 2020.
explained that the programme focused on areas of business climate, public
financial governance and employment with its main objectives being to promote
domestic and foreign investments, enable businesses to spearhead economic
transformation and create employment.
“It will also
strengthen public financial governance and boost domestic revenue mobilisation
as well as fight against corruption,” he stressed.
By Cliff Ekuful
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