Cabinet Approves Local Content and Participation Policy – Oppong-Nkrumah

General News of Monday, March 18, 2019

Source: ghanaiantimes.com.gh

2019-03-18

Information Minister Kojo Oppong-Nkrumah announced a new policy regarding local content and participation in the downstream oil industry.

He said the new policy approved on Thursday, March 14, was aimed at ensuring a Ghana-owned, fully-owned Ghana-owned downstream oil industry that can attract increased local value-added investment.

The policy would also aim to improve employment opportunities, while increasing local knowledge, expertise and technology in the industry for the overall benefits of Ghanaians.

"Although the role and participation of Ghanaians in some downstream activities has grown considerably, the government believes that there is still plenty of room for Ghana's participation," he said.

The minister who revealed this information at the Sunday edition of the ministry's bi-weekly news briefs said the new policy framework covered areas such as; trade, shipping and bulk distribution of petroleum products.

It also covers the development of infrastructure in the oil sector, such as the construction of port unloading facilities, processing and petrochemical plants, as well as the supply of petroleum products to strategic areas of the economy. economy and the general purchase of goods and services for the downstream industry.

Mr. Nkrumah, who was optimistic about the new policy, said it would include a grace period to build local capacity and to incorporate best practices from other jurisdictions where is practiced.

He said the Minister of Energy would provide more detailed political nuances by activity in the coming days, after which a downstream oil content committee in Ghana would be established under the authority of the National Petroleum Authority (NPA) to oversee, coordinate, administer, monitor local content development in the downstream industry.

Oppong-Nkrumah said the government firmly believed that such efforts would help strengthen the Ghanaian economy and strengthen Ghana's capital.

Meanwhile, the government has signed a € 40 million facility with the European Union to help Ghana promote investment and create more jobs.

The facility, which is a grant, is part of the financing agreement signed by Ghana's indicative allocation of € 323 million under the 11th European Development Fund and the National Indicative Program, which extends from 2014 to 2020.

Mr. Oppong-Nkrumah explained that the program focused on the areas of business climate, public finance governance and employment, with the main objectives of promoting domestic and foreign investment, enabling businesses to to lead economic transformation and create jobs.

"It will also strengthen the governance of public finances and stimulate the mobilization of national revenues and the fight against corruption," he said.