[ 2016-10-23 ]

Lack of capacity still constrains local content in Ghana – AGI
The Association of Ghana Industries (AGI) has
cited the lack of capacity building as one major
constraint to local content in Ghana.
After almost three years since the passage of the
Petroleum Local content law, Ghanaian companies
are yet to actively participate in the oil and gas
sector.

“There are certain areas that due to the nature
of they being technical or capital intensive make
it difficult for local companies to meet up with
competition. The situation is also attributed to
the nature of the lack of enough expertise on the
part of the local entities,” CEO of the AGI,
Seth Twum Akwaboah told Citi Business News.

A latest report by the Petroleum Commission has
shown that total volume of oil contracts amounted
to 6.3 billion dollars between 2010 and 2015.

Of this, local components amounted to 1 billion
dollars, compared to 5.3 billion dollars that went
to foreign companies.

This also comes on the back of concerns that local
companies totaled 300 while foreign companies
totaled 150.

Meanwhile Seth Twum Akwaboah is convinced the
intervention by the Petroleum Commission to ensure
companies in the petroleum sector comply with the
law, should assist local companies leverage
opportunities with their foreign counterparts.

“But I think what the Petroleum Commission is
doing is that when you submit your local content
plan, they monitor and ensure that you have a
clear plan of gradually transferring knowledge,
expertise or information to local people so that
they can come up,” he stated.

The comments by Seth Twum Akwaboah come ahead of a
two day conference by the AGI scheduled for
October 26 and 27, 2016.

This year’s summit is themed, “Local Content
Development in Ghana, the Journey so far”.

Key highlights will involve conferences that
center on oil and gas, mining, energy and building
and construction.

Source - Citifmonline

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