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.
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By: Pius Amihere Eduku/citibusinessnews.com/Ghana