Financial actors in the oil and gas industry are asking for a long-term roadmap in financing in the industry.
They argue that the lack of a clear roadmap on deliverables in the sector does not encourage financial institutions to do business with the companies in the sector.
Access to credit is one of the key challenges affecting active Ghanaian participation in the oil and gas industry.
Figures from the Petroleum Commission show that as at September, 2018, there were about 600 indigenous Ghanaian companies participating in the upstream petroleum industry with a total fund of $799 million worth of contracts awarded to them.
Director of Business Banking at Barclays Bank Grace Anim-Yeboah says even though progress has been made with local participation in the petroleum industry, Ghanaians will continue to be left out on big ticket transactions if the issue of capital is not addressed.
“I want to see the Petroleum Commission collaborate with all the players in this industry, especially the financial players, so that we can come up with a standing committee that can produce a roadmap of the targets of these oil and gas companies,” she said at the second day of the 2019 edition of the Local Content Conference and Exhibition organised by the Petroleum Commission in Takoradi.
“If we know there are timelines and desirables and targets, then we can get in and help.”
The three-day conference is on the theme ‘Maximising In-Country Value Addition: The Role of Indigenous Ghanaian Companies Participating in the Upstream Petroleum Industry’.
She has advised local players to go more into joint ventures and partnerships as part of measures to solving this challenge.
“Banks should also develop special vehicles for these players. Their business comes with a special risk and as financial experts, when we understand this, it becomes easier for the both of us. We can do equity financing, project financing and others.”
She wants banks to develop long-term financing vehicles to support the IGCs.