Ghana’s petroleum industry continues to face significant tax-related challenges, according to Deloitte’s October 2024 Oil and Gas Industry Survey. The report highlights that 46% of industry stakeholders view “high tax rates” as the most critical issue, impacting profitability and stifling growth and competitiveness.
The survey also revealed that 42% of industry players are advocating for a tax amnesty, believing that such a measure would foster a more business-friendly tax environment. This, they argue, would enable companies to thrive and contribute more effectively to the sector’s development.
Another key concern outlined in the report is the difficulty in obtaining foreign currency. Approximately 80% of industry participants require foreign currency to meet payment obligations but face challenges due to high exchange rates and limited forex availability. Many suggest that intervention by the central bank to address this issue would be greatly beneficial.
On local content regulations, about 91% of industry players feel that current policies are either sufficient or somewhat sufficient in promoting and protecting Ghanaian participation in the sector. However, a small group expressed concerns that the existing framework may discourage foreign investment.
Additionally, the report underscores the importance of transparency regarding companies’ Environmental, Social, and Governance (ESG) practices. Top management officials across the sector rate the significance of public disclosure of ESG practices at 4.22 out of 5, emphasizing the growing demand for companies to be transparent about their environmental and social impact.
