Business News of 2014-08-21

Local Content Policy won’t deter foreign investors - Jinapor

Deputy Minister of Energy and Petroleum, John Abdulai Jinapor, has dispelled the notion that government’s continuous effort to build the capacity of local companies in the oil and gas sector will deter foreign investors willing to invest in the sector.

According to him, the Local Content Policy only aims at helping indigenous companies build the capacity to meet standards in the international oil and gas environment.

Mr. Jinapor was speaking at a programme organized by the Enterprise Development Center (EDC) for Ghanaian Small and Medium Scale Enterprises in Oil and Gas (GhSMEs) and Financial Institutions to deliberate on how banks can support local companies financially to also bid for contracts.

He said local participation will make Ghanaians feel part of the sector, “thereby protecting it because, they have a stake in it."

The Deputy Minister further urged Ghanaian companies to take advantage of the EDC, which has been established by the government to provide support for Ghanaian SMEs and position them to take advantage of business opportunities in the oil and gas sector.

Director of EDC, Shika Acolatse outlined the importance of the meeting of the SMEs and financial institutions, saying it will leverage potential by building the capacity of local SMEs and also discuss ways to move the oil and gas sector forward with full, the participation of indigenous companies.

She further disclosed that six Ghanaian Small and Medium Scale Enterprises have won various contracts in the oil and gas sectors recently while three tenders are currently under consideration for various contracts.

Madam Acolatse noted that one Ghanaian Company failed in a tender due to over pricing, adding that the center will intensify its education on pricing to avoid recurrence of such issue.

Source: myjoyonline.com
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