High tax rates impeding growth in Ghana's petroleum industry – Deloitte report

Ghana's petroleum industry faces significant hurdles that threaten its growth, according to Deloitte's October 2024 Oil and Gas Industry Survey.

The report reveals that a substantial 46 per cent of industry stakeholders identify "high tax rates" as the most pressing concern for the sector, impacting both profitability and overall competitiveness.

In light of these challenges, around 42 per cent of industry players are advocating for tax amnesty, arguing that it could create a more conducive environment for businesses to flourish.

The survey also uncovers a critical issue regarding access to foreign currency, with approximately 80 per cent of respondents needing foreign currency to meet their payment obligations.

However, they struggle to obtain it due to high exchange rates. Stakeholders are urging the central bank to address the shortage of foreign exchange to alleviate these financial constraints.

On a brighter note, the report indicates that about 91 per cent of industry players believe local content regulations are either sufficient or somewhat sufficient in promoting and protecting Ghanaian participation in the industry.

Notably, only a small percentage think these regulations hinder foreign investment.

Additionally, most top management officials emphasise the importance of public disclosure regarding Environmental, Social, and Governance (ESG) practices.

This perspective is reinforced by a strong rating of 4.22, highlighting the significance of transparency in companies' environmental and social impacts.