Editorial (The Daily Searchlight, May 4th, 2022)
The Reverend Dr. Samuel Worlanyo Mensah, an Economist and Executive Director of Centre Impact Africa (CGIA) has urged the government to revamp and expand the capacity of Tema Oil Refinery (TOR).
He suggested to the government to either build a new local refinery or expand TOR’s capacity to reduce the importation of petroleum products and ensure self-sufficiency in the petrochemical sector in Ghana.
Rev. Dr. Mensah was speaking at the 12th monthly stakeholder engagement seminar organized by the Ghana News Agency Tema Regional Office which is a platform rolled out for state and non-state actors to address national issues.
The engagement also serves as a motivational mechanism to recognize the editorial contribution of reporters towards national development in general and the growth and promotion of the Tema GNA as the industrial news hub.
Speaking on the topic: “Global economy with the Russian-Ukraine War: Prospects and Challenges for Ghana,” Rev. Dr. Mensah added that investing in local refineries would also promote the industrialization of local content and quality products needed to enlarge production to increase revenue.
In contrast to the suggestion above, the Daily Searchlight suggests that the government of Ghana rather sells the Tema Oil Refinery, or shut it down.
Over the years since it was set up by Ghana’s first President Osagyefo Dr. Kwame Nkrumah, the refinery has been a constant and consistent money loser, causing the nation losses that runs into the billions of cedis.
Even though it was a strategic player in times past, it currently has little or no impact on the fuel situation in Ghana, due to the fact that the sector is highly deregulated and would continue to experience deeper deregulation.
Again, Ghana’s general economy has moved on from the centralized economy in the days of Nkrumah, to a decentralized economy, where government should be cutting back on doing business, leaving business in the hands of the private sector, and concentrating on regulation and taxation.
In contrast to the suggestion, therefore, we would edge government to assume the direct opposite path to de-emphasize TOR.
