SMEs in oil build capacity

Dr. Joyce Rosalind Aryee, the immediate past-Chief Executive Officer (CEO) of the Ghana Chamber of Mines, has noted that local Micro Small and Medium Enterprises (MSMEs) -- especially those in the oil, gas and mining sectors -- must be promoted to play a pivotal role in propelling and stimulating the stability, growth and economic transformation of the country.

“Sourcing from Small and Medium Enterprise (SMEs) is fundamentally necessary due to high levels of capital investment in that sector, which leads to further economic activities and attracts investment as suppliers,” she said.

Dr. Aryee said this at opening of a five-day training programme on developing local SME suppliers for the mining, oil and gas sectors, organised by the Sekondi-Takoradi Chamber of Commerce and Industry (STRCCI) at Busua in the Ahanta West District of the Western Region.

She pointed out that SMEs in these sectors require great initiatives and skills to improve upon their capability to meet company needs that are of a higher standard.

She said suppliers need to provide better service to customers, leading those suppliers to raise standards further along the supply chain. It can also increase the competitiveness of suppliers in pursuing business with other companies, helping them to diversify.

“Small businesses and suppliers however thrive because larger public companies, and especially multinationals, create opportunities through forward and backward linkages,” she noted

Generally, she said, the key areas where suppliers are benefitting in the mining, oil and gas sectors include transportation, human resource, food and beverages and entertainment, as well as maintenance, engineering and management.

She said when there are well-developed local suppliers, companies get work done efficiently at a cheaper cost which means profitability -- local suppliers also make some business and profit, which means expansion and creation of employment that consequently reduces unemployment and its attendant social problems in the country.

According to her, there must be a concerted stakeholder effort in the development of local MSME suppliers for the needed effect -- “how do we develop MSME local suppliers in our oil, gas and mining sector?” she asked.

“Some have claimed that a Local Content Bill is the answer. Let us ask ourselves whether it is enough to mandate local participation in the mining, oil and gas sectors and fold our arms --and then expect development of our MSMEs,” she further asked.

She added that the key policy objectives to be attained under the local content platform are to maximise the benefits of oil and gas wealth-generation on a comprehensive local content platform by maximising the use of local expertise, goods and services, job-creation for people, businesses and financing in all aspects of the oil and gas industry value chain, and retention of the benefit within Ghana.

Fortunately, she noted: “The local content and local participation in petroleum activities policy framework recognises how Ghanaian suppliers at various levels can benefit from the opportunity offered by the oil and gas and mining sectors is limited by finance, human resource technology -- and I will add competitiveness and professionalism.”

She said recognising this fact, the goal of developing a local content and participation policy is to define actions that will ensure the constraints/challenges are resolved to enable Ghanaians take control and thus maximise the benefits to them.

“Develop local capability in all aspects of the oil and gas value chain through education, skills and expertise development, transfer of technology and know-how and an active research and development portfolio,” she said.

Also, she said the country can achieve at least 90 percent local content and local participation in all aspects of oil and gas industry value chain within a decade – and also increase capabilities and international competitiveness of domestic businesses and industrial sectors; and create oil and gas and related supportive industries that will sustain economic development as well as provision of goods and services by national entrepreneurs

Dr. Aryee said in order to ensure increased financial benefits to Ghanaians and the Ghanaian state, all operators in the oil and gas industry should as far as practicable use goods and services produced by or provided in Ghana for their operations, in preference to foreign goods and services.

Also, she said, the operators should give priority to the purchase local products and services that are competitive in terms of price, quality and timely availability from citizens of Ghana: giving a preference to Ghanaian entities, even if they are up to 10% more expensive, is mandated.

By Juliet AGUIAR, Busua

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