Audio By Carbonatix
About 87% of players in the upstream petroleum sector have cited the acquisition of foreign currency as their biggest challenge in meeting their payment obligation, according to a survey commissioned by the Petroleum Commission but conducted by Deloitte.
It also revealed that 80% of the respondents require foreign currency to meet their payment obligations.
Again, the most common challenge respondents faced in obtaining foreign currency was high exchange rates” (40%). Approximately, 47% of respondents believe that it would be very helpful if the central bank solves the issue of forex unavailability.
The respondents also mentioned tax-related challenges as prevalent in the petroleum industry in Ghana.
According to the research, the most significant issue reported by 46% of respondents was high tax rates.
Others also disclosed ambiguity in tax compliance and frequent tax changes.
Tax amnesty was the most popular suggestion, with 42% of respondents advocating for its implementation to create a more conducive tax environment for businesses.
Petroleum Commission Receives Average Rating of Responsiveness
Meanwhile, the Petroleum Commission received an average rating of 3.80 for responsiveness, indicating a generally positive perception.
However, the most common challenge in dealing with the commission was high fees or charges, cited by 14 respondents.
91% of Respondents Satisfied with Local Content Regulations
Continuing, approximately 91% of respondents believe local content regulations are "sufficient" or "somewhat sufficient" to promote and protect Ghanaian participation in the industry.
However, about 25% of respondents said the regime discourages foreign investment
On the other hand, the most significant challenges faced by foreign investors are technology transfer requirements and the “availability of local content expertise.
The Petroleum Commission's promotion of local content and participation was rated “extremely well" or "somewhat well” by 76% of respondents.
The stakeholder engagement was the most frequently cited area respondents had witnessed in the promotion of local content and participation.
Similarly, the most popular suggestion on how to improve the local content regime was to “simplify the local content regulations”.
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