Business in Ghana

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Posts Tagged ‘Alex Mould’

IMANI Alert: Can the Tema Oil Refinery deliver today? A possible way out

Posted by Business in Ghana on September 7, 2014

The energy sector is undoubtedly the most essential sector if Ghana is to come out of its current economic atrophy.  President Mahama underscored this fact when he declared that the Atuabo Gas project in his view, is the game changer in Ghana’s energy mix and an attempt to resurrect the near moribund economy.  That the second Millennium Challenge Compact is dedicated to energy attests to the vision.

One essential player in the energy picture of this sector is the Tema Oil Refinery (TOR).  TOR was established by Ghana’s first President, Kwame Nkrumah with financial and technical support from Italian investors. TOR’s mandate at the onset was refining crude oil for Ghana and her neighbouring countries. TOR’s core business has over the years been broadened to include procurement, storage, refinery and distribution of crude oil. However many observers have argued that the ambitions of TOR whilst in keeping with a growing economy such as Ghana’s was not strategically anchored in a future vision for running it as a serious profitable business, hence its current near defunct and financially broke natural order.

We have seen successive governments design strategies some of which have involved large financial investments and bailouts of the institution-the result of which is the current recovery levy which became a public debate with various analyses emerging on how the country could generate value from such an economic venture. Such debates and discussions that did not bring closure to the TOR debacle, have resulted in the establishment of institutions such as Bulk Oil Distribution Companies (BOST), Bulk Distribution Companies and Oil Marketing Companies with various responsibilities and duties being assigned to each of these institutions to ensure that the procurement, refinery, storage and distribution of petroleum products within the supply chain are comprehensive to prevent frequent shortages. Recent developments have prompted further discussions of the revival of TOR and how to make it an efficient economic entity. However the following factors must be considered prior to undertaking such investment. Read the rest of this entry »

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The Recantation. Critical News, 22nd June 2014

Posted by Business in Ghana on June 22, 2014

Sydney Casely-Hayford, sydney@bizghana.com

It was a good idea to trip to the Accra Mall on Saturday.  Same day we expected to beat Germany to stay in contention to win the World Cup, and I was not surprised at the numbers I saw shopping and de-tensioning before the match later that night.

Nature blessed us, we have not had much rain lately, and the power supply has been more consistent.  I am not confident enough to lay the success of this temporary “dumsor” fully on the floor mats of VRA, GRIDCO, BUI and ECG; the gang of four who can’t seem to calculate how much supply we have unless they talk to the politicians.

So the timely intervention by almighty nature is a boon to all praying religions and their dedication to Brazillia.

My own prediction last week that the Black Stars would win 3-1 against the USA did not happen, and I was reminded by friends, family and readers, that I need to be more prayerful.

I am not egoistic enough to think that my added prayers alone would ensure world cup success.  If that were possible, I would mount a podium next to Duncan Williams and charge muchos dollars.

But I have been wondering.  Is there a thriving private economy from Government?  Analytically, isn’t the private sector functioning without Government?  It appears so, since all that Government does is make payroll and even that.  It seems to me that we are getting on with life despite Government being broke. Read the rest of this entry »

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A Better Subsidy Agenda. Critical News, 17th February 2013

Posted by Business in Ghana on February 17, 2013

Sydney Casely-Hayford, sydney@bizghana.com

Last Sunday night, Government announced increased fuel prices 15% to 20%.  No proper announcement and no formality.  We woke up, some to Church, others to play a sport or two, others to write a column.  Stopped by the petrol station only to be told that the pump prices have gone up.  Calibration not yet in place, prices not displayed, you depended on the attendants to calculate on a piece of paper and you were told how much to pay.  This did not include jet fuel, of which there is a strident shortage.  Someone most likely got a tip-off and gouged some profit and the rest of us idiots were left in the dark.

In the run up there had been a lot of noise about lifting fuel subsidies again and a repeat of all the arguments to do and not to do.  I heard a very novel argument by Kofi Bentil of Imani at the CiTi Fm radio show.  He offered that, though he was a strong advocate to remove subsidies, because he and many other Ghanaians could not trust that Government would put the “savings” to proper use, leave the subsidies in place. Read the rest of this entry »

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