Expensive “Processing Fees” Cited as Major Barrier to Regulatory Approvals in Ghana’s Oil and Gas Industry

Deloitte’s October 2024 Oil and Gas Industry Survey underscores growing concerns over costly regulatory barriers and foreign exchange constraints in Ghana’s petroleum sector.

The survey reveals that 40 percent of industry stakeholders cite “expensive processing fees” as a primary challenge in securing approvals from regulatory authorities, adding to the cost of doing business in the country.

Foreign exchange shortages also emerged as a significant issue, with 80 percent of respondents requiring foreign currency to meet payment obligations and 87 percent facing difficulties in acquiring it.

High exchange rates remain the most prevalent concern, affecting 40 percent of participants, while 47 percent of respondents are calling for central bank intervention to address forex shortages.

Taxation is another critical hurdle for the industry, as 46 percent of respondents identify “high tax rates” as the leading concern, alongside issues of ambiguous tax compliance and frequent policy changes.

In response, 42 percent of industry players advocate for a tax amnesty, arguing it would help foster a more conducive environment for business operations in the sector.

Source:norvanreports.com