GHANAIAN President Nana Akufo-Addo has officially launched the construction of a major oil refinery in the southwestern town of Jomoro, a move that aims to position the West African nation as a leading petroleum hub in the region. The ambitious project is designed to process 300,000 barrels of oil per day (bpd), a significant increase from the country’s current output of 132,000 bpd.
‘The project promises to be a cornerstone of our nation’s development,’ Akufo-Addo announced during the groundbreaking ceremony on Monday, broadcast on state-owned Ghana Television (GTV). The refinery, part of a larger complex that will also house petrochemical plants, is expected to drive economic growth and increase Ghana’s influence in the regional energy market.
The first phase of the project, which is projected to cost $12bn, will be financed and constructed by a consortium of international companies, including Touchstone Capital Group Holdings, UIC Energy Ghana, China Wuhan Engineering Co., and China Construction Third Engineering Bureau Co. The refinery is part of a broader plan to meet West Africa’s demand for petroleum products, which is estimated at around 800,000 bpd. Currently, nearly 90 percent of this demand is met through imports.
However, the ambitious project has sparked controversy. Critics argue that the refinery lacks a solid financial foundation and could have significant negative social and environmental impacts. Bright Simons, Vice President of the Accra-based think tank IMANI Africa, expressed scepticism about the consortium’s capacity to deliver on the project. ‘The consortium behind the project is not primed for investment, and the project has no bankable business plan,’ Simons told Reuters, suggesting that the initiative might be more about acquiring land cheaply than about genuine industrial development.
The refinery is set to occupy a vast 20,000-acre site, a plan that has also faced resistance from local communities. Some residents and affected farmers have protested, calling for the project’s footprint to be reduced to 5,000 acres. Oliver Barker-Vormawor, a senior partner at the law firm representing several farmer cooperatives, emphasised that his clients would not back down. ‘The government’s abrasive approach discounts valid concerns regarding the social and environmental impact of the project, as well as the livelihoods at risk due to the displacement of farmers and unresolved issues of land ownership and community rights,’ Barker-Vormawor stated.
Despite these objections, the government has dismissed the concerns, highlighting petitions from other local residents who support the refinery project. Officials argue that the refinery is crucial for the nation’s economic future and will play a significant role in reducing West Africa’s reliance on imported petroleum products by 2036, as outlined in an agreement signed in June 2018.
As Ghana moves forward with this ambitious initiative, the tension between economic development and social responsibility continues to be a point of contention, raising questions about the long-term sustainability and impact of such large-scale industrial projects.
Reuters
