Nana Akua Ayivor( 3rd from left)
The Chief Operating Officer of ZEN Petroleum, Nana Akua Ayivor is advocating for mergers and acquisition in the petroleum downstream sector.
Ayivor believes such a move will help consolidate the sector and make it more vibrant.
Some Civil Society Organisations (CSOs) operating in Ghana’s energy sector have revealed that the country’s downstream petroleum space is facing imminent risk of collapse unless urgent policy reforms are implemented.
The groups explained that Ghana’s transition from a regulated to a partially deregulated petroleum market, particularly after the removal of fuel subsidies in 2015, has fostered competition; however, the policy has not led to efficiency.
Since the deregulation policy, Bulk Distribution Companies (BDCs) have grown from 31 in 2015 to 53 in 2024, while Oil Marketing Companies (OMCs) have surged from 139 to over 200.
Contributing to a panel discussion on the topic “Industry and Banking Collaboration: Unlocking Financing and Investment Opportunities for the Downstream Petroleum Sector.” in Accra on Wednesday(19 February), Ayivor called on the National Petroleum Authority to take urgent steps to ensure consolidation in the sector.
”I think the future needs a lot of change, particularly in our industry. Yesterday, Philip started a conversation around the number of OMCs, licensed OMCs that we have. When you look at Cote d’Ivoire, a country similar to our population size, they have, I think, probably less than 50 licensed OMCs. When you look at Kenya, it’s a similar story.
”…I think for the regulator, since I came into this industry, what I felt was that we don’t really have a regulator. We have a businessman. The regulator needs to do the business of regulating. I think that the mind set has to change now from providing new licenses to looking at How can we consolidate this market?
”How can we increase the level of investments that this market is able to attract? You cannot go to the bank if, for instance, you have a small business…. We want to make sure that we have an industry that is not tainted,” she said.
Listen to Nana Akua Ayivor in the attached audio clip below:
Watch the panel discussion in the attached video clip below:
Reporting by Fred Dzakpata in Accra
