By Kizito CUDJOE
Indigenous energy company, MISYL Energy Limited, has appealed to the government to prioritise the energy sector, citing concerns for national security and economic stability, on the back of recent fluctuating foreign exchange rates which is affecting businesses.
The Chief Finance Officer (CFO) of MISYL, Martin Ohene Anim, speaking on liquidity issues on the sidelines of the 10th anniversary launch of the company, noted that the energy sector plays a critical role in the country’s economy and security.
To this end, he said: “I believe the government should prioritise the energy sector due to its crucial role in national security. If energy products do not enter the country, it will negatively impact almost every sector.”
Given this, Mr. Anim urged the government to provide more liquidity to support businesses, particularly those in the downstream energy sector, highlighting the cascading effects of the sector on all other sectors of the economy.
For instance, he pointed out that fluctuations in the dollar’s value directly impact their product pricing, which in turn affects inflation and the general macroeconomic environment of the country. “If the dollar is high, we price them into our product, and that will impact inflation and impact the general macroeconomic environment of the country,” Mr. Anim explained.
He commended the efforts the Bank of Ghana (BoG) in addressing the liquidity issues while entreating it to double up the measures being put in place to “feed into our pricing and bring the prices down for Ghanaians to be able to buy petroleum products at a cheaper price”.
On the government flagship ‘Gold for Oil (G4O)’ policy, he said: “We cannot negate the impact that it has brought to the table”.
However, he added that the policy has intensified the competition within the market. “Private businesses are there to also make profit. Even though it brings stability, as it is helping the FX conversation, it has also brought turbulence in the market,” he added.
He said: “We are hoping that all stakeholders will come together – the government, the private sector who are playing key roles in the sector – to dialogue and bring a resolution to protect employment, to protect private businesses and investment, and that of government also achieving its objective of reducing inflation in the country”.
Furthermore, he called for robustness in the regulation of the downstream petroleum sector, saying: “We want the National Petroleum Authority (NPA) to continue with the good work they are doing. They are doing their bit, their price floor introduction is good”; but he added that the NPA should refine the price floor mechanism and incorporate additional variables to better reflect market conditions.
This, he contended, will help Bulk Distribution Companies (BDCs) to also make some profit to ensure business sustainability.
The General Manager of MISYL, Fredrick Ametepey, reflecting on the operations of the company since its inception in 2014, noted their operational challenges experienced in the past decade and the resoluteness of the Chairman of the company, Dr. Nick Danso Adjei, that has spurred the growth so far.
“Dr. Nick’s decision to prioritise the well-being of our employees over financial loss is a testament of his leadership, compassion and a deep sense of fatherhood. For this course and support, we say we thank you,” he stated.
He added: “It became very necessary to scale down our operations, leading to some of our customers facing disruption. However, many remain loyal and supportive”.
Given this, he expressed gratitude to the company’s partners, including Petrosol, Star Oil, IBM, SOL Energy, and many others for their continued support.
The Chairman of MISYL Energy Limited, Dr. Nick Danso Adjei, acknowledged the difficult times that the company has faced. However, he said with the support of employees and partners, they have managed to overcome these challenges.
He emphasised that the shift in the global energy market calls for collaboration among all local stakeholders to enhance the sector.
