CBOD Welcomes Government’s Plans to Expand Gold-for-Oil Program to Private Sector
Chief Executive Officer (CEO) of the Chamber of Bulk Oil Distributors (CBOD), Dr. Patrick Ofori, speaking at a recent energy policy town hall organized by CBOD noted the Chamber’s concerns regarding Ghana’s “Gold-for-Oil” initiative, emphasizing the need for a level playing field in the sector.
While acknowledging that the scheme aims to address foreign exchange (FX) liquidity issues, Dr. Ofori noted that the policy’s initial implementation disproportionately favored state-run entities, particularly the Bulk Oil Storage and Transportation (BOST) Company, raising questions about fairness.
“Our primary concern was not just about how the dollars are sourced to facilitate trade, but about the skewness of the policy itself,” Dr. Ofori said, referring to the dominant role assigned to the single state entity – BOST.
He stressed that private sector players, who purchase from the same international suppliers and also face FX constraints, should have equal access to the program.
Dr Ofori welcomed recent moves to expand the initiative, ensuring broader participation and greater fairness in the industry.
“The government’s claim that they will open up the program to the private sector is a positive step,” he added. However, he underscored that the Chamber remains focused on ensuring liquidity and FX availability to support its members’ trading activities, highlighting the importance of equitable regulatory support.
Dr. Ofori also pointed to the CBOD’s collaboration with the Bank of Ghana on the gold-trading program, which has helped channel over $970 million to its members, easing pressure on the commercial banking system.
“This has helped stabilize the exchange rate, which would have otherwise been under strain had we relied solely on the banks,” he explained.
Dr Ofori further noted that concerns about LECAN allocations being skewed towards BOST have been addressed following industry engagement.
“Previously, BOST was receiving over 50% of the allocation, which created operational disruptions for private players, but after raising the issue, the process has become more transparent and disciplined,” he said.
While Dr. Ofori reiterated CBOD’s support for competition, he emphasized that ensuring FX liquidity and a level regulatory playing field remains the Chamber’s priority.
He concluded by calling for continued dialogue and scrutiny of energy policies as the sector remains critical to Ghana’s economic stability and energy security.
