Ghana: a USD 25 million investment to relaunch the Tema refinery

The Tema Oil Refinery (TOR), a historic pillar of Ghana's energy sector, is facing major challenges to regain its optimum production capacity. Against a backdrop of growing dependence on fuel imports, the acting Managing Director, Dr Yussif Sulemana, has announced that an investment of 25 million dollars is needed to modernise the ageing infrastructure and relaunch operations.

In recent years, Ghana has seen its expenditure on fuel imports soar, a situation directly linked to the malfunctioning of TOR. The refinery, handicapped by obsolete infrastructure, is no longer able to meet local demand. "The lack of funding to modernise our facilities has led us to produce far less than our initial capacity," lamented Dr Sulemana. This weakness has not only widened the trade deficit, but has also contributed to a significant rise in fuel prices, impacting transport costs and the purchasing power of Ghanaians.

To reverse this trend, Dr Sulemana detailed a renovation plan requiring $25 million. This investment will make it possible to refurbish the machinery, install new equipment and restore TOR's production capacity to its optimum level, while guaranteeing high-quality oil. "This modernisation is crucial to reducing our dependence on imports and strengthening our energy sovereignty", he insisted. Ultimately, the refinery could once again become a key player in the market, helping to stabilise fuel prices and support the national economy.

The good news is that the project is already attracting attention. According to Dr Sulemana, seven companies, including local and international investors, have expressed an interest in supporting the rebirth of TOR. Some are considering a full takeover of the project, while others are focusing on a partial modernisation of the facilities. A credit structure is also expected to join the initiative to accelerate the raising of funds. In addition, several companies are committed to renovating the refinery in line with modern environmental standards, while improving its energy efficiency.

The revival of TOR is all the more urgent because the rise in fuel prices is weighing heavily on the Ghanaian economy. Rising transport costs, in particular, are affecting household incomes and dampening economic activity. By returning to full capacity, the refinery could not only alleviate these pressures, but also reposition Ghana as a self-sufficient player in the regional energy market.

With this investment in sight, TOR is at a turning point. If the funds are mobilised quickly, the refinery could once again become an engine for growth, while meeting the expectations of a population facing growing economic challenges.