President John Dramani Mahama has announced a major breakthrough in Ghana’s petroleum sector, revealing that the country will, in June, begin refining locally produced crude oil domestically for the first time in years as part of a broader push to deepen industrialisation and value addition.
Addressing the Ghana Diaspora Town Hall Meeting in London, the President described the development as a key milestone in his administration’s economic transformation agenda, aimed at shifting Ghana away from exporting raw materials toward building a stronger, self-sustaining industrial economy.
He explained that the initiative is designed not only to boost oil production but also to ensure that more of the value from the country’s natural resources is retained locally through processing and manufacturing.
According to him, government has secured significant upstream investments, including a reported US$1.5 billion commitment from ENI in the Offshore Cape Three Points area, expected to increase both oil and natural gas output.
However, he stressed that increasing production alone is not enough to transform the economy.
“We are about to make history again. We did it during my first term, but after we left office it did not continue. In June, we will deliver a parcel of Ghanaian crude from our own oil fields to a refinery in Ghana for processing,” President Mahama said, to applause from the audience.
He noted that Ghana’s long-standing practice of exporting crude oil while importing refined petroleum products has limited job creation and reduced potential earnings from the sector.
“That cycle must change,” he emphasized, adding that local refining would help Ghana save foreign exchange, create jobs, strengthen supply chains, and expand industrial capacity.
The President further outlined plans for a fully integrated petroleum value chain that includes extraction, refining, storage, petrochemicals, distribution, and related manufacturing activities.
Beyond the oil sector, he called for a wider national focus on value addition in mining, agriculture, and manufacturing. He pointed out that Ghana continues to export raw minerals such as gold, manganese, and bauxite, only to import finished products at higher costs.
“When we export raw materials and others process them, the jobs and value go elsewhere. That model cannot sustain our development,” he said.
He urged increased investment in industrial parks, agro-processing, petrochemicals, fertilizer production, and mineral beneficiation as part of efforts to build a more resilient economy.
Economic observers say the move could mark a turning point in Ghana’s industrialisation drive, positioning the country more competitively within West Africa’s energy and manufacturing space while expanding employment opportunities.
The planned June shipment of crude for local refining is expected to serve as a symbolic step toward reducing dependence on imported refined petroleum products and strengthening domestic capacity in the energy sector.
President Mahama concluded by reiterating that value addition must become central to Ghana’s development strategy across all sectors of the economy, including oil and gas, mining, agriculture, and manufacturing.
