Tullow, a leading energy company, has taken a significant step to support its local supplier community in Ghana by partnering with 12 financial institutions to facilitate access to finance.
Given the high capital-intensive nature of the energy sector, access to capital opportunities is critical, especially for local companies operating within the industry. This partnership aims to bridge the gap between local banks and Tullow’s suppliers, ensuring they have the financial resources needed to thrive.
Over the years, navigating financing channels in Ghana has become increasingly difficult, particularly for local businesses in the energy sector. The capital-intensive nature of the industry requires substantial investment, making access to finance a crucial component for success. Local suppliers often face significant challenges in securing the necessary funding to support their operations, limiting their ability to compete and grow.
In response to these challenges, Tullow has introduced the “Tullow Supplier Access to Finance” programme. This initiative is designed to facilitate access to capital for local suppliers by acting as a key facilitator between them and local banks.
At a ceremony to unveil the programme, 12 universal banks in Ghana, including Absa, Standard Chartered, UBA, Zenith, and Ecobank, signed a Letter of Cooperation to commence the programme. The programme’s launch was attended by more than 145 local companies, highlighting the significant interest and potential impact of this initiative.
Commitment to Empowering Local Suppliers
John-Medard Madama, Acting Managing Director of Tullow Ghana, emphasized the importance of this initiative, stating, “This is a significant step in our commitment to empower local suppliers operating in the sector to be competitive and build capacity.
By enabling access to financial products, these companies will have the wherewithal to support our business operations. We are committed to building a better future for Ghana, and this is another avenue to project leadership in the industry.”
Tullow’s commitment to supporting local suppliers is not new. Over the years, the company has worked with various stakeholders, including the Petroleum Commission, to empower indigenous suppliers and companies in the oil and gas industry. This commitment has led to the growth and empowerment of many local service companies, strengthening the supply chain activities in the upstream sector.
The impact of Tullow’s initiatives extends beyond individual companies. By strengthening the supply chain and supporting local suppliers, Tullow has contributed to job creation and training opportunities in Ghana. This, in turn, has led to broader economic growth, benefiting the country as a whole.
Since the beginning of this year, approximately 72% (US$26.6 million) of Tullow’s total contracts awarded (US$37 million) have been with indigenous companies. This demonstrates Tullow’s dedication to promoting local content and supporting the domestic economy.
Building a Sustainable Future
Tullow’s efforts to enhance access to finance for local suppliers reflect a broader commitment to building a sustainable future for Ghana. By ensuring that local companies have the financial resources needed to compete and grow, Tullow is helping to build a more resilient and self-sufficient energy sector. This not only benefits the local economy but also enhances the overall stability and sustainability of the industry.
The partnership between Tullow and the 12 banks is a testament to the power of collaboration in addressing critical challenges and creating opportunities for growth. By working together, these institutions are paving the way for a more prosperous and dynamic energy sector in Ghana.
The “Tullow Supplier Access to Finance” programme represents a significant milestone in Tullow’s ongoing efforts to support local suppliers and enhance the energy sector in Ghana. Through this initiative, Tullow is bridging the gap between local banks and suppliers, ensuring that these businesses have the financial resources needed to succeed. This commitment to empowering local companies will not only strengthen the supply chain but also contribute to job creation and economic growth, ultimately building a better future for Ghana.
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