Mr. Joshua Batsa Narh, Executive Chairman of the Energy Chamber Ghana and a Director at Wingfield Group, has posited that the partial privatization of the Tema Oil Refinery (TOR) is a viable policy option that warrants serious consideration, provided it is executed as a strategic recapitalization rather than a mere asset disposal.
This perspective expressed by Mr. Joshua Narh in an interview with The Vaultz News, challenges the conventional narrative surrounding the refinery’s future, suggesting that the primary objective should be the infusion of capital and operational expertise to restore its utility as a national asset, rather than divestment for the sake of privatization.
“My initial reaction is that partial privatization of Tema Oil Refinery (TOR) is a serious policy option worth considering – but only if it is structured as strategic recapitalization, not asset disposal.” Mr. Joshua Batsa stated.
The urgency of this proposal stems from a pragmatic assessment of TOR’s historical underperformance, which Mr. Narh identifies not as a lack of relevance, but as a result of cyclical governance failures, significant maintenance backlogs, and persistent working-capital constraints.
By shifting the focus from simple ownership changes to a structural overhaul, the nation could address the refinery’s inability to operate at optimal throughput a failure that currently undermines the stability of Ghana’s domestic fuel supply.
Expanding on this, such a strategic model aims to transform the facility from a fiscal burden into a pillar of national energy resilience.
“A minority-state / majority-strategic-investor TOR could become a fuel-security asset rather than a fiscal liability, especially in today’s volatile global energy environment. The opportunity is not simply efficiency; it is energy resilience.”
Mr. Joshua Batsa Narh explained.
Addressing Systemic Fuel Risks
Privatization alone as advocated by many, is not a panacea for Ghana’s complex energy challenges, but according to Narh, it would significantly “reduce exposure” to international market volatility.
Currently, the Ghanaian fuel sector is besieged by three overlapping risks: severe foreign-exchange pressure, logistical disruptions in imports, and a dangerous lack of domestic processing capacity.
In an era where global tension cycles threaten traditional supply routes, relying solely on imports is an increasingly untenable strategy.
If TOR were to consistently operate at even 60–70% capacity, the tangible benefits for the Ghanaian economy would be substantial.
Domestic production would act as a vital buffer, helping to “reduce import dependency,” “smooth price volatility transmission,” and “strengthen national strategic reserves management.”
By processing crude locally, the economy would lessen its immediate need for foreign currency to cover refined product imports, providing much-needed relief to the cedi while ensuring that the country is not entirely at the mercy of international price spikes and supply chain bottlenecks.
The Imperative of Structural Integrity
For this initiative to succeed, Narh emphasizes that the structure of the agreement is paramount. Ownership changes without fundamental operational reform are destined to repeat the failures of the past. To avoid the pitfalls of mismanagement, he advocates for a framework that prioritizes long-term operational health over quick financial gains.
A best-practice model for this transition would require a “strategic refining operator” rather than a purely financial investor, ensuring the presence of technical expertise capable of upgrading the refinery’s aging infrastructure.
Additionally, the framework must incorporate “feedstock supply guarantees,” “transparent tolling or processing agreements,” and “regulatory stability on margins.”
These components are essential to create an environment where a private partner can invest with confidence, knowing that the regulatory and supply chain ecosystem supports sustained, efficient production.
Building Energy Resilience
The transition toward a green economy does not negate the immediate need for a functional, state-backed, yet privately-managed refinery.
In the interim period of the energy transition, fossil fuels remain central to industrial and transportation activities.
A revitalized TOR provides the stable domestic supply required to support economic growth while the nation gradually integrates cleaner energy sources.
Ultimately, the goal is to decouple the refinery’s success from the “governance cycles” that have hindered it for decades.
By positioning TOR as a core strategic asset, Ghana can move beyond being a passive consumer of expensive, imported fuels.
Through careful, structured recapitalization, the refinery can evolve into a robust mechanism for energy security, ensuring that Ghana remains resilient in the face of both regional logistical pressures and broader global economic instability.
Through this strategic path, the government can retain a stake in a high-performing asset that contributes to the national bottom line while safeguarding the energy requirements of its citizens.
