PIAC Urges Government to Prioritize Industrialisation with Petroleum Revenue.

Accra: The Public Interest and Accountability Committee (PIAC) is urging the government to exhibit a genuine commitment to its industrialisation agenda by allocating more petroleum revenue towards building industries to stimulate economic growth. The call comes as part of PIAC's ongoing efforts to ensure that the country's oil revenue is effectively used to support priority sectors, including industrialisation.According to Ghana News Agency, the 2024 PIAC semi-annual report reveals that the government has failed to allocate any petroleum revenue to the industrial sector in the first half of the year, despite having identified it as a priority area for funding. The report highlights a concerning trend of decreasing revenue allocation to industrialisation since it was selected as a priority sector in 2020.In 2020, the government allocated GHS31,800,000, representing 1.15% of the total Annual Budget Funding Amount (ABFA), to industrialisation. This figure dropped to GHS16,262,699.33 (0.87%) in 2021, further decreased to GHS9,285,080.76 (0.20%) in 2022, and plummeted to GHS5,816,350.68 (0.11%) in 2023. Alarmingly, in the first half of 2024, from a total of GHS3,030,533,991 disbursed for development in four priority areas, no funds were allocated to industrialisation.For the 2023 to 2025 period, the government has designated agriculture (including fisheries), infrastructure and service delivery in education and health, roads, rails, and other critical infrastructure, along with industrialisation, as priority areas to be funded with oil revenue. However, PIAC is concerned that the industrial sector is not receiving the necessary financial support.Mr. Isaac Dwamena, PIAC Coordinator, expressed concern over the situation during a briefing with journalists in the Central Region. He emphasized the importance of industrialisation as a key driver of employment, tax revenue, and development. He highlighted the need for government action by questioning the lack of investment in industries like watermelon and pineapple processing factories, which could significantly benefit local economies.The Committee's media engagement was part of a day's tour to inspect projects funded by petroleum revenue in the Komenda-Edina-Eguafo-Abrem Municipality and Asikuma-Odoben Brakwa District. Mr. Dwamena praised the media for their role in supporting PIAC's mission and reaffirmed the Committee's commitment to providing information to empower journalists.PIAC's report also indicates a 10.7% increase in crude oil production for the first half of 2024, compared to a 13.2% decline in the same period of 2023. This improvement is attributed to the Jubilee South East (JSE) project. Additionally, total petroleum receipts increased by 55.6% from US$540,456,124.27 in the first half of 2023 to US$840,765,265.80 in the same period of 2024, primarily due to increased production.Odeefour Amoakwa Boadu VIII, Vice Chairman of PIAC and President of the Central Regional House of Chiefs, called on the Ministries of Finance and Fisheries to expedite the c ompletion of the Anomabo Fisheries College. He stressed the importance of the college as a key institution for maximizing Ghana's fisheries sector benefits and urged the government to prioritize its establishment.