Deloitte Ghana’s Associate Director, Dennis Brown, has urged Oil Marketing Companies (OMCs) and Bulk Distribution Companies (BDCs) to adopt strong business models. He also emphasized the need for accurate financial records to improve credibility and secure funding from financial institutions.
Speaking at an industry forum in Accra, Brown highlighted the challenges many companies face due to poor financial practices. He stressed that the petroleum downstream sector requires significant capital. Without proper financial planning, companies struggle with cash flow and regulatory compliance.
“The sector is capital-intensive. Without a solid business model and accurate financial documentation, companies will find it hard to attract financing,” Brown stated. He added that businesses should embrace transparency and track their expenditures carefully.
Furthermore, Brown encouraged industry players to use technology for financial tracking, budgeting, and reporting. Digital tools, he explained, can help companies make informed decisions and prevent financial mismanagement.
Many industry analysts agree that weak financial planning has contributed to liquidity challenges in the petroleum sector. This issue has affected the stability of fuel supply. Therefore, Brown stressed that adopting effective financial strategies would strengthen individual businesses and the entire industry.
Industry stakeholders welcomed his recommendations. They acknowledged that financial discipline is key to long-term sustainability and growth in the sector.
