Local Content and Private Sector Participation in Ghana's Oil Industry: An Economic and Strategic Imperative

Abstract

Many African countries well-endowed with natural resources are taking measures to improve the management of these resources and ensure that these resources contribute to their socioeconomic development. A policy that has taken center stage is what is called local content policy. This article examines the local content policy that has been adopted by the government of Ghana to further domestic job creation and improve the local capabilities, competences, and capacities of businesses. Achieving these goals will depend on addressing the financial, human-resource, and technological challenges faced by local businesses in the oil and gas sector. It is in this regard that this article suggests that, given the economic and strategic importance of oil, promoting capacity-building measures, improving the access of local businesses to funds and capital, and helping local businesses with large-scale procurement in Ghana can serve as a means to develop national industries and generate employment to ensure that the positive effects of the local content policy become a reality.