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CONFERENCE AT LABADI BEACH HOTEL CONFERENCE HALL, ACCRA ON 13th - 14th NOVEMBER 2018

4th Africa Oil Governance Summit

Theme:  “Harnessing the Potential of Local Content for Economic Growth and Inclusive Development”

ABOUT THE CONFERENCE

The Africa Oil Governance Summit is an annual event that brings together stakeholders in Africa’s petroleum industry to deliberate on emerging governance issues in the sector. Instituted in 2015, the summit provides a unique platform where stakeholders in Africa’s petroleum industry share best practices on maximizing the benefits of resource extraction through efficient governance approaches. The Africa Center for Energy Policy (ACEP) realized the need for the African continent to consolidate gains and right wrongs made from the management of petroleum resources and initiate dialogue aimed at translating the extraction of oil into socio-economic development. The Center recognizes that the vehicle to this is to strengthen governance frame work that reduces incentives for corruption, builds capacity and invests revenues efficiently. The maiden Summit in 2015 broadly discussed governance issues in Africa’s oil resources. It touched on contract transparency, local content issues, institutional development and revenue accountability. In 2016, the summit focused on survival strategies for Africa’s oil producers amidst low oil prices, and the 2017 summit focused on the developmental implications of open contracting in upstream oil and gas, and revenue management and utilization. The 2018 summit will focus on increasing the impacts of local content policies in resource-rich African economies.


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Local content policies have become priority for policy makers in resource endowed countries who largely depend on their extractive sectors to support sustainable economic growth and development. The implication of local content polices are diverse: it could mean job creation, value addition and industrial development, and local economic growth through forward, sideward and backward linkages of the extractive sector to the rest of a nation’s economy. All these emanate from the enormous potential of the extractive sector in generating revenue and other indirect benefit to the economy.[1]  

Measures aimed at stimulating local content development are grouped into:

  • Sourcing local inputs and local linkages to the upstream sector,
  • Local value addition and beneficiation, which is basically aimed at downstream promotion and lastly measures aimed at integrating upstream, downstream, and also the overall effects on local business growth.[2]

Generally local content polices across the world have common objectives and goals;   

  • Aim to leverage the extractive value chain to generate sustained and inclusive growth through economic diversification and employment opportunities.
  • Generate opportunities for regional integration and international trade and can gradually reduce countries’ dependence on external aid.
  • Depend on early engagement and collaboration among government, extractive industry companies, and communities.[3]

However, when it comes to its implementation, several challenges emerge depending on the context of the country.

Challenges

There are streak of common challenges encountered by African countries in their quest to maximize the benefits of their local content policies. Among them include:

  • Skills gap- there exists a wide skills gap in some African countries that make it difficult for extraction companies to employ nationals, particularly in technical roles. Governments should be thinking of how to breach the skills gap so as to take full advantage of the local content policies.
  • Corruption and politically motivated procurements - it is no news that some political office holders push contracts to local companies which they have vested interest in or compel companies to partner these politically constituted companies. For example, in Nigeria, requirements to partner with local companies resulted in corrupt schemes wherein political elites created shell companies to profit from the law. Similarly, many suspect that the motivation for the national smelting requirement in the 2008 Indonesia mineral law stemmed from politicians seeking financial benefit for their smelting plants. Countries can mitigate the potential of corruption in local content by requiring transparent procurement processes and making information easily available to oversight actors, such as civil society and parliamentarians. Compliance with requirements to disclose the beneficial owners of extractive companies and subcontractors, such as those being piloted under the Extractive Industries Transparency Initiative, will also help reduce corruption and elite capture of local content opportunities.[4]
  • Poorly designed local content polices.
  • Potential conflict with international agreements signed by member countries of World Trade Organization and how to create balance between satisfying these international demands and local content requirement. The signing of WTO agreements also limited the space within which local content polices can be legislated and implemented. For example, General Agreement on Tariffs and Trade (GATT) and General Agreement on Trade in Services (GATS) constitute bilateral agreements between member countries and this should not supersede national laws on local content. Care must be taken not to conflict local content policies with already signed WTO agreements. Some countries signed on to plurilateral agreement on government procurement (GPA). Under this agreement, members sign non-discrimination agreement between local and foreign suppliers. Local content measures are seen as anti-competitive measures that force international companies to comply with government policy targets in employment, or forcibly partnering with local suppliers or companies instead of searching for competent service providers based on cost or quality or services delivery.[5]

These challenges among many others are of concern to stakeholders and governments, whose aim is to maximize benefits from the extractive sector for improved socio-economic development. African countries cannot overcome these by working as individual countries; a strong continental coalition and networking is required to create a strong and viable voice as one continent. 


[1] See http://documents.worldbank.org/curated/en/549241468326687019/pdf/789940REVISED000Box377371B00PUBLIC0.pdf

[2] See http://ecdpm.org/wp-content/uploads/DP205-Local-Content-Trade-Investment-Ramdoo-December-2016.pdf

[3] See  World Bank ( 2016)  Local content in oil gas and Mining, available http://www.worldbank.org/en/topic/extractiveindustries/brief/local-content-in-oil-gas-and-mining

[4] https://resourcegovernance.org/sites/default/files/nrgi_Local-Content.pdf

[5] See Hestermeyer and Nielson ( 2014) The legality of Local Content Laws under WTO Laws, available online through https://www.researchgate.net/publication/279321597_The_Legality_of_Local_Content_Measures_under_WTO_Law


PARTICIPATION

  • The Summit will attract participants from;

    • Government Ministries, Departments and Agencies
    • Industry Regulators
    • Accountability Institutions
    • National Oil/Gas Companies
    • Heads of Missions of some African Embassies in Ghana
    • International Oil Companies
    • Mining Companies
    • Civil Society Organizations
    • Traditional Authorities
    • Development Partners
    • International NGOs


EXPECTED OUTCOME

  • A key output of the summit will be a communiqué constituting demands for actions by governments and policy makers across the continent of Africa. The communiqué will form a strong basis for program development and advocacy to influence government policy in maximizing returns on extractive resources particularly through local content provisions. It will also serve as the benchmark for measuring post-Summit progress and achievements.

SUMMIT OBJECTIVES

    • To deepen governments’ and public understanding on the prospects of local content practices in achieving inclusive growth
    • To provide a platform where decision makers from African countries would engage by sharing experiences and challenges in local content policy implementation
    • To fashion a common approach on how to maximize benefits from local content in the extractives sector

LAST YEAR'S SUMMIT

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NOVEMBER 13-14, 2017 – ACCRA,GHANA

Africa Centre for Energy Policy (ACEP), partners and allies met in Accra from the 23rd and 24th of November 2016, to review and reflect on progress made by the country and Africa as a whole in the governance of its oil resources and to build the desired consensus on a road map to resource prosperity. The summit focused particularly on how good governance from oil wealth can be translated into development in Africa and how the continent could be assured to move away from the oil resource curse. For good governance to be achieved, participants agreed that it was paramount to pursue transparency and accountability in the oil resource sector.

In ensuring transparency, it was acknowledged that some African countries have made impressive progress such as the adoption of open and competitive bidding processes for granting oil concessions. Particularly for Ghana, the government has propelled the institutionalisation of a number of processes including the setting up of the Petroleum Commission Act, the Petroleum Revenue Management Act (PRMA) and the Public Interest Accountability Committee (PIAC) amongst others. These demonstrate the strong foundation being laid to promote good governance in the oil sector in Ghana which sets an example for other African nations. However it was agreed that more could be and needed to be done in terms of promoting accountability. Participants agreed that it was time for transparency to translate into accountability.

The summit also called for citizen and community involvement and participation in all stages of decision making right from the appraisal stages to deciding which type of projects should be funded from oil revenues. A remaining hindrance to civic participation however is the complex and technical language with which policies are often crafted. It was therefore necessary for policies and regulations to be translated into forms easily accessible to the average citizen. Finally, ACEP and all institutions present reconfirmed their dedication and commitment in terms of human resources, time and in mobilizing fiscal resources in ensuring good governance within the African oil sector

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PARTICIPANTS

8

TOPICS

2

DAYS

29

SPEAKERS

DON’T MISS THIS AMAZING CONFERENCE AND OPPORTUNITIES

MEET OUR SPEAKERS

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The speakers for this year’s summit have been drawn from different countries with a great track record in governance, the petroleum sector, oil and gas and the total management of natural resources. Last year’s speakers share some similarities with this year’s speakers. However because of the different theme, most are new. They are not only dynamic in their area of expertise, but wield extraordinary knowledge which when tapped into, will go a long way in shaping our developmental process toward excellence. Though the summit is centred on Africa, some of our speakers through years of partnership will come from outside Africa to contribute their rich experience from their continent to the efforts the continent of Africa is making towards good governance of its natural resources. It is indeed worthy to note that, the spirit of knowledge sharing is where individuals acquire the bigger understanding of the issues in managing natural resources and subsequently making tangible recommendations of improvement. Therefore the speakers for this summit bring on board experiences and knowledge aimed at transforming the understanding of individuals, institutions , nations and impact on the world at large.

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VIEW ALL SPEAKERS AND DISCUSSANTS
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Minister of Energy - Ghana

HON. JOHN - PETER AMEWU

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CONFERENCE AGENDA

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9:00AM

THE OPENING CEREMONY

9:00AM - 9:45AM

Welcome Address: Mr Benjamin Boakye, Executive Director, ACEP

Speech and Opening of Summit by Special Guest of Honour: Hon. Mr. John-Peter Amewu (The Minister for Energy, Republic of Ghana)


9:45AM

1ST PANEL: “BEYOND LEGISLATION, WHAT SHOULD BE THE ROLE OF GOVERNMENT

9:45AM - 11:30AM

Presentation of Paper by Dr. Richmond Atta Ankomah and Prof. Giles Mohan.


Facilitator: Dr Julliette Twumasi-Anokye (Principal Consultant, Anojul, Afriyie & Co.)


Speakers:

Dr Mohammed Amin Adam (Deputy Minister for Energy, Ghana)

Dr. Abdulrahman Osman (Ex Minister of Petroleum and Gas of the Republic of Sudan, and  Current Consultant)

Hon.John Munyes (Cabinet Secretary Ministry of Petroleum and Mining, Kenya)

Neema  Lugangira (Head of Policy, SAGCOT, Tanzania)

11:30AM

SNACK BREAK

11:30AM - 11:45AM

11:45

2ND PANEL: THE PLACE OF LOCAL CONTENT IN AFRICA’S INDUSTRIALIZATION AND REGIONAL INTEGRATION DRIVE (THE FREE TRADE AGREEMENT)

11:45 - 13:00

Facilitator: Dr Kojo Busia (Coordinator, African Minerals Development Centre, UNECA)


Speakers: 

Mr. Emmanuel Kuyole (Executive Director, Centre for Extractives Development, Africa)

Mr. Salum Mnuna (The National Coordinator, EACOP Project, Tanzania And Uganda)

Dr Oliver Maponga (Consultant to SADC, AND UNECA Southern Africa Office, Zambia)

Dr. Raymond Ihenacho (Mekkembuk Consultant,Nigeria and Consultant to ECOWAS)


 



13:00

LUNCH BREAK

13:00 - 14:00

14:00

3RD PANEL: Financing local content



14:00 - 15:00

Mr. Amadou Hott. (Vice President of Power, Energy Climate and Green Growth, African Development Bank)
CONFERENCE HALL

15:00

REPORT LAUNCH/PANEL DISCUSSION

15:00 - 16:30

Topic of Report: Petroleum Cost Auditing


Facilitator: Dr Ishmael Ackah



Speakers

Mr. Benjamin Boakye (Executive Director of ACEP)

Mr. Samuel Quaque Sackey(Head of Petroleum Unit, Ghana Revenue Authority)

Mr. Kwesi Obeng (Oxfam International, West Africa)

Mr. Richard Amenuveve (Chief Revenue Officer, Large Taxpayer’s office-GRA).


16:30

CLOSING SESSION

16:30 - 17:00

9:00

RECAP OF DAY 1 - Moderator


9:00 - 9:10

9:10

KEYNOTE -  Dr. Ben Asante (The CEO, Ghana National Gas Company Limited)

9:10 - 10:40


PANEL DISCUSSION

Topic: Local content vs. investment attraction-international investors perspectives.


Chair & Facilitator: Mr. Evans Mensah


Panelists:

Mr. Jonathan Norton (Country Manager, Vitol Group, Ghana)

Ms. Jennifer Bruce-Konuah, (Supplier Development & Delivery Manager,Tullow Ghana Plc)

Mr Baluri Kasim Bukari


10:40

SNACK BREAK

10:40 - 10:55

10:55

Topic: The role of CSOs in driving local content

10:55 - 12:00

PANEL DISCUSSION

 

Facilitator: Charles Wanguhu (Civil Society Platform on Oil and Gas, Kenya)


Panelists:

Ikal Angelei (Director, Friends of Lake Turkana)

Kaisa Toroskainen (Africa Program Officer,NRGI-Ghana) 

Godber Tumushabe (Associate Director, Great Lakes District for Strategic Studies, Uganda)

12:00

PAPER PRESENTATION

12:00 - 13:00

Topic: Markets as regulatory mechanisms: indigenous companies and local content requirement policies in extractive industries.

Speaker: Rafael Macatangay (Lecturer in Energy Economics-Teaching and Research, School of Social Sciences, University of Dundee).

 

Facilitator: Dr. Adriano Nuvunga ( Mozambique)

13:00

LUNCH

13:00 - 14:00



 

14:00

Topic: Opportunities for women empowerment in the petroleum industry (taking advantage of local content potentials)

14:00 - 15:00

Facilitator:  Mrs. Anna Kulaya (Deputy Country Director, WILDAF Tanzania)  


Speakers:

Mekombé Thérèse(Oxfam West Africa)

Dr. Jemima Nunoo (Lecturer, GIMPA/Board Member of Petroleum Commission, Ghana)

Ms. Victoria Ibezim-Ohaeri (Executive Director, Spaces for Change, Nigeria)

15:00

Discussing Communique and Closing Session

15:00 - 16:30

Empower yourself with the knowledge of the Oil Industry

LEARN MORE VISIT ACEP WEBSITE

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