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Ghana: Local Content Likely to Be Required in Energy Sector

(Apr. 26, 2011) Speaking on April 21, 2011, in Accra, Ghana, Deputy Minister of Energy Inusah Fuseini discussed the plan to make the country's local content and local participation policy into a legal norm. Once the Cabinet approves the draft, it will be sent for parliamentary review. If it becomes law, Fuseini stated, “we can hold companies responsible in the energy sector.” (Masahudu Ankiilu Kunateh, Local Content Bill in the Offing, THE GHANAIAN CHRONICLE ONLINE (Apr. 22, 2011), World News Connection online subscription database, Doc. No. 201104221477.1_21db005b7d5aad59.)

The terms “local content” and “local participation” refer to use of expertise, goods and services, and financing in the oil and gas field that are local in origin. One legislator has pointed out that the government has already been working with oil companies to set up training so that local experts will be available. Fuseini said it is a government goal to have more than half the work in the energy field done by local inhabitants. Specific standards of the policy are to have 50% of the management staff be Ghanaian when a company begins operating in the country and to have that number grow to 80% in the first five years. For core staff members, the goals are to have 30% of technical workers be Ghanaian when operations commence, with that level increasing to 80% within five years. Other staff members must all be local. (Id.)