Africa Oil Week 4-8 November 2019

Best of both worlds: Policy characteristics to attract oil and gas investment and drive domestic prosperity

Sub-Saharan Africa’s (SSA) oil and gas resources are vast. The latest discoveries and investments have highlighted the magnitude of the industry and its potential to transform the region. It has the potential to create employment opportunities, increase government revenue, broaden and deepen local value chains and cultivate local skills. This makes it a compelling opportunity for SSA.

However, the balancing act between attracting foreign investment and local value addition is difficult. This report uses case studies to highlight various important characteristics needed to attract investment while ensuring local value for the host country. Five general policy (and relevant regulatory) characteristics emerged:

• Clear vision
• Pragmatic objectives
• Cross sector linkages and collaboration
• Monitoring and evaluation
• Stable policy environment.

Data-driven and evidence-based analysis provides the opportunity to understand the actual needs and capacity of stakeholders, whether local communities or multinationals. It can thus assist in creating a clear industry strategy, one which is embedded in the national plan and takes stock of the current external and internal environments, with clear and pragmatic objectives. This means developing policy and the relevant regulations in consultation with key stakeholders, and in a way that is transparent, aligned, and can be monitored to track progress as well as make the needed improvements to enhance efficiency for both the sector and the broader local economy.

Unlocking Oil & Gas in Africa Infographic

The infographic highlights the broader opportunities, systemic challenges and disruptors in Africa’s Oil & Gas sector, and also provides insights into what it takes to win in the sector. It furthermore illustrates Deloitte’s footprint and unique solutions to unlock Oil & Gas in Africa.