A new study has found that Ghana’s local content policies in the upstream petroleum sector have contributed significantly to employment creation, local business participation and supplier engagement, although progress toward deeper industrial transformation and technological independence remains gradual.
The research, conducted by Prof. Dr. Dr. Frank Yao Gbadago of the Department of Accounting Studies Education at University of Skills Training and Entrepreneurial Development, examined whether local content outcomes in Ghana’s oil and gas industry align with resource use theories and the objectives of the United Nations Sustainable Development Goals, particularly SDG 8 and SDG 9.
The study was presented at the iCAD26 conference hosted by Anglia Ruskin University.
Local Content Requirements (LCRs) were introduced to increase the participation of local firms and workers in petroleum activities through local procurement, skills transfer, technology sharing and investment opportunities.
According to the study, previous research has largely focused on employment levels, procurement outcomes and regulatory compliance, with limited attention given to whether local content initiatives contribute to reducing dependence on foreign capital, expertise and technology.
Using a concurrent mixed-methods approach, the research combined survey responses from 204 participants across operators, subcontractors, consultancy firms and support service providers with interviews involving key industry informants.
The study identified two broad dimensions of local content outcomes: Entrepreneurial Expansion and Collaborative Integration.
Entrepreneurial Expansion covered indicators such as local business growth, labour recruitment, local procurement, domestic investment and skills development. Collaborative Integration focused on joint ventures, foreign-local partnerships, subcontractor participation and value-chain relationships.
The findings showed that 75.49 per cent of respondents considered Ghana’s local content requirements to be effective or highly effective.
Respondents identified state interventions as the strongest contributor to local content outcomes, accounting for 36.27 per cent of perceived influence, followed by linkage and spillover effects at 23.04 per cent and operator compliance at 21.08 per cent.
Among the strongest-performing indicators were business growth and entrepreneur participation, both recording mean scores of 3.56 on a five-point scale. Local subcontractor input supply and foreign participation in the value chain also recorded relatively high scores.
However, the study found that the registration of new local subcontractors remained comparatively low, recording a mean score of 0.41.
The researchers concluded that the outcomes of Ghana’s local content policies align more strongly with SDG 8, which focuses on decent work and economic growth, than with SDG 9, which seeks to promote industry, innovation and infrastructure development.
Areas of stronger alignment included local labour recruitment, supplier participation, entrepreneur involvement and skills transfer.
The study found evidence of technology transfer and learning through joint ventures and partnerships, but noted that local ownership and technological autonomy remain developing areas.
The study concluded that while local participation and value-chain integration in Ghana’s upstream petroleum sector continue to expand, further policy attention may be required to strengthen indigenous ownership, technological capabilities and long-term industrial development outcomes.
