African Center for Economic Transformation
Local content and value addition strategy is one of the methods resource-rich countries are adopting to increase the benefits from resource extraction to their economies, beyond securing optimal rents (royalties, taxes, shares, and other revenues). The goal is to promote linkages with other sectors of the economy through four main pillars: local employment opportunities, in-country spending and procurement of local goods and services, technology and skills transfer, and local participation through equity and management. Value addition promotes further opportunities for processing of the extracted resource. The theory is simple and laudable; the challenge is in the practice. Is Ghana getting it right?