Abstract

The Oil and Gas Sector in Africa is growing so fast due to the new discovery of Oil and Gas reserves and therefore attract the huge amount of Foreign Direct Investment (FDI). Considering its role in the African economy, several approaches both local and foreign have been introduced; however the anticipated economic benefits have not yet been realized. The study therefore focused on assessing the effectiveness of the selected approaches that were designed to ensure the economic benefits of oil and gas resources reach to the African local population, particularly the poor ones. The study surveyed various literatures to draw its conclusion. It was realized that the selected approaches have failed to ensure that Oil and Gas resources produce the anticipated economic benefits to the local African population. Among others, it was recommended that the approaches should be improved in order to promote the linkage between Oil and Gas Extractive firms and Small and Medium Enterprises. Additionally, they should be enforceable by law in order to ensure legal commitment among African governments and Oil and Gas Extractive firms to the local population.

Keywords:

Corporate social responsibility, local content policy, transparency approach,

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Competing interests

The authors have no competing interests.

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