Africa

Recent Articles

Poor governance and systemic corruption are prevalent in many resource-rich countries. Given their highly concentrated and highly profitable nature, the oil, gas and mining industries can generate the kind of political and private incentives that favor rent-seeking and institutional (or state) capture.

Nigeria's President recently announced that former ExxonMobil executive Emmanuel Ibe Kachikwu will head the national oil company, the Nigerian National Petroleum Corporation (NNPC). Eight top NNPC officials were sacked, and the head of crude oil marketing was “reassigned.” A list of fresh appointments soon followed.

Lack of transparency about complex, often secretive structures. Clandestine, opaque relationships with government officials. These factors exacerbate the risks that beneficial owners of some extractive companies could easily engage in tax evasion, transfer pricing, trade mispricing, bribery, contract fraud and money laundering.

Less than five years after the surge of optimism that accompanied first oil, Ghana’s economic situation has rapidly worsened. Ghana is now often cited as a cautionary tale of how not to manage public finances.

Crystol Energy founder Dr. Carole Nakhle discusses the changing contractual and fiscal environment for producer countries – particularly in the MENA region – amid a lengthy oil slump.

Extractive industry governance and the role of state-owned enterprises across sub-Saharan Africa are squarely in the spotlight after three huge scandals.