IDEAS home Printed from https://ideas.repec.org/p/adb/adbwps/251.html
   My bibliography  Save this paper

Working Paper 114 - Additionality of Development Finance Institutions (DFIs) in Upstream Oil and Gas in Africa

Author

Listed:

Abstract

The landscape of oil and gas production in Africa is changing in ways that will increase the demand for upstream development finance and pull on funds from all sources, including development finance institutions (DFIs). A new cohort of countries is coming onstream for the first time, and new players from among the group of indigenous and independent oil and gas firms are carving out strategic niches in the sector around the continent. Commercial banks are strongly present and maintained interest in financing upstream development through the financial crisis. However, the funding needs of the sector are massive and growing. At the same time, for some countries, the sector holds the potential of significant development gains. Joining the club of oil and gas producers can generate a new stream of revenues that, if well managed, can lead to improvements in national welfare, growth and development. DFIs face the challenge of engaging in the sector in a way that is both relevant financially and solidly aligned with the successful realization of development gains among countries on the continent. This paper argues that DFIs should be strategically targeting and selecting positions in transactions where experience indicates they can add value. It takes the position that it is possible to differentiate between opportunities within the development phase of the upstream oil and gas sector in Africa and extract some general criteria to be applied in deal selection and project design. Core recommendations for DFIs, stemming from the paper, include pursuing transactions linked either to emerging, producer nations or indigenous or independent firms and focusing on improving development outcomes linked to governance and extractive industry transparency, social and environmental standards and benchmarks and local content.

Suggested Citation

  • Charles Wetherill, 2010. "Working Paper 114 - Additionality of Development Finance Institutions (DFIs) in Upstream Oil and Gas in Africa," Working Paper Series 251, African Development Bank.
    • Handle: RePEc:adb:adbwps:251
    as

    Download full text from publisher

    File URL: https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/WORKING%20PAPER%20114%20A.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Léonce Ndikumana & Kaouther Abderrahim, 2010. "Revenue Mobilization in African Countries: Does Natural Resource Endowment Matter?," African Development Review, African Development Bank, vol. 22(3), pages 351-366.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Janda, Karel & Quarshie, Gregory, 2017. "Natural Resources, Oil and Economic Growth in Sub-Saharan Africa," MPRA Paper 76748, University Library of Munich, Germany.
    2. Victoria Oluwatoyin Foye & Oluwasegun Olawale Benjamin, 2021. "Natural gas consumption and economic performance in selected sub‐Saharan African countries: A heterogeneous panel ARDL analysis," African Development Review, African Development Bank, vol. 33(3), pages 518-532, September.
    3. Mawejje, Joseph, 2019. "Natural resources governance and tax revenue mobilization in sub saharan Africa: The role of EITI," Resources Policy, Elsevier, vol. 62(C), pages 176-183.
    4. Ongo Nkoa, Bruno Emmanuel & Tadadjeu, Sosson & Njangang, Henri, 2023. "Rich in the dark: Natural resources and energy poverty in Sub-Saharan Africa," Resources Policy, Elsevier, vol. 80(C).
    5. Fondo Sikod & Gadom Djal-Gadom & et Armand Luc Fotuè Totouom, 2013. "Soutenabilité Economique d'une Ressource Epuisable: Cas du Pétrole Tchadien," African Development Review, African Development Bank, vol. 25(3), pages 344-357, September.
    6. Mamadou Bah, 2024. "Tax revenue mobilization and institutional quality in sub‐Saharan Africa: An empirical investigation," African Development Review, African Development Bank, vol. 36(2), pages 201-221, June.
    7. Leonce Ndikumana, 2014. "International Tax Cooperation and Implications of Globalization," CDP Background Papers 024, United Nations, Department of Economics and Social Affairs.
    8. Tadadjeu, Sosson & Njangang, Henri & Ningaye, Paul & Nourou, Mohammadou, 2020. "Linking natural resource dependence and access to water and sanitation in African countries," Resources Policy, Elsevier, vol. 69(C).
    9. Seydou Coulibaly, 2019. "Impact of natural resource wealth on non-resource tax revenue mobilization in Africa: Do institutions and economic diversification matter?," Working Papers halshs-02108128, HAL.
    10. Harouna Kinda, 2021. "Does transparency pay ? The impact of EITI on tax revenues in resource-rich developing countries," Working Papers hal-03208955, HAL.
    11. Musharraf Rasool Cyan & Jorge Martinez-Vazquez & Violeta Vulovic, 2014. "New approaches to measuring tax effort," Chapters, in: Richard M. Bird & Jorge Martinez-Vazquez (ed.), Taxation and Development: The Weakest Link?, chapter 2, pages 27-68, Edward Elgar Publishing.
    12. Seydou Coulibaly, 2019. "Impact of natural resource wealth on non-resource tax revenue mobilization in Africa: Do institutions and economic diversification matter?," CERDI Working papers halshs-02108128, HAL.
    13. Musharraf Cyan & Jorge Martinez-Vazquez & VIoleta Vulovic, 2013. "Measuring tax effort: Does the estimation approach matter and should effort be linked to expenditure goals?," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1308, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    14. Gideon Minua Kwaku Ampofo & Prosper Basommi Laari & Emmanuel Opoku Ware & Williams Shaw, 2023. "Further investigation of the total natural resource rents and economic growth nexus in resource-abundant sub-Saharan African countries," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(1), pages 97-121, January.
    15. Janda, Karel & Quarshie, Gregory, 2017. "Modelling Natural Resources, Oil and Economic Growth in Africa," MPRA Paper 76749, University Library of Munich, Germany.
    16. Sosson Tadadjeu & Henri Njangang & Paul Ningaye & Mohammadou Nourou, 2022. "Oil dependence and access to water and sanitation in African countries: Does the Extractive Industries Transparency Initiative matter?," African Development Review, African Development Bank, vol. 34(1), pages 54-67, March.
    17. Léonce Ndikumana, 2013. "The Private Sector as Culprit and Victim of Corruption in Africa," Working Papers wp330, Political Economy Research Institute, University of Massachusetts at Amherst.
    18. Joao Tovar Jalles, 2017. "Tax Buoyancy in Sub-Saharan Africa: An Empirical Exploration," African Development Review, African Development Bank, vol. 29(1), pages 1-15, March.
    19. Jemberu Lulie Mekonnen & Ali Suut Dogruel, 2018. "Growth and Volatility Nexus in Sub‐Saharan Africa," African Development Review, African Development Bank, vol. 30(2), pages 175-186, June.
    20. Aïchatou Mourfou & Issaka Dialga & Idrissa Mohamed Ouedraogo, 2022. "Effets de l'exploitation des ressources naturelles sur la mobilisation des recettes fiscales non liées aux ressources naturelles dans l'Union Economique et Monétaire Ouest Africaine (UEMOA)," African Development Review, African Development Bank, vol. 34(2), pages 188-200, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adb:adbwps:251. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adeleke Oluwole Salami (email available below). General contact details of provider: https://edirc.repec.org/data/afdbgci.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.