Mining for change : : natural resources and industry in Africa / / John Page and Finn Tarp.

• Superior document: UNU-WIDER studies in development economics
• Author: World Institute for Development Economics Research,
• TeilnehmendeR: Page, John M., 1949-; Tarp, Finn, 1951-; World Institute for Development Economics Research,
• Place / Publishing House: Oxford : : Oxford University Press,, 2020.
• Year of Publication: 2020
• Edition: First edition.
• Language: English
• Series: UNU-WIDER studies in development economics.; Oxford scholarship online.
• Physical Description: 1 online resource :; illustrations (black and white).
• Notes: This edition also issued in print: 2020.

For a growing number of countries in Africa the discovery and exploitation of natural resources is a great opportunity, but one accompanied by considerable risks. This book presents research on how to better manage the revenues and opportunities associated with natural resources.

Table of Contents

• Cover
• Mining for Change: Natural Resources and Industry in Africa
• Copyright
• Foreword
• Acknowledgements
• Contents
• List of Figures
• List of Tables
• List of Abbreviations
• Notes on Contributors
• 1: Overview
• 1. Introduction
• 2. Resource abundance, risk, and diversification
• 2.1 Commodity prices and volatility
• 2.2 Resource abundance and structural change
• 2.3 Implications for long-run growth
• 3. Understanding the boom
• 3.1 How much revenue and when?
• 3.2 Save or spend?
• 3.3 Paying it forward: debt financing
• 3.4 Setting the rules
• 3.5 The quality of public spending
• 4. The construction sector
• 4.1 Construction costs
• 4.2 Firm capabilities in construction
• 4.3 Materials, skills, finance
• 5. Rowing against the current: local content
• 5.1 The political economy of local content
• 5.2 Linking industry to the resource
• 6. Conclusions
• References
• PART I: FRAMING THE ISSUES
• 2: Understanding the Boom
• 1. Introduction
• 2. Sequence and timing
• 2.1 A sequence of asset transformations
• 2.2 The legal and institutional context
• 3. The literature
• 3.1 'Dutch disease' and volatility
• 3.2 Natural resources and institutions
• 4. Magnitudes
• 4.1 The construction sector and jobs
• 4.2 The environment for private business
• 4.3 Fiscal and monetary policy management
• 5. Institutions and policy stance
• Acknowledgements
• References
• 3: The Construction Sector in Developing Countries: Some Key Issues
• 1. Introduction
• 2. Background
• 3. Construction costs across time and space
• 3.1 What do we know about differences in unit costs?
• 3.2 How do construction costs affect the link between investment effort and investment outcomes?
• 4. Key bottlenecks in the construction sector
• 4.1 Organization and capabilities
• 4.2 Institutional constraints
• 4.2.1 Procurement
• 4.2.2 Financing
• 4.3 Critical inputs
• 4.4 Governance and corruption
• 5. Policy options
• 5.1 Institutional and regulatory reforms
• 5.2 Procurement and local content
• 6. Conclusion
• Acknowledgements
• References
• 4: Rowing against the Current: Economic Diversification in Africa
• 1. Introduction
• 2. Diversification initiatives
• 3. Dealing with Dutch disease
• 3.1 Regulatory reform
• 3.2 Infrastructure and skills
• 4. Linking industry to the resource
• 4.1 Building a public-private partnership
• 4.2 Improving coordination and reducing complexity
• 4.3 Training
• 5. Widening the options
• 5.1 Industries without smokestacks
• 5.2 Investing in knowledge
• 6. Conclusions
• References
• PART II: COUNTRY STUDIES
• 5: The Boom, the Bust, and the Dynamics of Oil Resource Management in Ghana
• 1. Introduction
• 2. Petroleum production and exploration in Ghana
• 2.1 Regulating exploration and production
• 2.2 The state of oil production
• 2.3 Comparing production with other African countries
• 2.4 Negotiating petroleum agreements in Ghana
• 3. Transparency and accountability measures
• 4. Petroleum revenues framework
• 5. Oil and macroeconomic performance
• 5.1 Dutch disease
• 5.2 Local content regulations
• 6. Conclusion
• References
• 6: The Construction Sector in Ghana
• 1. Introduction
• 2. Marginal costs of construction
• 2.1 Analyses of subsector costs
• 2.1.1 The housing subsector
• 2.1.2 Roads, drainage, and other social infrastructure subsectors
• 2.2 Patterns of inflation and subsector costs
• 2.3 Structure of the construction industry
• 2.4 Expenditure shocks and price dynamics
• 3. Bottlenecks to the supply response of the construction sector
• 3.1 Access to land and permits
• 3.2 Access to critical inputs
• 3.2.1 Skilled labour
• 3.2.2 Raw materials
• 3.3 Organization and capacity
• 3. Institutional and policy reforms in the construction sector
• References
• 7: Local Content Law and Practice: The Case of Ghana
• 1. Introduction
• 2. Contextualizing natural resource extraction and national development
• 3. The oil and gas sector, local content, and local participation
• 4. Policy and legislative development on local content and local participation in Ghana's oil and gas value chain
• 4.1 Policy development process
• 4.2 Legislative development process
• 5. Implementation of the local content policy and law on oil and gas in Ghana
• 5.1 Institutional arrangements for local content implementation
• 6. Current level of goods and services supplied by Ghanaian companies
• 7. Recruitment, training, and promotion of Ghanaian nationals for jobs in the oil sector
• 8. 'Local local' content
• 9. Challenges of local content implementation in Ghana's oil and gas sector
• 9.1 Local business capacities in the oil and gas industry
• 9.2 Discrimination against indigenous companies
• 9.3 Regulatory institutional challenges
• 10. Options for increasing local participation in the oil and gas industry in Ghana
• 11. Conclusion and policy recommendations
• Acknowledgements
• References
• 8: Mozambique-Bust before Boom: Reflections on Investment Surges and New Gas
• 1. Introduction
• 2. Mozambique's investment surge post-2010
• 3. The effects of an investment surge
• 4. Mozambique expectations and realities
• 5. A few implications
• 5.1 The fiscal starting point
• 5.2 Foregone opportunities
• 5.3 Macroeconomic choices
• 5.4 A sovereign wealth fund
• 5.5 Investing for structural transformation
• 6. The epidemiology of the investment boom problem
• 6.1 Macroeconomic problems
• 6.2 Fiscal financing problems
• 6.3 Transition problems
• Acknowledgements
• References
• 9: The Construction Sector in Mozambique
• 1. Introduction
• 2. Construction and development: conceptual approach
• 3. Overall evolution of the national economy since independence in 1975
• 4. Construction sector analysis
• 4.1 Historical background in Mozambique
• 4.1.1 Financing sources for construction projects
• 4.1.2 Structure of companies in the construction sector
• 4.1.3 Institutional features
• 4.2 Building materials sector
• 4.3 Construction sector value chain
• 4.4 Construction costs, household income levels, and procurement issues
• 5. Construction sector: bottlenecks and recommendations
• 6. Conclusion
• Acknowledgements
• References
• 10: Local Content and the Prospects for Economic Diversification in Mozambique
• 1. Introduction
• 2. The country and its extractive industries
• 3. Facing up to the fiscal crisis
• 4. The policy environment
• 4.1 Political trajectory of the policy environment
• 4.2 Industrial policy and MSME development
• 4.3 Local content and social investment in local economic development
• 5. Summary
• References
• 11: Gas in Tanzania: Adapting to New Realities
• 1. Introduction
• 2. The magnitude and timing of a prospective resource boom
• 2.1 Risks
• 2.1.1 Geological and engineering challenges
• 2.1.2 Market and commercial risks
• 2.1.3 Policy risks: the 'authorising environment'
• 2.2 Projections: production and prices
• 2.3 Projections: fiscal terms and cost recovery
• 3. Public policy and risk
• 3.1 Legal and regulatory requirements
• 3.2 Policy co-ordination and the authorizing environment
• 4. Public policy and the contribution of natural resources to growth, structural change, and industrialization
• 4.1 Jobs and construction
• 4.2 Externalities and private investment
• 4.3 Fiscal policy management and public investment
• 5. Conclusion
• Acknowledgements
• References
• 12: The Construction Sector in Tanzania
• 1. Introduction
• 2. Structure of the construction sector
• 2.1 Ministry of Works, Transport and Communication (MoWTC)
• 2.1.1 Architects and Quantity Surveyors Registration Board (AQRB)
• 2.1.2 Engineers Registration Board (ERB)
• 2.1.3 The Contractors Registration Board (CRB)
• 2.2 Clients
• 3. Behaviour of construction prices
• 3.1 Investment shocks in the construction sector
• 4. Key bottlenecks to supply response
• 4.1 Land issues in Tanzania
• 4.2 Issuance of construction permits in Tanzania
• 4.3 Skilled labour
• 4.4 Construction materials and equipment
• 5. Conclusion and policy recommendations
• 5.1 Raw materials and construction equipment/plant
• 5.2 Skills shortage
• 5.3 Access to land and construction permits
• 5.4 Contractors' challenges
• Acknowledgements
• References
• 13: Local Content: Are There Benefits for Tanzania?
• 1. Introduction
• 2.
• Local content legislation in Tanzanian extractive industries
• 2.1 General legislation
• 2.2 Mining sector
• 2.2.1 Background
• 2.2.2 Current local content
• 2.3 Oil and natural gas
• 2.3.1 Background
• 2.3.2 Current local content
• 3. Management of local content policies in Tanzania
• 4. Evaluating Tanzania's local content policies
• 4.1 Qualitative research
• 4.2 Testing for the impact of local content policy using the ASIP
• 5. Quantifying the value of local content using the 2013 Industrial Census
• 6. Lessons for Tanzania from country experiences with local content legislation
• 6.1 Quantitative analyses
• 6.2 Qualitative evidence
• 6.3 Summarizing the evidence
• 7. Conclusion
• References
• 14: Uganda's Oil: How Much, When, and How Will It Be Governed?
• 1. Introduction
• 2. Timing and sequencing of the oil boom
• 2.1 Uganda's oil timeline thus far
• 2.1.1 Exploration during colonial times
• 2.1.2 Exploration after independence
• 2.1.3 Slowdown of exploration activity and development of current legal framework
• 2.1.4 Development of infrastructure required for production
• 2.1.5 Critical infrastructure project 1: oil refinery
• 2.1.6 Critical infrastructure project 2: oil pipeline
• 2.2 Forecast of size and timing of revenue stream
• 2.2.1 Critical forecast sensitivity 1: oil price
• 2.2.2 Critical forecast sensitivity 2: recoverable reserves
• 2.2.3 Critical forecast sensitivity 3: delays
• 2.2.4 Revenue projections
• 3. Is Uganda ready for oil to flow?
• 3.1 Expectations for the oil sector
• 3.2 The current governance framework and its shortcomings
• 3.2.1 Ambiguity regarding the fiscal anchor and sovereign wealth fund
• 3.2.2 Vulnerability to price and political shocks
• 3.2.3 Narrow focus on development spending
• 3.3.3 Mitigating the risk of Dutch disease
• 3.3.4 How much to spend: the choice of fiscal rule
• 3.3.5 Poor quality of public investment management
• 4. Conclusion
• Acknowledgements
• References
• Government documents
• News reports
• Reference papers
• 15: Construction and Public Procurement in Uganda
• 1. Introduction
• 2. Overview and market structure of the construction sector
• 2.1 Demand side: the role of government contracts
• 2.2 Supply side: firm-level evidence
• 3. Regulatory framework and main stakeholders
• 3.1 Public procurement and the central role of PPDA
• 3.2 Doing business with the government
• 3.2.1 Choice of procurement method
• 3.2.2 Evaluation phase
• 3.3 Stakeholders in the construction sector
• 3.3.1 Main stakeholders in public procurement
• 3.3.2 Additional stakeholders
• 4. Challenges to sector development and efficiency
• 4.1 Corruption and inefficiency in public procurement
• 4.2 Access to finance
• 4.3 Marginal costs of construction
• 5. Conclusion
• Acknowledgements
• References
• 16: Enhancing Local Content in Uganda
• 1. Introduction
• 2. Prospects for local supplier development
• 3. The local content management framework
• 3.1 Overview of local content requirements in Uganda's oil industry
• 3.2 Evaluation of local content requirements
• 3.2.1 Clarity of scope and provisions for measurement
• 3.2.2 Presence of monitoring mechanisms
• 3.2.3 Feasibility of implementation
• 4. Assessing domestic supplier capabilities in Uganda
• 4.1 How are local firms integrated into the natural resource value chain?
• 4.2 What capabilities do domestic firms have to enter the resource value chain?
• 5. Conclusion
• References
• 17: The Boom-Bust Cycle of Global Copper Prices, Structural Change, and Industrial Development in Zambia
• 1. Introduction
• 2. Zambia's economic and political context
• 3. Extent of the mineral resource
• 4. How large are the resource revenues likely to be?
• 5. When are the revenues likely to come on line?
• 6. Fiscal policy and managing copper booms
• 7. How much spending? Fiscal projections
• 8. Revenue-sharing arrangements
• 9. Reducing sovereign debt
• 10. Exchange rate
• 11. Fiscal rules
• 12. Public investment
• 13. Conclusions
• References
• 18: The Construction Sector in Zambia
• 1. Introduction
• 2. Organization and change in Zambia's construction industry
• 2.1 Demographic, political and economic changes, and construction in Zambia
• 2.2 Construction industry organization: cost and pricing implications
• 2.3 Construction regulations and public institutions
• 2.3.1 Important procurement laws and regulations in construction in Zambia
• 2.3.2 Important governance and regulatory institutions and other stakeholders
• 3. Bottlenecks in the construction sector
• 3.1 Firm-level bottlenecks
• 3.2 Industry-wide bottlenecks
• 3.3 Macroeconomic factors serving as construction bottlenecks
• 4. Summary of options for dealing with key bottlenecks
• 4.1 Institutional, governance, and regulatory reforms
• 4.2 Industry-support policies and reforms
• References
• 19: Local Content in Zambia-a Faltering Experience?
• 1. Introduction
• 2. LC and industrialization: a brief review
• 2.1 What constitutes LC?
• 2.2 LC, economic linkages, industrialization, and structural change
• 2.3 The importance of technological change and entrepreneurship
• 2.4 Global and regional value chains and LC
• 3. The evolution of LC in Zambia
• 3.1 LC, manufacturing, and industrialization in Zambia: a historical perspective
• 3.1.1 LC and import-substitution industrialization, 1964-91
• 3.1.2 LC, market liberalization, and privatization, 1991-present
• 3.1.3 Privatization stymied LC development and the manufacturing sector
• 3.2 Current LC initiatives
• 3.3 LC, supply chains, and domestic supplier firms
• 4. The policy and legislative space for LC
• 5. LC and industrialization: the structural impediments
• 5.1 ISI: a defective industrialization and LC agenda?
• 5.2 Post-1991 reforms: an elusive industrialization and LC agenda?
• 6. Back to basics: mending the role of LC in industrialization
• 6.1 Improve the competitiveness and productivity of the manufacturing sector
• 6.1.1 Develop a domestic raw material base
• 6.1.2 Improve workforce skills
• 6.1.3 Improve R&D and innovation
• 6.2 Strengthen the policy and legislative base for LC growth and industrialization
• 6.2.1 Strengthening mineral legislation
• 6.2.2 Rationalizing the use of incentives
• 6.2.3 Harmonizing legislation across sectors
• 6.3 Build the capabilities of endogenous SME manufacturing firms and suppliers
• 6.4 Strengthen the macroeconomic environment
• References
• PART III: POLICY IMPLICATIONS
• 20: Implications for Public Policy
• 1. Introduction
• 2. Managing a modest boom
• 2.1 Managing expectations
• 2.2 How much spending?
• 2.3 Improving the quality of public spending
• 3. Construction and 'investing to invest'
• 3.1 Increasing the capabilities of local contractors
• 3.2 Relaxing supply constraints
• 3.3 Dealing with corruption and collusion
• 4. Linking industry to the resource
• 4.1 Local content
• 4.2 A public-private partnership
• 4.3 Training
• 5. Widening the options
• 5.1 Dealing with Dutch disease
• 5.2 Broadening the horizon: industries without smokestacks and investing in knowledge
• 5.3 Spatial industrial policy
• 6. Conclusions
• References
• Index.