Check negotiating capacity for extractive contracts, developing countries told.

 Adiah Nakuti- 13th/10/2015.


Natural resources wealth play crucial role in transforming countries particularly developing nations.
In most developing countries, the extractive industries, Oil, gas and minerals account for more than half of the national income according to the 2009 Revenue Watch institute report on Ending Secret Deals in the Extractive Industry.
However, according to Natural Resources Governance Institute, Africa Associate, Samuel Bekoe, the country’s benefits from extractive industries sorely depend on the contracts signed between government and companies.
Addressing journalist from Uganda, Ghana and Tanzania, undergoing media training on covering Oil, gas and mining in Accra, Samuel Bokoe pointed out that because of experience in the extractive sector, companies know more than governments.
He was quick to add that due to lack of capacity of the negotiators, some governments hire international experts to analyze their extractive contracts.
Since natural resources are non renewable, governments should strive to make a balance between designing fiscal policies that attract investors but also benefit the country.