‘Corporate governance key to effective utilisation of mineral wealth’

By Jessica Acheampong, ACCRA

The Media Capacity Development Officer of the Natural Resource Governance Institute (NRGI), Mr George Lugalambi, has observed that mineral-rich countries required good corporate governance structures to be able to properly convert their natural resource wealth into sustainable economic development.

He said natural resources such as oil, gas and minerals, hold great potentials for development, which, when properly managed, help transform economies. This, he said required that good decisions are taken on their usage.

“Transforming oil, gas and mineral wealth into sustainable development requires a complete chain of economic decisions and strong foundation of good governance,” he said at the sixth regional media training on oil, gas and mining in Accra.

According to him, economic decisions taken about the exploitation of a natural resource could affect other decisions that have to be taken in the future and it was therefore prerequisite that they are thoroughly thought through prior to their implementation.

“You must understand the decision you take and how it relates to others in the long term. For instance, if you discover two oil wells, some decisions must go into you choosing one to exploit over the other,” he said.

Mr Lugalambi, who took participants through the domestic foundations for resource governance said: “good decision making by government rests on a foundation of rules, institutions, and a critical mass of informed citizens and an authorising environment.”

He explained that it was not only enough for government to lay the foundation for resource governance but to a large extent, ensure that there is an authorising environment that will ensure strict adherence to the rules and regulations governing the use of natural resources.

The workshop

The 10-day course on the extractive sector is being organised by the NRGI in partnership with Penplusbytes in Accra for 24 journalists from three countries – Ghana, Uganda and Tanzania.

The capacity building training program, which is under the ‘Strengthening Media Oversight of the Extractive Sectors,’ is expected to help promote effective and consistent media reportage on oil, gas and mining activities.

It is expected to help increase the number and quality of stories on extractives across all media platforms.

It is targeted at early to mid-career reporters and would help offer them a wide range of benefits, including providing holistic and comprehensive support to journalists through specialised knowledge and skills modules, professional mentoring, experiential learning, access to sources and vital information.

It will also provide access to data as well as encourage interaction with peers, experts, policy makers, and oversight actors.

The Executive Director of Penplusbytes, Mr Kwami Ahiabenu, said good governance of oil, gas and mining resources and the revenues they generate requires effective oversight.

“An effective oversight, however, hinges on an informed, responsive and dynamic media to provide necessary and accurate information to the public about critical governance issues. Here lies an opportunity for journalists to develop more insight and skills on the sector in Africa in ways that are self-sustaining,” he said.