Cross border management of companies in the extractive industry in Research Paper - 1

Cross border management of companies in the extractive industry in Africa - Research Paper Example Management of natural resources empowers the citizens in ways such as job creation. It also boosts the government revenue which in turn translates to diverse services provided by the government to its population. In 2011, mineral and oil export from the continent of Africa constituted a recognizable percentage worth billions of dollars when integrated with exports from both Asia and South America (Jackson, 2004). This figure when compared to the assistance the continent receives from developing countries is ten times more than aid offered. When oil was discovered in Ghana, in 2009, it raised hopes that this would result to improved standards of living. Attainment of these dreams though could not be achieved due to the deficit of proper regulatory structures to manage the complex oil sector. The neighboring Nigeria was also facing the same management challenges as successive governments depleted an estimation of $400 billion of crude oil sold dating back from the 1970s. However, the curse in the mineral and oil industries has taken a different trend in the recent past courtesy of radical management structures in the industry. Emmanuel Kuyole, Revenue Management Watch Africa Coordinator has lauded the bold step taken by both Ghana and Nigeria (Adeyele, 2013). For instance, in Nigeria, sovereign wealth fund was created to cater for astute management of the industries. This has enhanced hope that it would bring a long lasting solution to the countries extractive revenue management woos. Oil and gas laws in Ghana targeting the conduct of both international and local contractors together with how funds are managed by bodies in charge of proceeds has been called an innovation (Adeyele, 2013). Partnership between foreign and local companies has been effective in most African countries as far as exploitation of the oil and gas is taken into account. For example, Chevron a leading oil company has co-partnered with Bonga SW to