Africa benefits from oil and gas investment

Foreign companies are leaving their mark on Africa, and the continent is reaping the benefits. "Our challenge is to make the good things sustainable," said James Andrews, vice president Kellogg, Brown and Root, at the Corporate Council on Africa's West Africa Oil & Gas Forum" in Houston, Nov. 19.
It is important to work with small businesses and to transfer technology that will allow them to thrive when a project concludes, he said. It is important to be sure that local companies have been elevated to a level that allows them to be competitive.
A goal for US companies operating in Africa is to create a more comprehensive regional infrastructure. A subsequent goal is to sustain and develop that infrastructure throughout the continent, Andrews said.
At present, revenue generated from hydrocarbon sales goes back to the African governments. Andrews speculated that money could be better used if a portion of that revenue were diverted and reinvested. Andrews proposed that a regionally directed fund could be established to create local infrastructure. With 10% of the hydrocarbon revenue earmarked for the fund, countries across the continent could benefit through improved conditions, whether or not the individual nations are rich in oil and gas resources. The challenge, pure and simple, is to enjoy the business relationships with Africa and to transform them into better living conditions for Africans as a whole, he said.
11/20/02