The Political Economy of Local Content in African Extractives: Lessons from Three African Countries

Michael W. Hansen, Lars Buur, Ole Therkildsen, Mette Kjær

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    Abstract

    Extractive foreign direct investment (FDI) is heralded as the new development opportunity in Africa. But extractive FDI has a record of producing enclaves in host countries with few linkages to the local economy. Only if it creates local content will extractive FDI become a catalyst of development. This paper analyses the trajectories of local content policies and practices in three African countries – Tanzania, Uganda and Mozambique. We argue that we cannot understand the dynamics and outcomes of local content policies in African extractives without understanding how local content has become ingrained in ruling coalitions’ rent-seeking and maintenance activities in the three countries. We discuss the consequences of evolving local content practices for political patronage.
    Original languageEnglish
    Publication date2014
    Number of pages27
    Publication statusPublished - 2014
    Event46. Årsmøde i Dansk Selskab for Statskundskab 2014 - Hotel Vejlefjord, Vejle, Denmark
    Duration: 23 Oct 201424 Oct 2014
    Conference number: 46
    http://dpsa.dk/pages/page.asp?pid=3&l=dk

    Conference

    Conference46. Årsmøde i Dansk Selskab for Statskundskab 2014
    Number46
    LocationHotel Vejlefjord
    CountryDenmark
    CityVejle
    Period23/10/201424/10/2014
    Internet address

    Cite this

    Hansen, M. W., Buur, L., Therkildsen, O., & Kjær, M. (2014). The Political Economy of Local Content in African Extractives: Lessons from Three African Countries. Paper presented at 46. Årsmøde i Dansk Selskab for Statskundskab 2014, Vejle, Denmark. http://dpsa.dk/papers/MWH-LBU%20et%20al%20%20local-content-paper%2019-10-14%20Vejle.docx