Networks, trust and capital mobilization: challenges of embedded local entrepreneurial activities in Ghana's oil and gas industry.

Abstract

In December  Ghana pumped its first oil and a local content law was passed in  to promote local participation in the oil and gas industry. This paper examines Ghanaian entrepreneurial activities and the dynamics of local participation in the emerging oil and gas sector. We explore Ghanaian entrepreneurs’ strategies of mobilising networks to acquire information, build trust, raise financial capital and reduce risk with the aim to gain entry, win contracts and participate in the oil and gas industry. We argue that the resources and strategies activated by entrepreneurs embedded in the context of the Ghanaian business environment are inadequate and problematic when deployed in the context of the international oil and gas industry. The international oil companies’ cost-intensive standard requirements and state officials’ informal interventions further limit local firms’ prospects for participation in the oil and gas industry.