Blog Article

Financial Training - Oil & Gas in East Africa

Wednesday 19 August 2015

Global Game Changer

The discovery of oil and natural gas reserves in East Africa is a global game changer and IASeminars is perfectly placed to help train the large numbers of accounting professionals who will be involved in the industry over the coming years.

Largest Offshore Gas Fields in the World

Mozambique and Tanzania have some of the largest offshore gas fields in the world and the development of these will result in a significant change in the industrial landscape. In Mozambique alone, the sector has potential to double GDP and lead to employment of 700,000 people.Similar figures are estimated for Tanzania.

Uganda has oil and a lower resource potential, yet the sector will have a substantial effect on the economy. The impact of oil discoveries in Kenya - estimated to be worth 40 trillion Kenya shillings (£280 billion) - will multiply in its role as a transit for reserves in South Sudan and possibly Ethiopia.

There is an immediate and significant demand for skilled workers in these four countries as well as strong commitment from international oil and gas companies active in East Africa to meet both their legal obligations to employ local individuals and to ensure that communities and citizens are able to access the benefits, such as jobs and inclusion in supply chains offered by their investments.

Lack of Appropriate Skills

Yet, this opportunity for increased employment in the region is hampered by a lack of appropriate skills in the local population. Limited technical and vocational education and training (TVET) systems in the countries - leading to technical schools which are inadequately staffed, delivering training that is out of date and insufficiently linked to industry requirements - widens the gap between industry demand and supply of trained labour.

Against this background, the UK's Department for International Development (DFID) and the German Federal Ministry for Economic Cooperation and Development (BMZ) have established an initiative - The Skills for Oil and Gas Africa (SOGA) Initiative - which aims to address skills gaps in the oil and gas and associated sectors in East Africa and to assist partner governments in preparing their workforce for upcoming opportunities in the private sector. The initiative will be implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ).

  • Objective: Improve access to jobs and economic opportunities for local people in and around the oil and gas sector in East Africa.
  • Success: The initiative seeks to increase the number of local people in jobs by 32,000 and raise the incomes of 240,000 people by, on average, 10%.

It is expected that by improving the quality and relevance of the teaching in TVET institutions in Kenya, Mozambique, Uganda, and Tanzania, the number of the local population in sustainable jobs associated with oil and gas investments will increase by 32,000. Out of these 32,000 people, 35% should be women and 40% young people between the ages of 15 and 24. In addition, the initiative would raise the incomes of 240,000 people by 10%.

The Role of IASeminars

IASeminars has been working in Africa for a number of years now and, as a company with strong Scottish connections, CEO Marc Gardiner has already been heavily involved in Trade Missionsto the continent run by the Scottish Development International (SDI), the international arm of Scottish Enterprise, as well as those headed up by the UK Government's Trade and Investment (UKTI) department.

On a visit to Aberdeen two years ago, the then President of Mozambique asked for the support of Scotland's supply chain and training organisations in developing the oil and gas industry in his region. Then in March 2015, some twelve Scottish businesses (including IASeminars) sent representatives on a trade mission to Mozambique and Tanzania.

SDI's regional manager in Africa, Gary Soper says:

It's a real endorsement of Scotland's global reputation for skills, experience and training when the President of Mozambique asks for our support to help grow their oil and gas industry.

East Africa is a pioneering market, and with 150 trillion cubic feet of gas discovered off the East Africa Coast in deepwater, Scotland's unrivalled deepwater subsea delivery and offshore experience makes us the perfect partner to help bring it into production.

Operators in East Africa - Anadarko, ENI, BG, Shell, Ophir, Petrobras and ENH - are expected to spend approximately $2 billion to bring the fields to production. A good percentage of that, according to East Africa Oil and Gas laws, needs to be delivered locally. This means as well as capacity building, operators will need to substantially invest in education and training - around 25,000 people will require training at a technical and vocational level as well as higher education.

This is where IASeminars comes in.

As Marc Gardiner says:

In total to date, IASeminars has delivered training to some 200 different organisations based in 33 different African countries - mostly comprising African delegates attending our courses in London.

We are now making ambitious plans to deliver professional training across Africa, and have scheduled courses in five different African countries Ghana, Nigeria, South Africa, Tanzania and Kenya.

The IASeminars courses being offered in several African countries include the following:

If your organisation has financial training requirements in Africa, please contact us for an informal discussion about the solutions that IASeminars can offer. We also have a brochure available to download here.

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