GHANA’S OIL INDUSTRY: THE LIVELIHOOD IMPLICATIONS FOR FISHING COMMUNITIES IN THE WESTERN REGION

Abstract

In 2010, Ghana started producing oil from its Jubilee Fields, off the coast of the Western Region. This study investigates the implications of the oil industry on the livelihoods of the fishing communities living along the coast of the offshore oil fields. Using the sustainable livelihood framework, the study collected and analysed the perceptions of fisher folks about the impacts of the oil industry on their livelihoods as well as factors that influence their engagement in alternative livelihood strategies. Results from 112 fishers and 12 focus group discussions showed that more than 75% believe that the impact of oil production on their livelihoods has largely been negative. Also, results from the analysis of household incomes using t-test indicates that on average, income has reduced from GHS 3,567.80 (US$ 853.54) to GHS 1,167.90 (US$ 279.40) per annum. Some reasons given for this reduction include the ban on fishing in certain parts of the ocean and dwindling fish stocks. Also, about 80% respondents believe that, with the exception of some few corporate social responsibilities, oil production off their coast has produced fewer development projects such as schools, markets, affordable housing, among others in their communities. From the binary probit model, married fishers, fish marketers, natives, fishers with low social capital and those with greater human and physical capitals were more likely to engage in alternative livelihood strategies. Fishers who wish to stay in business should belong to fishing groups so as to have amplified voices and strengths to negotiate for good fishing environment.