Our shared prosperity approach includes three broad elements:
- optimising local content and developing supplier capacity;
- building local skills and developing people and;
- driving socio-economic investment that enhances local economies and local communities.
Our shared prosperity approach requires that we understand and manage our impacts on local communities and the environment. Establishing and maintaining effective relations with our stakeholders is central to our success and local teams update host communities and engage with them on a regular basis.
We work to create business opportunities for local entrepreneurs and small businesses in our host countries. Our aim is to support their long-term capacity and growth and expand their participation in the local economy, to generate local value for people and communities. We engage at different levels with local suppliers, vendors and entrepreneurs, including through initiatives such as supplier training workshops and Invest in Africa (IIA), a non-profit organisation we helped establish with seed funding in 2012, to work with leading corporations, including Tullow, to improve access to markets, finance and skills for local suppliers in Ghana, Kenya and Senegal. Since 2012, we have purchased goods and services from local suppers worth more than $2 billion, injecting needed economic value into the local communities.
The largest portion of our local spending supports our operations in Ghana and Kenya, where in 2019, 28 percent and 41 percent respectively of total spend was local. In 2019, Tullow Ghana’s overall supplier spend was up by 24 percent compared to 2018 due to increased drilling activities, the Turret Remediation Project and continued efforts to award contracts to indigenous or incorporated Joint Venture companies. In Kenya, local spend increased by 37 percent due to increased Early Oil Pilot Scheme trucking activities. Focus has continued on enhanced capacity building to enable more suppliers to engage with Tullow Kenya.
Education and skills development are critical to emerging economies. We support both our local colleagues and communities by providing science, technology, engineering and mathematics (STEM) education to enhance employability and also offer vocational training for youth and women to further their chances of gaining employment.
Tullow Ghana is a corporate partner and funder of Field Ready, a programme launched in Ghana with Takoradi Technical University in 2015. It is designed to produce highly employable technicians and engineers and aims to achieve full gender balance among programme participants. The course lasts up to 12 months, is taught by instructors from licensed educational institutions, and Tullow provides opportunities for graduates in entry-level engineer, technician and operator roles. The programme has been very successful with both graduates and companies and is providing Ghana with skilled people who have the practical skills employers need.
Giving local people the knowledge they need to build their own business is a powerful way of sharing prosperity and we have a number of programmes which support entrepreneurs. Since 2017, Tullow Kenya has worked with TechnoServe, an international non-profit, to provide a three-month business and entrepreneurship course to local business owners in Turkana County. The training takes place in weekly meetings at Tullow Kenya’s local Enterprise Development Centre and covers a range of requirements for running a successful business. Graduates from the course are offered a mentor and can apply for financial support from a fund that helps micro and small businesses grow and compete effectively.
We support socio-economic investment initiatives focused on STEM (science, technology, engineering and mathematics) education, local business development and shared infrastructure and logistics. Within shared infrastructure and logistics we invest in areas such as water, energy or waste, by adapting and leveraging existing infrastructure plans and projects to benefit local communities.
In addition to the initiatives in our shared prosperity strategy, we support local causes and help meet community needs in a variety of different ways.
A look to the future
We will continue to develop the initiatives in our shared prosperity strategy aligning it with our business strategy and the Sustainable Development Goals (in particular, Goals 4 quality education, 8 decent work and economic growth and 9 industry, innovation and infrastructure). This will include:
- Increasing access to employment and entrepreneurship opportunities in targeted communities as measured, for example, by an increase in people working in STEM related areas and an increase in the number of local suppliers/entrepreneurs;
- Improving access and performance in STEM subjects at primary, secondary and tertiary levels in local communities as measured, for example, by the number of students accessing employment through our supported initiatives, or improved performance in state exams; and
- Identifying opportunities to enhance infrastructure for the benefit of our host countries and neighbours.