Oil and Gas Induced Displacement and its Effect on Communities: Experiences from Ghana and Uganda

It is expected that the discovery of oil and gas will propel economic growth and development. When Uganda and Ghana discovered oil and gas in commercial quantities in 2006 and 2007 respectively, there were high hopes that projects emanating from the sector would positively affect the two nations, particularly the project communities. Uganda and Ghana undertook projects following the discovery of oil: Uganda acquired lands for the construction of an oil refinery in Hoima District; and Ghana built a Gas Plant at Atuabo in the Ellembelle District in the Western Region. This study examined the effects of displacement, which resulted from land acquisitions for the two projects; and highlighted the roles played by institutions in the processes leading to the displacement, and how the interactions shape the outcome of the displacement of affected communities. The study was guided by two key theories. The Impoverishment and Risk and Reconstruction (IRR) Model of Micheal Cernea (1997), which presents eight key risks associated with displacement. These are landless, homelessness, joblessness, marginalisation, food security, social disarticulation, morbidity and mortality. The actor-oriented approach underscores the role of different actors and interests in influencing development outcomes and Livelihood Framework was adopted and modified, informed by the IRR framework and the actor-oriented approach theory to develop a conceptual framework that guided the study. The study employed a mixed method approach. The qualitative was employed for both study areas and quantitative for the Ghana case study; and qualitative for interviews with relevant government institutions, traditional authorities of the project areas, and CSOs who were directly involved in the acquisition, resettlement and compensation processes. Acknowledging the context and dynamics of both cases, the study found that the projects created both direct and indirect displacement in the project affected communities. In both countries, dialogue processes were informational rather than consultative. The consequences of the minimal consultation processes resulted in undervaluation of assets on the lands acquired and delayed payment of compensation. There was institutional interaction at various levels of the acquisition and project implementation processes where government, Civil Society Organisations (CSOs) and traditional authorities, played various roles in the interest of the state and the people. While the two projects displaced people’s livelihoods through the loss of farmlands and housing among others, the people furthermore encountered institutional bureaucracy that delayed their effort in seeking redress on concerns that they had on the projects. The study recommends that the government of Ghana consider passing a law for prior payment of compensation before acquisition and taking over of land and other properties. In Uganda, laws on compulsory acquisition must empower owners of land and property affected by projects to engage private valuers at government cost. Both governments should comply with their land acquisition policies and laws, conduct meaningful consultation and make adequate and timely compensation to affected people.