Supporting the Policy Environment for Economic Development
SPEED+

Policy Options for Local Content in Mozambique

To create value from natural resources (oil, gas and mining), governments have at their disposal a mix of fiscal and non-fiscal measures that it can apply to across extractive industry value-chain. With the emerging natural resource boom    in Mozambique, the Government is exploring policy options and strategies for the development of Local Content, which may have potential to boost economic multiplier effects of the oil, gas and mining industries into the local economy.

The success and long-term impact of Local Content depends on policy and strategy choice to be made.  The challenge lies on how to develop local content (law/regulations/framework) which ensures a drive to national competitiveness and not a pathway to protectionism and other unintentional economic distortionary effects.

The Confederação das Associações Economicas de Moçambique (CTA) requested SPEED assistance to conduct an assessment on policy options for strengthening  local content framework in Mozambique, with the objective to inform the Government and the private sector on policy choices and their respective advantages and disadvantages  as Mozambique shapes its approach to supporting local content. The assessment draws from an understanding of the international experience with local content laws, policies and regulations, and builds upon Mozambique's experience with business linkages, Local Content associated legal framework and experience with local content initiatives in the country. The review benefited from close consultation with the private sector and government in Mozambique.

Preliminary findings and recommendations of policy options for Local Content in Mozambique were presented to and discussed with CTA and other key private sector stakeholders on August 1st 2013.

On September 11, 2013 posted revised reports: 2013 SPEED Report 024 Policy Options for Local Content in Mozambique PT - Final Draft" and "2013 SPEED Report 024 Policy Options for Strengthening Local Content in Mozambique EN Final Draft".

On October 16, 2013 posted final presentations: "2013 SPEED Presentation 016 Policy Options for Local Content in Mozambique PT " and "2013 SPEED Presentation 016 Policy Options for Strengthening Local Content in Mozambique EN"

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