Is the Local Content Law the Solution for the “Mozambicanization” of Extractive Industry Operations?

April 18, 2024

Article Written by Lucas COSSA , Associate Junior Local Content Analyst at CLC Solution

Is the Local Content Law the Solution for the “Mozambicanization” of Extractive Industry Operations?

As Mozambique’s oil and gas sector continues to expand, the debate surrounding the localization of operations has gained prominence. At the heart of this discussion lies the Local Content Law which aims to increase the participation of Mozambican citizens and businesses in the industry. This article aims to answer the following question: Is a Local Content Law the best way to achieve "Mozambicanization" of extractive operations?

Although the law can work as a viable solution, this article argues that a Local Content Policy might be a better first step as it is generally shorter-term and more easily manageable compared to a law, providing greater flexibility, quicker adaptation to changing circumstances and stakeholder needs, without the need for lengthy legislative processes.

Read more here: [Link to Article]