Local Content? – What is it?
Local Content means different things in different countries and contexts. It refers broadly to the way the exploitation of a natural resource brings benefits to the economy, specifically to local enterprise and workforce development. Such benefits may come from upstream, downstream, and sidestream linkages. A significant development is that some countries, of late, have passed more comprehensive local content policies (LCPs) which include, for example, the legislation of compliance requirements, specification of performance targets, etc.
Why are LCPs important?
Recent LCP frameworks are an extension of government intervention in the extractive sector to broaden its benefits to society. The framework’s overarching nature and legislative process provide a new and exciting platform for non-state actors to engage with the government and the extractive companies.
As countries strive to maximize the benefits of the extractive industry, comprehensive LCP frameworks are slowly becoming the vehicle of choice. For example, Nigeria enacted the Oil and Gas Industry Content Development Act in 2010. Ghana also passed the Local Content and Local Participation Bill in 2013. Others like Liberia, Uganda and Kenya are still elaborating theirs.
What the workshop will do:
- Deliberate on how LCP frameworks enhance linkages with the rest of the economy for inclusive and transformative growth in Africa.
- Create a space for stakeholders to share experience, form networks, and begin building a platform for non-state actors to work with governments and extractive companies.
- Set the stage for an LCP and extractive sector annual event by TrustAfrica and partners.
TrustAfrica fosters broadly shared prosperity, acting as a convener, an honest broker and a catalyst in processes with multiple stakeholders for equitable development in Africa.
The Nairobi workshop is an opportunity for TrustAfrica to concert with partners and key stakeholders in this fast evolving policy area and examine what other actors, beyond the state and the extractive companies, are doing in this transformative agenda.