We provide practical advice on how projects can work towards increasing local procurement and employment throughout the project life cycle.
An increasing number of host countries are turning towards local content as way of ensuring that oil & gas and mining projects benefit their citizens. Companies engage in local content development to gain the support from government and communities that enables adherence to the planned timeline for project approvals; improve quality of supplies; reduce costs associated with delays in delivery; and reduce non-technical risk to the project such as that potentially arising from local community discontent.
The scope of local content – recruitment of national staff and procurement of goods and services sourced from within the host country – has recently been expanding to include enterprise development, collaborations for research, technology transfers and innovation and social investments in capacity building and the development of skills.
Services and approach:
CIG promotes a multi-stakeholder approach to developing local content based on aggregated sector demand and deliberative spaces for various stakeholders (oil & gas and mining companies, their major suppliers, host governments, donors NGOs and educational institutions) to engage in supporting host governments’ and host communities’ local economic development objectives and expectations.
Our approach is contextualised, we do not promote singular solutions or copying across different regions. We support targeted sectoral approaches to maximise multiplier effects, economic diversification as well as in-country value associated with oil & gas and mining value chains.
CIG helps guide companies in selecting appropriate strategies and potential entry points into a country local content development. Our analysis and planning services include:
- Mapping and analysis of policies, laws, regulations and contractual stipulations that host countries use to formulate and enforce local content requirements at national, regional and community levels
- Identification of appropriate mechanisms for engaging with the key stakeholders on the basis of issues that are important to stakeholders; and the relationships among various stakeholders
- Studies of demand and supply to understand constraints and opportunities for local content development. On the demand side, we examine industry’s demand for goods, services and workforce along the extractive project cycle, procurement and employment practices as well as quality and standards requirements. On the supply side, we examine different factors contributing to local capabilities – regulatory environment, infrastructure, technology innovation, diversity of industrial sectors, regions and industrial clusters, and capabilities of finance providers, and educational/training institutions.
We support extractive companies, governments, donors and others in the design, implementation and monitoring of local content development projects. Our services include:
- Facilitation of Public Private Partnerships between industry, governments, development agencies, and educational institutions to identify and develop the key commodities / supplier sectors that would contribute to maximising mutual benefit and social impact
- Design of supplier development projects, including various vehicles such as Enterprise Centers, to provide local businesses with a range of support services that build their capability to become vendors, such as access to information on opportunities and on quality, safety and legal compliance requirements; access to business and technical support; access to training; assistance in building local networks for collaboration; assistance with linking to the global value chain; and access to technology and finance
- Design of workforce development programs, including partnerships with vocational & technical schools and universities, collaborations to identify and develop skills competency standards for extractive industries, apprenticeships and on-the-job training strategies, employment programs for fence-line communities, etc
We work to improve internal capacity of our clients to plan, manage, monitor and communicate performance of local content project through:
- Adapting their procurement and employment practices to improve opportunities for local workforce and suppliers
- Development of communication mechanisms to help increase the accessibility and visibility of opportunities to the local market
- Engagement with lead international contractors and suppliers to integrate local businesses and workforce in their value chains
Find out more about our experience in local content.