Local Content Policy

Context

Given the lack of a regulatory and institutional framework for local content in Mozambique, the industry regulator created a Local Content Unit (LC) to oversee these activities. As the subject was still new in the country, the regulator required support from NNF to structure the LC management body, set its guidelines, corporate identity, strategic activities, organizational chart and to determine the profile and qualifications needed for recruitment. Additionally, it needed to develop its relationship with other industry stakeholders (government agencies, NOC/National Oil Company, IOCs/International Oil Companies, service providers, trade associations, development agencies, universities, etc).

Therefore, NNF was hired to provide technical services to support the structuring of the LC management body and to ensure that the industry's activities were executed in accordance with international laws, regulations and best practices.

Action

NNF worked in tandem with the client to determine that the structuring of the LC regulatory body should include the following topics:

  • Definition of the mission, values and objectives;
  • Definition of the main functions;
  • Profile of required professionals;
  • Suggestions for necessary training and qualifications;
  • Scope of action: the role of the regulator and its relationship with the IOCs and the NOC.

Next, the consulting firm divided the project into three main axes:

  1. Strategic Axis: analysis of the current regulatory framework, definition of the LC management body, its mission, vision and values, objectives and strategic actions.
  2. Structuring Axis: definition of the organizational structure of the LC management body: profiles, roles and qualifications.
  3. Institutional Relationship Axis: internal and external institutional interface of the regulatory body, setting its role, responsibilities and relationships with regulated economic agents.
Results

NNF delivered a final report containing all the stages needed to create a Local Content managing body. The document constituted an effective source of information for the implementation of a comprehensive local content national policy, with guidelines on the coordination, supervision and monitoring of the inclusion of domestic professionals and the local business community into the Mozambican oil industry.

It is worth noting that the final report met the client's main objective: to structure its LC management unit and to stimulate the vicious cycle of industrial policy development.