Mozambique—Local Content Strategy and Industrial Baseline Study

DAI’s Sustainable Business Group (SBG) was contracted by an international oil and gas company to transform its local content approach in Mozambique to improve community and government relations, expand the positive impact of its oil and gas operations on the local workforce and  small enterprises, and ultimately continue to drive sustainable socio-economic growth in Mozambique , specifically in the Inhambane Province. SBG helped the client achieve these goals by completing a four-part study consisting of historical analysis, local content forecasting, government engagement, and creation of a five-year local content plan.

SBG completed the historical analysis workstream using its Local Content Plan and Reporting Platform (LCPR). SBG used the client’s internal workforce and procurement data as inputs to LCPR, and subsequently modeled the client’s spend with local supply chains, direct job creation, and direct, indirect, and induced economic impact on the Mozambican economy from 2007 to 2018.

SBG utilized our Local Content Optimization Model (LCOM) to complete the local content forecasting workstream. SBG used LCOM to forecast the client’s projected local content impact from 2020 to 2025 via three primary onshore components—central processing facility, drilling activities, and compression activities. SBG assessed local supplier competitiveness, determined existing supply-demand gaps in the Mozambican supply chains, and identified key challenges to and opportunities for capacity development.

The government engagement workstream consisted of a series of workshops for key Mozambican government stakeholders. During these workshops, SBG provided background on local content best practices, conveyed past-client local content investment, and facilitated public-private collaboration to increase client-government relations and achieve industry and national development goals.

Lastly, SBG led the creation of a draft five-year Local Content Plan (2019-2024) to formalize the client’s ongoing commitment to local content development in Mozambique and further strengthen the client’s partnership with the government. The five-year plan sought to reinforce the importance of local content as a priority value driver for the client’s future Mozambique investments and operations and put in place the governance structure, systems, and processes necessary for the successful attainment of the defined objectives.