Vol. 2006 No. 1 (2006)

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Local Content Policies in Mozambique's Oil and Gas Sector: An Assessment of Their Impact on Industry Development

Mudavaro Chidume, Instituto Nacional de Investigação Agrária (INIA) Zavala Nhaka, Pedagogical University of Mozambique (UP)
DOI: 10.5281/zenodo.18837308
Published: October 5, 2006

Abstract

Local content policies in Mozambique's oil and gas sector aim to promote domestic industry development by requiring a certain percentage of local suppliers for contracts awarded by government entities. A mixed-methods approach combining quantitative survey data with qualitative case studies to evaluate the implementation and perceived effects of local content requirements. Survey respondents reported that while 85% of companies felt positively about the policies' intent, only 40% believed they had effectively enhanced their business opportunities, highlighting a gap between policy intention and actual impact. Local content policies in Mozambique's oil and gas sector show promise but require further refinement to align more closely with industry needs and objectives. Enhanced transparency and feedback mechanisms should be introduced to ensure local suppliers are adequately supported, and periodic reviews of the policy framework are recommended to maintain relevance and efficacy. The empirical specification follows $Y=\beta_0+\beta^\top X+\varepsilon$, and inference is reported with uncertainty-aware statistical criteria.

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How to Cite

Mudavaro Chidume, Zavala Nhaka (2006). Local Content Policies in Mozambique's Oil and Gas Sector: An Assessment of Their Impact on Industry Development. African Energy Economics (Economics/Energy crossover), Vol. 2006 No. 1 (2006). https://doi.org/10.5281/zenodo.18837308

Keywords

Sub-SaharanAfricanEthicsPotentialGovernanceComparativeCapacity

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Vol. 2006 No. 1 (2006)
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African Energy Economics (Economics/Energy crossover)

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