Por David Bengui Pedro

Includes:  Local recruitment, training and development of local staff, purchases of local goods and services — that are designed to develop the industrial infrastructure and skills of the people in countries that host oil and gas projects.

LOCAL CONTENT is generally measured as a percentage of investment, hours worked, the equipment manufactured or the number of jobs created by the company.

Local Content Regulations
 
5 key Objectives of LC
» Growth and development of local Angolan Work force
» Creation of revenues for local Angolan companies from generation to generations as well as to operate at international competitive level of performance
» Transfer of know-how and technology.
» Creation of jobs for entire Angolans
» Reduce the need for significant expatriate workforce

Risks of Over –Regulations of Local Content
» Minimum 70%  Angolan nationals in the organization
» Established, assertive regulations

Risks of Over –Regulations of Local Content
» Lose of interest from foreign investors
» Lack of local expertise available to compete with international workforce

Impact of Local Content
» History suggests when pushed to the limit, regulators soften in the interest of not falling too far behind schedule
» When absolute and steep LC quotas are set – this can increase cost and length project schedules

Summary
So the question we should ask ourselves:
Do you think by focusing on % of workforce in an organization and training is the answer of the future challenges Angola will face? If not, what is your view? It is the local content requirements in Angola stipulating the usage and development of the in-country supply chain, contractors and other local businesses that should yield the long-term and more sustainable benefits to the country if this is managed properly.
I think that this move will both bring benefits and shortfalls, as there are many private companies which training and development programmes policies have been investing heavily on their employees which will be safe guard performance on the long run VS the ones that have not spent/invested in their personnel like many companies which will only safeguard themselves with compliance training only. Now nepotism will certainly be more visible in public companies.
No, it is too soon. Due to the fact that focusing on percentage would require that the country would need to establish an “Employment Equity Legislation”, which would give an advantage in identifying suitably qualified Angolan Nationals to fill crucial positions. We also have to look at the fact that there is the aggressive disease of “Nepotism”, which still has huge impact on both private and public Angolan based organizations. With regards to training Angolan companies still do not invest enough in training, also because of the fact that no “Skills Development legislation” have been established, therefore having a negative impact on the development of Human Intellectual Capital within companies themselves.

David Bengui Pedro

Mr David Pedro has over 10 years’ experience in Recruitment, Training and local content. First at BHP Billiton, ATS, NES Global, Baker Hughes, DTS – Trafigura, Angola Head – Hunting, Ocean-rig and Angola LNG. Now with Maersk Oil Angola.
These various perspectives provide MR David with a breadth and depth of Local content understanding from various viewpoints of several different stakeholders.