LOCAL CONTENT POLICY
Professor John Sutton defines local content as “creating long term local jobs for the rising generations.” It is all about generating a new level of capability for local companies by integrating them into the process, thereby letting them grow and generate new jobs for the rising generations.
This simply means that local content is use of local manpower, technology, local skills and local manufacturing. This is a good way for nations to keep their wealth within their borders through employment creation.
Is local content specific to a particular industry?
All sector are involved in local content policy. All types of companies can benefit from local content.
Governments should set up local content departments or units in order to generate more jobs from extractives.
Best Practices on local content
Columbia is a success story on issues related to local content. The process generated lots of local jobs as well as many new local companies. Those companies are now selling their expertise at the global level. Their young people were well trained to work well alongside employees of multi-national companies.
A number of the local citizens in Columbia who were working for foreign companies quit their jobs and started their own companies which were proving the same services.
The end result was a group of new but highly successful companies in the economy. This is our dream for Africa.
Do African countries need a local content policy to properly manage their natural resources?
Different companies have different policies on local content. Some companies use sub-contractors from other parts of the world. Others try as much as possible to benefit local companies.
Lack proper policies will lead to multi-national companies coming in and crowding out local companies from the economy.
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