Understanding Local Content Law and Megaprojects

Understanding Local Content Law and Megaprojects

With the advancement of Liquefied Natural Gas (LNG) projects in the Rovuma Basin and mining investments in Tete, the concept of Local Content has become the watchword. Mozambican legislation aims to ensure that the development of natural resources actively benefits the local economy through the procurement of national goods and services.

For local companies, the challenge is twofold: raising quality standards and ensuring the rigorous compliance required by multinationals in the extractive sector.

Essential requirements for suppliers:

  • ISO Certification: ISO 9001 is often a mandatory entry ticket in international tenders.
  • Tax Transparency: Total regularity before the Tax Authority.
  • Labor Compliance: Absolute respect for occupational health and safety (HSE) standards.
  • Technical Capacity: Demonstration of competence through certifications and project history.

SD&MP supports Mozambican SMEs and large companies in the "vett-ing" and qualification process. We help interpret local content clauses and implement management systems that open doors to long-term contracts with Oil & Gas operators.

Want to position your company in the natural resources value chain? Talk to our Local Content specialists.

Don't let your company be held hostage by judicial delays.

Consult us on how to structure your dispute resolution clauses.