Maputo, July 10, 2025 (Lusa) - On Thursday, the Confederation of Economic Associations of Mozambique (CTA) asked the government for more time for public consultation on the Local Content Law, justifying this with the need to move forward with a consensual legal framework.
‘Given the complexity and scope of the proposed legislation, the CTA has proposed extending the public consultation period to ensure effective and constructive participation by the main stakeholders, deeper alignment between the relevant actors and the drafting of a consensus proposal that coherently represents the interests of the private sector,’ the Mozambican private sector said in a statement.
Mozambique’s government aims to advance a law that mandates oil and gas companies in the country to procure locally produced goods and services, as well as hire national labour, Lusa reported on Thursday.
“Considering the role of the state in promoting the economic and social development of the country (…) the Local Content Law proposes rules that stakeholders must observe in acquiring goods and services, as well as in hiring and training national labour, when implementing projects within Mozambican territory,” reads the explanatory memorandum to the Local Content Bill to be submitted to parliament.
Various circles, mainly business circles, are now debating the proposal, and the CTA is requesting additional time to gather further opinions on the law, which aims to ensure that megaprojects contract Mozambican goods and services.
In the draft law seen by Lusa on Thursday, the Mozambican government aims for megaprojects to prioritise the acquisition of goods, services, and works produced and provided by Mozambican companies, including the training and development of the national business community.
“The entities covered by this law shall, under the provisions of the petroleum law, concession contracts and other applicable legislation, say that they will hire Mozambican workers for training and transferring knowledge and skills appropriate to the petroleum sector,” the proposal states.
The government’s proposal also suggests the creation of a Local Content Agency, which should be “a legal entity under public law, with administrative, financial and patrimonial autonomy, supervised by the ministry that oversees the oil sector”.
According to the draft law, the agency will regulate local content development, coordinate, manage and supervise its implementation in the oil sector and promote training institutions for Mozambican small and medium-sized enterprises (SMEs).
Mozambique has three approved development projects for the exploration of natural gas reserves in the Rovuma basin, classified among the largest in the world, off the coast of Cabo Delgado.
In addition to these, other major coal exploration projects are underway in the central province of Tete, and natural gas extraction projects are underway in the province of Inhambane, in southern Mozambique.
In April, the Mozambican private sector had already requested the disclosure of areas that may offer opportunities for SMEs in the new gas platform that oil company Eni will develop in the country.
PME/ADB // ADB.
Lusa
