During the 5th edition of the Indico Conferences, under the theme “Insurance Market and the Extractive Industry: Prospects for the Benefit of Local Content in Mozambique”, Denise Cortês-Keyser, consultant and advisor for Africa at the Global Gas Centre in Geneva, presented an incisive and strategic vision of the dynamics of the extractive industry in Mozambique. Her analysis covered the crucial role of technology, social inclusion and the sustainable management of natural resources for economic development.
The Challenge of Local Inclusion in the Value Chain
Denise Cortês-Keyser stressed that for extractive industries to truly benefit the economic development of countries like Mozambique, it is essential that multinationals adjust to local realities. “If we don’t create the conditions to integrate local communities and companies into value chains, we are perpetuating an exclusionary growth model,” she said.
According to the African Development Bank (2021), most African countries rich in natural resources face similar challenges: while extractive industries boost GDP, the economic and social impact is often uneven, with local communities left on the sidelines, even where these resources are being exploited.
A report by the Open Society Foundations also highlighted that the lack of transparency and inclusion of communities in decision-making has contributed to increasing inequalities in countries rich in natural resources, such as Mozambique.
For Denise Cortês-Keyser, the solution lies in creating a robust and competitive private sector, capable of inserting itself significantly into the supply chains of large international corporations. She reiterated the need to strengthen local companies so that they can compete on an equal footing with international suppliers.
“Our strategy cannot just be to extract resources and sell them. We have to transform these resources locally, creating a value chain that involves all levels of society,” she stressed. Denise Cortês-Keyser’s criticism points to the lack of integration of local suppliers, a problem that is reflected in the difficulty in scaling up small and medium-sized enterprises (SMEs) and the exclusion of a large part of the population from economic benefits.
Technical Training: The Key to Added Value
One of the central themes addressed was the need to build the technical capacity of local companies so that they can take full advantage of the potential of natural resources. Mozambique, rich in natural gas reserves, has the opportunity to become one of the world’s largest exporters of liquefied gas, but to do so it needs to ensure that added value remains within its borders. “Without technical training and innovation, we will only continue to extract resources for others to benefit from,” he warned.
Studies by Oxford Policy Management (2020) indicate that without a substantial increase in investment in technical training and innovation, Mozambique runs the risk of being just an exporter of raw materials, without taking advantage of the gains of a more complex value chain. The report points to the importance of developing transformation industries linked to the energy sector, such as gas refineries or petrochemical industries, which could multiply jobs and generate more local wealth.
“Local transformation is not just a question of economic growth, but of sovereignty and self-determination. We need to control the fate of our resources,” he said, stressing the importance of an integrated national strategy that prioritizes technical training and the creation of high-skilled jobs in the energy sector.
An Inclusive Business Environment: Policies for SMEs and Local Communities
Denise Cortês-Keyser also highlighted the fundamental role of public policies that foster an inclusive business environment. “Special Economic Zones (SEZs) are a crucial opportunity for local SMEs to compete and grow. However, without structured support, many of these companies are unable to access the opportunities that SEZs offer,” she warned.
For Denise, access to capital, the creation of financial products and services tailored to local and community businesses, as well as high interest rates are some of the main obstacles faced by Mozambican SMEs. A report by the Confederation of Economic Associations of Mozambique (CTA, 2022) shows that only 15% of Mozambican SMEs are currently integrated into the value chains of the extractive industry. This reflects the untapped potential of these companies, whose inclusion is vital for sustainable development.
The Mo Ibrahim Foundation (2021) also recognizes that SME development is one of the most important pillars for Africa’s industrialization and sustainable economic growth, but that it is often neglected in the most capital-intensive sectors, such as the extractive sector.
In addition, Denise pointed out that there is a need for multinationals to share their procurement plans in time for local companies to prepare and form strategic partnerships. “Multinationals should communicate their procurement plans in a more transparent and timely manner, allowing local companies time to prepare and compete on a level playing field,” she said.
Democratization and Social Inclusion: A Path to Equity
Another crucial point in Denise’s speech was the need to democratize decision-making processes in the extractive industry, involving local communities more effectively. “How often do we see local communities being excluded from major economic decisions that affect their lives? Inclusion must be transversal to all levels of the value chain, and not limited to peripheral tasks,” he said.
Gender equality was another theme strongly emphasized. Denise cited the example of Folorunsho Alakija, Africa’s richest businesswoman, as a symbol of what can be achieved when structural barriers to access to the extractive industry value chain for women are eliminated. However, she warned that in many African countries, women are still under-represented in leadership positions, technical and professional training and access to capital, particularly in male-dominated sectors such as energy and natural resources.
On the issue of leadership, according to the World Economic Forum’s Global Gender Inequality Report (2022), women represent less than 10% of leadership positions in the extractive industry in Africa, reflecting the urgent need for policies that promote gender inclusion.
A Sustainable Future: Technology, Partnerships and Respect for Communities
In her vision for the future, Denise Cortês-Keyser argued that the success of the extractive sector in Mozambique will depend on a combination of factors: the appropriate use of technology, the strengthening of partnerships between the government, the local private sector and investors, and, above all, respect for the rights of local communities. “Sustainable development will only be possible if we respect the people who live in the areas where the resources are extracted and ensure that the benefits of growth reach everyone,” she concluded.
She reiterated that the key to the success of the extractive industry in Mozambique lies in effective collaboration between stakeholders, with a focus on the inclusion and empowerment of SMEs, gender equity and the creation of public policies that stimulate an inclusive business environment. “If we continue to ignore the voices of local communities, we are compromising the future of the entire industry,” he said with conviction.
Conclusion
Denise Cortês-Keyser presented a clear and strategic vision for the future of the extractive industry in Mozambique: a future where local communities, SMEs, women and leaders are empowered to participate at all levels of the value chain. Success, according to her, involves a profound transformation in public policies, a change in mentality on the part of the senior managers of these large companies, investment in innovation and the creation of a truly inclusive business environment. “Sustainable development in Mozambique will be built on the foundations of inclusion and empowerment, or it won’t be,” she concluded.
About Denise Cortês-Keyser
Denise Cortês-Keyser is a distinguished Mozambican Entrepreneur, Finance and Investment Consultant, as well as an International Public and Motivational Speaker, with almost 25 years of invaluable experience. With a background as a Chartered Accountant and a degree in Management, along with a post-graduate degree in Corporate Finance and certification in Sustainable Supply Chain Management from Cambridge University’s Institute of Sustainable Leadership (CISL), Denise is well equipped to drive success in any business or organization.
Her impressive track record includes serving as Vice President for Studies, Projects and Marketing Board of the Mozambican Football Federation, demonstrating her aptitude for strategic leadership roles. In addition, Denise holds a key position as a member of the Advisory Board of Operation Water, an American non-profit organization dedicated to providing access to water for rural communities in Africa.
Follow Denise’s career through her LinkedIN page: Denise Cortês-Keyser
