Saturday, May 4, 2024
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Local Content: Private sector works with government to define minimum values

Following the meetings with the ministers of the economic areas as part of the Public-Private Dialogue (PPD), the CTA’s Natural Resources and Energy Department held a meeting with the Minister of Natural Resources and Energy, Carlos Zacarias, at which the minister assured that work was underway with the Megaprojects to define the minimum investment amounts that should go to the Mozambican private sector.

At the meeting, the follow-up matrix for the XVIII CASP was analyzed, among other points included in the work matrix of the Department. The highlights were the need for a greater response in valuing local content in the value chain and in industry; the cost of financing in the extractive industry; revision of the Decree-Law to rebalance the sector’s competitiveness in the market; management of procurement contracts for local content; greater interaction and participation by the private sector, which could take the form of an online platform for greater transparency in contracts in the oil and gas industry, petroleum products and the extractive industry, among others.

The department also proposed that the National Petroleum Institute (INP) and the Local Content Commission draw up a list of goods and services that the Mozambican private sector could bid to supply.

The Mozambican Chamber of Mines, which was present at the meeting, asked the Minister for flexibility in signing the Memorandum of Understanding between the Chamber and the Ministry of Mineral Resources and Energy, submitted to MIREME for harmonization.
Reacting to the private sector’s concerns, the Minister of Mineral Resources and Energy said that although the Decree does not perfectly define the amount or percentage for Mozambican SMEs, the government is working with the Megaprojects to define the minimum investment amounts that should go to the Mozambican private sector.

He also said that the process had come to a halt because of the political situation, but will soon be resumed together with the concessionaires.
Regarding the procurement process, the Minister said that work is underway with the INP to ensure that the impacts are significant.

The holder of the Mineral Resources and Energy portfolio assured that he would continue to work with the private sector on the implementation of the Electricity Law, above all to ensure that its impact is reflected in the companies.
In addition to the Ministry and the Department of Mineral Resources and Energy, the meeting was attended by the Mozambican Chamber of Mines (CMM), the Association of Fuel Retailers (ARCOMOC), the National Petroleum Institute (INP), the National Hydrocarbons Company (ENH) and the National Mining Institute (INAM).

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