The government assured this Thursday, March 20, that it is stepping up efforts to strengthen local production and boost industrialisation through state purchases. The assurance was made during the workshop organised by the Confederation of Economic Associations (CTA) on the theme of ‘State Purchases as an Anchor for Production and Industrialisation’, in which experts and industry representatives discussed strategies to ensure greater inclusion of local content in public contracts.
On the occasion, the National Director of Industry, Sidónio dos Santos, stressed that there are already programmes and incentives in place to strengthen national industry. Among the initiatives underway is a ten-year programme that has managed to include 35% local production in supplies to the state, with positive impacts on job creation and an increase in the wage bill. He also pointed out that, in addition to tax incentives, the government has promoted measures to protect strategic sectors, such as cement, which has grown from four to 16 factories in recent years.
Three years after the implementation of the Economic Acceleration Programme, state consumption is still limited and industry accounts for just 8% of Gross Domestic Product (GDP), below the average for industrialised countries. To change the scenario, the speakers proposed that national industry should analyse the state’s consumption needs in detail, in order to mobilise investment and expand production capacity.
In the debate, the CEO of Mota-Engil, Paulo Pereira, emphasised the importance of the construction sector for the economy, pointing out that it generates around 800,000 direct and indirect jobs. Despite the sector’s progress, Pereira warned that buying materials in the country doesn’t always mean that they are produced locally, highlighting the need for greater rigour in the application of Decree no.79/2022, which regulates the contracting of goods and services for public works.
Jayson Carvalho, director of Minerva, pointed out specific challenges in the printing sector and school book production. According to him, the lack of a local paper manufacturing industry increases costs and reduces the competitiveness of national companies. Jayson Carvalho also pointed out that importing raw materials and finished products is often more viable than producing them locally, due to high internal logistics costs.
The National Director of Industry, Sidónio dos Santos, stressed that there are already programmes and incentives in place to strengthen national industry.Among the initiatives underway is a ten-year programme that has managed to integrate 35% local production into supplies to the state, with positive impacts on job creation and an increase in the wage bill.
Another critical point mentioned was the public procurement policy, which often favours foreign companies based on the lowest price, without considering long-term socio-economic impacts. Carvalho argued that the state should create incentives that guarantee the viability of local production, thus benefiting education and the national economy.
The debate also emphasised the need for specific legislation on local content, covering not only the oil and gas sector, but also other strategic areas such as construction, the food industry and the production of hospital materials. The representative of the health sector, Alexandre Fernandes, emphasised that being a supplier to the state can boost small companies, but also drive them into bankruptcy due to challenges such as high interest rates, difficulties in accessing capital and delays in government payments.
Given this scenario, there was consensus that, in addition to the existence of laws and tax incentives, compliance with them is fundamental. Participants stressed the need to guarantee punctual payments from the government, avoid delays that make products more expensive due to high interest rates and promote more favourable conditions for industrialisation.
The debate also emphasised the need for specific legislation on local content, covering not only the oil and gas sector, but also other strategic areas such as construction, the food industry and the production of hospital materials.
The discussion also touched on the importance of innovation and technical training to make national companies more competitive. There was general agreement that, despite existing regulations, more practical support is needed to reduce dependence on imports and strengthen the national economy.
The workshop made it clear that the country’s industrialisation depends on a coordinated approach between the government, industry and investors, in order to transform potential into sustainable economic growth. The effective implementation of the proposed measures could be a decisive step towards consolidating national production as a fundamental pillar of the national economy.
Text: Nário Sixpene
