The resumption of gas megaprojects in Cabo Delgado has reignited the debate about the participation of Mozambican companies. Pedro Silva, Secretary-General of the Local Content Academy, advocates for greater protection of SMEs and inclusive legislation.
New Year, New Members at the Local Content Academy (Enermina)
The Local Content Academy (Enermina), a technical and scientific organization dedicated to the management, development, digitization, and integration of local content in the extractive industry, welcomes new members this year. Secretary-General Pedro Silva argues that this is a moment to reaffirm national ambitions around the empowerment of small and medium-sized enterprises (SMEs), at a time when the country is reconsidering the resumption of major investments in the extractive industry. In practice, Mozambique is undergoing an unprecedented economic transformation, and “the capacity-building of national companies will be decisive to secure opportunities in this new phase of industrial development.”
With the awaited resumption of the gas project led by TotalEnergies, suspended since 2021 due to insecurity in Cabo Delgado, expectations are growing that the participation of national companies will expand, provided there is a robust legal framework and an integrated vision of the role of local content across the provinces.
Enermina Strengthens Activities Through Training and Research
Enermina has intensified its activities through training sessions, dissemination, and publication of studies on the extractive industry. The organization argues that the revision of the Local Content Law should address the country’s economic diversity. Pedro Silva emphasizes that “although national companies have high technical capacity, structural challenges persist related to industrialization, labor safety, certification, and the presence of official representatives of brands and equipment in the national territory.” He believes, however, that “this phase offers a unique opportunity to strengthen competitiveness and achieve greater integration of national labor in major projects.”
A Young Team Leading the Academy
Pedro Silva describes the entry of new members to lead the organization as a significant milestone in consolidating the Academy. The fact that the team is mostly young represents a “decisive step” to energize the sector and enhance its intervention capacity. He reiterates that the country faces “opportunities that rarely repeat themselves, especially for the national business fabric.”
The youth now part of the Academy, he says, “bring motivation, new skills, and greater familiarity with contemporary tools such as artificial intelligence, with the potential to accelerate adaptation processes to global standards.”
This combination can allow national companies to overcome stages that, four years ago, would have required longer learning cycles. Silva highlights that the current context, marked by technological evolution and increasing international competitiveness, “poses new challenges but also creates conditions for Mozambique to make a qualitative leap in how it integrates into megaprojects.”
“Many Multinationals Would Like to Buy Locally, but Mozambique Lacks Factories or Official Representatives to Ensure Consistent Supply”
“The Academy has sought to influence public and political debate through studies and publications, such as the recent book on the extractive industry and local content. At the same time, it maintains dialogue with the government to raise awareness among institutions about the need for legislation that effectively protects Mozambican companies and workers,” he explained.
Resumption of Gas Projects: Expectations for SMEs
The resumption of the natural gas project in Area 1 of the Rovuma Basin, led by TotalEnergies, seems imminent and reignites the debate about the readiness of national companies to supply goods and services to multinationals. The project, valued at tens of billions of dollars, was suspended for about four years due to insecurity in Cabo Delgado but is expected to advance with clearer production schedules, raising particularly high expectations among national businesses.
According to Pedro Silva, national companies “are prepared” and many already have skilled labor, technical knowledge, and certifications required by international standards for quality, safety, and environment. He acknowledges, however, that “there are areas where the country is not yet fully equipped to meet the demands of megaprojects, which is why professional training and the strengthening of technical institutes must be strategic priorities.”
The Secretary-General believes that the four-year delay did not directly harm SMEs, as contexts have changed and technological advances have allowed “national companies to have greater adaptation capacity today.” He maintains that the current context favors faster, more innovative learning, with modern solutions and the availability of new young professionals capable of meeting international standards.
A Law “for the Entire Country”
The discussion about revising the Local Content Law is crucial to ensure mechanisms that strengthen protection and incentives for national companies. The Secretary-General explains that, although work is underway within the government, “the legislation must be carefully and rigorously designed to avoid errors that require frequent revisions.” He argues that “the law cannot be sectoral, nor limited to oil and gas projects: it should cover all provinces and all areas of the economy, including agriculture, tourism, mining, and manufacturing industries.”
Pedro Silva cites the province of Manica dominant, and Inhambane such as Kenmare, Sasol, or gas operators.”
Structural Challenges: Industrialization, Commercial Representation, and Capacity Building
Pedro Silva identifies weak industrialization as one of the main obstacles to increasing local contracting. He explains that “many multinationals would like to buy locally, but Mozambique lacks factories or official representatives capable of ensuring consistent and internationally certified supply.” He cites the case of Sasol, which imports various products from the United States and South Africa due to the absence of national production or authorized representatives.
The same limitation applies to Kenmare, which purchases between US$ 70 and 73 million annually from national companies but would buy more if capable suppliers existed. To address this gap, the Academy’s leader advocates “an integrated strategy combining technical training, certification, industrial investment, and partnerships between national and foreign companies.”
Pedro Silva also commented on the Mozal case, a company that announced the possibility of leaving the country if a solution for electricity supply is not found by March next year. While acknowledging that the situation has created uncertainty for national companies, he believes common sense will prevail and the parties will reach an agreement that safeguards national interests.
Silva emphasizes: “The country cannot allow massive job losses,” but also notes that “multinationals cannot demand unlimited and permanent benefits.” For him, the essential point is that “negotiations preserve balance and ensure that Mozambicans remain the main beneficiaries of the projects established in the country.”
An Agenda for the Future of Local Content
Pedro Silva’s vision points to a national, inclusive, and structured approach to local content. “The Academy intends to continue supporting the government in policy formulation, SME capacity building, and promoting debates that stimulate industrialization and sustainable growth,” he explains. According to him, the success of local content will depend on the collective ability to turn historical challenges into opportunities, creating an ecosystem in which national companies can compete, prosper, and actively participate in the country’s economic development.
Text: Nário Sixpene • Photo: D.R.
