Communication - Presse
Cabo Delgado: Parliamentary Commission Calls on Mining and LNG Companies to Fulfill Social Obligations
“The Government of Cabo Delgado must work with extractive industry and liquefied natural gas (LNG) companies to ensure compliance with their social responsibilities. We worked in the districts of Afungi, Balama, and Montepuez, where we found a lack of adequate infrastructure,” she stressed.
In July, the Government presented a draft law aimed at “obliging” large oil and gas projects to prioritize the procurement of local goods and services, as well as the hiring of local labor. The document, still in preparation for submission to Parliament, seeks to institutionalize so-called “local content,” promoting national industrialization and business capacity-building.
The Executive justified the proposal with the need for new regulations on the procurement of goods and services, hiring, and training of Mozambican workers in megaprojects, highlighting the State’s role in the country’s economic and social development. The bill proposes that local hiring be prioritized, including in contract awards, whenever bids submitted by domestic companies are up to 20% more expensive than those of international competitors, provided that quality standards and responsiveness are met.
The proposal also stipulates that, in the evaluation process for the supply of goods and services, priority should be given to Mozambican Small and Medium Enterprises (SMEs), whose capacities will be assessed before considering other technical and financial criteria.
Mozambique currently has three ongoing megaprojects for natural gas exploration in the Rovuma Basin, off the coast of Cabo Delgado, considered among the largest in the world. These are in addition to coal extraction projects in Tete province and natural gas projects in Inhambane.
