Communication - Presse
EUROCAM puts Mozambican companies in Cabo Delgado under the spotlight
EUROCAM; the Association of European Entrepreneurs in Mozambique, started a series of debates that should culminate in concrete interventions in the definition of priorities to be developed by companies in Cabo Delgado. It is the race for a privileged place in the gas business. The critical points have already been identified.
For quite some time now, the Association of European Entrepreneurs in Mozambique (EUROCAM) has expressed an interest in supporting national companies to explore the opportunities that will be created by the large gas exploitation projects in Cabo Delgado, advocating a swift approval of the Local Content Law.
To this end, the first step taken by EUROCAM is the periodic holding of several round tables, all taking place in that province, in which all stakeholders must participate, including civil society organisations. This is an initiative similar to the one being carried out by the +Emprego project, under the management of Camões – Instituto de Cooperação e da Língua and funded by the European Union (EU), whose goal is to increase the economic opportunities of the population of Cabo Delgado, particularly for young people, contributing to improving access to decent work and income in activities directly or indirectly related to the natural gas industry.
But, in the case of EUROCAM, it will directly involve European companies, which have an important weight in the structure of external investment in Mozambique – there are more than 60 billion US dollars invested between 2018 and 2022, according to data from that organisation.
At the first round table, held recently in Pemba under the theme “Opportunities and Challenges of Implementing Investments and Programs for the Development of Local Content”, local companies from different branches of activity presented several difficulties related to the lack of certification, access to capital funding at affordable costs and the delay in approving the Local Content Law, an instrument that would ensure the protection of its interests in connection with multinationals.
The discussions resulted in several important recommendations that must be taken as priorities, and on which EUROCAM’s intervention in supporting companies in Cabo Delgado should be guided.
Changes at all levels
EUROCAM guarantees that throughout this year there will be more debate sessions to harmonise ideas and put into practice the recommendations raised and they are not few.
The first issue raised is the need to clarify the development strategy of port logistics in Pemba, since the current situation, in addition to being chaotic, delays the development of this important component and compromises the province’s participation in logistics operations. Within the framework of inter-institutional cooperation, EUROCAM and the Confederation of Economic Associations of Mozambique (CTA – the main business organisation in the country) assume the responsibility of lobbying for Mozambican companies, approaching multinationals to ensure that national companies have an effective participation in the supply of goods and services to oil and gas projects.
EUROCAM is also committed to cooperating in mobilising financial resources for projects that contribute to consolidating and expanding the province’s logistics base, as well as for companies.
In view of the weak situation of the business fabric, resulting both from the situation of terrorism and extreme natural events, it is recommended that the Tax Authority (AT) and the CTA continue to disclose the tax measures taken by the Government for the benefit of the affected companies.
As for the Local Content Law, it is recognized that this could be an instrument that binds multinationals to its provisions, but it will not have retroactive effects for already approved projects, so the focus should be given to the programs of companies/projects already approved that the CTA portfolio carries out regular monitoring.
EUROCAM also takes on the role of expanding the work of mapping European companies with a view to including that of national companies in Cabo Delgado which hold certification and are able to participate in tenders for the supply of goods and services to multinationals.
Having identified the critical points that will ensure the intervention of European companies in supporting Local Content, it remains to wait for the subsequent steps to be taken and duly defined, in the coming months, in this race that has already lost the possibility of anticipating the start of gas exploitation, but which many believe can still work.
