10 Local Content Policies in the Energy Transition Era …
335
Lamu Port and Lamu-Southern Sudan-Ethiopia Transport Corridor such
projects are vital for the region’s growth.
Thus a regional content policy should identify the stakeholders, create
a platform for stakeholder engagement, adopt, synchronize and harmonize local content policies into the region, compare and contrast the
regional content policy from international best practice as well as developing a regional content unit that evaluates and monitors regional
content development in the East African region. A regional content
policy is the best local content policy option for Kenya, Tanzania and
Uganda; the policy is more principle-based and non-protectionist against
foreign investors.
10.9 Conclusion
The Norwegian and Brazilian domestic economy have similar features
in that they can absorb the foreign direct investment from the oil and
gas industry and efficiently leverage their competitive advantages for
the development of the whole economy. Due to the high demand of
governmental control especially when oil and gas prices in the international market both Norway and Brazil created national oil companies
that had the monopoly share of the market, both countries introduced
local content policies as a means of governmental control and intervention into the oil and gas sector, both countries advocated for provisions
for the training of domestic workforce as well as technology transfer from
foreign investors to domestic suppliers. However, the policy design was
dependent on the individual Country’s ability to enforce and monitor
the policy as well as the peculiar conditions prevailing in the domestic
economy, and this has been a pivotal aspect in local content success in
both Norway and Brazil.
It should be noted that leading local content countries such as Nigeria
and Angola who have been the pioneers in the oil and gas industry in
Sub-Saharan Africa (SSA) have truly failed to implement credible policies
such as those of Norway and Brazil regardless of the fact that all these
335
Lamu Port and Lamu-Southern Sudan-Ethiopia Transport Corridor such
projects are vital for the region’s growth.
Thus a regional content policy should identify the stakeholders, create
a platform for stakeholder engagement, adopt, synchronize and harmonize local content policies into the region, compare and contrast the
regional content policy from international best practice as well as developing a regional content unit that evaluates and monitors regional
content development in the East African region. A regional content
policy is the best local content policy option for Kenya, Tanzania and
Uganda; the policy is more principle-based and non-protectionist against
foreign investors.
10.9 Conclusion
The Norwegian and Brazilian domestic economy have similar features
in that they can absorb the foreign direct investment from the oil and
gas industry and efficiently leverage their competitive advantages for
the development of the whole economy. Due to the high demand of
governmental control especially when oil and gas prices in the international market both Norway and Brazil created national oil companies
that had the monopoly share of the market, both countries introduced
local content policies as a means of governmental control and intervention into the oil and gas sector, both countries advocated for provisions
for the training of domestic workforce as well as technology transfer from
foreign investors to domestic suppliers. However, the policy design was
dependent on the individual Country’s ability to enforce and monitor
the policy as well as the peculiar conditions prevailing in the domestic
economy, and this has been a pivotal aspect in local content success in
both Norway and Brazil.
It should be noted that leading local content countries such as Nigeria
and Angola who have been the pioneers in the oil and gas industry in
Sub-Saharan Africa (SSA) have truly failed to implement credible policies
such as those of Norway and Brazil regardless of the fact that all these