A Survey of the Literature on Local Content Policies in the Oil and Gas Industry in East Africa /

The nascent nature of the oil and gas industry in the region means that these countries would not have the technical and even managerial expertise to meet the demands of the industry. [...] Under section 106 of the Nigerian Oil and Gas Industry Content Development Act, 2010, for instance, the Nigerian content is defined as “the quantum of composite value added to or created in the Nigerian economy by a systematic development of capacity and capabilities through the deliberate utilization of Nigerian human, material resources and services in the Nigerian oil and gas industry”. [...] While section 2 of the draft regulation defines local content as “the use of Kenyan local expertise, goods and services, people, businesses and financing for the systematic development of national capacity and capabilities for the enhancement of the Kenyan economy”, however, section 85 of the petroleum bill requires that “first consideration be given to services provided within the county and good [...] The document contains an explicit definition of local as “[t]he Tanzania Mainland and its people”.49 It defines local content as “[t]he added value brought to the country in the activities of the oil and gas industry in the United Republic of Tanzania through the participation and development of local Tanzanians and local businesses through national labour, technology, goods, services, capital and [...] In addition, the document recognizes the need to develop “local local content”,52 the essence being to give oil and gas companies the “social licence to operate” and to contribute to the growth of local communities to achieve a “mutually beneficial and sustainable” business environment.53 However, it does not require any special preference for the extractive localities or regions over other Tanzan