Local content is the value that an extraction project brings to the local, regional or national economy beyond the resource revenues. Some countries encourage local content through requirements and targets written in laws, statutes and contracts.
Part of local content policy involves uplifting skills of locals to reduce the country’s dependence on skilled expatriates especially in industry trade crafts, particularly in countries with high unemployment rates
Local content laws, policies and contracts are implemented through:
Quotas embedded in laws, regulations or contracts, are provisions to require
companies to award a certain percentage of hires, contracts or equity ownership to
local companies or professionals.
Training program requirements or incentives aimed at requiring or encouraging foreign companies to build the skills of the domestic workforce.
Public education initiatives, wherein the state opens training centers, establishes
programs or organizes overseas scholarships to build a cadre of expertise in sectors
with strategic links to oil and minerals.
Incentives for small business development which include fostering better access to
credit for small business owners or opening business incubation centers.
Processing and production of derivative products which can capture significant economic benefits if done domestically but also can be expensive and complicated to construct.
GCI’s local content policy targets mainly skills development to develop local professional service providers in infrastructre – as a Social Impact Developer, GCI is then able to compound its positive social impact by creating local jobs.