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Mozambique to draw up local content index

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  • The Confederation of Economic Associations of Mozambique (CTA) will start presenting an annual Local Content Index focusing on large companies operating in the country from next year onwards.
  • The intended CTA indicator will measure the degree of local content in Mozambique
  •  Amongst the objectives of this initiative include the evolution of local content in major projects; reactivate the debate on local content in Mozambique, and contribute to the participation of small and medium enterprises (SMEs) in large projects

The Confederation of Economic Associations of Mozambique (CTA) will start presenting an annual Local Content Index focusing on large companies operating in the country from next year onwards.

The intended CTA indicator will measure the degree of local content in Mozambique. Amongst the objectives of this initiative include the evolution of local content in major projects; reactivate the debate on local content in Mozambique, and contribute to the participation of small and medium enterprises (SMEs) in large projects.

The index ratings will be arrived at as the ratio between the value of the goods produced and the services provided in the country for the execution of large project contracts. The total value of the goods used and the services provided for this purpose can be ascertained from the ratio.

 The CTA will survey entrepreneurs on the volume of goods and services purchased locally; the volume of imports of goods and services. It will also take into consideration the total volume of purchases of goods and services; and alsopolicies on hiring national and foreign labour.

The first Local Content Index would cover the years 2019 and 2020 and will be published at the Annual Private Sector Conference (CASP), scheduled for March 2022. Companies which excel  in terms of performance will  be recognized  at the function.

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