Local content in Tanzania: Are local suppliers motivated to improve?

Local Content

“…It is crucial that this responsibility is clarified, as the government can fulfil several important roles in promoting local content. It can increase local firm participation by ensuring that all stakeholders are aware of the local content mandates and that MNCs have information about the quality and skills of local suppliers, and by providing local firms with information about the needs of MNCs (Calignano and Vaaland 2018;Hansen et al 2015). One effort towards this goal has been the establishment of a Common Qualification System in the 2017 Petroleum Local Content Regulations, which is a database containing details of local suppliers approved by the government .…”

Optimal local content for extractive industries: How can policies best create benefits for Tanzania?

“…If a firm cannot source locally available goods and services, they must be purchased from a firm in a joint venture with a Tanzanian company, in which the Tanzanian company has at least a 25 per cent share. To enforce these requirements, the act stipulates that MNCs provide a detailed local supplier development programme (Calignano and Vaaland 2018). The act also states that the government can revoke a firm's licence if it consistently fails to comply with approved local content plans (Lange and Kinyondo 2016).…”

“…It is crucial that this responsibility is clarified, as the government can fulfil several important roles in promoting local content. It can increase local firm participation by ensuring that all stakeholders are aware of the local content mandates, that MNCs have information about the quality and skills of local suppliers, and providing local firms with information about the needs of MNCs (Calignano and Vaaland 2018;Hansen et al 2015). One effort towards this goal has been the establishment of a Common Qualification System in the 2017 Petroleum Local Content Regulations, which is a database containing details of local suppliers approved by the government (Woodroffe et al 2017).…”

Exploring local content in Guinea's bauxite sector: Obstacles, opportunities and future trajectories

“…Firstly, policies designed to channel more benefits to host communities are often poorly designed and do not always map on to local-level realities on the ground. For example, LCPs, although now a common requirement in most agreements with mining companies, have been widely criticised for their difficult and ineffective implementation, as well as their limited capacity to address the structural limits of extractive impacts (Calignano and Vaaland 2018;Geenen 2019;Lange and Kinyondo 2016;Lebdioui 2019;Macatangay 2016;Nwapi 2015;Ovadia 2014). Moreover, the effectiveness of the main catalysts which can potentially stimulate local-level developmentfor example, taxes and royalties, linkages and spillovers, and CSRvary widely by context and are often controversial in terms of their implementation and effectiveness (Bebbington 2013).…”