As French and African leaders gather on
The African Energy Chamber ("AEC") recognizes
"We are encouraged by the meeting between
"We should not forget that
Hope and certainty is needed now more than ever for local companies and everyday people to be part of the gas projects, that have suffered unimaginable losses at the hands of the terrorists.
The oil and gas industry has a much more significant role to play in making sure that the projects have lasting stability. We have to rethink how we have been operating as an industry regarding the use of domestic gas. The declaration that there is an availability of domestic gas for Mozambique’s economic development is not sufficient. The energy sector should work with government on the right pricing for domestic gas that creates local petrochemical industries that outperform their competition. This would create a much more lasting effect in
To increase the effect in the Mozambican economy, the way we manage local content should also be addressed. We should consider results based local content programs and maybe have some set aside programs that are more inclusive of the population of Cabo Delgado. Such programs should include training and development and entrepreneurial drive to open doors of opportunity to everybody. We in the energy industry must seriously rethink the way these programs are being developed, as they could be an excellent solution for the security issues in Cabo Delgado. More qualified jobs mean fewer disqualified criminals. Mozambicans can no longer be the last hired and the first fired. We should strive to give this opportunity to everybody. We must protect the contracts of local companies during this period of force majeure and also workers. Mozambican workers and service companies do have rent, school fees, loans, and other engagements and we must be sensitive not to continue being that industry of that past that does not care about people. At the end of the day, it is their resources that our industry is extracting.
The multilateral institutions and the energy industry should take advantage of this force majeure suspension period to work with the government to create a rapid and immediate program that will develop indigenous Mozambican companies to develop their technical, financial, and administrative capabilities so they can add actual value to the energy projects. We have witnessed multiple cases where indigenous companies are left behind due to the lack of capabilities, but the fact is, they never stood a chance in the first place. It is imperative for the transfer of technology and training to occur. This period of force majeure should not be a signal to go to sleep. On the contrary, it should be a wake-up call for capacity building of local companies. This way, when the project resumes (which it will), these companies will be capable of providing higher quality services, further accelerating and supporting the growth of the Mozambican economy.
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