Engaging the Private Sector for Inclusive Extractive Industries and Sustainable Value Chains in Africa: A Look at Local Content Policy and Practice in Africa

Chapter 23 examines local content (LC) policy patterns, the obstacles that African nations face and the best ways to set the regulations to achieve the intended effects. It investigates how LC may promote growth, expand local industries, assure knowledge transfer, raise local employment rates, limit trade imbalances, promote political stability and generally raise citizens’ socio-economic condition. The chapter focuses on greater detail regarding the policies and practical use of LC as well as the institutional capacity limitations posing a challenge to successful outcomes. It advocates linking LC strategies to a b broader goal of economic change by integrating LC policy with more comprehensive industrial and transformation strategies. Here, the role of various public and private sector actors is examined in generating effective partnerships that go beyond the use of “classic” LC instruments toward sustainable economic transformation.