Angolan Local Content policies aim to protect the domestic market for products and services for the oil and gas industry, invoking the infant industries argument. Local Content rules broadly aim to promote:
Companies should have a work force consisting of at least 70% Angolan nationals. This aspect is also referred to as Angolanization. Oil companies have an obligation to submit an Angolanization plan to the Ministry of Petroleum annually, detailing how they plan to achieve their targets.
Oil companies are expected to source certain products and services exclusively from Angolan companies; meaning companies with majority Angolan ownership. These are activities that do not require a high amount of capital or know-how. Provision of certain other products and services is open to international companies in association with an Angolan company, or in exceptional cases, fully foreign owned companies.
Other rules are aimed at promoting investment in industry and services. A 10% price preference for local companies is meant to stimulate local production. Another example are the new exchange rules for the Oil & Gas sector, which will give a boost to the local banking sector.
Overview of the most important legislation on Local Content and their main implications:
(visit Useful Info to download English translations of the laws)