By Mutindi Lydia Jacobs
Hello everyone, welcome to Part 1 of The Energy Explainer: Insights for Namibia on Local Content Series, where I break down what’s happening in Namibia’s energy sector using easy-to-understand analogies.
If you follow me on LinkedIn, you might have noticed that I like to use analogies in my articles to break down concepts. In the context of local content, I like to use the analogy of a neighbour coming into your house to bake a cake in your kitchen.
If they bring their own ingredients, their own chefs, and their own oven, you’re not a partner, you’re just a spectator in your own home. The enforcement of local content in a host country such as Namibia is therefore to guard against this scenario where our neighbours come into our kitchen, bring all their resources with them to bake this cake, and then leave at the completion of this cake without having afforded us any opportunity to learn how to bake or even produce the various ingredients that are required in a cake. Local content ensures that we become equitable partners in the development of this cake.
What is Local Content, Really?
Although there is no universally agreed definition, local content is generally understood as the share of goods, services, labour, and capital in a given project (especially in oil and gas or mining) that are produced, supplied, or employed within the host country, rather than imported.
Local content is essentially a government rule that makes sure big mining or oil projects benefit the local community. Instead of just digging up resources and sending them abroad, these rules require companies to hire local workers, buy from local businesses, and teach new skills. This ensures the wealth stays in the country rather than being exported.
Modern-day local content rules started in the 1970s with Norway and the United Kingdom (UK) during the North Sea oil boom. Instead of just letting companies pump out oil and buy all their equipment from other countries, these governments made rules to connect the oil industry to local businesses.
This forced the industry to use local shipyards, hire local engineers, and build local factories, turning the oil discovery into a boost for the whole country’s economy.
Other countries that have implemented notable local content policies include Brazil, Nigeria, Ghana, Angola, and Trinidad and Tobago.
In the 2000s–2010s, Brazil became known for having very clear and strict “local content” rules in its offshore pre-salt oil projects. These rules enforced that a certain percentage of goods, services, and jobs had to come from Brazilian companies or workers, and they were linked to contracts with Petrobras (the state oil company) and big local industrial projects, such as shipyards and equipment factories.
Nigeria serves as a prominent developing-country example, with its Oil and Gas Industry Content Development Act and the Nigerian Content Development and Monitoring Board pushing for high local-content targets (e.g., 70% by 2027).
Ghana is often cited as a gold standard for transparency and used a phased approach, ensuring that local firms weren’t just given contracts but were mentored to meet global safety standards.
Trinidad and Tobago is also highlighted by the World Bank and Organisation for Economic Co-operation and Development (OECD) as a relatively successful developing-country case where targeted local content measures helped build domestic engineering, fabrication, and service firms linked to the oil and gas sector.
Angola successfully “Angolanized” its workforce, but the challenge remains in the high-capital, high-tech sectors where the barriers to entry for SMEs are still sky-high.
Then there is Guyana, the world’s fastest-growing oil economy. As of 2026, Guyana is aggressively refining its Local Content Act to ensure that Guyanese-owned means 51% voting rights and 75% executive management. Their biggest struggle? Capacity.
When the oil comes fast, the local market often can’t keep up with the technical demands, leading to a “bottleneck” where projects stall because local suppliers aren’t ready.
These international case studies serve as evidence that local content is a globally proven strategy rather than a local experiment. They provide Namibia with a strategic roadmap, offering clear examples of best practices to follow and critical pitfalls to avoid during the implementation of our own local content policy.
From Policy Talk to Real Action
In Namibia, the conversation about local beneficiation and local participation is not new. In the mining sector, the Minerals (Prospecting and Mining) Act of 1992 contains various provisions that allow the Minister of Mines and Energy to prescribe “local content” requirements.
Although not explicitly defined in this Act, there are measures that encourage the use of local goods and services, provided they are of comparable price and quality.
In addition to that, the Minister does have discretionary powers to issue directives aimed at boosting local participation and beneficiation in mining projects.
With the recent finalisation of the National Upstream Petroleum Local Content Policy in March 2025, the government has made it clear that passive participation is over.
Local content is now an explicit mandate, not a suggestion, in our growing oil and gas sector. As we await the formal gazetting of this policy, the expectation is that International Oil Companies (IOCs) and Operators will proactively align their operations to comply with and enforce these transformative provisions.
What Does Local Content Mean for You?
For the average Namibian, local content is not just technical jargon; it is about how much of the oil and gas boom actually turns into jobs, businesses, and skills for Namibians, instead of flying straight out of the country in profits and imports.
Local content will ensure that Namibia’s natural resources translate into household prosperity rather than just industrial activity. For both you and I, it means the difference between watching from the sidelines and being an active participant in the nation’s wealth; it ensures that jobs in engineering, logistics, and catering go to local artisans and youth rather than fly-in and fly-out foreign crews.
By prioritising Namibian-owned businesses and genuine skills transfer, local content transforms the oil and gas sector into a catalyst for stable careers, thriving small businesses, and long-term economic dignity.
Local content is therefore important to every Namibian as it is the primary tool to prevent the resource curse, ensuring that the arrival of energy giants creates a lasting legacy of schools, clinics, and technical expertise that benefits families for generations to come.
Don’t Be a Spectator in Your Own Kitchen
Think back to that cake in your kitchen. Local content isn’t about kicking the neighbours out, but rather about making sure you learn the recipe, grow the ingredients, and bake alongside them so that when the cake is done, your family eats first, and you can bake your own for years to come.
For Namibia, getting this right means turning oil discoveries into real, lasting prosperity for every citizen, not just a sweet smell that fades when the foreigners leave.
Are our local businesses ready to provide the “flour and sugar” for this cake? Join me next week in Part 2: The Readiness Gap – Why Most SMEs Aren’t Ready Yet (and How to Fix It). We’ll explore the bottlenecks holding Namibian businesses back and practical steps to build capacity before the oil flows.
* Beyond my core competencies, I am a published TEDx speaker and author, and I actively engage in public speaking, having presented at numerous national and international energy conferences. Through my newsletters and thought leadership, I simplify Namibia’s oil and gas sector so that anyone can understand, engage, and benefit from it.
