Global service companies were spotlighted as key drivers of local content development in Africa during the recent Wider African Energy Summit in Aberdeen, held in partnership with the African Energy Chamber.
A central theme of the summit was the importance of local content in driving economic growth across the continent. As Africa’s oil and gas value chain continues to evolve, opportunities for service companies to expand and reinforce local content development are becoming increasingly evident. This was highlighted in a presentation delivered by Ileana Ferber, CEO and Founder of Colibri Business Development LLC.
“Service companies can become a key enabler of local content in Africa. In addition to upstream opportunities, we have significant prospects in midstream infrastructure. As the sector grows, service companies play a crucial role. They are the bridge between operators and suppliers,” Ferber said.
While Africa’s oil and gas sector has traditionally focused on upstream operations, many countries are now shifting their attention toward midstream and downstream infrastructure. This shift aims to strengthen regional trade, improve fuel access, and support domestic market development. As a result, new business opportunities have emerged for service companies creating openings for local content development through job creation, supplier engagement, workforce training, and technology transfer.
“There are different elements associated with local content. We want to train people in both soft and hard skills; we want to enhance supplier development to ensure companies have the capabilities to meet industry standards; and we want technology transfer that strengthens tacit knowledge, know-how, and research and development,” Ferber explained.
Many African nations have implemented local content regulations to expand economic opportunities for their citizens. However, Ferber noted that some challenges persist, particularly regarding policy design and coordination.
“Local content requirements can be prescriptive, with minimal engagement from industry. They may include unrealistic targets that exceed local capability and skills, or they may be unfeasible during certain phases of a project,” she said.
Despite these challenges, Ferber emphasized that strong local content policies can deliver long-term benefits. “Local content requirements can help develop infrastructure that strengthens the economy, create incentives to grow other industrial sectors, and enable programs that support SMEs and underrepresented groups,” she added.
