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Primer: Local Content

  • Briefing

  • 27 April 2015

Extractive projects also have the potential to generate benefits for local communities through employment and the demand for goods and services.


  • Local content is the value that an extraction project brings to the local, regional or national economy beyond the resource revenues.
  • Countries can encourage local content through requirements and targets written in national laws and individual contracts.
  • Producing strong local content results can be very difficult because of the technical requirements of the industry.
  • Companies should have open and transparent procurement procedures to avoid the opportunity for corruption and cronyism.
  • Governments wanting to improve local content need to understand associated costs and challenges such as potential loss in company profits resulting in reduced revenue, inflation and corruption.