The dual nature of local content in Angola's oil and gas industry: development vs. elite accumulation

Abstract

After decades of underdevelopment and conflict in the face of massive resource wealth, Angola is putting in place new strategies to dramatically increase its participation in its oil & gas and related services sectors. Although ‘local content’, or ‘Angolanização’, has been in place for decades, it has largely failed to increase the developmental benefits accruing from the country's resource wealth. The new local content push is likely to succeed at promoting economic growth. However, the policies have also become important mechanisms for unequal growth and new forms of elite accumulation. This paper reviews the historical context, legal framework, and current impact of local content in order to emphasise their dual role in creating development while concentrating elite power in Angola.