At least 30% of the concessionaires' contracts in the oil and gas industry are expected to be held by Mozambican Micro, Small and Medium Enterprises (MSMEs), according to forecasts from the Ministry of Mineral Resources and Energy (MIREME).

Manuel Sithole from the National Petroleum Institute (INP), who was speaking last week at the international MSME fair in Maputo, stressed the need to regulate the mandatory use of local content in order to ensure the participation of SMEs in gas projects.

"The Government's challenge is that, in the first phase, we have 20% of hiring, and the medium term goal is to reach 30 %," explained Manuel Sithole.

Meanwhile, at the same event, the vice-minister of Economy and Finance, Milton Tivane, assured that within a few weeks the Government will consider the proposed Local Content Law.

Manuel Sithole, recognizes, however, that Mozambican MSMEs still face challenges linked to their administrative structure and production quality.

"Our companies still have problems with financial management, systems, environment, qualified human resources, occupational health and safety, insurance, licenses for the development of specific activities and financial capacity," detailed, Sithole, having said that these are the main elements that have hindered the approval of MSMEs in oil and gas megaprojects.