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Gaining a foothold in global markets is no longer enough to guarantee healthy economic growth. As global market instability, supply chain uncertainties, changing consumer demands, national security requirements, and other challenges increasingly disrupt local economies, the need to invest in in-country value creation is more pressing than ever. Strategic localisation – or the procurement of, investment in, and development of locally produced goods, services, and labor – is emerging as an essential component to boosting growth, fostering innovation, creating jobs, and strengthening self-reliance. By investing in local content initiatives that are built on a backbone of innovation to deliver sustained downstream advantages, governments will be better positioned to cushion their economies with diversity and resiliency.
Working together, Strategy& and PwC support public and private entities in the development and implementation of local content agendas. From oil & gas to banking, from supply chain operations to cloud computing, from Indonesia or Kazakhstan to Brazil to the GCC, our team has leveraged our unique framework and strategy to deliver more than 50 diverse local content projects worldwide. Our team has a deep understanding of the local content challenges and opportunities that are distinct to the region.
Our local content framework helps decision makers drive local content across the public and private sectors. The framework consists of the key elements required to execute a successful implementation strategy, including the following components. Hover over each to explore it further!
Our local content framework helps decision makers drive local content across the public and private sectors. The framework consists of the key elements required to execute a successful implementation strategy, including the following components.
Articulate the strategy
Identify the best means to achieve it:
Procurement and investment
Identify the best means to achieve it:
Capacity development
Identify the best means to achieve it:
Business environment
Build the operating model to enact it
Our work in the region includes local-content initiatives with a GCC ministry of energy, a major GCC chemicals company, and a GCC renewable energy authority, among many others.
A state-owned GCC chemicals company embarked on a mission to use its molecules, procurement power, job-training capabilities, and financing power to boost local job creation, grow national GDP, and improve quality of life. PwC-Strategy& was retained by the company to provide end-to-end design and implementation support of its local content strategy and program.
Our team defined a mission-oriented and capability-driven local content growth strategy focused on fully leveraging the company’s key capabilities and strengths. This flagship local content program included a detailed operating model for a local content unit to strategically guide the company’s efforts and a built-in investor value proposition to attract new capital. More than 100 investment opportunities have graduated from the local content program, creating an estimated value of USD$1 billion.
A state-owned GCC petrochemicals company retained PwC-Strategy& to design a local content and investment attraction program with downstream value creation potential.
The team focused on four key objectives for the client – the localisation of materials, new downstream business opportunities, workforce development, and foreign investment attraction – to define priority local content segments. These segments included specialty coatings and plastic additives as well as a holistic investor value proposition for the petrochemicals company.
A newly established ministry was mandated by the government to develop and launch a national in-country value (ICV) program to support the national industrialization agenda to grow local-value add, boost industrial exports, and support local job creation. The ministry retained the support of PwC-Strategy& to develop a national ICV program strategy, operating model, and implementation roadmap.
PwC-Strategy& assessed the economic impact of the ICV strategy and supported the rollout of the flagship ICV programs (e.g., procurement spend localisation).
A global oilfield services company needed to adapt its strategies to meet local content requirements, especially in the oil and gas sector. The company partnered with PwC-Strategy& to identify growth opportunities in two markets and identify potential joint-venture opportunities.
The team developed a local content framework to help the client develop a country-specific growth strategy and identified key local content drivers. PwC-Strategy& also recommended product lines with significant potential for growth and identified potential joint-venture opportunities with smaller/regional players.
A major GCC national oil company (NOC) retained PwC-Strategy& to establish an energy sector local content program. PwC-Strategy& designed the local content strategy and integrated the local content program into the NOC’s procurement function and across the country’s energy sector.
One of the key highlights was the design and rollout of a best-in-class ICV digital portal and website, which streamlined interactions between various stakeholders (client, energy companies, auditors, suppliers, and certifiers). PwC-Strategy& mobilized a team of local content and digital experts to provide in-depth expertise in local content reporting and certification and dynamic real-time digital portals/dashboards.
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