Local content

Local content, local value

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.

The Strategy&-PwC local content framework

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

• We develop a rigorous program outline with ambitious yet realistic targets that is in line with the national strategy.
• We assist governing bodies in setting up local content incentives and metrics, and we ensure coordination between stakeholders.
• We identify investment opportunities that capitalize on the competitive advantages of each region.

Identify the best means to achieve it:
Procurement and investment

• We help decision-makers realize local content growth aspirations by focusing on localising procurement spend and increasing local content of the supply chain.
• We revise procurement policy and processes to align with local content goals.
• We aggregate the demand of products and services at the right level of granularity.
• We identify potential anchor companies and design, activate, and manage an investment engine that covers the end-to-end investor journey from opportunity identification to business case to funding to operations support.

Identify the best means to achieve it:
Capacity development

• We evaluate existing talent development infrastructure and identify areas where additional training and certifications are needed to support the local content agenda.
• We operate structured supplier development programs to equip SME suppliers to compete for large procurement contracts, including certification support and skills development.
• We evaluate the local capacity for research and development and innovation and work to attract investment in new technologies and enable technology localisation.

Identify the best means to achieve it:
Business environment

• We provide a framework to boost local competitive advantage and improve the ease of doing business.
• We design and implement initiatives aimed at improving the ease of doing business for companies and investors (e.g., one-stop-shop services for investors).
• We provide access to world-class local infrastructure (e.g., integrated industrial and logistic clusters, IT infrastructure).
• We develop strategies for sharing infrastructure investment costs.
• We design and implement a tailored and holistic fiscal incentive program, including tax benefits, to attract investors.

Build the operating model to enact it

• We evaluate existing talent development infrastructure and identify areas where additional training and certifications are needed to support the local content agenda.
• We operate structured supplier development programs to equip SME suppliers to compete for large procurement contracts, including certification support and skills development.
• We evaluate the local capacity for research and development and innovation and work to attract investment in new technologies and enable technology localisation.