Service companies are emerging as a powerful catalyst for strengthening local content in Africa’s energy sector, industry leaders said at the recent Wider African Energy Summit held in Aberdeen in partnership with the African Energy Chamber.
While oil and gas development in Africa has traditionally centred on upstream activities, a shift is now underway, with many countries investing in mid- and downstream infrastructure to boost trade, improve fuel access and build stronger domestic markets. This transition is opening new commercial opportunities for service companies while expanding possibilities for local job creation, supplier participation, workforce development and technology transfer.
In a presentation at the summit, Ileana Ferber, CEO and Founder of Colibri Business Development LLC, noted that service providers are well positioned to bridge the gap between operators and suppliers, enabling more Africans to participate across the energy value chain.
“Service companies can become a key enabler of local content in Africa,” Ferber said. “As the sector grows, there are a lot of opportunities for service companies. Service companies are the bridge between operators and suppliers.”
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Ferber highlighted several essential pillars of effective local content – including developing supplier capacity, investing in skills training, and creating pathways for technology transfer and research. She stressed that enhancing both technical and soft skills would help local firms meet industry standards and build long-term competitiveness.
Across the continent, governments are putting new regulations and frameworks in place to ensure local participation in energy projects. However, Ferber pointed out that some policies lack sufficient industry collaboration, which may lead to unrealistic targets or expectations that do not align with local capabilities or project timelines.
“Local content requirements can be prescriptive, with minimum engagement with the industry,” she said. “They can feature unrealistic targets that exceed local capability and skills. They can also be unfeasible in certain project phases.”
Nevertheless, she described significant upside when policies are well aligned with market realities.
“Local content requirements can develop infrastructure to strengthen the economy, create incentives to develop other industrial sectors and enable programs to support SMEs and underrepresented groups.”
As Africa’s energy landscape evolves, stakeholders at the summit agreed that service companies will continue to play a critical role in expanding local participation and ensuring the sector delivers long-term economic benefits for communities across the continent.