Meeting in plenary, the members of the National Transitional Council (NTC) adopted an ordinary law dated September 22, 2022 on Local Content in the Republic of Guinea.
The L/2022/0010/CNT law "establishes the legal framework for local content in public projects, regardless of how they are carried out, or in projects carried out by private sector operators on their own behalf in the Republic of Guinea".
Whereas previously local content was applied at the discretion of operators, now its requirements are clearly defined in this 17-page law. Thus, apart from local micro, small and medium enterprises, all enterprises, whether local or foreign, are subject to the requirements of the local content law.
New requirements for more jobs
Among the objectives of this law is the desire to increase the participation of the domestic private sector in projects developed in Guinea while maintaining the country's attractiveness for international investment. There is also a desire to develop the skills and competencies of Guinean workers so that they can access a wide range of positions in companies running projects in Guinea. In this regard, the law provides for minimum quotas for each category of employees:
For managers, it is required to employ Guineans up to 30% of the staff including the director of human resources from the beginning of activities, 40% from the fourth year of activity and 50% from the seventh.
For supervisors, 25% of the staff must be Guineans from the start of operations, 40% from the fourth year of operation and 70% from the seventh.
For skilled workers, it is required to employ Guineans up to 50% of the staff from the beginning of the activities, 70% from the fourth year and 85% from the seventh year.
Finally, as far as unskilled workers are concerned, it is required that 100% of the staff be Guineans from the start of operations.
A new body to ensure the application of local content
In order to facilitate the implementation of this law, the Local Content Regulation and Control Authority (ARCCL) was created, reporting directly to the presidency of the Republic of Guinea. It is responsible for regulating and monitoring local content in projects developed in the country.
The requirements of the local content law are taken into account in the examination and processing of applications for exploration or exploitation permits, as well as applications for authorizations or licenses submitted by operators. Non-compliance with the local content law is subject to penalties ranging from financial penalties, to non-renewal of the permit, license or authorization, withdrawal, and even to termination of the contract.
If we can approve the adoption of this law, the real challenge lies in its correct and systematic application if we take into account the need for prior upgrading of local companies and skills in order to meet the needs of international projects.