'In-Country Value programmes should advance into next phase'

For over a decade, governments in the GCC have been using In-Country Value (ICV) programmes mainly as a means to increase workplace nationalisation. Yet according to leaders from Efficio, the focus should now be shifted to supporting broader transformation and social development agendas.

In the region, In-Country Value programmes were initially setup to help governments achieve their workplace nationalisation strategies. This included the setup of ICV frameworks geared at building ‘national champions’ across key industries such as petrochemicals, oil & gas, mining, and telecommunications.

As it stands, a relatively large part of economic activity is generated by ‘foreign’ resources, with ICV programmes put in place to increase homegrown value creation as the region prepares for a more diversified post-oil economic future.

“Governments in the GCC have historically been global leaders in understanding the value of In-Country Value programmes,” said David Mooney, a Vice President at Efficio and leader of the firm’s MENA business.

“Without question, such programmes have been successful in creating opportunities for new businesses and careers for nationals. The challenge now is to progress these programmes to align with and add value to a wider range of economic and social development ambitions.”

While there already are notable best practice examples of ICV programmes that support the development of local supplier capabilities, a strong investment ecosystem, a future proof-workforce, and more – the next phase is to scale-up such inititivas in order to “further lift the region’s competitiveness and standing at the global stage.”

Adam Forgacs, Director at Efficio and Head of the firm’s ICV Centre of Excellence, said: “Leaders within the GCC understand that ICV policy contributes to their ability and ambition to enable the future economies required to create real diversification.”

“In-Country Value programmes are not only a critical engine to driving competitiveness at the national level, but it also can help sectors and corporates build value.”

Headquartered in London, Efficio is a globally procurement and supply chain consultancy firm. The firm has been active in the MENA region since 2014, and has among others played a major role in the setup of ICV programmes.

“We have worked (and still work) with ministries, government-owned enterprises, investment funds, and other private sector organisations to first develop the national ICV regulation and enablers, and then to establish and implement end-to-end ICV development programmes that incorporate strategic market and workforce development initiatives,” explained Forgacs.

Learning from the best

Mooney and Forgacs said that the firm is now in the process of “taking learnings from best practice countries and companies” and bringing those to the GCC market.

“The next phase is to evolve ICV policies that are a benchmark globally. The countries that achieve this will position their business owners to become industry leaders in the emerging markets predicted to shape this decade and beyond, future proofing their economies by balancing nationalisation and commercial competitiveness,’ said Forgacs.

Mooney added: “We have developed a strong ICV blueprint that can be used by countries and companies in the region – each country and company will have different objectives and targets, and through our deep experience in developing tailored national and company level ICV development programmes we can drive significant value at all levels.”