However, stakeholders emphasise the need to address challenges related to taxation, technology, and skills development to unlock the sector’s full potential.
With 14 451 people currently employed in the industry—90% of whom are Ugandans—this sector is set to become a cornerstone of Uganda's economic future.
The Chief Executive of the Uganda Chamber of Mines and Petroleum, Humphrey Asiimwe, highlights the significant strides already made in local participation.
Of the current workforce, 4 483 employees hail from communities hosting oil and gas operations. As the sector matures, its peak is expected to create 160 000 jobs, a testament to its transformative impact.
Asiimwe notes that Ugandan companies are reaping benefits through contracts in logistics, hospitality, agriculture, and manpower services.
“Up to September this year, approximately $2.1 billion worth of business has been awarded to Ugandan companies,” he states, underlining the economic ripple effect beyond the energy sector.
The ongoing construction phase is a prelude to the production phase, during which the government anticipates increased tax revenues and broader regional trade opportunities once refined products hit the market.
Uganda’s deliberate approach to oil and gas agreements ensures maximum benefit for its citizens.
According to Asiimwe, the government’s robust local content policy has been instrumental in retaining value within the country. The policy mandates that Ugandan companies handle contracts in sectors like logistics and hospitality, fostering local business growth.
Further, international companies operating in Uganda are required to train Ugandans and implement skills transfer programs. This ensures a sustainable skills pipeline for the industry while empowering the local workforce.
“The deliberate skills transfer program ensures Ugandans are equipped with the expertise needed to thrive in this sector,” Asiimwe adds.
Host communities are a critical focus of Uganda’s oil and gas strategy. Companies are expected to go beyond corporate social responsibility by actively engaging with local communities through job creation and contract opportunities.
Asiimwe explains, “Why import fruits and vegetables from far away when local farmers can supply them? Why outsource labour when local residents are capable?”
Infrastructure development is another benefit. Roads, electricity, and water systems have been upgraded in oil-producing regions, enhancing living standards while supporting project needs. Such initiatives ensure that communities are not left behind as Uganda’s oil ambitions come to fruition.
The East African Crude Oil Pipeline (EACOP) is advancing steadily, with pipe manufacturing, coating, and transportation already underway. Asiimwe reports that funding is progressing well, and affected communities are being engaged to address any concerns about compensation or relocation.
“We expect the pipeline to come online on schedule, further cementing Uganda’s position as a regional energy leader,” he affirms.
--ChannelAfrica--
