Oil & Gas

Ruth Nankabirwa, Uganda's Minister for Energy and Mineral Development, recently highlighted the significant role that the country’s oil and gas sector has played in addressing unemployment, particularly among the youth. Speaking at the 5th Annual National Content Conference at Muyonyo Resort Convention Center, she revealed that 90% of the workforce in Uganda’s oil and gas sector comprises local workers. This is a crucial development in light of the rising unemployment rate in Uganda, which has been a major concern for the government. Nankabirwa emphasized that as of June 2024, 15,451 individuals were directly employed in the sector, with over 13,000 of them being Ugandans, including 4,483 from communities directly involved in oil and gas activities.

The Minister further elaborated on the government's legislative framework, which aims to prioritize the employment of Ugandans at all levels of the oil and gas sector. The industry is poised to experience a peak workforce of approximately 160,000 people, which presents a transformative opportunity for the country. Nankabirwa stressed that this growth would largely be fueled by the active participation of Ugandans and local enterprises, which would be involved in providing goods and services essential for the sector’s development. The conference, themed “Advancing National Content in the Oil and Gas Sector, Three Years After FID,” sought to review the achievements of the sector and focus on the capacity-building efforts that are crucial for the operational phase.

During the conference, Ernest Rubondo, the Executive Director of the Petroleum Authority of Uganda (PAU), spoke about the extensive preparations Uganda has undertaken to ensure maximum participation of Ugandans in the oil and gas sector. He highlighted initiatives such as the Tilenga and East African Crude Oil Pipeline (EACOP) academies, which are specifically designed to provide training and skills development for locals. Rubondo pointed out that these efforts are essential for equipping the workforce to meet the sector’s demands, including the establishment of training centers, international accreditations, and business incubators. He emphasized that the conference also served as a platform to foster joint ventures, ensuring that local businesses play an active role in providing goods and services vital for the sector’s growth.

In addition to these efforts, Peninah Aheebwa, the Director for Economics and National Content at PAU, highlighted Uganda's progress in promoting local participation. Since 2017, the oil and gas industry has executed 5,280 procurements worth $5.3 billion, with a significant portion of this amount benefiting Ugandan companies. Aheebwa noted that 4,511 procurements, valued at $2.1 billion, went to local enterprises, and $19 million directly benefited community-based businesses. Furthermore, she revealed that 35 joint ventures had secured contracts worth $300 million, out of 64 approved, underscoring the success of the country's efforts to involve Ugandans and local firms in the sector. These developments reflect the government's commitment to ensuring that the benefits of the oil and gas industry are shared by all sectors of society, paving the way for sustainable economic growth and development.