The Petroleum Authority of Uganda (PAU) is teaming up with Stanbic Bank, collaborating with the Stanbic Business Incubator (SBI) on several enterprise development initiatives, aimed at empowering Micro, Small, and Medium Enterprises (MSMEs) in the oil and gas sector.
One notable initiative is the USD 500,000 MSME capacity-building project, funded by the African Development Bank Group.
This was revealed by Mr. Ernest Rubondo, the Executive Director, PAU, during the graduation of 48 entrepreneurs under the first cohort of the Stanbic Business Incubator programme, at a function that was held on Friday, at the Uganda Registration Services Bureau (URSB) offices in Kampala.
“The Petroleum Authority of Uganda has worked closely with the Stanbic Business Incubator on several enterprise development initiatives, including the successful implementation of a USD 500,000 Micro, Small, and Medium Enterprise (MSME) capacity-building project funded by the African Development Bank Group. Notably, hundreds of companies supported by the incubator have since secured bids and supplied goods and services to the oil and gas sector,” Rubondo said at the function.
“The oil and gas sector currently employs 16,375 people directly through licensees, contractors, and subcontractors, including 5,134 from host communities. These direct jobs are estimated to have generated 37,663 indirect and 108,075 induced jobs, bringing total sector employment to over 162,000 people. This exceeds the 2013 projections of 13,000 direct, 42,000 indirect, and 105,000 induced jobs,” he added.
Capacity Building
He revealed that under this initiative, the SBI, which under the stewardship of Catherine Poran as the Chief Executive, delivered the Business Development component, building the capacity of 417 enterprises across 10 districts along the East African Crude Oil Pipeline route in Uganda. This capacity-building project has enabled MSMEs to acquire the necessary skills and knowledge to compete for contracts in the oil and gas sector.
Securing Bids and Supplying Goods and Services
The impact of this initiative is evident in the number of companies that have secured bids and supplied goods and services to the oil and gas sector. According to Rubondo, the partnership between PAU and SBI is a testament to the power of collaboration in empowering entrepreneurs and driving economic growth.
“Over 2,424 companies have participated in Tier 1 and Tier 2 contracts in Uganda’s oil and gas sector, with Ugandan suppliers accounting for 2,163 of them, representing 89.2%. To date, licensees have awarded 5,280 contracts valued at US$5.255 billion, of which 4,511 contracts worth US$2.12 billion (40%) have been awarded to Ugandan companies,” Rubondo noted.
By building the capacity of MSMEs and enabling them to access contracts in the oil and gas sector, this initiative has made a significant impact on the lives of many Ugandans.
As the oil and gas sector continues to grow, more opportunities will likely emerge for MSMEs, and the partnership between PAU and SBI will play a critical role in ensuring that these opportunities are accessible to all.