Even before the first barrel of commercial oil is extracted, Uganda’s promising oil and gas sector is already a transformative force, reshaping the nation’s economic and social landscape.
This was the pivotal message delivered by Gloria Sebikari, the Manager of Corporate Affairs at the Petroleum Authority of Uganda (PAU), in a high-level engagement with leaders of government agencies this week.
Some of the key government officials who attended the strategic meeting that highlighted the sector’s profound and multi-faceted impact on national development include: Barirega Akankwasah, Executive Director, National Environment Management Authority Uganda(NEMA), Roy Nyamutale Baguma, the Managing Director, Uganda Energy Credit Capitalisation Company (UECCC), Mercy K. Kainobwisho, Executive Director of the Uganda Registration Services Bureau (URSB), Hez Alinda, the Executive Director, Uganda Free Zones Authority (UFZA), plus representatives from the State House Investors Protection Unit
Fueling Macroeconomic Stability and Fiscal Growth
According to Sebikari, the sector’s influence is most evident in its contribution to Uganda’s macroeconomic stability.
Explaining the impact of the sector on national development, Sebikari said, “Oil-related Foreign Direct Investment (FDI) accounts for a staggering 70% of the country’s total FDI, providing a critical anchor for the economy.”
This influx of capital, she added, not only strengthens the Uganda Shilling but also provides the country with a stable financial base.
Sebikari also noted that the sector has been a significant source of revenue for the government, generating close to USD 1.39 billion (over Shs4.8 trillion) in tax and non-tax revenue between FY 2009/10 and 2023/24.
This fiscal contribution is a clear indicator that the sector is a reliable partner in public finance even before commercial production begins.
National Content as a Dividend for Ugandans
One of the most profound impacts of the oil and gas sector, according to Sebikari, is its commitment to national content and value retention.
She revealed that the data highlights a massive dividend for Ugandans as follows:
Job Creation
Over 17,203 direct jobs have been created, with an impressive 89% of these held by Ugandans, and over 5,273 of those jobs benefiting host communities. The ripple effect is even larger, with more than 135,000 indirect and induced jobs created across various sectors.
Business Growth
Ugandan companies have been awarded contracts worth a total of USD 2.2 billion (over Shs7.7 trillion), showcasing a deliberate effort to empower local enterprises. This has been supported by over 35 joint ventures that facilitate technology transfer, valued at a substantial USD 338.8 million (over Shs1.9 trillion).
Skills Development
The sector has invested heavily in human capital, with over 14,000 Ugandans trained in oil and gas technical disciplines with international certification. This has been supported by 14 Ugandan training institutions now offering internationally certified courses, ensuring a skilled local workforce for the future.
Extensive Infrastructure Boom
Sebikari emphasised that the oil and gas journey is not just about resources but also about building the physical and industrial backbone for future productivity.
She explained that the sector has already catalysed major infrastructure projects that will serve the nation for generations, which include:
The Kabalega International Airport, a project valued at USD500 million (about Shs1.75 trillion), is 96% complete. Once operational, it will be a key hub for agro and petroleum-based industrialisation.
Over 600 km of roads are under construction to facilitate movement and connectivity, with more than 400 km already completed.
The Hoima International Stadium is also underway, set to host matches for the 2027 AFCON tournament, further boosting local development and tourism.
She revealed that the sector has also stimulated growth in other key areas, with sectoral linkages valued at USD 8.6 billion (over Shs30.2 trillion) before commercial production.
From the emerging Kabalega Industrial Park to significant investments in agriculture, housing, and health, the oil and gas sector is acting as a powerful catalyst for a diversified, resilient, and inclusive Ugandan economy.
This commitment is underscored by a dedicated focus on environmental management and sustainability, ensuring that development is responsible and the nation’s rich biodiversity is protected for future generations.