Uganda’s oil and gas sector is on the cusp of a transformative era, with steady progress toward achieving the country’s national content agenda by 2040.
The Petroleum Authority of Uganda, headed by Ernest Rubondo as Executive Director, reports that significant milestones have been reached in contracting, enterprise development, and supplier development, with the construction of the East African Crude Oil Pipeline (EACOP) taking shape.
Empowering Local Companies
The Authority has awarded 4,621 contracts to Ugandan companies, demonstrating the sector’s commitment to local content development. Local companies have also supplied community goods and services worth USD22.5 million, further boosting the local economy.
Building Capacity
The Petroleum Authority of Uganda has trained over 2,800 local firms to enhance their capacity to participate in the oil and gas sector. This effort has led to 205 Ugandan companies being awarded Tier 1 contracts, increasing local participation in the sector.
Expanding Opportunities
The Authority has engaged with over 2,580 entities through conferences and reached an additional 5,900 entities through supplier development workshops. These initiatives aim to increase local supplier participation, promoting economic growth and development.
Potential For Economic Growth
The oil and gas sector is expected to generate up to USD 2 billion in revenue annually, approximately 10% of Uganda’s GDP. The sector is also projected to create over 100,000 jobs, both directly and indirectly, contributing to the country’s economic development. According to the International Monetary Fund (IMF), Uganda’s GDP is expected to soar to 10.8% in the 2025/2026 fiscal year, significantly up from the previously estimated 6.2%.
As the sector continues to grow, it is essential to maintain this momentum, ensuring that local companies and communities benefit from the opportunities presented by the oil and gas industry.
With its potential to contribute significantly to Uganda’s economic growth, the sector is poised to play a critical role in the country’s development.