Shs23b spent on building local capacity to manage oil
Government and joint partners have been investing to boost the capacity of Ugandans to handle oil-related activities. Photo / File
What you need to know:
- The Petroleum Authority of Uganda says efforts to bolster human capital development are evident through robust training initiatives undertaken by both licensees and contractors
At least $6m (Shs22.8b) was dedicated on building the capacity of Ugandans to manage the oil and gas wealth during 2023, according to Mr Ernest Rubondo, the Petroleum Authority of Uganda executive director.
Speaking during the first sectoral linkages conference for oil and gas sector in Kampala organised by the Petroleum Authority of Uganda, Mr Rubondo said efforts to bolster human capital development were evident through robust training initiatives undertaken by both licensees and contractors.
“A total expenditure of $6m was dedicated to training Ugandans across various disciplines, amounting to 417,507 man-hours in 2023,” he said, noting that capacity building among public officers had benefitted 51 individuals with training programmes, while 945 Ugandans had benefitted from internships and specialised training opportunities.
Mr Rubondo, who was responding to a request by Dr Valerie Marcel, the Chatham House associate fellow, energy, environment and resources, who had earlier urged government and oil companies to pool resources and uplift the capacity of small and medium enterprises to participate in the oil and gas sector, said the sector’s employment landscape was characterised by direct employment by licensees, contractors, and subcontractors, with a strong emphasis on engaging nationals.
Maximising national content
Therefore, he noted, Uganda was creating strong sectoral linkages to maximise national content in the oil and gas sector and enable diversification of the economy to ensure that the infrastructure set up for the oil and gas projects is sustained over the long term during the decline in oil and gas activities.
“Several countries including the United Arab Emirate and Norway, among others leveraged the oil and gas sector to develop their other sectors,” he said.
Data from PAU indicates that as of March 2024, employment in the oil and gas sector stood at 13,607, 90 percent of whom were Ugandans.
From 2021 to date, PAU has reviewed 271 contracts worth $7.162b, of which, contracts worth $1.796b, which is 25 percent, were awarded to Ugandan companies, while procurement within the sector continues to reflect a concerted effort to promote national content and enhance local participation.
Dr Marcel said it was a common challenge for SMEs to access capital and build up skills, which calls for concerted efforts, especially from government and partner companies to pool resources and fund the activities of SMEs.
“If SMEs are to develop capacity-wise, oil companies need to deliberately support government by contributing to a fund. Government alone cannot be efficient,” she said.
