Petroleum Authority signs SME pipeline support deal
What you need to know:
The signing marks the start of business development of consultant’s assignment to be undertaken by Stanbic Business Incubator and Private Sector Foundation Uganda
KAMPALA. The Petroleum Authority of Uganda has signed a business linkages contract that seeks to provide business development training services.
The contract, which is supported by African Development Bank seeks to support business development skills training for 200 enterprises along the East African Crude Oil Pipeline (EACOP) route.
It also seeks to enhance competitiveness of small and medium enterprises to share into contracts in the oil and gas sector.
Mr Ernest Rubondo, the Petroleum Authority of Uganda executive director, signed the contract yesterday alongside Stanbic Bank Business Incubator and Private Sector Foundation Uganda.
The signing marks the start of business development of consultant’s assignment to be undertaken by Stanbic Business Incubator and Private Sector Foundation Uganda.
Ms Betty Namubiru, the Petroleum Authority of Uganda manager national content, said the key components of the capacity building for the small and medium enterprises along the EACOP route will include business development training, business linkages and youth and women empowerment.
On his part Mr Rubondo said the main goal for national participation is to achieve in-country value creation and retention while ensuring competitiveness, efficiency, and effectiveness.
“We have moved on from the season of scarcity to a season of plenty for opportunities in the oil and gas sector. Ugandans must recognise this and start working as partners rather than competitors,” he said, noting that Uganda should look for immediate opportunities in beverages, spare parts, telecoms, logistics, crane hires, rescue missions, environmental services and communications, among others.
Mr Tonny Otoa, the Stanbic Business Incubator chief executive officer, said small and medium enterprise mentorship will go beyond the training to providing access to finance.
“… we want to see more local participation in the oil and gas sector. FID has happened. Are our businesses ready? That is the question. This is a very great story for us,” he said.
The business development contract is part of a $500,000 (Shs1.7b) African Development Bank business linkages project.
The grant was provided in response to a request from Uganda and Tanzania for assistance in preparing local business communities to be able to retain a portion of the $3.5 billion investment in the construction of the East African Crude Oil Pipeline. A similar project is being finalised on the Tanzanian side of the border.
Benefit from pipeline
The grant was provided in response to a request from Uganda and Tanzania for assistance in preparing local business communities to be able to retain a portion of the $3.5b investment in the construction of the East African Crude Oil Pipeline.
