Oil-related work permits to go up 

Applications for work permits and passes are projected to double as firms fly in specialised workers. file PHOTO 

What you need to know:

Since 2017, demand for oil-related work permits has been growing, registering a record growth last year.

Oil has definitely driven up activity in almost all sectors of the economy.

With it, it has expanded the expatriate community in Uganda yet more are seeking entry to work in one of the most specialised sectors.

As a result, the demand for work permits has gone up with a number of expatriates already in Uganda as the country crystallizes the oil development stage, in which investments worth $10b are expected.

Data from the Petroleum Authority of Uganda, which recommends issuing of work permits to expatriates, indicates that the number of foreign workers applying for work permits has been steadily increasing since 2017.

Cumulatively, according to PAU data, 339 work permits and 166 special passes have been issued in the past five years.

However, in 2020, the period in which Covid-19 had caused a number of restrictions, applications were minimal with only 22 permits and zero special passes issued.

During 2021, which was also partly affected by Covid-19, according to PAU issued permits rose to 174 and nine special passes. 

PAU attributed the spike on signing of the East Africa Crude Oil Pipeline. The pipeline will stretch from the Albertine Region in western Uganda to Tanga in Tanzania.

Applications are projected to double as firms bring in specialised labour to get things rolling as the countdown to 2025 kicks in. 2025 is when Uganda is expected to achieve first oil.

How is local labour protected?

As far as 2005, many stakeholders and observers have emphasized the importance of protecting Ugandans, especially in areas where they can supply labour, arguing that Ugandans should not be overlooked as foreigners do jobs that they are qualified to do.

However, over the years, a set of laws have been worked on to safe guard or ring fence some sectors for Ugandans.

For instance, the National Local Content Bill of 2021, proposes provisions that harmonises positions of the Petroleum Act 2013, which involves refining, conversion, transmission and midstream storage, exploration, development and production and Petroleum Regulations 2016 to protect Ugandans. 

The Bill, which had been passed by Parliament, was bounced back by the President for Parliament to refine contradictions with existing laws such as the PPDA Act and Ministry of Finance local content policy, among others.

However, in some instances, such as in regard to the EACOP, the law gives contractors the green light to bypass existing laws on local content in case of critical purchases.

Hilda Kamugisha, the PwC legal services manager, says the EACOP Act waives off national content requirements in procurement of certain expertise.

“The national content requirements were waived under the East African Crude Oil Pipeline (EACOP) Act 2021, with respect to the procurement of critical intragroup expertise,” she says. 

Applications since 2017

Year                        Work permits                     Special passes

2017                               47                                            64

2018                               47                                            49

2019                               49                                            44

2020                               22                                              0

2021                              174                                             9

Total                             339                                           166