As Uganda moves closer to commercial oil production, Energy and Mineral Development Minister Dr. Monica Musenero Masanza has challenged the country to look beyond oil revenues and focus on using the sector to build industries, create jobs and transform the economy.
Speaking at the Uganda Media Centre’s high-level cocktail discussion themed “From Wells to Wealth: How Oil and Gas Will Drive Uganda’s Tenfold Growth,” Musenero said Uganda’s success should not be measured by the amount of crude produced or taxes collected, but by how effectively the petroleum industry stimulates manufacturing, innovation, technology and local enterprise.
“Our ambition should not be measured by the number of barrels we produce or the taxes we collect,” Musenero said. “The real success of Uganda’s petroleum industry will be measured by the factories we build, the technologies we develop, the businesses we grow and the opportunities we create for Ugandans.”
She said Uganda has spent decades investing in roads, electricity, schools and health facilities, creating the foundation for economic growth. The next challenge, she said, is ensuring those investments support productive industries that generate exports, quality jobs and higher incomes. “Infrastructure alone does not create prosperity,” she said.
“Prosperity comes when citizens use that infrastructure to innovate, manufacture and compete globally.” Drawing lessons from countries such as Botswana, Musenero warned against relying solely on crude oil exports, saying this would expose Uganda to volatile global commodity prices while limiting domestic industrial development.
Instead, she called for investment in petroleum refining, petrochemicals, fertiliser production, industrial chemicals and plastics manufacturing, sectors she said could anchor Uganda’s next phase of industrialisation. She also urged greater investment in education, technical skills, research and innovation to enable Ugandan professionals and businesses to supply more goods and services to the petroleum industry.
Musenero’s remarks reflect government policy under the National Local Content Policy for the Petroleum Sector (2019), the National Development Plan IV and the Petroleum (Exploration, Development and Production) Act, 2013, which require petroleum operators to prioritise Ugandan goods, services and employment where local capacity exists.
Representing the Executive Director of the Petroleum Authority of Uganda, Corporate Affairs Manager Gloria Sebikari said Uganda deliberately designed its petroleum industry to support broader economic transformation rather than function as a stand-alone extractive sector.
She said local content is already creating opportunities for Ugandan companies, engineers and technicians, while investments in supporting infrastructure are expected to stimulate agriculture, manufacturing, transport and logistics. “The real value of oil lies not only in what comes out of the ground, but in how it transforms the rest of the economy,” Sebikari said, urging Ugandan businesses to improve their competitiveness and meet industry standards.
Uganda Investment Authority Deputy Director General Martin Muhangi described the petroleum sector as a catalyst for attracting investment into manufacturing, logistics, industrial parks and petrochemicals. “Oil should become the foundation upon which Uganda builds competitive industries. Our objective is not simply to export crude but to attract industries that create jobs, transfer technology and increase exports,” Muhangi said.
Representatives of the Civil Society Coalition on Oil and Gas welcomed government’s emphasis on industrialisation but cautioned that transparency, environmental protection, community participation and prudent management of petroleum revenues remain essential to prevent the resource curse experienced by many resource-rich countries-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
