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Library Leveraging Oil and Gas Industry for the Development of a Competitive Private Sector in Uganda

Leveraging Oil and Gas Industry for the Development of a Competitive Private Sector in Uganda

Leveraging Oil and Gas Industry for the Development of a Competitive Private Sector in Uganda

Resource information

Date of publication
мая 2015
Resource Language
ISBN / Resource ID
oai:openknowledge.worldbank.org:10986/21916

The study represents a background study
for the proposed Uganda Country Economic Memorandum (CEM),
which seeks to address the issue of efficient use of oil
resources and examine synergies between the oil industry and
the rest of the economy, through growth poles or linkages.
The oil industry can help Uganda to promote robust growth in
the economy. However, it is important to keep in mind that
it will take a number of years until oil revenues start
flowing into Uganda s economy. After the Final Investment
Decision (FID) is reached, it will take time to develop the
oil fields and start oil production. In the meantime, there
are immediate opportunities opening up for Uganda s
businesses to supply the oil industry with goods and
services. In most cases, Uganda s suppliers, especially
micro, small and medium enterpises (MSMEs), are not expected
to become first tier contractors to the International Oil
Company (IOCs). The main objective of this study is to
provide recommendations to the Government of Uganda (GoU) on
policies and strategies of leveraging the oil discoveries
for the development of the national economy in order to
transform the oil resources into sustained growth. The study
reviews the typology of policies for local sourcing used in
the world. It includes ample examples of other countries
experiences with developing their local content policies and
providing support to priority sectors to boost local content
which could be useful for Uganda from the standpoint of
lessons learned. The study conducts a detailed analysis of
the binding constraints faced by domestic oil and gas
suppliers in Uganda, takes stock of existing national
content support initiatives and identifies areas which are
in urgent need of further support. The study examines how
the oil sector can be used as a driver of agriculture and
fisheries sectors in the Albertine Region and other regions
of Uganda from the standpoint of food supply to the oil camps.

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