By Karim Were
KAMPALA — Uganda should measure the success of its emerging petroleum industry not by the volume of crude oil produced or revenues collected, but by its ability to spur industrialisation, create jobs and transform the economy, Energy and Mineral Development Minister Monica Musenero Masanza has said.
Speaking during a high-level discussion hosted by the Uganda Media Centre under the theme “From Wells to Wealth: How Oil and Gas Will Drive Uganda’s Tenfold Growth,” Dr Musenero said the country’s oil resources should serve as a catalyst for broader economic development rather than remain an extractive industry focused on crude exports.
“Our ambition should not be measured by the number of barrels we produce or the taxes we collect,” she 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 had invested heavily over the years in roads, electricity, education and healthcare, creating a foundation for economic growth. The next phase, she noted, should focus on ensuring that these investments support productive industries capable of generating exports, creating quality employment and increasing household incomes.
“Infrastructure alone does not create prosperity. Prosperity comes when citizens use that infrastructure to innovate, manufacture and compete globally,” she said.
Drawing lessons from countries that have depended heavily on raw commodity exports, including Botswana, Dr Musenero warned that relying solely on crude oil exports would expose Uganda to volatile international markets while limiting domestic value addition.
She called for increased investment in petroleum refining, petrochemicals, fertiliser production, industrial chemicals and plastics manufacturing, saying these sectors could form the backbone of Uganda’s industrial transformation.
The minister also urged greater investment in education, technical training, research and innovation to enable Ugandan professionals and businesses to participate more competitively in the petroleum value chain.
Her remarks align with the government’s 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 had deliberately structured its petroleum industry to support wider economic development.
She said local content initiatives were already creating opportunities for Ugandan companies, engineers and technicians, while investments in supporting infrastructure were expected to benefit sectors such as 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,” Ms Sebikari said, urging local businesses to improve their competitiveness and meet industry standards.
Uganda Investment Authority Deputy Director General Martin Muhangi described the petroleum sector as a key driver of investment in manufacturing, logistics, industrial parks and petrochemical industries.
“Our objective is not simply to export crude but to attract industries that create jobs, transfer technology and increase exports,” he said.
Representatives of the Civil Society Coalition on Oil and Gas welcomed the government’s emphasis on industrialisation but stressed the need for transparency, environmental protection, community participation and prudent management of petroleum revenues to avoid the resource curse that has affected several resource-rich countries.
