Empowering Uganda’s Future Through Oil: A Transformational Approach

Uganda stands at a pivotal crossroad as it enters a new era shaped by oil wealth, urging policymakers, businesses, and citizens to harness this resource as a driver of sustainable and inclusive growth.

The vision presented focuses on turning the opportunity of oil into lasting national prosperity rather than fleeting gains. Central to this approach is Uganda’s Tenfold Growth Strategy, aiming to expand the economy from $50 billion to $500 billion by 2040. This strategy relies on four interconnected pillars: agro-industrialisation, tourism, mineral-based industrial development (including oil and gas), and science, technology, and innovation (ATMS). Oil and gas are positioned not merely as extractive industries but as keystones that fuel deeper transformations across these sectors. Investments made in the petroleum sector are intended to lay foundations for more than just infrastructure—they will support industrial parks, logistics systems, and opportunities for Ugandan enterprises and skilled workers to thrive for years beyond the oil era.

To guard against pitfalls like volatility and overreliance—often experienced by resource-rich nations—the Bank of Uganda underscores its duty to sustain macroeconomic stability, prioritizing inflation control and exchange rate management. In practical terms, this means maintaining a 5% target for core inflation and deploying policy measures to keep the Ugandan shilling competitive. The Bank also acts as steward of the Petroleum Revenue Investment Reserve, ensuring oil income is saved and invested for the benefit of future generations rather than lost to short-term consumption.

At the heart of Uganda’s oil strategy is the development of national capability. Local companies are encouraged not only to win contracts but to build sophisticated technologies, management systems, and global competitiveness. Oil infrastructure is strategically integrated with broader economic corridors, linking agriculture, manufacturing, and services, as exemplified by projects like the Kabalega Industrial Park. The goal is to finance assets and institutions that will foster enduring prosperity long after oil production peaks.

The oil and gas industry is envisaged as a catalyst for broader economic growth. Revenues will underpin high-impact investments in agriculture—enabling value addition and improved productivity—while also bolstering tourism through upgraded infrastructure and new experiences. Mineral-based sectors are set to benefit from easier access to energy, logistics, and petrochemical inputs, positioning Uganda as a hub for green technology minerals. Meanwhile, science and technology will be propelled forward, empowering the young workforce and nurturing innovation hubs for diverse sectors such as pharmaceuticals, agro-tech, and the creative industries.

Crucially, access to finance is recognized as vital for empowering local enterprises. The Bank of Uganda is working with financial institutions to introduce blended finance models, innovative collateral solutions, and risk-sharing schemes that lower barriers for small businesses. Sustainability is embedded across the financial sector through a rigorous ESG framework, ensuring that environmental, social, and governance standards underpin every investment decision, thereby protecting both the environment and Uganda’s long-term economic resilience.

The transformation envisioned can only be realized through collective commitment. The call to action urges all stakeholders—government, industry regulators, financial institutions, and local businesses—to innovate, invest in capability, and prioritize transparency and sustainability. Uganda’s legacy from the oil age, as emphasized, will not be measured in barrels but in the national empowerment, productive assets, and enduring prosperity left for generations to come.

This pivotal approach sets Uganda on a path where responsible stewardship of oil becomes the cornerstone of broader national transformation, ensuring that today’s resources empower tomorrow’s citizens and enterprises.