Uganda’s Oil Boom: A Game-Changer or a Missed Opportunity? Here’s what you need to know—and why it’s more urgent than ever for entrepreneurs to act now.
KAMPALA, Uganda — In a recent interview with ChimpReports, AlHaj Habib Kagimu, Malaysia’s Honorary Consul in Uganda and a prominent oil trader with extensive ties to the Arab world, delivered a bold message to local entrepreneurs: Prepare now, or risk missing out on the transformative opportunities of Uganda’s emerging oil and gas sector. Kagimu emphasized that the industry isn’t just a fleeting economic boost—it’s a game-changer poised to reshape the nation’s economy and supply chain landscape.
But here’s where it gets controversial: While some fear the so-called “oil curse” could plague Uganda, Kagimu dismisses this notion outright. “There is no wealth that can be a curse,” he stated. “I’d rather face Nigeria’s oil challenges than the poverty we’re battling today.” His stance is clear: the real challenge lies in ensuring Ugandans actively participate in the industry’s growth. Do you agree? Or is there a middle ground we’re missing?
Uganda is set to begin commercial oil production in 2025, nearly two decades after reserves were discovered in the Albertine Graben. The Tilenga and Kingfisher projects, spearheaded by TotalEnergies (France) and CNOOC (China), are projected to produce up to 190,000 barrels per day once fully operational. This isn’t just big—it’s massive for a country eager to diversify its economy.
And this is the part most people miss: Oil companies operate like self-sustaining nations, requiring everything from specialized services to everyday supplies. “If you set up shop near them, they’ll buy from you,” Kagimu explained. This opens doors for service-oriented businesses, from logistics to hospitality, to thrive. For instance, the Kabalega Industrial Park in Hoima District is already emerging as a critical hub for manufacturing and supply firms linked to the oil value chain. But are local entrepreneurs ready to seize these opportunities?
Kagimu highlighted that foreign oil service companies from Europe, North America, and Australia are already partnering with Ugandan firms, gradually transferring technology, skills, and capital. “Welding for an oil pipeline isn’t like fixing your car’s exhaust—it’s highly specialized,” he noted. Ugandans are undergoing advanced training to meet these demands, leveraging the country’s youthful, educated population as a competitive advantage.
Here’s the catch: While the government’s National Local Content Policy and the Petroleum Authority of Uganda are pushing for local participation in procurement, fabrication, and logistics, success isn’t guaranteed. “Ugandans must learn to work with banks, maintain professionalism, and build credible companies,” Kagimu warned. With over $15 billion in investment projected for the sector over the next decade, the stakes couldn’t be higher.
So, what’s your take? Is Uganda’s oil boom a golden opportunity or a potential pitfall? Are local entrepreneurs prepared to step up, or will they be left behind? Share your thoughts in the comments—this conversation is just getting started.
