The number of Ugandan companies participating in the Oil and gas sector has increased following interventions by the government and stakeholders – a new report has revealed. The report released by the Petroleum Authority of Uganda (PAU) looks at how companies are contributing to the development of the nascent sector.
According to the report titled Ugandan Companies that supplied the oil and gas sector (2017–2019), the number of local companies supplying the oil and gas sector has increased from 28 per cent in 2017 to 78 per cent in the year ended 2019 which is believed to be a result of capacity building and empowering Ugandans to compete with multinationals.
The Authority says at least 323 companies are supplying the oil and gas sector despite a lull in activities pending the signing of the Final Investment Decision.
The report also indicates that these companies have participated in various sectors including mining and quarrying, Agriculture, forestry & fishing, Manufacturing, Electricity, gas steam air conditioning, Water supply, motor vehicles & motorcycles repairs, Transportation & storage, among others.
The value of the contracts awarded to the companies during the period in the review also rose.
However, critics say more needs to be done to empower more local companies to get the lion’s share of the contracts awarded.
The Authority is advocating for joint ventures to enable more local companies to participate in the sector.
With the final investment decision in offing, there is hope that local companies will tap into the multibillion-dollar sector which will improve the livelihoods of many thus transforming the economy.
