Uganda makes progress in extractive industry management

Now that Uganda has moved to the development stage of oil and gas life span besides several artisan mineral activities, it is important that management frameworks are adopted to ensure effective value is attained from the resources. The extractive resources are often a blessing with expertise and good management from the host country but it’s likely to turn into a curse with lack of accountability and transparency.

Government has therefore launched the country energy Frame work Program for nuclear energy a reference for the medium-term planning of technical cooperation that identifies priority areas where the transfer of nuclear technology and technical cooperation resources will be directed to support national development goals.  According to Uganda’s’ prime minister Patrick Ammama Mbabazi, the frame work comes at a time when Uganda has discovered vast   deposits of minerals, gas and oil, Uranium as well.

The minister of energy and Mineral Development Engineer Irene Munloni says plans are complete to come up with a national oil company that acts as the agency in the extractive resource negotiations and deals on behalf of the people. Oil companies are the negotiating camps for the extractive resource countries with international oil companies. Upon incorporation, Uganda will have its extractive resource deals clearly streamlined to guide accountability and transparency.

The Prime Minister amama mbabazi has identified land acquisition as one of the major huddles frustrating development of the extractive industry. Compensations of those that own the land under which the extractive resources lie is too fragile that agreements are always abused by the land owners and the extractive resource contractors. It is therefore important to come up with clear regulations to determine the manner in which land owners and extractive resource contractors share the resource profits. This has derails efforts to develop the necessary infrastructure to support the extractive industry development.

Uganda like several other countries in Africa has discovered oil, gas  and several other minerals amidst lack of expertise and supportive infrastructural development. It is therefore important for Uganda to derive lessons from other countries where the extractive resources have been developed for long. This is to guide the resource life span with limited negative effects that are often associated with resource rich countries.