The Independent Uganda: You get the Truth we Pay the Price
Post-budget dialogue reveals strong prospects in extractives and energy under NDP IV, with government and UCEM urging faster implementation and inclusive investment
Kampala, Uganda | JULIUS BUSINGE | When Charles Oleny Ojok, Deputy Executive Director at the National Planning Authority (NPA), took to the podium at the Uganda Chamber of Energy and Minerals (UCEM) Budget Breakfast Meeting on June 20, his remarks and presentation left no doubt about government’s vision for the energy and extractives sectors.
The projector slides behind him detailed a bold and ambitious plan: to expand electricity generation capacity from 2,047 megawatts to 15,420 megawatts in the short to medium term through a diverse mix of hydro, solar, geothermal and nuclear energy—underscored by the construction of a nuclear power plant in Buyende.
The government also aims to accelerate rural electrification with one million new connections by FY2025/26, while promoting energy efficiency and transitioning toward green energy.
Ojok highlighted a broad mineral sector strategy that includes increased geological mapping and value addition in critical commodities such as iron ore, gold, phosphates, rare earth elements, limestone and marble.
Uganda also intends to strengthen infrastructure such as roads, transmission lines and data systems, essential for creating an enabling environment for investors and boosting sector competitiveness. In the oil and gas segment, he revealed that the East African Crude Oil Pipeline (EACOP) stands at 58% completion, with engineering work at 98% and procurement of major equipment at 83%. Kabalega International Airport is nearing completion alongside an expansion in storage and distribution networks to support commercial oil production.
Ojok underscored the role of the private sector, noting that Independent Power Producers (IPPs) such as Xsabo, Access Solar, Bufulubi, Tororo and Busitema are already bolstering the country’s solar capacity.
He emphasized that Uganda remains open to further investment in wind, geothermal and clean cooking technologies. He also noted that favourable electricity tariffs—at 5 US cents per kilowatt-hour for large consumers—and the Energy Rebate Scheme for remote area investors are intended to spur industrial development.
In addition to short-term priorities like airborne geophysical surveys, three mineral buying centres, and pilot beneficiation projects, the long-term vision includes Uganda’s first petrochemical corridor and 60% in-country value retention from the extractives sector by 2030.
The meeting, held under the theme From Allocation to Action: Energy and Minerals Sector Perspectives on Uganda’s FY2025/2026 Budget, was hosted by UCEM at Four Points by Sheraton and drew sector stakeholders, policymakers, and private investors.
UCEM CEO Humphrey Asiimwe used the opportunity to issue five key recommendations for implementation success. These included fast-tracking the Minerals and Mining Act (2022), expanding patient capital access, strengthening data governance through a national energy-minerals knowledge hub, and enforcing local content through skilling and contract inclusion. He stressed the importance of operationalising key national infrastructure—such as the refinery, EACOP and Kabalega Airport—through transparent partnerships. He also highlighted the urgent need to develop mineral access roads to key sites such as Blencowe Resources in Orom, Wagagai Gold Mine, and artisanal mining areas in Mubende and Buhweju, saying these routes are vital for logistics, safety, and investor confidence.
Asiimwe welcomed government’s allocation of Shs 875.8 billion for mineral-based industrial development in the FY2025/26 budget—a strong, if slightly reduced, commitment from Shs 961 billion in FY2024/25. He noted the funding will support key initiatives including resource quantification, the operationalisation of the Uganda National Mining Company, and the continued rollout of refinery and pipeline projects. “Let’s build a future where Uganda’s natural wealth delivers profit, empowers people, and protects the planet,” he said.
Pamela Natamba, a Partner at PwC, applauded the relative stability of the Ugandan shilling, describing it as a major boost for long-term business planning. However, she questioned the adequacy of the Shs 4 trillion allocated to the four priority sectors under the Agro-Industrialisation, Tourism, Minerals and Science (ATMs) framework. The amount represents only 5% of the total Shs 72.3 trillion budget, broken down into 46% for agro-industrialisation, 22% for minerals (including oil and gas), 21% for science, technology and innovation, and 11% for tourism. Natamba expressed concern that this may fall short of supporting the government’s ambitious economic growth agenda. She called for urgent capacity building in the mining sector, particularly around strengthening the National Mining Company, and shared key highlights from the proposed FY2025/2026 tax amendments, advocating for reforms that strike a balance between revenue generation and competitiveness.
Hon. Richard Kaijuka, Chairman of UCEM’s Board of Trustees and former Minister of Energy and Mineral Development, offered a candid reflection on the inefficiencies in Uganda’s budget execution. He pointed out that while government often secures loans promptly, disbursement delays mean taxpayers end up paying interest on funds that are never used in time. Drawing from his dual experience in public service and the private sector, he called for greater innovation and informed decision-making. “Stay away from politics if you can’t make a real difference. That’s my personal view,” he said, warning against professional distractions that don’t yield tangible outcomes.
