First oil will matter, but value retention matters more

Value retention is not just about contracts, it is about skills, jobs, and enterprise growth. More than 17,000 direct jobs have been created, alongside 39,567 indirect jobs.

COMMENT | YUSUF MASABA | Uganda’s oil and gas story is often told through the lens of barrels, pipelines, and global energy geopolitics. Yet, beneath the headlines lies a quieter but equally transformative narrative: the retention of value within the country and the development of Ugandan enterprises capable of competing in one of the world’s most demanding industries.

From the outset, Government policy has been deliberate in ensuring that oil wealth is not just extracted but meaningfully embedded into the local economy. Today, the results speak for themselves. Out of 5,280 contracts worth US$ 5.255 billion awarded in the sector so far, Ugandan companies have won 4,511 contracts, representing US$ 2.12 billion—about 40% of the total contract value. That is money retained within our borders, flowing into Ugandan businesses, households, and communities.

In addition, over US$ 21 million (more than 3,013,458 manhours) of funding for training Ugandans has been committed by the tier one contractors through the development phase. In addition, over 13,000 Ugandans have been trained and certified in disciplines including advanced levels of Heavy Goods Vehicle driving (1,685), welding (1,734), electricals (297), civil and building engineering (1,766) instrumentation (79), scaffolding (671), among other trades.

Currently, over 800 young men and women are undergoing training in internationally certified skills in pipe fitting, welding, electrical installation, and instrumentation for in readiness to work on the Tilenga Project. The training is being undertaken by the Uganda Petroleum Institute-Kigumba (UPIK), TASC, Sunmaker oil and gas Training Institute, and the Uganda Institute of Information and Communications Technology. Additionally, 100 students who graduated from the Tilenga Academy were recently set abroad for advanced training in France, Malaysia, and Oman These form part of a bigger group of the final 200 trainees selected through the Tilenga Academy 2022 online course. On return to Uganda, they will be deployed to run the Tilenga Project during the production phase.

The local supplier story is equally impressive. Over 2,424 companies have participated in Tier One and Tier Two contracts, and an overwhelming 89.2% are Ugandan suppliers. This level of participation is not accidental; it is the outcome of deliberate local content policies, rigorous supplier development workshops, and programs like the Community Supplier Development Program (CSDP) in the Tilenga region, which are helping SMEs overcome financial and technical barriers.

Value retention is not just about contracts, it is about skills, jobs, and enterprise growth. More than 17,000 direct jobs have been created, alongside 39,567 indirect jobs. Importantly, over 90% of direct employees in the sector are Ugandan. Even more encouraging is that Ugandans now occupy 63% of management roles, 93% of technical roles, and 98% of support roles. These figures dismantle the myth that oil and gas jobs are reserved for expatriates, showcasing instead a strong foundation for a Ugandan-led workforce.

At the community level, the benefits are tangible. The Bunyoro sub-region alone has seen over UGX 121 billion (US$ 33.4 million) spent on locally sourced goods and services. Enterprises once operating in informal spaces like small transporters, hospitality providers, welders, fabricators are now formalising and scaling up to meet international oil and gas standards. This is enterprise development in motion: ordinary businesses evolving into globally competitive suppliers.

Of course, challenges remain. Some local firms still struggle with access to affordable financing, compliance with stringent industry standards, and navigating complex procurement processes. But the progress to date is undeniable. Programs that link SMEs to financial institutions, provide mentorship, and encourage joint ventures are critical in bridging these gaps.

Uganda’s oil and gas sector is therefore much more than a race to first oil. It is a test of how natural resource wealth can be leveraged to build indigenous enterprise, retain value, and catalyse sustainable national development. If we keep the focus firmly on local content, value retention, and capacity building, Uganda’s oil will not just be exported as crude, it will be exported as a story of resilience, innovation, and shared prosperity.

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The Author is a Corporate Affairs Officer, Petroleum Authority of Uganda