Uganda’s push to strengthen local participation in its emerging oil and gas industry has reached a major milestone with Ugandan companies securing more than US$ 2.2 billion (approx. Shs8.2 trillion) in contracts across various petroleum projects.
The Petroleum Authority of Uganda (PAU) announced the milestone as part of its ten year performance review highlighting the rapid growth of local content in a sector long dominated by international firms.
According to PAU, the contracts won by local companies span a wide range of services including civil works, logistics and transportation, engineering support, supply of construction materials, health and safety management, catering and labour provision. This strong footprint illustrates how Ugandan businesses are increasingly becoming central players in the oil value chain.
The Authority revealed that of the more than US$ 7 billion in total contracts awarded since development activities began, local companies now account for just over 30 percent a significant improvement from the early years of the sector.
The growth in local contracting has also had a direct impact on employment. An estimated 20,000 Ugandans are currently working in oil and gas operations, while nearly 180,000 more benefit indirectly through associated sectors such as transport, hospitality, manufacturing, security and agriculture.
Officials say the progress reflects deliberate policy interventions aimed at ensuring Ugandans reap meaningful economic benefits before and after the country achieves first oil. PAU has over the years introduced strict local content requirements, strengthened regulatory oversight and supported skills development to position Ugandan firms for major contracting opportunities.
Despite the impressive gains, experts caution that the sector still faces challenges including the need for stronger technical capacity, robust quality controls and enhanced environmental safeguards. With multi billion dollar projects such as the East African Crude Oil Pipeline (EACOP), refinery development and central processing facilities still underway, both government and industry players emphasize the importance of maintaining high standards and ensuring transparency in the contracting process.