Uganda's oil and gas sector has made progress in infrastructure, employment and skills development, but stakeholders are calling for stronger capacity building before commercial production begins in June 2027. The warning came at this year's Joint Civil Society Organisations Conference on Oil and Gas held in Kampala, where industry players outlined what they see as critical gaps that must be addressed to turn the country's petroleum resources into lasting economic benefits.
The Tilenga and Kingfisher oilfield developments are advancing towards production, while construction of the East African Crude Oil Pipeline had reached 92.7 per cent completion as of September 2026, according to industry data. Compensation for project-affected persons has largely been completed. Despite this progress, stakeholders say Uganda needs stronger corporate governance, improved access to financing and compliance with international standards to maximise the sector's potential.
Energy and Mineral Development Minister Dr Monica Musenero said Africa must develop appropriate innovations in production technologies and economic systems to harness the benefits of natural resources. She said Uganda was taking steps towards building these capabilities, arguing that the continent must move beyond resource extraction to developing systems that create greater economic value. The minister said Africa should develop the right innovations around production and economic systems to harness the benefits of its natural resources.
Efforts to build a skilled Ugandan workforce are already underway. EACOP Deputy Managing Director John Bosco Habumugisha said more than 130 students had received scholarships to pursue oil and gas-related studies abroad, with the expectation that they would return and apply their skills locally. The sector has also reported contributions through employment and community health interventions.
On environmental sustainability, EACOP is transitioning from diesel-powered operations to hydropower to reduce its environmental footprint and protect biodiversity. However, financing remains a concern as Uganda prepares for commercial production. Industry players argue that attracting the capital needed to sustain investments will depend on demonstrating commercial viability and building confidence among potential investors. Stakeholders say Uganda must align the petroleum sector with international standards, strengthen corporate governance, deepen local participation and expand value addition to build lasting energy sovereignty and contribute to the government's ambition of growing the economy to $500 billion by 2040.
For Ugandan savers, borrowers and business owners, the success of these measures will determine whether oil wealth generates broad economic benefits or remains concentrated in the hands of large operators and foreign investors.