Prepare for Uganda's Oil Revolution: A Golden Opportunity for Entrepreneurs
KAMPALA, Uganda — Uganda's impending oil boom is set to be a game-changer for the nation's economy, and Malaysia's Honorary Consul, AlHaj Habib Kagimu, is urging local entrepreneurs to seize the moment. With a wealth of experience in the oil trade and deep connections to the Arab world, Kagimu believes that Uganda's oil sector will spark a massive economic transformation and create a myriad of supply-chain opportunities for local businesses.
In an exclusive interview with ChimpReports, Kagimu emphasized the potential of Uganda's oil production, stating, 'Oil is a huge business. Ugandans may not even know what has hit them until they see what oil will do to Uganda.' He predicts that the discovery and subsequent production of oil will significantly impact the country's economy and way of life.
The timeline for Uganda's oil production is set for 2025, nearly two decades after the initial discovery of reserves in the Albertine Graben. The Tilenga and Kingfisher projects, led by TotalEnergies and CNOOC, are expected to produce up to 190,000 barrels per day when fully operational. Despite concerns about the 'oil curse,' Kagimu argues that the real challenge lies in ensuring local participation.
"There is no wealth that can be a curse. I would rather have the oil curse of Nigeria than the poverty curse which we suffer from," he said. Instead of focusing on the potential pitfalls, Kagimu encourages Ugandans to build service-oriented enterprises capable of supplying the oil industry. He explains, 'Oil companies need everything from everything. If you can set up shop near them, they will buy everything from you.'
The Kabalega Industrial Park in Hoima District is highlighted as a key hub for local manufacturing and service provision linked to the oil value chain. Kagimu notes that foreign oil service companies from Europe, North America, and Australia are already forming partnerships with Ugandan firms, which will gradually transfer technology, skills, and capital. He emphasizes the specialized nature of oil-related welding, requiring special training that Ugandans are now acquiring.
Uganda's youthful and educated population is seen as a competitive advantage. Kagimu states, 'Ugandans are very well-educated people.' He encourages entrepreneurs to learn how to work with banks, behave professionally, and build credible companies to maximize the benefits from the oil industry. With the National Local Content Policy and initiatives by the Petroleum Authority of Uganda, the government is actively promoting local participation in procurement, fabrication, logistics, and hospitality services within the petroleum sector, which is projected to attract over $15 billion in investment over the next decade.
In summary, Uganda's oil boom presents a unique opportunity for local entrepreneurs to thrive. By embracing the challenges and opportunities, Uganda can ensure a prosperous future, transforming its economy and the lives of its people.
