Oil and gas industry in Uganda has been poised to steer the economic growth of the country, with a number of adjustments, policies and structures being implemented. According to World Bank, oil infrastructure in the Uganda, which has been the less spoken of topics that is surfacing with much potential to set the country on the global market.
Investors have been enquiring of the sector in a bid to invest and take hold of the opportunities available to make it a success. It is a promising sector with huge potential to contribute so much in the country’s GDP. According to World Bank, the economic outlook of Uganda is set to increase steadily with the oil infrastructure and other management schemes that could propel a better economy.
Oil and gas industry have been pivotal factors in determining the prices of commodities in the international market, and responsible for the strength or weakness of currencies. It has determined the foreign exchange of countries, the return on investments on agricultural produce as well as the progress of capital markets.
More exploration is set to take place in Uganda with oil basins discovery to increase the barrels of oil. Uganda’s commercial oil production have been hindered due to poor infrastructure but that could change with the measures being undertaken. The establishment of more oil companies in the country is a sign of the readiness of the companies to harness the natural resource and ease the burden on the shoulders of the government.
The pipeline to Tanzania is an improvement in infrastructure that will benefit the oil sector. Having an uninterrupted channel to supply oil safely and with minimal environmental degradation boost the efficiency of the sector.
Should Uganda have a better economic outlook, the government needs to come with a better approach in terms of managing resources. Most funds go towards long term projects which are costly. Some funds should be ploughed back to generate more finances to expand the financial budget to cater effectively for the various fields.
The country needs to cut on the debts that hinder economic development, which accumulate and cumulatively end up stagnating the economy.