Ugandans Dominate Oil and Gas Sector Jobs With 90% Employment Share

KAMPALA, Friday, 29th November 2024 – Ugandans continue to take the lion’s share of employment opportunities in the country’s oil and gas sector, with 90% of the workforce comprising locals. This was highlighted by Hon. Ruth Nankabirwa, Minister for Energy and Mineral Development, at the 5th Annual National Content Conference opening.

The Minister emphasised that a strong legislative framework has been implemented to prioritize the employment of Ugandans at all levels, with particular attention given to communities hosting oil and gas operations.

“As of June 2024, 15,451 individuals were directly employed by licensed oil companies, their contractors, and sub-contractors. Of these, 13,048 (90%) are Ugandans, including 4,483 employees from communities directly hosting oil and gas activities,” said Hon. Nankabirwa.

Looking ahead, the sector anticipates a peak workforce of approximately 160,000. The implementation of oil and gas projects is seen as a transformative opportunity to fast-track Uganda’s development, largely through the active participation of Ugandans and enterprises in providing goods and services—key aspects of what is termed “National Content.”

This year’s National Content Conference, themed “Advancing National Content in the Oil and Gas Sector, Three Years After FID,” aimed to review achievements in the sector, particularly in capacity building and upcoming opportunities during the operational phase.

Mr. Ernest Rubondo, Executive Director of the Petroleum Authority of Uganda (PAU), noted Uganda’s extensive preparations for national participation in the oil and gas development phase. “These efforts included conducting studies, setting up training centres, obtaining international accreditations, and establishing business incubators. While preparations for the operational phase are ongoing, initiatives like the Tilenga and EACOP(East African Crude Oil pipeline) academies are equipping the required workforce for future demands,” Rubondo explained.

He also highlighted the conference as a platform to explore requirements for the operational phase and foster the formation of joint ventures for the upcoming phase.

Keynote speaker Mr. Egbert Faibille Jnr., Chief Executive Officer of Ghana’s Petroleum Commission, stressed the importance of unbundling large contracts to enhance the involvement of local entities in upstream and midstream operations.

“While large contracts—averaging US$50 million to US$100 million—dominate the upstream petroleum industry, breaking down scopes can create efficiency and value. Small firms, with their lower overhead costs and ability to respond swiftly, are essential to modern supply chain management,” Faibille stated.

Ms. Peninah Aheebwa, Director for Economics and National Content at PAU, underscored Uganda’s strides in promoting local participation. She revealed that since 2017, the industry has executed 5,280 procurements worth $5.3 billion. Of these, 4,511 procurements (40%) valued at $2.1 billion went to Ugandan companies, with $19 million directly benefiting community-based enterprises.

Additionally, 35 joint ventures have secured contracts worth $300 million out of 64 approved, and over $200,000 in software licenses have been distributed to universities to foster technology transfer and capacity building.

The 2024 conference identified key priorities, including employment of Ugandans, capacity building, enterprise development, use of locally produced goods and services, and knowledge and technology transfer.

The government is collaborating with the private sector and development partners to ensure inclusive growth and enhanced national content strategies. As Uganda continues to develop its oil and gas sector, the focus remains on ensuring that the benefits are shared equitably, with Ugandans playing a central role in the sector’s growth.