KAMPALA: Five organisations, including two finance institutions and a research firm, have partnered to explore business opportunities in Uganda’s oil and gas sector.
The consortium includes Stanbic Bank Uganda, aBi Finance, the Economic Policy Research Centre (EPRC), Stanbic Properties Limited, and the Petroleum Authority of Uganda (PAU).
During a ceremony held in Kampala on Thursday (February 3), the five organisations commissioned two studies to define business opportunities in the agriculture and housing sectors linked to Uganda’s emerging oil and gas economy.
The commissioning of the studies came just a day after the government signed the Final Investment Decision (FID) for the crude oil pipeline, Tilenga, and Kingfisher Oil development projects.
PAU is the government agency that monitors and regulates the exploration, development, and production, as well as the refining, transmission, and storage of petroleum in Uganda.
In one of the agreements signed, Stanbic Bank, aBi Finance, and PAU agreed to collectively invest over Shs 350 million to contract the services of EPRC “to define the linkages between agriculture and oil and sector development in Uganda.”
The study is expected to estimate current and future demand and supply, assess the status of standards, as well as identify active agricultural enterprises with the potential to harness capacity to ably absorb emerging opportunities linked to the oil and gas economy, which is expected to drive demand as the country enters the production phase.
Based at Makerere University, EPRC is a think-tank specialising in economic and development policy-oriented research and analysis aimed at supporting the formulation, implementation, monitoring, and evaluation of government policies. defining housing needs. In
the second agreement, PAU has contracted Stanbic Properties Uganda Limited to “undertake a baseline study and project the future supply and demand of housing, the cost and availability of land, the cost and availability of building materials, and housing preferences and delivery systems in the Albertine region.”
Stanbic Properties will also analyse the strengths, opportunities, weaknesses, risks, and threats in the housing market in the Albertine region and the identified EACOP districts to establish the current feasible incentives along the housing value chain provided by government, non-government entities, and the private sector, which can complement investment.
In the agreement, Stanbic Properties has also committed to undertaking studies to help identify areas with land available for housing development and the modalities of land acquisition by investors; and to developing a housing strategy action plan with costed measures, an implementation road map, and an implementation process map for the realisation of identified opportunities.
What officials said about the pact:
Stanbic Bank Executive Director, said: “The signing of these agreements today couldn’t have come at a better time when the government has just announced the Final Investment Decision on EACOP, opening the stage to opportunities worth billions of shillings. While all this is exciting news, it is important for local investors to be guided by research to help them make informed investment decisions.” We are therefore pleased to be part of the solution and look forward to helping Ugandans get the most of the agricultural sector opportunities linked to the oil and gas economy. ”
Mona Muguma-Ssebuliba, Chief Executive, aBi Finance: “We are always supportive of initiatives that offer improved profitability, income, and employment for Ugandan farmers and the development of agribusinesses.” When finished, the study will hopefully guide in the future as to where Abi can make interventions that create the most positive impact for farmers in the vicinity of the oilfields.
Ernest Rubondo, PAU Executive Director: Once completed, the study will be a very useful item in our policy toolkit. As the regulator, we are always on the lookout for ideas that ensure greater local participation in the oil and gas sector. The supply of foodstuffs is one area where local farmers can become key players. However, this will require them to commercialise their farming methods, particularly by getting together and forming partnerships amongst themselves, to benefit from economies of scale that enable higher output to meet the expected high demand.
Stanbic Properties Chief Executive, said: “We are excited to embark on this important work on behalf of PAU. Study the real estate market and analyse all real estate segments (residential, office, retail, hotel, and industrial) in the 10 EACOP districts; these include Hoima, Kikuube, Kakumiro, Kyankwanzi, Mubende, Gomba, Sembabule, Lwengo, Kyotera, and Rakai, as well as the neighbouring districts of Masindi and Pakwach. The study will focus on the following areas: