MUSENERO: Oil wealth must drive industrial growth

What the report says

Uganda’s Energy and Mineral Development Minister, Dr. Monica Musenero Masanza, has urged the country to treat upcoming oil production as a tool for wider industrial development rather than as a source of export earnings alone. She made the remarks in Kampala at a Uganda Media Centre discussion on how oil and gas could contribute to Uganda’s long-term growth agenda.

Musenero said the real test of the petroleum sector should be whether it helps expand manufacturing, innovation, technology and local enterprise, alongside creating jobs. She argued that existing national investments in roads, electricity, schools and health facilities should now support productive activity that can raise incomes and exports. She also warned that depending only on crude sales could leave the country exposed to swings in global prices.

As examples of sectors Uganda should develop, she pointed to refining, petrochemicals, fertilizer production, industrial chemicals and plastics manufacturing. She also called for more investment in education, technical training, research and innovation so Ugandan firms can supply more goods and services to the industry. Her comments align with Uganda’s local content and petroleum laws, which prioritize domestic participation where capacity exists.

Other speakers at the event, including representatives from the Petroleum Authority of Uganda and the Uganda Investment Authority, echoed the view that oil should support broader economic transformation. Civil society participants welcomed the industrial focus but said transparency, environmental protection, community involvement and careful management of petroleum revenues remain important safeguards.