Uganda oil and gas give hope
23rd, January 2013
Recent discoveries of commercially viable deposits of oil and gas in the Albertine Graben region in Uganda will be the most immediate option in unlocking the agricultural potential, the economy holds.
The region is estimated to possess about 3.5 billion barrels of oil yet only 40% of the graben region has been explored. The revenues if well managed can boost the commercialization of agriculture hence improved house hold incomes.
If the oil and gas natural resources in the country are developed and exploited effectively through participatory and transparent processes, they will provide highly needed revenues for sustainable economic growth and development.
However, note should be taken towards the finite nature of oil which can lead to a potential loss of competitiveness and reduced production in other sectors hence the need to utilize oil revenues for other macroeconomic challenges.
Making certain that the management of natural resources is undertaken in an open and transparent manner , significant reduction in corruption and other forms of political opportunism which are detrimental to economic growth and development would ne checked.
Revenue from natural resources such as oil and gas should not be treated as separate from the rest of the economy. This calls for a sound institution framework to separate policy settings and business promotion from the regulation of industry and commercial businesses.
Uganda�s current oil reserves were first discovered l in the Albertine Graben region, which runs along the entire western border of the country. More new discoveries were registered and more anticipations keep emerging.