Kampala, Uganda | JULIUS BUSINGE | Stanbic Bank Uganda in collaboration with the Industrial and Commercial Bank of China Limited (ICBC) have hinted that Uganda’s economy is set to reap big from oil and gas activities.
Speaking at an economic forum organised by the two banks for the Chinese business community in Uganda, Patrick Mweheire, the chief executive officer of Stanbic Bank Uganda said that US$15-20 billion would be invested in the sector in the next 3-5 years.
Mweheire stated that this huge investment in the oil infrastructure would create jobs for people and taxes for government and ultimately boost economic activities.
Mweheire said oil and gas will see Uganda back to growth levels of 9+%, up from the 5% recorded for the last five years.
He said that Uganda’s policy of liberalisation and allowing 100% foreign business ownership and profit repatriation makes it easy for investors to come and do business. He also said that the fact that Uganda’s population has 70% under the age of 24, means there is a strong workforce to support economic activities.
Mweheire added that the presence of a big regional market is an opportunity for investors in oil and gas and other areas to make money.
“Uganda is land locked but land linked,” he said, “It is peaceful, democratic and stable.”
He said that President Yoweri Museveni’s love for investors mean there is a political will and support for Foreign Direct Investment (FDI) into the country which is and would translate into positive economic growth.
Ernest Rubondo, the executive director of the Uganda Petroleum Authority Uganda urged Chinese investors to exploit opportunities in oil infrastructure, including the oil pipeline, roads, refinery, logistics and more.
Stanbic’s annual economic forum for the Chinese business community in Uganda aims to show opportunities created by trade between Uganda and China. This trade grew to the tune of over US$700 million at the end of 2016.
The forum attracted over 100 Chinese business participants.