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Kampala, Uganda | Julius Businge | The Uganda Chamber of Energy and Minerals CEO, Humphrey Asiimwe, has lauded the government’s allocation of Shs 875.8 billion in the upcoming financial year towards mineral- based industrial development, including oil and gas. Speaking during the Civil Society Budget Advocacy Group’s (CSBAG) post-budget dialogue held at the Sheraton Hotel on June 17, Asiimwe described the allocation as a crucial step in unlocking Uganda’s energy and mineral potential.
The funds are earmarked for key initiatives such as quantifying mineral resources like iron ore, gold, and copper, strengthening tracking systems, capitalising the Uganda National Mining Company, establishing mineral markets and buying centres, expediting the East African Crude Oil Pipeline (EACOP), and prioritising the construction of an oil refinery and refined products pipeline.
Asiimwe, however, urged the government to ensure effective and timely implementation of these plans. “The private sector is ready and fully committed to partnering with the government to realize the full potential of these initiatives and to ensure Uganda’s mineral and energy sectors deliver broad-based and lasting value,” he emphasized.
Speakers at the dialogue noted that the 2025/26 budget reflects a strategic and inclusive approach to resource governance—ranging from policy reforms to infrastructure investments—that empower citizens and stimulate national development.
In the extractives sector, participants welcomed the government’s commitment to local content. The policy requiring that 84% of Tier One oil and gas contracts—valued at USD 2.25 billion—be awarded to Ugandan companies was praised as a move that ensures local businesses benefit directly from resource exploitation. The establishment of the Uganda National Oil Company (UNOC) was also highlighted as a strategic effort to manage state interests and boost local participation.
Investment in infrastructure was another focal point. Projects such as EACOP, Kabalega International Airport, and the construction of over 700 kilometers of roads in the Albertine region were credited with improving logistics, job creation, and local economic activity.
The Chamber commended additional government incentives aimed at building capacity and entrepreneurship. These include tax holidays for citizen-owned start-ups and the training of over 14,000 Ugandans in technical oil and gas skills—key to fostering innovation and a skilled local workforce.
Private sector players also acknowledged the push toward mineral beneficiation and refining. The establishment of 10 gold refineries, four cement plants, a tin processing plant, and plans for a 60,000-barrel-per-day oil refinery signal a bold move toward reducing raw exports and enhancing local value addition.
Representing the Deputy Governor of the Bank of Uganda, Philip Andrew Wabulya, Executive Director for Risk and Strategic Management, highlighted the central bank’s role in budget execution. “The Bank of Uganda ensures macroeconomic stability through its Inflation Targeting Lite framework, which maintains price stability and anchors inflation expectations,” he said. He added that flexible monetary policy and exchange rate management create a stable environment for investment and fiscal planning.
Wabulya also pointed to targeted interventions like the Agriculture Credit Facility and the Small Business Recovery Fund, which provide affordable credit to farmers and SMEs, contributing to economic resilience and aligning with national budget priorities.
Julius Mukunda, Executive Director of CSBAG, emphasized the importance of fiscal discipline in the FY2025/26 budget. He called for greater transparency and accountability, urging the government to clear domestic arrears, rationalize borrowing, and ensure timely project completion. “Persistent domestic arrears and rising public debt risk crowding out critical social spending,” Mukunda warned. He added that fiscal discipline is key and that the current 19.1% interest rate is too high for private sector development, and government borrowing drives this cost.
“We urge the government to seek cheaper, better loans abroad,” Mukunda said. The dialogue, held under the theme “From Budget to Business: How Fiscal Reforms Can Unlock Trade and Investment Opportunities in Uganda,” served as a platform for stakeholders to explore how fiscal policy can drive inclusive and sustainable economic growth.
