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Petroleum Authority, Stanbic Incubator sign SME contract

Ernest Rubondo – ED PAU and Tonny Otoa – Chief Executive – Stanbic Business Incubator sign the MSME training contract in Kampala on Feb.22.

Kampala, Uganda | THE INDEPENDENT | Petroleum Authority of Uganda (PAU) has entered a partnership with Stanbic Business Incubator Limited (SBIL) and other partners to build the capacity of over 200 Ugandan enterprises along the export crude oil pipeline route to compete for contracts to supply Uganda’s oil and gas sector.

The consortium of partners, which is led by SBIL includes Conexus Oil and Gas, Solid Rock Life and Business, and Living Earth Uganda, will carry out the training of over 200 Micro, Small and Medium Scale Enterprises (MSMEs) in the ten (10) districts along the East African Crude Oil Pipeline (EACOP) route. The districts are Hoima, Kikuube, Kakumiro, Kyankwanzi, Gomba, Mubende, Lwengo, Sembabule, Kyotera, and Rakai.

The business development training is one of the three major components of the MSMEs business linkages project along the EACOP project being implemented by the PAU with support from the African Development Bank (AfDB).

The latest development comes following the announcement of the Final Investment Decision (FID) for Uganda’s oil and gas projects on 1st February 2022. The FID announcement signifies the commitment of the oil companies to invest close to US$ 10 billion to develop Uganda’s oil and gas resources through the implementation of the Tilenga Project in Buliisa and Nwoya districts; the Kingfisher Project in Hoima and Kikuube Districts (approximately US$6-8bn), and the EACOP.

While addressing the event on Feb.22 in Kampala, Ernest Rubondo, the Executive Director PAU said, “These investments present enormous opportunities for value addition in the country and there are many opportunities for Ugandan enterprises to participate. However, taking up the opportunities will require adequate preparation and the enterprises will have to demonstrate that they have the required capacity to deliver against sector requirements. The objective of this business development consultancy, therefore, is to build the capacity of MSMEs along the EACOP pipeline.”

Tony Otoa, the Chief Executive SBIL, said: “SBIL is pleased to lead this consortium of partners which brings a lot of value to this project. Beyond training these MSMEs, we will offer mentorship and opportunities to access to finance and markets. Therefore, I can confidently say that today’s signing is our way of ensuring Uganda’s growth is realized and key to this is supporting local enterprises by way of building their capacity to ensure they compete for contracts to supply Uganda’s oil and gas sector.”

At the same event, PAU also signed a Memorandum of Understanding (MoU) with the Private Sector Foundation of Uganda (PSFU) to enhance a partnership towards support to private sector participation in the oil and gas sector.

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