Strengthening Private Sector Engagement in Oil & Gas Value Chain in Uganda - Extractives Baraza

This Policy Brief collates evidence on specific gaps that hinder SME participation in the fast-transitioning oil and gas sector in Uganda. The Brief highlights policy considerations that can help bridge those gaps and scale up SME businesses to regional and global value chains. The brief mainly draws on existing research to inform policy dialogue on how Uganda ought to strengthen private sector engagement in the oil and gas sector.

The discovery of oil and gas in Uganda has created unprecedented opportunities that can stimulate sustainable development. One of the tools to achieving value creation through the newfound resource is through enhanced private sector engagement, particularly small and medium enterprises (SMEs) given their presence across sectors.

Nevertheless, the lack of understanding of the oil and gas value chain and applicable standards may hinder the effective participation of SMEs, thus affecting their ability to boost local skills development, job creation and inclusive economic development. In particular, SMEs, despite their centrality in socio-economic transformation (contributing about 18% to Uganda’s GDP), lack adequate capability and tools to sustainably thrive in the quality-intensive and competitive oil and gas sector. This calls for collaborative efforts to strengthen the capacity of SMEs and integrate them in the oil and gas supply chain.

This Policy Brief collates evidence on specific gaps that hinder SME participation in the fast-transitioning oil and gas sector in Uganda. The Brief highlights policy considerations that can help bridge those gaps and scale up SME businesses to regional and global value chains. The brief mainly draws on existing research to inform policy dialogue on how Uganda ought to strengthen private sector engagement in the oil and gas sector.

Date:
21st June 2019
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