The entire amount invested in Uganda’s green oil field project between 2021 and 2022 was Shs 5.57 trillion, or an additional Shs 1.55 trillion in foreign direct investments. To put things in perspective, Uganda’s FDI climbed from Shs 2.93 trillion in 2017 to Shs 5.57 trillion at the moment.
The East African subcontinent’s Shs 1.55 trillion was the greatest amount ever recorded, according to the United Nations Conference on Trade and Development (UNCTAD), during the time period under consideration.
The joint venture between the Ugandan National Oil Company and the China National Offshore Oil Corporation (CNOOC) in the Sh23.7 trillion oil field at Lake Albert was a major driver of the investment.
The Shs 12.8 trillion, 1440-kilometer East African Crude Oil Pipeline, intended to transport oil from Uganda’s Lake Albert to Tanzania’s Tanga ports for export, is one of other comparable oil ventures in Uganda.
The amazing amount of FDI recorded on the subcontinent, according to UNCTAD, was Shs 31.7 trillion, with growth shown in various nations. Uganda’s FDI exceeded the EAC’s growth target of 3%, Tanzania’s FDI increased to Shs 4 trillion, while Kenya’s FDI increased to Shs 2.77 trillion.
Despite the expansion, the country’s FDI has underperformed, according to the Uganda Investment Authority (UIA), since more is needed to provide the degree of development Uganda seeks.
According to Mr. Angelo Izama, director of domestic participation for the UIA, “We need an infusion of about Shs 10.93 trillion to Shs 14.57 trillion every year to catch up with urgent needs, such as the provision of jobs and infrastructure development.”
According to data from the UIA’s December 2022 memo, FDI primarily aids in the manufacturing sector in providing jobs for Ugandans. According to Mr. Izama’s evaluation, this has been made worse by the nation’s quest for import substitution, which has been exacerbated by the coronavirus outbreak.
The UIA is working with more developed nations that require Uganda’s resources in an effort to close the micro-level investment gap that exists.